India's steel production expansion threatens climate goals

India aims to double its steel production by the end of the decade, as outlined in a recent report by Global Energy Monitor. This plan poses significant challenges to the country’s climate goals and heightens concerns regarding global emissions from the steel industry, one of the world's most polluting sectors. While many countries are making progress toward decarbonizing steelmaking, India's reliance on coal-based technologies hinders these efforts. As the second-largest steel producer globally, India's decisions will significantly impact the overall trajectory of steel decarbonization efforts worldwide. The report highlights that India’s steel sector emits approximately 2.6 tons of carbon dioxide per ton of steel, which is about 25% higher than the global average. In contrast, China's steel industry has successfully reduced its emissions by adopting more scrap-based steel production methods and closing down older coal-fired plants. India's focus on coal-based production is evident, as over half of the new steel production capacity in development relies on these traditional and less clean methods, raising alarms among environmental groups and policymakers. In terms of renewable energy advancements, India seeks to generate 500 gigawatts of clean power by 2030, a goal already partially realized with the installation of over 100 gigawatts of solar power. Nonetheless, the country lags in transitioning its steelmaking processes to more sustainable electric arc furnaces, which are expected to comprise 37% of global steel production capacity by 2030 according to the International Energy Agency. Only 8% of the planned steel expansion in India has commenced, indicating a potential opportunity to pivot towards cleaner technologies as the nation considers the long-term health of both its economy and the environment. To achieve a balance between economic growth and ecological responsibility, Indian policymakers and industry leaders face challenges that may require difficult decisions. Some experts advocate for technological upgrades in steel production processes, even if they entail short-term sacrifices, to secure long-term advantages in global competitiveness and fulfill national climate commitments. Overall, India's future steel production trajectory will be closely scrutinized, not only for its impact on local and national emissions but also for its implications for global climate change efforts.