Green Steel Certification
What is Green Steel Certification?
The Green Steel Certificate is part of India’s ambitious initiative to decarbonize its steel sector and achieve net-zero emissions by 2070. India has become the first country in the world to introduce a Green Steel Taxonomy, which establishes clear guidelines for determining the environmental sustainability of steel production. The concept of “Green Steel” is defined by the amount of CO2 emissions released during the steel production process, with a threshold of 2.2 tonnes of CO2 equivalent per tonne of finished steel. Steel plants with emissions lower than this threshold are eligible for green certification, and the level of certification is determined based on how much their emissions fall below this standard.
To facilitate this process, the Ministry of Steel & Heavy Industries has outlined a rating system for Green Steel. The rating is classified into three categories: five-star, four-star, and three-star, depending on the emission intensity. Five-star rated steel has emissions below 1.6 t-CO2e/tfs, while four-star and three-star ratings are given for steel with emission intensities between 1.6-2.0 and 2.0-2.2 t-CO2e/tfs, respectively. Steel with emission levels exceeding 2.2 t-CO2e/tfs is excluded from the green certification. This rating system allows consumers and businesses to easily identify steel products that contribute to a cleaner and more sustainable environment.
The Green Steel Certificate is issued on an annual basis by the National Institute of Secondary Steel Technology (NISST), which serves as the nodal agency for measurement, reporting, and verification (MRV). This certification ensures transparency and accountability in the steel sector by verifying the emissions associated with steel production. The ratings will be reviewed every three years to adjust the thresholds as the industry progresses toward lower emissions. In the future, steel plants may opt for more frequent MRV assessments to receive updated certificates more than once a year. This initiative not only sets a global benchmark but also positions India as a leader in green industrial transformation.
Benefits of the Green Steel Certificate
- Encourages Sustainable Steel Production The Green Steel Certificate promotes the adoption of low-carbon technologies and practices within the steel industry. By setting clear emission thresholds, it motivates steel plants to reduce their carbon footprint, leading to more sustainable steel production processes.
- Enhances Transparency and Accountability The certification provides a transparent mechanism for tracking and reporting emissions. It ensures that steel producers are held accountable for their environmental impact, making it easier for consumers and businesses to make informed decisions based on sustainability criteria.
- Promotes Global Leadership in Green Industry As the first country to establish a Green Steel Taxonomy, India sets a global benchmark in green industrial practices. This certification positions India as a leader in sustainable steel production, encouraging other nations to adopt similar measures.
- Attracts Green Investment Steel plants with higher green ratings can attract investments from environmentally conscious investors and stakeholders. The certification aligns with global sustainability goals, making green-rated steel more appealing to markets that prioritize low-carbon products.
- Supports India’s Net-Zero Target by 2070 The Green Steel Certificate directly contributes to India’s goal of achieving net-zero emission intensity by 2070. By incentivizing steel producers to lower their emissions, the certification helps drive the country’s broader climate action agenda.
- Increases Consumer Awareness and Choice With clear star ratings based on emission intensity, consumers can easily choose more environmentally friendly steel products. This empowers buyers to support brands and products that align with their values regarding climate change and sustainability.
- Fosters Innovation in Steel Production The need to meet stringent emission standards encourages innovation within the steel industry. Producers are likely to invest in new technologies and processes that reduce emissions, leading to advancements in energy efficiency and cleaner production methods.
- Facilitates Compliance with International Environmental Standards The Green Steel Certificate aligns with global sustainability and climate change goals, helping Indian steel producers meet international environmental standards. This makes Indian steel more competitive in global markets where sustainability is increasingly prioritized.
- Creates a Market for Green Steel By formalizing the definition and certification of green steel, India is helping to create a market for environmentally sustainable steel products. This can lead to increased demand for green steel domestically and internationally, stimulating economic growth in the sector.
Who can apply for Green Steel Certification?
- Steel Manufacturers
- Automotive
- Construction
- Low-Emission Plants
- Fabricators
- Roll Formers
- Finished Steel Producers
- Green Technology Adopters
- Emission Data Providers
Green Steel Certification Documents Requirements
- Preferred methods for data collection
- Data collection procedures, tools, and guidance materials
- Compile and review facility data
- Estimate missing data to fill gaps
- Choose emissions factors
- Calculate emissions
- Regulatory Licenses Copy & Certifications
- Management Certification
- Product Certification
- Industry Certification
- Compliance Report License
How Shamkris Group will help you in Green Steel Certificate?
Consultation and Guidance:
Shamkris Group may provide consultation services, offering guidance on Green Steel Certification requirements, methodologies, and best practices for accurate and compliant carbon emissions reporting in the steel production industry.Data Management Solutions:
Assistance in developing and implementing robust data management systems to collect, analyze, and report on emissions data for Green Steel Certification, ensuring accuracy, reliability, and compliance with the certification standards.Training and Capacity Building:
Provision of training programs for employees to enhance their understanding of Green Steel Certification, helping ensure the proper implementation of emission reduction practices and alignment with certification standards within the organization.Verification Support:
Support in the verification process, which is a crucial aspect of Green Steel Certification. This may involve collaborating with third-party verifiers and the National Institute of Secondary Steel Technology (NISST) to ensure that the reported emissions data meets the required standards.Technology Integration:
Assistance in adopting and integrating technologies that facilitate efficient and accurate emissions accounting, reporting, and reduction, making the transition to Green Steel practices smoother and more effective.Stakeholder Engagement:
Strategies to engage stakeholders, including suppliers, customers, and partners, in the Green Steel Certification process. This may involve creating communication plans and collaboration initiatives to ensure the successful adoption of sustainable steel production practices.Continuous Improvement:
Support in implementing continuous improvement strategies to enhance the accuracy, efficiency, and sustainability of emissions reporting over time, ensuring that steel production continually meets or exceeds Green Steel Certification requirements.Compliance Management:
Assistance in staying informed about changes in Green Steel Certification standards, thresholds, and other relevant regulations, ensuring ongoing compliance and adaptability as the industry moves toward net-zero emissions.Customized Reporting Solutions:
Development of tailored reporting solutions to meet the specific needs of steel producers, ensuring their emissions data and sustainability practices are accurately captured and presented in line with Green Steel Certification.Sustainability Strategy Integration:
Integration of Green Steel Certification into the broader sustainability strategy of the organization, aligning emissions reductions with overall corporate environmental goals and positioning the company as a leader in sustainable steel production.