TERI and DIW Berlin jointly released a report titled 'Financing the Decarbonization of Indian Secondary Steel Sector: Towards an Enabling Environment.' This comprehensive study spotlights financial challenges hindering the green transition of India's secondary steel sector, emphasizing the unique difficulties faced by MSMEs in adopting decarbonization technologies. The report aims to address these hurdles and foster sustainable practices.
In a collaborative effort, The Energy and Resources Institute (TERI) and DIW Berlin unveiled a crucial report titled “Financing the Decarbonization of Indian Secondary Steel Sector: Towards an Enabling Environment” in December 2023. This comprehensive study delves into the financial barriers obstructing the green transition of India's secondary steel sector.
During a webinar organized for the report's launch, Karsten Neunoff from DIW Berlin initiated a discussion, shedding light on the unique challenges faced by the sector. Manish Kumar Shrivastava, Senior Fellow at TERI, emphasized that transitional technological pathways pose a significant challenge for MSMEs in the secondary steel sector due to their size and physical constraints.
Shrivastava highlighted that MSMEs (Micro, Small, and Medium Enterprises) encounter specific challenges in adopting decarbonization technologies. The sector's size and physical limitations make transitional technological pathways impractical. High upfront investment requirements, coupled with technical and structural difficulties, further intensify the complexity of decarbonization efforts.
An insightful panel discussion moderated by RR Rashnii, Distinguished Fellow at TERI, engaged industry experts such as Arpan Gupta, Additional Director at FICCI. Gupta emphasized the necessity for industry regulation and financial aid in enabling the sector's decarbonization. He proposed the establishment of a dedicated fund, akin to the national infrastructure investment fund, to specifically support the secondary steel sector.
The webinar served as a platform to discuss the intricacies outlined in the report. Initiatives and insights shared during the event emphasized the need for tailored financial solutions and supportive policies to facilitate the adoption of decarbonization technologies in the secondary steel sector.
TERI and DIW Berlin's collaborative report and the subsequent webinar underscore a vital initiative toward steering India's secondary steel sector towards sustainable and environmentally friendly practices. By addressing financial barriers and recognizing the specific challenges faced by MSMEs, the report aims to pave the way for a more inclusive and effective decarbonization strategy.