India's ambitious plan to expand its steel production capacity from 200 million to over 330 million tonnes by 2030 poses significant challenges to both national climate goals and global decarbonization efforts. The country's reliance on coal-based technologies in steel manufacturing contributes approximately 12% of its total greenhouse gas emissions, a figure that could double if current expansion plans proceed without cleaner alternatives.
The International Energy Agency recommends that 37% of global steel production utilize lower-emission electric arc furnaces by 2030. However, India's coal-heavy expansion risks undermining this target. Despite producing 100 gigawatts of solar power, India's steel industry continues to emit 2.6 tons of CO₂ per ton of steel, about 25% above the global average.
With 92% of India's planned steelmaking capacity still unconstructed, there is a timely opportunity to pivot toward green technologies. Failure to adapt could also impact Indian steel exports, as markets like the EU begin imposing carbon border taxes.
Vietnam Steel by Hoa Sen Group
