India aims to achieve net zero carbon emissions by 2070. This target, announced by Prime Minister Narendra Modi, is critical for mitigating catastrophic climate impacts. However, India’s plan to increase coal-powered steel production and expansion could jeopardize this ambition. Experts warn that the rapid expansion of traditional steelmaking methods poses significant environmental challenges.
India’s rapid economic growth and infrastructure projects have fueled an increasing demand for steel. To meet this demand, the government aims to boost steelmaking capacity to 300 million metric tons by 2030, up from the current 180 million metric tons. While this expansion supports economic growth, it also raises concerns about greenhouse gas emissions.
The steel industry in India relies heavily on coal, which powers 85% of the sector. Coal-based blast furnaces account for 69% of steelmaking projects under development, compared to just 13% from electric arc furnaces. As a result, India’s steel production emits 2.55 metric tons of carbon dioxide per ton of crude steel, significantly higher than the global average of 1.85 tons.
According to the Global Energy Monitor (GEM), India’s additional blast furnace capacity could lead to 680 million metric tons of carbon dioxide-equivalent emissions. Such emissions could hinder India’s net zero target and result in $187 billion worth of stranded assets.
Transitioning to cleaner steelmaking technologies is essential to balance growth and sustainability. Electric arc furnaces, which emit significantly less carbon dioxide, should play a larger role in future developments. Additionally, government policies must support renewable energy integration within the steel sector to reduce coal dependency.
India has the world’s largest pipeline of steelmaking projects, totaling 258 million metric tons per year. However, sustainable practices must be prioritized to avoid long-term environmental and financial risks.
Don’t miss the latest Forex trading news and insights on global markets about India’s steel expansion. Visit our website for more updates: Click here.
India’s steel expansion could threaten its net zero target. Discover the environmental and financial risks India faces in its steel sector.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)