GREEN STEEL TAXONOMY– Definition, Criteria, and Rating System
Definition of Green Steel:
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Green Steel is defined based on CO₂ equivalent emission intensity:
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Must be < 2.2 tonnes CO₂e/tonne of finished steel (tfs)
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Percentage Greenness = Based on how much lower a plant’s emissions are compared to this threshold
Star Rating Classification:
| Star Rating | Emission Intensity (t-CO₂e/tfs) | Eligibility |
|---|---|---|
| ⭐⭐⭐⭐⭐ (5-star) | Less than 1.6 | Highest rating |
| ⭐⭐⭐⭐ (4-star) | Between 1.6 and 2.0 | Moderate rating |
| ⭐⭐⭐ (3-star) | Between 2.0 and 2.2 | Basic eligibility |
| — | Above 2.2 | Not eligible for green rating |
Scope of Emissions Considered:
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Scope 1: Direct emissions (e.g., fuel combustion)
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Scope 2: Indirect emissions (e.g., purchased electricity)
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Limited Scope 3:
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Included:
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Agglomeration (sintering, pelletizing, coke making)
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Beneficiation
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Embodied emissions in purchased raw materials & intermediaries
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Excluded:
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Upstream mining
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Downstream processes
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All transportation emissions (within and outside steel plant boundaries)
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Measurement, Reporting & Verification (MRV):
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Nodal Agency: National Institute of Secondary Steel Technology (NISST)
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Responsible for:
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MRV of emissions
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Issuance of:
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Green Steel Certificates
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Star Ratings
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Certification Details:
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Validity: Issued annually (per financial year)
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Flexibility: Can be issued multiple times/year if steel plants opt for more frequent MRV
Significance:
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Promotes accountability and transparency in industrial decarbonization
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Encourages technology transition and clean energy use in steel sector
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Supports India’s path to Net-Zero by 2070