India cannot build its next phase of economic growth without steel. But it cannot sustain that growth and meet its long-term climate goals unless it changes how that steel is produced.
In Forging Ahead: Pathways to Green Steel for India, Asia Research & Engagement (ARE) examines one of the hardest questions in India’s net-zero transition: how can the country scale steel production while reducing emissions from one of its most carbon-intensive industries?
The report details decarbonisation roadmaps for India’s steel sector and assesses transition progress at four of the country’s largest producers: Tata Steel, JSW Steel, Jindal Steel, and Jindal Stainless.
Why This Matters
India’s steel sector sits at the intersection of the country’s growth ambitions and its climate commitments. The scale of the challenge is significant:
- India’s crude steel capacity is targeted to reach 300 million tonnes by 2030–31, a 67% increase from 179.5 million tonnes in 2023–24.
- This expansion will require an estimated USD105 billion (INR 10 lakh crore) in investment.
- The industry emitted 297 million tonnes of CO₂ in 2021–22, at an average intensity of 2.36 tCO₂ per tonne of crude steel.
- India’s steel emissions intensity is around 28% higher than the global industry average of 1.85 tCO₂ per tonne.
Without decisive and rapid action, the industry risks locking in high emissions for decades to come. If India is to achieve its aim of becoming a global leader in green steel, producers must move beyond ambition and target-setting into an era of accountability and validation.
Key Findings
ARE’s analysis reveals a significant gap between companies advancing clear decarbonisation strategies and those still primarily expanding conventional capacity.
- Tata Steel has the clearest route-shift logic, particularly in Europe, with visible progress on electric arc furnace (EAF) deployment, hydrogen pilots, and emissions disclosure — but still needs to make its India transition capex and plant-level milestones more visible.
- JSW Steel shows strong execution on renewables, certification, and low-emissions positioning, but its capital expenditure profile remains heavily tied to integrated capacity expansion.
- Jindal Steel has visible building blocks around renewables, hydrogen, and efficiency but needs clearer sequencing, from intensity reduction to deeper structural decarbonisation.
- Jindal Stainless starts from a structurally stronger position due to its EAF- and scrap-linked stainless production route, making near-term decarbonisation more directly responsive to clean electricity and renewable procurement — though this reflects in-built product-mix differences rather than a like-for-like sector transition.
- The transition is moving beyond targets into delivery. The next phase will be determined not by long-term net-zero targets but by whether companies can deliver bankable, plant-level pathways that reduce emissions intensity while scaling production.
About the Report
Forging Ahead assesses India’s four steel majors across five lenses: route reality, capital expenditure alignment, near-term execution, enabler dependence, and disclosure.
The report argues that credible transition pathways require clear production route choices, capital allocation aligned with lower-emissions production, time-bound implementation milestones, and robust Measurement, Reporting, and Verification systems capable of meeting regulatory and market requirements.
These dynamics are being reinforced by policy. India’s Green Steel Taxonomy creates a measurable benchmark for emissions performance, distinguishing credible green production from vague sustainability claims. In parallel, the European Union’s Carbon Border Adjustment Mechanism is making plant-level, verifiable carbon accounting a commercial requirement for exporters.
The report is produced by ARE, an independent research and engagement organisation that brings leading investors into dialogue with Asian-listed companies on sustainable development. Forging Ahead was authored by Arun Kumar (Strategic Advisor – Power Markets & Technology Innovation) and Arshiya Bhutani (Engagement & Research Manager).
Recommendations
The report’s core message is that the next phase of India’s green steel transition will be decided by bankable delivery, not targets. To lead the transition, producers and policymakers should focus on:
Making credible production route choices. Companies should articulate clear route-shift strategies and invest in enabling systems such as clean power and scrap, rather than remaining anchored to conventional blast-furnace expansion.
Aligning capital expenditure with lower-emissions production. Transition-linked capex, clean electricity procurement, and scrap and input strategies are prerequisites for credible decarbonisation at scale.
Setting time-bound execution milestones. Plant-level pathways with clear sequencing — from emissions intensity reduction to deeper structural decarbonisation — are essential to demonstrate progress.
Strengthening Measurement, Reporting, and Verification (MRV). Robust MRV systems capable of withstanding regulatory and market scrutiny are increasingly a commercial requirement, not just a disclosure exercise.
For policymakers, the next step is to build demand through procurement standards and certification frameworks. For buyers — particularly in infrastructure and public projects — early demand signals can play a key role in scaling lower-emission steel production.
Download the full Forging Ahead: Pathways to Green Steel for India report for the complete company assessments, decarbonisation roadmaps, and detailed analysis of India’s green steel transition.
