India’s Green Steel Taxonomy : All you need to know

Steel having emissions intensity lower than 2.2 tCO2 shall be rated as Green Steel.

Green Steel Taxonomy of India | Team GreenSutra

In alignment with India’s target of achieving net-zero emissions intensity by 2070, the Taxonomy of Green Steel for India was unveiled on 12th December 2024 via the Ministry of Steel.

The India Green Steel Taxonomy sets clear benchmarks to classify and promote low-emission steel production nationwide.

The Green Steel Taxonomy for India is also supposed to supplement the transition towards advancing the National Mission on Green Steel.

As per the definition, Green Steel shall be expressed as a percentage of the greenness of steel produced from a steel plant with emissions intensity less than 2.2 tonnes of CO2e per tonne of finished steel (TFS). This classification ensures that only genuinely low-emission green steel qualifies for recognition under the national framework.

In other words, steel with an emission intensity greater than 2.2 tonnes of CO2e per tonne of finished steel is not eligible for a green rating. This strict criterion is a key component of the green steel taxonomy, ensuring only environmentally responsible steel production is certified.

Green Steel Rating

The threshold values or limits for defining the star ratings shall be reviewed every 3 Years.

1. Five Star green-rated steel: 1.6 tCO2e/tfs.

All steel that has an emission intensity of less than 1.6 tCO2e per tonne of finished steel.

2. Four Star green-rated steel : > 1.6 tCO2e /tfs and < 2.0 tCO2e /tfs

All steel that has an emission intensity of less than 2.0 tCO2e per tonne of finished steel but greater than 1.6 tCO2e per tonne of finished steel.

3. Three Star green-rated steel : > 2.0 tCO2e /tfs and < 2.2 tCO2e /tfs

All steel that has an emission intensity of less than 2.2 tCO2e per tonne of finished steel but greater than 2.0 tCO2e per tonne of finished steel.

Coverage and Inclusions

Emissions coverage will include:

– Scope 1 Emissions
– Scope 2 Emissions
– Scope 3 Emissions (only up to finished steel production)

Scope 3 emissions shall include (wherever applicable):

1. Agglomeration
– Sintering
– Pellet making
– Coke making etc
2. Benefication
3. Embodied Emissions from raw materials and intermediary products

Exclusions from Scope 3 Emissions:

1. Upstream mining 

2. Downstream emissions

3. Transportation

Validation and Certification

Currently, the National Institute of Secondary Steel Technology has been identified as the nodal agency for:

1. Measuring, Reporting and Verification ( MRV)

2. Issuance of Greenness Certificates and

3. Issuance of Star Ratings

The issuance of certificates will be every year (financial year).

Certificates may be issued at the corresponding frequency for those steel plants that opt for MRV more frequently.

India’s Strategic Shift Towards Sustainable Steel Production

As the global industrial landscape accelerates toward sustainability, India has made a significant leap by establishing a formal structure to define and promote green steel. The India Green Steel Taxonomy, introduced by the Ministry of Steel, is a strategic tool to guide and regulate carbon-conscious production practices. Unlike traditional frameworks, the green steel taxonomy is uniquely designed to support public and private sector steel manufacturers transitioning to cleaner technologies. Offering a structured emissions benchmark helps steelmakers in India meet regulatory expectations and positions them competitively in international markets.

Benefits of Adopting Green Steel Practices

Environmental Compliance: Align operations with national climate goals and evolving international sustainability frameworks.

Star-Rated Certification: Obtain 3-star to 5-star certifications based on verified emission levels to showcase environmental leadership.

Enhanced Operational Insight: Utilise structured MRV (Measuring, Reporting, Verification) protocols to identify inefficiencies and areas for improvement.

Future-Proofing: Prepare for global trade requirements and regulatory transitions by integrating green steel production norms early.

Why choose GreenSutra® for green steel taxonomy?

GreenSutra® is your trusted partner in navigating the India Green Steel Taxonomy complexities. With deep expertise in decarbonisation and regulatory compliance, we help steel manufacturers achieve top green steel ratings with confidence.

Steel Decarbonization Experts:

At GreenSutra®, we combine technical depth with field experience to deliver solutions for the most emission-intensive industrial processes.

Full MRV & Certification Support:

We handle all technical documentation and liaison processes with the National Institute of Secondary Steel Technology (NISST), making the transition smooth.

Scope 1, 2 & 3 Emissions Expertise:

Our team ensures complete coverage from agglomeration and sintering to coke making and beneficiation, compliant with the India Green Steel Taxonomy.

Trusted by Industry Leaders:

We are the go-to sustainability consultants for top manufacturing and infrastructure firms in Mumbai and beyond, thanks to our reputation for delivering impactful results.

Tech-Driven Sustainability:

Our digital tools and performance dashboards provide real-time tracking and compliance guidance, making us the best choice for companies seeking long-term green transformation.

Summary
India's Green Steel Taxonomy : All you need to know
Article Name
India's Green Steel Taxonomy : All you need to know
Description
Explore and understand the key aspects of India's Green Steel Taxonomy along with the green steel rating thresholds.
Author
Publisher Name
GreenSutra
Publisher Logo
Team GreenSutra®
Team GreenSutra®
https://greensutra.in