We recently convened the India Net Zero Steel Forum, bringing together leading stakeholders from across the steel value chain such as steel producers, procurers, and civil society organisations. The Forum also saw industry participation from major automotive organisations, construction companies and real estate developers.
The Forum took place at Mahindra Towers in Mumbai and was established to provide a collaborative platform for all stakeholders in the steel industry to exchange ideas and share knowledge and strategic initiatives. The Forum featured panel discussions, including on:
- Policy development and aspirations for sustainable steel production.
- Inducing and leveraging demand for low-emission steel from private and public sectors.
- Latest advancements in low-carbon technologies.
A closed-door roundtable was also hosted with major Indian automotive original equipment manufacturers (OEMs) on the adoption of low emission steel in the automotive supply chain.
There were many insightful deliberations, but among the Forum’s highlights were:
- Industries will play a crucial role as their combined purchasing power can help drive investments in advanced technologies needed for swift decarbonisation in the steel sector.
- Credible decarbonisation of the steel industry would require transparent and science-based standards that are easy for the entire value chain to adopt. A strong certification system can also enhance transparency, while collaboration across the steel industry is key to accelerating the decarbonisation process.
- Potential customers are not aware of low-emission steel. Recognising the efforts of steel producers is essential. Certifications such as ResponsibleSteel can play a crucial role in the uptake by verifying emissions and considering biodiversity and other environmental aspects.
- The lack of chain of custody data hampers the visibility of low-emission steel. This data tracks materials through each stage of the supply chain from sourcing to retail, especially regarding the mix of scrap and sponge iron in steel production. Additionally, fossil fuel-based electricity, heavily subsidised for SMEs and MSMEs, limits the adoption of renewable energy.
- Design optimisation in construction projects is increasing steel demand while reducing carbon emissions.
- The additional cost associated with green steel is currently at 25% and may rise to 70% by 2070, necessitating compensatory mechanisms for producers. These include preferential sourcing and demand aggregation of green steel in India.
- Given the rising cost of natural gas in Europe, India should leverage renewable energy (RE) as a competitive advantage. Additionally, nuclear energy should be considered as part of India's strategy for fast-tracking decarbonisation efforts in the steel industry.
To know more about India’s net zero steel outlook, read our India Net Zero Steel Demand Outlook Report.
