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India steel plans threaten global emissions goals: Report

The majority of India's announced steel development plans involve higher-emissions blast furnace production, in a country whose steel industry is already the world's most carbon intensive
The majority of India's announced steel development plans involve higher-emissions blast furnace production, in a country whose steel industry is already the world's most carbon intensive.

India's plans to massively expand coal-based steel and iron production threaten global efforts to reduce the sector's carbon emissions, a key contributor to climate change, a report said Tuesday.

The sector accounts for 11% of , and India aims to double production by 2030.

Switching from coal-dependent blast furnaces to electric arc furnaces (EAFs), which produce significantly fewer emissions, could reduce that figure.

EAF production is projected to make up 36% of the sector by 2030, but that falls short of the 37% the International Energy Agency (IEA) says is needed to stay on track for net-zero by 2050.

"The only realistic way to meet that 37% goal is with a change of plans from India," said Astrid Grigsby-Schulte from the Global Energy Monitor (GEM) think tank.

That seemingly marginal one-percent difference "represents tens of millions of tons of CO2 generation," Grigsby-Schulte told AFP.

EAFs generally rely on melting scrap steel, a process that does not use coal. They produce significantly fewer emissions, even when they rely on electricity from coal-dependent grids.

Meeting the 2030 target is "critical," she said, "not only because of emissions immediately avoided, but also because it means we are laying the necessary groundwork for broader decarbonization by 2050."

Steel production techniques
The world's top 20 steel producers.

China currently dominates global steel production, but its sector is stagnant. Meanwhile India, which targets carbon neutrality only by 2070, plans to massively expand domestic capacity.

And the majority of India's announced steel development plans involve higher-emissions blast furnace production, in a country whose steel industry is already the world's most carbon intensive.

However, there is a growing gap between India's steel capacity plans and actual developments on the ground, GEM said.

Just 12% of its announced new capacity has come online since the country released its 2017 National Steel Policy. The comparable figure for China is 80%, GEM said.

That suggests India's "ambitious growth plans are more talk than action thus far," the group added.

And it "leaves a huge percentage of their development plans that could still shift to lower-emissions technologies," added Grigsby-Schulte.

Demand for steel is continuing to grow, and the iron and industry is expected to be one of the last to continue using coal in the IEA's 2050 net-zero pathway.

The organization has warned that the sector needs to "accelerate significantly" to meet 2050 targets, including with innovative production methods that are currently in their infancy.

© 2025 AFP

Citation: India steel plans threaten global emissions goals: Report (2025, May 20) retrieved 27 June 2025 from /news/2025-05-india-steel-threaten-global-emissions.html
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