Heavy Metal Goes Green: The Rise of Scrap-Based Steel

As the government rolls out its green steel taxonomy, leading steelmakers are intensifying efforts to boost scrap-based production and strengthen downstream infrastructure in line with the new environmental standards.

Major producers including Tata Steel, ArcelorMittal, Nippon Steel, and JSW Steel are ramping up the use of scrap in steelmaking — a key strategy for reducing carbon emissions. In parallel, several companies are establishing steel processing centres to enhance scrap collection, segregation, and recycling efficiency.

The Centre has started issuing green steel star ratings to producers based on the carbon intensity of their manufacturing processes. The framework aims to incentivise cleaner production practices by providing graded recognition for lower emissions.

In the next phase, the government is developing guidelines that would mandate public sector undertakings (PSUs) to procure certified green steel for their projects, potentially ensuring steady demand for low-carbon steel.

The National Institute of Secondary Steel Technology, designated as the nodal agency, will evaluate emissions from steel production processes and award three-, four-, and five-star ratings. The classification will be based on verified carbon emission data, forming the foundation of India’s emerging green steel certification system.

News by Rahul Yelligetti.