India-Sweden Partnership for Green Steel Transition

The India-Sweden Industry Transition Partnership (ITP) launched at COP28 marks step in sustainable industrial growth. This partnership focuses on decarbonising heavy industries, particularly steel and cement, which are high-emission sectors. The collaboration aims to mobilise finance and promote innovation for scalable decarbonisation in India.

Context of the Partnership

For over 75 years, Sweden has supported India’s industrial growth. The recent launch of ITP marks a shared commitment to tackle emissions in heavy industries. The partnership aims to accelerate the transition of these sectors by implementing flagship projects and creating market-based mechanisms.

Decarbonisation Strategies

Two main approaches are crucial for reducing emissions in the steel sector. The first is transitioning from traditional blast furnace-basic oxygen furnace (BF-BOF) processes to hydrogen-based methods. The second involves expanding electric arc furnaces (EAFs) powered by renewable energy. Both methods require important investment and innovation.

Challenges in Implementation

While promising, these strategies face challenges. Green hydrogen is currently expensive and the availability of steel scrap for EAFs is limited. A coordinated approach involving policy alignment, technology advancements, and investment is essential for success.

Role of Stakeholders

Buyers in sectors like automotive and infrastructure play a vital role in promoting low-emission steel. They can drive demand for greener solutions by improving traceability systems and ensuring transparency in the supply chain. This creates a market for low-emission steel and encourages manufacturers to adopt sustainable practices.

Government Initiatives

The Government of India has taken important steps to promote renewable energy, green hydrogen, and carbon capture technologies. The steel ministry’s roadmap for green steel includes public procurement of low-emission steel and incentives for recycling. These measures position India as a leader in green steel production.

Global Collaborations

LeadIT, along with other coalitions like the First Movers Coalition and SteelZero programme, aims to set standards for low-emission steel. These collaborations provide pathways for India to align with global climate goals while unlocking substantial investments in clean energy.

Future Prospects

The transition to green steel is a critical opportunity for India. It can lead to unprecedented innovation and sustainable growth. By focusing on green steel, India can set a benchmark for low-carbon economies globally and drive transformation in its industrial ecosystem.

Questions for UPSC:

1. Critically analyse the impact of global partnerships on India’s industrial decarbonisation efforts.
2. Explain the significance of green hydrogen in the steel production process. What challenges does it face?
3. What are the potential economic benefits of transitioning to green steel in India? Comment on the role of government policies in this context.
4. What is the importance of stakeholder engagement in promoting low-emission steel? How can it influence industry practices?

Answer Hints:

1. Critically analyse the impact of global partnerships on India’s industrial decarbonisation efforts.

1. Global partnerships, like the India-Sweden ITP, facilitate knowledge sharing and technology transfer essential for decarbonisation.
2. They mobilise financial resources and attract investments necessary for implementing sustainable practices in heavy industries.
3. Collaborations help set international standards for low-emission technologies, aligning India’s efforts with global climate goals.
4. Such partnerships promote innovation by encouraging joint research and development initiatives tailored to local contexts.
5. They enhance India’s visibility in the global market as a leader in sustainable industrial practices, attracting further international collaborations.

2. Explain the significance of green hydrogen in the steel production process. What challenges does it face?

1. Green hydrogen serves as a cleaner alternative to fossil fuels in steel production, reducing carbon emissions.
2. It enables the transition from traditional blast furnace processes to more sustainable hydrogen-based methods.
3. Challenges include high production costs of green hydrogen and limited availability, which hinder widespread adoption.
4. Infrastructure for hydrogen production, storage, and distribution needs important development for effective implementation.
5. Technological advancements and policy support are crucial to overcoming these challenges and making green hydrogen viable.

3. What are the potential economic benefits of transitioning to green steel in India? Comment on the role of government policies in this context.

1. Transitioning to green steel can unlock substantial investments, estimated at over ₹1 lakh crore, boosting economic growth.
2. It can create new job opportunities in renewable energy and sustainable manufacturing sectors.
3. Government policies, such as incentives for recycling and public procurement of low-emission steel, are vital for encouraging industry adoption.
4. Supportive regulations can stimulate innovation and attract foreign investments focused on sustainable technologies.
5. Economic benefits also include enhanced competitiveness in global markets as demand for green steel rises.

4. What is the importance of stakeholder engagement in promoting low-emission steel? How can it influence industry practices?

1. Stakeholder engagement, particularly from buyers in automotive and infrastructure sectors, drives demand for low-emission steel.
2. It encourages transparency and traceability in the supply chain, encouraging manufacturers to adopt sustainable practices.
3. Engaged stakeholders can influence policy decisions, advocating for frameworks that support green steel initiatives.
4. Collaboration among stakeholders can lead to shared best practices, enhancing overall industry standards for sustainability.
5. Active participation from stakeholders ensures that market needs align with production capabilities, facilitating smoother transitions to greener solutions.