There is urgent need for India's steel industry to address its environmental impact and adapt to new regulations to maintain its competitive edge in the global market
The Indian steel industry is poised for rapid growth, but it must address its environmental impact, particularly its carbon footprint, said Ashwini Kumar, Economic Advisor to the Union Ministry of Steel, speaking at the Carbon Border Adjustment Mechanism (CBAM) Conference organised by Assocham.
India's steel production currently generates 2.5 tonnes of CO2 per tonne of crude steel, primarily due to limited gas resources and other factors. He stressed the need for a transition to greener practices and decarbonisation to meet climate goals.
The expected growth, propelled by a robust economy, strong fundamentals, and growth in infrastructure and construction industries, is likely to give India a dominant place in the global steel market according to Kumar.
Sabyasachi Bandyopadhyay, Co-chairman of Assocham's National Council on Iron and Steel and Director of Technical Marketing and Innovation at Jindal Steel and Power, highlighted the potential impact of CBAM on India, which may lead to additional taxes of 20-35 percent in the near future. He emphasised the need for a strategic approach to adapt to these changes.
Devasish Mishra, Executive Vice President at JSW Steel, outlined the objectives of new regulations aimed at addressing carbon emissions and ensuring products meet stringent environmental standards. He discussed the challenges faced by the steel and aluminium industries in balancing competitiveness and sustainability.
Manish Mishra, Chief Corporate Affairs at Tata Steel, shared insights on the implications of CBAM for the steel sector, including its impact on global supply chains, trade agreements, and commodity markets. He underscored the significance of sustainability in shaping business operations.
The conference highlighted the urgent need for India's steel industry to address its environmental impact and adapt to new regulations to maintain its competitive edge in the global market.