CURRENT AFFAIRS | MARCH 2026
CLAT Relevance
• India — first country to define Green Steel Taxonomy (Dec 2024)
• Five-star rating system based on CO2 emissions per tonne
• Emission range: 1.6-2.2 t-CO2e/tfs
• Target: 50% scrap-based steelmaking by 2047
• India — first country to define Green Steel Taxonomy (Dec 2024)
• Five-star rating system based on CO2 emissions per tonne
• Emission range: 1.6-2.2 t-CO2e/tfs
• Target: 50% scrap-based steelmaking by 2047
What is Green Steel Taxonomy?
- A classification framework that defines what qualifies as “green steel”
- Launched by Ministry of Steel in December 2024
- India became the first country globally to create a formal green steel taxonomy
- Purpose: standardise emissions benchmarks, enable green labelling, attract green finance
The Five-Star Rating System
Rating Framework
• 5-Star: Lowest emissions (~1.6 t-CO2e/tfs) — near-zero carbon steel
• 4-Star: ~1.7-1.8 t-CO2e/tfs
• 3-Star: ~1.8-1.9 t-CO2e/tfs
• 2-Star: ~2.0 t-CO2e/tfs
• 1-Star: ~2.2 t-CO2e/tfs — incremental improvement over baseline
(t-CO2e/tfs = tonnes of CO2 equivalent per tonne of finished steel)
• 5-Star: Lowest emissions (~1.6 t-CO2e/tfs) — near-zero carbon steel
• 4-Star: ~1.7-1.8 t-CO2e/tfs
• 3-Star: ~1.8-1.9 t-CO2e/tfs
• 2-Star: ~2.0 t-CO2e/tfs
• 1-Star: ~2.2 t-CO2e/tfs — incremental improvement over baseline
(t-CO2e/tfs = tonnes of CO2 equivalent per tonne of finished steel)
- Rating is based on Scope 1 and Scope 2 emissions
- Scope 1 = direct emissions from steelmaking process
- Scope 2 = indirect emissions from purchased electricity
- Current Indian average: ~2.5-3.0 t-CO2e/tfs (BF-BOF route)
Pathways to Green Steel
CLAT Angle — Technology & Policy
India’s taxonomy incentivises multiple decarbonisation pathways — not just hydrogen-based, but also scrap recycling, renewable energy integration, and CCUS.
India’s taxonomy incentivises multiple decarbonisation pathways — not just hydrogen-based, but also scrap recycling, renewable energy integration, and CCUS.
- Hydrogen-DRI route — replace coal with green hydrogen; most promising long-term
- Scrap-based EAF — using recycled steel in Electric Arc Furnaces; target 50% by 2047
- Renewable energy — powering EAFs with solar/wind electricity
- CCUS (Carbon Capture, Utilisation and Storage) — capture CO2 from existing BF-BOF plants
- Energy efficiency — waste heat recovery, process optimisation
India’s 2047 Scrap Target
- India aims to increase scrap-based steelmaking to 50% by 2047
- Current scrap usage: approximately 25-30%
- Vehicle Scrappage Policy (2021) feeds into steel recycling ecosystem
- Circular economy approach: reduce, reuse, recycle in steel value chain
Transition Challenges
- Cost premium — green steel costs 20-30% more; market willingness uncertain
- Green hydrogen availability — India’s green H2 production still nascent
- Infrastructure — hydrogen transport, storage, and distribution networks needed
- Scrap shortage — India is a net importer of steel scrap
- Technology readiness — hydrogen-DRI at commercial scale is 5-10 years away
- Financing — massive capex needed for BF-BOF to EAF conversion
Global Comparison
- EU — no formal taxonomy yet, but EU ETS covers steel emissions
- Sweden (SSAB) — HYBRIT project, world’s first fossil-free steel (2021 pilot)
- Japan — COURSE50 project for hydrogen-based steelmaking
- India’s taxonomy gives it a first-mover advantage in standard-setting
Key Terms for CLAT
- Green Steel Taxonomy — Classification framework for low-carbon steel
- t-CO2e/tfs — Tonnes of CO2 equivalent per tonne of finished steel
- CCUS — Carbon Capture, Utilisation and Storage
- Scope 1/2 emissions — Direct vs indirect emissions
- Circular Economy — Reduce, reuse, recycle approach
Source: UPSC Essentials, The Indian Express — March 2026
Practice Quiz
Test your understanding with these 10 MCQs:
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Quick answers
India became the first country to define Green Steel Taxonomy in:
December 2024. India launched its Green Steel Taxonomy in December 2024, becoming the first country to do so.
The five-star rating in Green Steel Taxonomy is based on:
CO2 emissions per tonne of finished steel. The rating system classifies steel based on CO2 emissions intensity (t-CO2e per tonne of finished steel).
The emission range in Indias Green Steel Taxonomy is:
1.6-2.2 t-CO2e/tfs. The taxonomy covers emissions from 1.6 to 2.2 t-CO2e per tonne of finished steel across the five-star system.
India aims to increase scrap-based steelmaking to what percentage by 2047?
50%. India targets 50% scrap-based steelmaking by 2047 to reduce emissions.
Green Steel Taxonomy was developed by:
Ministry of Steel. The Ministry of Steel developed Indias Green Steel Taxonomy.
Which route of steelmaking has lower carbon emissions?
Electric Arc Furnace with scrap. Electric Arc Furnace (EAF) using scrap has significantly lower emissions than BF-BOF.
