India sets emission targets for the steel sector

India’s Ministry of Environment, Forest and Climate Change (MoEFCC) has published draft rules on greenhouse gas emission intensity targets (Greenhouse Gas Emission Intensity Targets Rules 2025), Kallanish reports.

This step is part of India’s commitment to the Carbon Credit Trading Scheme (CCTS) 2023, a mechanism introduced to create a domestic carbon market.

The rules published by the MoEFCC set specific emission benchmarks for key industrial sectors, including ferrous metallurgy (the list for this industry includes 253 obligated entities).

The targets came into effect on June 23, the date of publication in the official gazette. The draft is open for public comment for 60 days from the date of its publication (August 23), after which the final rules will be published following consideration of proposals and objections.

Companies that exceed their targets must purchase carbon credits on the national carbon market to offset excess emissions. Those whose emissions are below the norm can trade their excess quotas.

Failure to comply with the obligations, as stated in the document, will result in penalties. The Energy Efficiency Bureau is responsible for calculating emission intensity targets using a detailed methodology.

As GMK Center reported earlier, December last year, India announced a formula for classifying green steel. Metal products with CO2 emissions of less than 2.2 tons per ton of rolled steel will be considered green. According to the government document, the threshold for determining categories will be reviewed every three years.