ArcelorMittal Nippon Steel India (AM/NS India) is preparing for full compliance with the Green Steel Taxonomy published by the Indian Ministry of Steel in December 2024, which is expected to come into force in FY 2026-27. The company aims to be the first integrated steel producer in India to achieve a three-star green steel rating.
The new taxonomy categorizes production based on the emission intensity of steel plants. Accordingly, production below 2.2 tons of CO₂ equivalent per ton (tCO₂e) per ton of finished steel will qualify as “green steel”. Production below this limit will be rated with three, four or five stars. Anything above will be excluded from the system.
AM/NS India achieved a carbon intensity of 2.17 tCO₂/tcs in fiscal 2023, 14% below the national average. The company plans to reduce this by a further 20% by 2030 to reach a target of 1.8 tCO₂/tcs and further lower its carbon emissions intensity, which it has reduced by more than 35% since 2015.
65% of the company's production capacity is realized through the direct reduced iron (DRI) process, which runs on natural gas. This process has a low carbon footprint. At the same time, in Hazira
With a renewable hybrid energy project at Kurnool to power its flagship plant, an active scrap processing facility at Khopoli and three new centers under development, the company's environmental impact continues to be reduced.
Steel Secretary Sandeep Poundrik stated that the taxonomy is “mandatory, not optional” and emphasized that the system aims to reduce the emissions intensity of steel production by 2030 and improve global competitiveness.
Mr. Dilip Oommen, CEO of AM/NS India, stated that India's publication of a green steel taxonomy, the first of its kind in the world, is a historic step for the industry and said, “This important initiative provides a clear pathway for the steel industry to transition to sustainable practices. We are fully aligned with this vision and believe we will be ready when implementation begins.”
AM/NS India continues to contribute to the sustainability goals of its customers in both local and global markets with its green and specialty steel products.
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