India becomes the first nation to launch a green steel taxonomy. This marks a crucial step towards enabling the low-carbon transition of the sector, particularly considering the EU CBAM regulations that will be enforced 2026 onwards.
The taxonomy grades green steel into three categories based on its emissions intensity. The emissions threshold across all 3 scopes to qualify as simplest-grade green steel (three-star rating) is set at 2.2 tCO2 per tonne of finished steel.
Will the graded definition of green steel in the taxonomy also guide nuanced green public procurement policies, with differential approaches across the three grades?
Will the introduction of the green steel taxonomy nudge an increase in internal carbon pricing among large players, in line with international trends, and help attract investments in clean pathways?