India stands at a decisive second. Final yr, whereas addressing COP30 delegates in Belem, Brazil, Setting Minister Bhupender Yadav dedicated the nation to submitting revised and extra formidable Nationally Decided Contributions (NDCs). This is a chance for the nation to place itself as a pacesetter, not simply by revising its commitments, however by setting out a transparent plan for decarbonizing the whole financial system, together with the areas which can be most tough to decarbonize, and the response wanted to take action.
No business is extra vital right here than metal.
likelihood to steer
As one of many largest rising economies, the metal sector is the cornerstone of India’s progress and drives infrastructure and industrial improvement. Certainly, to comprehend the nation’s potential, metal manufacturing might want to greater than triple, from the present roughly 125 million tons per yr to greater than 400 million tons by mid-century. That is unprecedented progress at the present time, and it’ll actually come at a price. The sector at present accounts for round 12% of the nation’s carbon emissions, largely because of continued reliance on coal.
Like different rising economies, India faces the twin problem of assembly long-term local weather targets whereas guaranteeing continued improvement.
To realize each of those targets, you will need to keep away from locking in high-carbon infrastructure. Investments made within the metal sector as we speak will decide the long-term prospects of the metal business. With out transition ambition, billions of {dollars} in carbon-inefficient applied sciences may very well be locked up. This won’t solely have dire penalties for the surroundings however will even make India’s financial system much less engaging within the medium to long run.
The world market spoke out. World wide, we’re seeing international locations taking vital steps in direction of transitioning their metal sectors. For instance, China plans to ramp up funding in scrap-based secondary metal manufacturing and inexperienced hydrogen to scale back dependence on coal in metal manufacturing.
In the meantime, the European Union has been on a decarbonization journey for nearly 20 years. Its Carbon Border Adjustment Mechanism (CBAM) is selling the transition to cleaner metal manufacturing for firms exporting metal to the area.
Nations that fail to display low-carbon manufacturing will face excessive border tariffs, danger dropping entry to premium export markets, and be accused of falling behind within the power transition the world really wants. Inexperienced metal pioneers will safe a decisive aggressive benefit. India’s metal sector can not afford to be delayed. These warnings have been famous by the Indian metal sector for a very long time and it’s already taking steps in the fitting route. Tata Metal has been piloting hydrogen injection into blast furnaces, increasing renewable energy buy agreements and exploring carbon seize options. In the meantime, JSW Metal and JSPL are exploring inexperienced hydrogen integration, whereas Metal Authority of India (SAIL) is modernizing its blast furnaces and exploring low-carbon manufacturing routes.
This transformation has been pushed from the highest of the corporate. This requires daring strategic decisions and sustained funding in innovation. Whereas this progress is vital, the sector can and will do extra.
We have to transfer shortly from pilot to demonstration plant to full-scale near-zero expertise. Small and medium-sized metal producers additionally have to adapt to the realities of the local weather emergency by adopting the very best obtainable applied sciences and uncooked supplies to supply extra carbon-efficient metal.
The sector ought to not spend money on historically excessive carbon-intensive blast furnace expertise. All new capability should be low or close to zero carbon as shortly as potential.
Coverage progress to this point
Taking such daring actions requires accountable administration groups and boards of administrators to believe within the sector’s trajectory. That is the place constant coverage indicators that information long-term industrial planning come into play.
India has made vital progress in shaping the route of its metal sector. The Inexperienced Metal Roadmap, revealed by the federal government in September final yr, set out a sensible path to decarbonise the sector. With the Inexperienced Metal Taxonomy revealed in December 2024, India turned the primary nation to formalize such a definition. The Nationwide Inexperienced Hydrogen Mission has proven momentum by rising renewable capability and carbon emission depth targets for 253 metal models underneath the Carbon Credit score Buying and selling Scheme (CCTS).
However a yr after the taxonomy was introduced, the coverage incentives to truly shift funding away from coal-based blast furnaces have but to materialize, and India dangers turning into the one nation that continues so as to add costly, previous expertise to its financial system.
The obstacles to inexperienced metal are massive, however solvable. The issue is that the availability of inexperienced hydrogen is restricted and the price is excessive. There’s a scarcity of renewable power devoted to business. restricted availability and casual nature of the scrap market in India; Secure and dependable entry to moderately priced pure gasoline as a transition gasoline. Identification and improvement of pure carbon sinks for sequestration. There’s a lack of long-term, low-cost debt for inexperienced metal initiatives and a necessity to scale back danger. and the necessity for worker upskilling and expertise assist. Many of those are coverage and funding challenges, an space the place India has proven speedy transformation when it needs to, as seen in renewable power over the previous decade.
To grab this chance, governments have to act as truthful regulators of the sector and set clear and rigorous short-, medium- and long-term carbon emissions targets in order that business can plan capital investments. This consists of the early introduction of a carbon pricing system, which gives an acceptable mechanism to unfold the prices of inexperienced metal throughout the worth chain.
In Europe, we all know that near-zero emission applied sciences will turn into viable solely after carbon costs attain between $90 and $100 per tonne of carbon dioxide.2. India can study from this expertise when setting its personal carbon emissions targets.
We have to see inexperienced metal taxonomy properly socialized, home markets created by inexperienced metal public procurement insurance policies, and greener merchandise promoted with acceptable certification mechanisms and labeling in place.
Pure gasoline would be the transition gasoline for the metal business because it transitions to hydrogen-based manufacturing. The federal government must prioritize using pure gasoline for the metal sector. Firms may have problem affording the infrastructure for inexperienced energy, inexperienced hydrogen, pure gasoline pipelines, or pipelines to eject captured carbon dioxide.2 By ourselves. Governments want to determine hubs in key areas of inexperienced metal improvement the place the prices of this infrastructure may be shared.
The capital depth of low-carbon manufacturing capability is round 30%-50% increased, making these insurance policies expedient and extra pressing within the Indian paradigm. Metal producers may additionally want some monetary assist to allow this transition. Smaller gamers will certainly want some further assist to make sure the transition is truthful.
strategic crucial
Inexperienced metal is not an choice. It’s central to India’s local weather targets, financial future and international management in sustainable industrialization. India is already demonstrating international management in renewable power deployment, local weather diplomacy, and clear expertise enlargement. Metal is now the subsequent frontier, an vital problem, and an unprecedented alternative.
By combining decisive enterprise motion with a powerful market-aligned coverage framework, India can decarbonize metal, guarantee financial competitiveness and set international industrial requirements.
Sanjiv Paul is a metal business veteran and former Vice President, Security, Well being and Sustainability at Tata Metal.
issued – January 31, 2026 12:16am IST
