Carbon mitigation potential of Indian steel industry

Abstract

Steel dominates the global metal production accounting for 5 % of increase in Earth’s atmospheric carbon dioxide (CO₂). Today, India is the 4th largest producer of crude steel in the world. The sector contributes around 3 % to the country’s gross domestic product (GDP) but adds 6.2 % to the national greenhouse gas (GHG) load. It accounts for 28.4% of the entire industry sector emissions, which are 23.9% of the country’s total emissions. Being a developing country, India is not obliged to cut its emissions under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (FCCC), but gave voluntary commitment to reduce the emission intensity of its GDP by 20–25 % from the 2005 level by 2020. This paper attempts to find out if the Indian steel sector can help the country in fulfilling this commitment. The sector reduced its CO₂ emissions per ton of steel produced by 58% from 1994 to 2007. The study generates six scenarios for future projections which show that the sector can reduce its emission intensity by 12.5 % to 63 %. But going by the conservative estimates, the sector can reduce emission intensity by 30 % to 53 %. However, actual emissions will go up significantly in every case.