India's Push for More Coal-Based Steelmaking Could Hinder Net-Zero Emissions Goal

India's plan to ramp up coal-powered steelmaking may pose challenges to its goal of achieving net-zero carbon emissions by 2070, according to a new report by Global Energy Monitor (GEM).

The country's Prime Minister, Narendra Modi, has set 2070 as the target for net-zero emissions, two decades later than the timeline scientists recommend to avoid the most severe impacts of climate change.

Rising Steel Demand May Drive Up Emissions

India's growing economy and increasing infrastructure needs are driving a higher demand for steel. To meet this demand, India plans to expand its steel production capacity, much of which relies on coal. However, steelmaking using coal-based blast furnaces is highly carbon-intensive. This shift could significantly increase greenhouse gas emissions, putting India's climate goals at risk.

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Concerns Over Increased CO2 Emissions

According to the GEM report, India's plans to expand its coal-powered steelmaking could result in an additional 680 million metric tons of CO2-equivalent emissions.

This would come from the country's expanding steel sector, which relies heavily on coal for energy. Currently, 85% of the energy used in India’s steelmaking process comes from coal.

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Coal-Based Blast Furnaces Dominate Steel Production

As of now, 69% of India's steel capacity is based on coal-powered blast furnaces, which are much more carbon-intensive compared to electric arc furnaces. Electric arc furnaces, which are cleaner and use recycled steel, account for only 13% of steel capacity in the country. This heavy reliance on coal for steel production makes it difficult for India to transition to greener alternatives.

The Need for Cleaner Steelmaking Technology

To meet its net-zero emissions target, India must transition towards greener steelmaking technologies like electric arc furnaces and hydrogen-based steelmaking. These methods produce significantly lower emissions and could help the country reach its climate goals. However, this transition will require substantial investments in technology, infrastructure, and policy reforms.

A Balancing Act for India

India’s push to increase steel production in response to economic growth and infrastructure needs must be carefully balanced with its climate objectives. While expanding the steel sector may be essential for economic development, it must not come at the cost of long-term environmental sustainability.

Moving forward, India must prioritize clean technologies and strategies to reduce emissions in its steel sector if it is to meet its net-zero target by 2070.