India’s top steelmakers have urged the government to provide federal funding and other economic support to help them meet carbon emissions reduction targets, a leading industry body said.
India, the world’s third largest emitter of greenhouse gases behind China and the United States, has pledged to achieve a net-zero emissions target by 2070 and increase the share of renewables in its energy mix to 50% by 2030.
Indian steelmakers want federal subsidies and tax incentives to purchase new technologies, the Indian Steel Association said in a statement ahead of the country’s annual budget on Feb. 1, as they seek to cut emissions to 2.4 tons of CO2/per ton crude steel output by 2030 of 2.6 tons in 2020.
The association has also urged Prime Minister Narendra Modi’s government to make it mandatory for government-backed construction projects — the largest consumer of steel — to source some of the alloy from low-carbon producers.
Steel companies believe that government incentives for low-carbon technologies, state funding for green pilot projects and a market for steel made by green technologies would enable a low carbon footprint, TV Narendran, CEO and general manager of Tata Steel Ltd, told Reuters.
Major steelmakers including AM/NS India – a joint venture between ArcelorMittal and Nippon Steel – said high initial capital costs were needed to reduce carbon emissions.
Operating low-carbon steel plants would be “significantly expensive at least in the short to medium term,” said Dilip Oommen, chief executive officer at AM/NS India.
“The sector is taking initiatives on its own to reduce its carbon impact, but needs policy and public support to adopt deep decarbonization technology that is economically viable in early stages of adoption,” said Sajjan Jindal, chairman of the JSW group.
Between January and December, India’s crude steel production rose 17.8% to 118.1 million tonnes, a second only to China as economies recovered from pandemic-related lockdowns.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)