The iron and steel industry plays a crucial role in societies worldwide, forming the backbone of various products, including buildings, infrastructure, and vehicles. However, it is a significant carbon emitter and poses challenges for sustainability. With global calls for sustainability and increasing industrialization in the Global South, the sector's growth is expected to continue, leading to a higher demand for materials like iron and steel.
India is a key player in the global steel production landscape, with 111 million metric tons produced in 2019-20, representing 5% of global production. Steel production is emissions-intensive due to its heavy reliance on coal for energy, numerous small production facilities, and limited use of scrap as an input. Efforts to decarbonize the Indian iron and steel sector are imperative, given its environmental impact and increasing demand for steel. To achieve Climate Compatible Growth (CCG), a holistic approach must be taken, considering industrialization, energy security, self-reliance, and sustainability.
TERI in collaboration with Carleton University, Canada wrote an article highlighting this issue and has given certain policy recommendations to establish India as a green/sustainable steel production leader.