India's Steel Ministry has proposed that over one-third of the government's total steel procurement will consist of low-carbon "green steel." Defined as steel produced with emissions lower than 2.2 tonnes of carbon dioxide per tonne of finished steel, green steel will be graded using a star-rated system. A five-star rating will signify an emission intensity below 1.6 tonnes of CO2 equivalent per tonne of finished steel.

In a recent presentation, the Steel Ministry outlined plans to reserve up to 37% of all future steel procurement for green steel. This initiative aims to incentivize lower carbon emissions in steel production and promote sustainable practices in the industry. Union Steel Minister H.D. Kumaraswamy, speaking at an event marking the announcement, emphasized that the green steel taxonomy would set a benchmark for adopting global best practices and position India as a global leader in green steel production.

Addressing concerns about the import of Chinese steel, Kumaraswamy revealed that his ministry has proposed implementing a safeguard duty to protect the domestic steel industry from foreign competition. These measures align with India’s broader efforts to promote sustainability and strengthen the domestic steel sector.