Steel Industry Advocates for Viability Gap Funding and Subsidies to Propel Green Transition

At the Conclave on Green Steel organized by PHDCCI, key stakeholders from India’s steel industry pressed for governmental backing to accelerate the nation’s path towards low carbon steel production. Representatives advocated for Viability Gap Funding (VGF) and subsidies to facilitate green transition projects, aiming to achieve India’s net zero emissions target by 2070.

Addressing the gathering, Mr. Ashwini Kumar, Economic Adviser at the Ministry of Steel, emphasized India’s robust position in global steel markets amid projected annual consumption growth of 10%. He underscored challenges such as limited gas availability and criticized the EU’s Carbon Border Adjustment Mechanism (CBAM) for its impact on scrap imports, crucial for India’s steel recycling efforts.

Mr. Anil K. Chaudhary, Chairman of PHDCCI’s Minerals & Metals Committee, stressed the industry’s responsibility, noting steel’s significant contribution of 12% to India’s greenhouse gas emissions. He urged comprehensive greening across the steel value chain, outlining phased emission reduction targets culminating in net zero emissions well before 2070.

The Conclave also featured discussions on innovative decarbonization technologies and the role of green hydrogen in steel manufacturing. Experts highlighted the necessity for policy interventions, including defining green steel standards and fostering demand through public infrastructure mandates.

Supported by the Ministry of Steel, Government of India, and various industry partners, the Conclave marked a pivotal moment in shaping India’s strategy towards sustainable steel production, leveraging global expertise and domestic innovation.