Green steel is poised to play a \u201cpivotal role\u201d in reshaping the future of the sector \u201cas the world moves towards a low-carbon economy,\u201d the India Economic Survey 2023-24 has said.<\/p>\n
Green steel typically refers to the metal produced from low carbon sources that include use of hydrogen in the manufacturing process, substitution of fossil fuels such as coking coal, among others. <\/p>\n
\u201cAs the world moves towards a low-carbon economy, green steel is poised to play a pivotal role in reshaping the future of the steel industry,\u201d the Survey noted. <\/p>\n
The steel sector accounts for 12 per cent of India\u2019s greenhouse gas emissions, with an emission intensity of 2.5 tonnes of CO2 per tonne of crude steel, compared to the global average of 1.9 tonnes of CO2 per tonne of crude steel.<\/p>\n
The survey mentions India\u2019s per capita emissions have remained consistently low between 2.5 and 2.8 tonnes CO2 eq \/ year (carbon dioxide equivalent), despite substantial economic growth over the last decade. In comparison, per capita emissions of 26 of the EU27 nations was around 8 tonnes CO2 eq \/year; almost three times that of India.<\/p>\n
It adds that there are \u201cextreme disparities and large and persistent inequalities in historical and current global energy consumption,\u201d and in such a scenario, the targets and strategies for the attainment of zero emissions \u201cshould not be dictated or mandated\u201d. <\/p>\n
On CBAM <\/b><\/p>\n
Ongoing discussions around EU\u2019s proposed carbon tax has shown that that the developed world is unwilling to accept the financial impact of changes in their consumption-oriented lifestyle, CBAM (Carbon Border Adjustment Mechanism) Research said. However, research says otherwise. <\/p>\n
Almost 63 per cent of respondents of the OECD Environmental Policies and Individual Behaviour Change Survey in 2022 (administered to over 17,000 households) feel that sustainable choices should not impact them financially. And, therefore, \u201cthey are unwilling to pay extra\u201d. \u201cContrast this directly with the CBAM tax that EU is willing to impose on products such as steel, for the so-called \u2018fair price on carbon emitted\u2019 during production, imported from developing countries,\u201d India\u2019s Economic Survey said. <\/p>\n
\u201cThe question seems (to be) less about sustainable choices, but more about a new play for capitalism,\u201d it said, pointing out that the plan seems to be so that \u201cthe old status quo keeps thriving, and the \u2018emerging\u2019 are in a perpetual state (continues to be uncertainty).\u201d <\/p>\n
The survey also mentions that based on research, developing countries require $6 trillion by 2030 to achieve \u201cjust about half of their existing NDC (nationally determined contributions) target\u201d. Against this, $100-billion was pledged by developed countries till 2032, of which only $83.3 billion was provided. <\/p>\n