India's steel sector hinders achievement of climate change goals

India's heavy industry, especially steelmaking, is a sore spot in its climate action plans.

Scientists warn that the booming sector could lead to the collapse of the country's sustainable development plans if the government fails to decarbonize it within the next 30 years. “Steel is one of the main consumers of coal after power generation, and if we don't talk about it, it will become one of the main contributors to climate change and air pollution,” says Sunil Dahiya, an analyst at the Center for Energy and Clean Air Research, an independent organization. (CREA).

In line with India's rapid development, the country's steel demand is projected to grow fivefold over the next 30 years, adding 35% to the country's total carbon dioxide emissions. In 2015, the iron and steel industry accounted for 6.2% of global emissions. If it were a country, it would be the fifth largest emitter after China, the United States, the European Union and India.

India has small, inefficient steel mills that often run on domestically produced coal that does not produce as much heat as the imported grade.

And yet, experts say, efforts to reduce the sector's carbon footprint are hardly undermined by inefficient production chains and strong lobbying interests. “India is making incredible progress when it comes to reducing its electricity emissions and we believe there is a clear path for the transport sector as well,” says Will Hall, author of a recent steel sector report presented in Delhi.