Global Push for Green Steel Faces Setback as India Bets on Coal

Global Push for Green Steel Faces Setback as India Bets on Coal

India risks undermining global climate targets if it fails to accelerate the shift to cleaner steel production, the Global Energy Monitor (GEM) warned in a report published on Monday.

Electric arc furnace (EAF) technology, which produces lower emissions than traditional coal-based methods, is expected to account for 36 percent of global steelmaking capacity by 2030 — just short of the International Energy Agency’s (IEA) 38 percent target.

But coal remains dominant, with India at the forefront of planned expansion using fossil fuels, GEM said in its annual review of the global iron and steel industry.

Doubling Steel Capacity 

India, which aims to double its steel capacity by the end of the decade, now represents more than 40 percent of global steelmaking capacity under development, or 352 million tonnes per annum (mtpa). Over half of the coal-based capacity in development — 200 mtpa — is also located in India.

Despite rapid announcements, progress has been slow. Of the 352 mtpa in development, construction has begun on just 28 mtpa — only eight percent.

“India is now the bellwether of global steel decarbonisation,” said Astrid Grigsby-Schulte, Project Manager of GEM’s Global Iron and Steel Tracker. “If the country does not increase its plans for green steel production, the entire sector will miss an important milestone. So goes India, so goes the world.”

Iron Ore Mining data 

The report also incorporates new data on iron ore mining, the core input for steelmaking. Global production reached 2,059 million tonnes last year, with Australia and Brazil accounting for a combined 64 percent.

GEM said both countries, rich in renewables, are well-positioned to produce green hydrogen and supply low-emissions iron to markets like India.

“Strategic alignment between ore producers and steelmakers will be crucial in the race to cut emissions,” the report noted.

India’s steel sector is currently the most carbon-intensive, emitting 20 to 25 percent more CO₂ per tonne of steel than China, according to GEM.