American think tank in the field of international affairs Atlantic Council in a latest update said “China and India are the top two steel-producing countries in the world, producing 1,032.8 and 118.2 million tonnes of crude steel per year respectively. While China is presently the largest steel-producing nation, its domestic demand for steel is expected to decline in the coming years. India’s steelmaking industry, on the other hand, is projected to nearly double by 2030 and almost quadruples by 2050, relative to 2019 production levels. This can be attributed to the importance of steel in infrastructure, housing, and other sectors crucial to India’s development. Thus, engaging India in any global steel decarbonization arrangement will be critical. Moreover, India’s involvement may be important to winning China’s engagement in any global effort as well.” It said “Indian steel production is currently highly carbon-intensive. While some major producers are interested in decarbonization, the current approach is fragmented and slow-moving. As it moves forward to achieve its carbon neutrality goals, India has an opportunity to create sector-wide change. Differences in the funding streams and target markets among large and small steel producers pose a challenge. Looking towards practical action on decarbonization, using gray hydrogen in the short term can reduce the carbon intensity of the steelmaking industry until green hydrogen becomes commercially viable. But a suite of policies and funding initiatives across sectors will be required. The most important of those is to make sure that new BF-BOF steel plants have the capability for conversion to much cleaner technology, predominantly hydrogen, well before the end of useful life.” It concluded “For that reason, any new global arrangement to decarbonize steel must be open to and seek to engage the Government of India and the leaders of India’s steel industry. Steel producers that operate in the global market must consider an accelerating international movement that emphasizes “green” steel and creates markets for it. They will need to access financing in global markets that is available only to decarbonizing borrowers. The Government of India must strengthen mandates and incentives to cut energy use and emissions, emphasize a circular economy for steel, support massive investments in new hydrogen facilities to serve the steel industry, and ensure that new plants are adaptable to lower-carbon technologies in the future. Without a multilateral arrangement that the G7 can kickstart, such progress in India is much less likely. Although India is not a member of the G7, its presidency of the G20 in 2023 and that fact that it currently co-chairs the Clean Energy Ministerial (CEM) with the United States, the meetings of both will be held in India in 2023, mean that it can coordinate closely and immediately with the United States and other G7 countries if the G7 were to take the lead in 2023 to initiate a global arrangement on decarbonizing steel.”
American think tank in the field of international affairs Atlantic Council in a latest update said “China and India are the top two steel-producing countries in the world, producing 1,032.8 and 118.2 million tonnes of crude steel per year respectively. While China is presently the largest steel-producing nation, its domestic demand for steel is expected to decline in the coming years. India’s steelmaking industry, on the other hand, is projected to nearly double by 2030 and almost quadruples by 2050, relative to 2019 production levels. This can be attributed to the importance of steel in infrastructure, housing, and other sectors crucial to India’s development. Thus, engaging India in any global steel decarbonization arrangement will be critical. Moreover, India’s involvement may be important to winning China’s engagement in any global effort as well.” It said “Indian steel production is currently highly carbon-intensive. While some major producers are interested in decarbonization, the current approach is fragmented and slow-moving. As it moves forward to achieve its carbon neutrality goals, India has an opportunity to create sector-wide change. Differences in the funding streams and target markets among large and small steel producers pose a challenge. Looking towards practical action on decarbonization, using gray hydrogen in the short term can reduce the carbon intensity of the steelmaking industry until green hydrogen becomes commercially viable. But a suite of policies and funding initiatives across sectors will be required. The most important of those is to make sure that new BF-BOF steel plants have the capability for conversion to much cleaner technology, predominantly hydrogen, well before the end of useful life.” It concluded “For that reason, any new global arrangement to decarbonize steel must be open to and seek to engage the Government of India and the leaders of India’s steel industry. Steel producers that operate in the global market must consider an accelerating international movement that emphasizes “green” steel and creates markets for it. They will need to access financing in global markets that is available only to decarbonizing borrowers. The Government of India must strengthen mandates and incentives to cut energy use and emissions, emphasize a circular economy for steel, support massive investments in new hydrogen facilities to serve the steel industry, and ensure that new plants are adaptable to lower-carbon technologies in the future. Without a multilateral arrangement that the G7 can kickstart, such progress in India is much less likely. Although India is not a member of the G7, its presidency of the G20 in 2023 and that fact that it currently co-chairs the Clean Energy Ministerial (CEM) with the United States, the meetings of both will be held in India in 2023, mean that it can coordinate closely and immediately with the United States and other G7 countries if the G7 were to take the lead in 2023 to initiate a global arrangement on decarbonizing steel.”
