India could reduce carbon emissions in steel industry by 28% thanks to scrap – ISA

India could reduce carbon emissions in its steel sector by 28% through greater use of scrap metal. This was stated by Alok Sahai, Secretary General of the Indian Steel Association (ISA), at an industry event. This was reported by SME Futures.

This makes scrap one of the most practical short-term solutions for decarbonization.

Sahai emphasized that the carbon intensity of India’s steel industry is 2.55 tons of carbon dioxide per ton of steel. Scrap-based production offers immediate emissions reductions, unlike hydrogen-based technologies, which remain expensive and limited by raw material availability. According to him, only 600 million tons of the 2 billion tons of global annual steel production is produced from scrap.

The ISA Secretary General noted that steel production in the country is expected to reach 300 million tons by 2030. Given the long-term targets of 700 million tons by 2070, scrap will become strategically indispensable.

Sahai identified key challenges facing the sector, such as fragmentation, lack of standardization, price volatility, technology gaps, and trust deficits, and called for scrap to be recognized as a strategic commodity.

Scrap-based production in India’s steel sector currently accounts for only 22%, compared to significantly higher shares in the United States and the EU. India’s dependence on imports could become risky as exporting countries consider restrictions.

India has declared coking coal a critical and strategic mineral. This move is aimed at reducing dependence on imports of this product. The government’s decision will give coking coal special status, enabling faster permits for mineral extraction and better political support.