If the world’s second largest steel producer is to cut emissions in the sector, the country must navigate a complex scrap metal landscape.
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India needs more scrap to boost green steelmaking. Can it find it?
Abatify Summary
Nature & Climate Perspective
**The transition to scrap-based steelmaking in India significantly reduces the ecological footprint of industrial extraction by curbing the demand for primary iron ore mining. **
- Decarbonizing steel through scrap recycling reduces reliance on energy-intensive blast furnaces, lowering the overall industrial carbon intensity per ton produced.
- Lowering iron ore extraction activity mitigates land degradation and preserves biodiversity in mining-heavy regions such as Odisha and Chhattisgarh.
- Transitioning to an Electric Arc Furnace (EAF) model fueled by renewable energy creates a long-term stable pathway for industrial circularity and resource conservation.
Market & Policy Outlook
**India's push for green steel is increasingly dictated by international trade barriers and corporate carbon disclosure mandates like CBAM and SBTi. **
- The EU's Carbon Border Adjustment Mechanism (CBAM) poses a systemic financial risk to Indian steel exports, necessitating a rapid shift toward high-integrity scrap-based production.
- Current scrap supply deficits create a 'green premium' on low-carbon steel, highlighting a gap that could be bridged by high-integrity carbon credits aligned with ICVCM principles to incentivize investment.
- Global corporate procurement strategies increasingly require Scope 3 emissions reductions, forcing Indian producers to align with Science Based Targets initiative (SBTi) frameworks to maintain market share.
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