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Core Purpose

Notification of the Ministry of Steel publishing the Taxonomy for Green Steel for India, defining greenness criteria, star ratings, and the certification framework administered by the National Institute of Secondary Steel Technology.

Detailed Summary

The Ministry of Steel issued Notification G.S.R 763(E) dated 12th December 2024, publishing the Taxonomy for Green Steel for India, which defines 'Green Steel' as steel produced with a CO2 equivalent emission intensity below the threshold of 2.2 tonnes CO2e per tonne of finished steel (t-CO2e/tfs), with greenness expressed as a percentage relative to this threshold and calculated per the formula G% = (1 - Ep/2.2) x 100 (illustrated with an example plant at 2.0 t-CO2e/tfs yielding 9.1% greenness); steel is rated as five-star (below 1.6 t-CO2e/tfs), four-star (1.6 to 2.0 t-CO2e/tfs), or three-star (2.0 to 2.2 t-CO2e/tfs) green-rated, with steel above 2.2 t-CO2e/tfs ineligible for green rating, and the threshold is to be reviewed every three years; emissions scope covers Scope 1, Scope 2, and limited Scope 3 (agglomeration, beneficiation, and embodied emissions in purchased raw materials, excluding upstream mining, downstream emissions and transportation) up to finished steel production; the National Institute of Secondary Steel Technology (NISST) is designated the nodal agency for measurement, reporting and verification (MRV) and for issuing greenness certificates and star ratings, applying the methodology in the Bureau of Energy Efficiency's 'Detailed Procedure for Compliance Mechanism under CCTS' (July 2024) under the Carbon Credit Trading Scheme notified on 28th June 2023; registration with NISST costs a one-time fee of Rs 10,000 per steel plant, and certification costs Rs 1,000 for every 500 tonnes of finished steel certified, with certificates issued yearly (financial year) or more frequently upon request; the notification was issued under F. No. 1(6)-2024-ID-2 and signed by Vinod Kumar Tripathi, Joint Secretary.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-13122024-259382 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 701] | NEW DELHI, THURSDAY, DECEMBER 12, 2024/AGRAHAYANA 21, 1946 8054 GI/2024 2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] [F. No. 1(6)-2024-ID-2] VINOD KUMAR TRIPATHI, Jt. Secy. Appendix I 3 C Et =2.2 Emission intensity (t-CO2e/ tfs) Ep B A E = 0 Figure 1 MINISTRY OF STEEL NOTIFICATION New Delhi, the 12th December, 2024 G.S.R 763(E).—The Taxonomy for Green Steel for India is hereby published for general information--- 1. "Green Steel" shall be defined in terms of percentage greenness of the steel which is produced from the steel plant with CO2 equivalent emission intensity less than 2.2 tonnes of CO2 e per tonne of finished steel (tfs). The greenness of the steel shall be expressed as a percentage, based on how much the steel plant's emission intensity is lower compared to the 2.2 t-CO2e/tfs threshold. The technical explanation for measuring greenness of the steel produced within a plant is provided in Appendix I. 4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] 2. Based on the greenness, the steel shall be rated as follows: Five-star green-rated steel: Steel with emission intensity lower than 1.6 t-CO2e/tfs shall be defined as five-star green-rated steel. Four-star green-rated steel: Steel with emission intensity between 1.6 and 2.0 t-CO2e/tfs shall be defined as four- star green-rated steel. Three-star green-rated steel: Steel with emission intensity between 2.0 and 2.2 t-CO2e/tfs shall be defined as three- star green-rated steel. Steel with emission intensity higher than 2.2 t-CO2e/tfs shall not be eligible for green rating. 3. The threshold limit for defining star rating of Green Steel shall be reviewed every three years. 4. The scope of emissions shall include Scope 1, Scope 2, and limited Scope 3, up to finished steel production. Scope 3 emissions shall include agglomeration (including sintering, pellet making, coke making), beneficiation, and embodied emissions in purchased raw materials and intermediary products, but shall not include upstream mining, downstream emissions and transportation emissions, both within and outside the gates of a steel plant. 5. Green star-rating of the steel of the registered steel plant shall be based on emissions incurred till finished steel production stage with the limited scope-3 as described in Clause-3. 6. The National Institute of Secondary Steel Technology (NISST) shall serve as the nodal agency for measurement, reporting, and verification (MRV) as well as for issuing greenness certificates and star ratings for steel. 7. The certificate of green-rated steel shall specify plant name, embodied emissions at finished steel level, greenness percentage at finished steel level, star rating of the steel and the quantity. 8. The methodology for emissions MRV, as published by Bureau of Energy Efficiency (BEE) in the document 'Detailed Procedure for Compliance Mechanism under CCTS' in July 2024 (as amended up to date of certification), under Carbon Credit Trading Scheme (CCTS), as notified on 28 June 2023, shall be applicable. 9. Steel plants may register with NISST to obtain greenness certificates and star rating for their products. 10. For registry, a one-time amount of Rs 10,000 shall be charged per Steel Plant by the NISST. 11. For certification, an amount of Rs. 1,000 shall be charged for every 500 tonnes of Finished Steel certified. 12. The certificate shall be issued on yearly basis (financial year). In case the steel plants opt for MRV more frequently, then the certificate may be issued more than once in a year as per the requirement. 13. A registry of green-rated steel shall be maintained by NISST. [F. No. 1(6)-2024-ID-2] VINOD KUMAR TRIPATHI, Jt. Secy. Appendix I Technical explanation of Green Steel Taxonomy: Consider that the CO2 equivalent emission intensity of steel is represented on the y-axis. The lowest end on the axis (point A), indicated in Figure 1, represents net-zero emissions steel (E₀ = 0). The actual emission intensity of the plant (Ep) is represented at point B. Point C represents the emission intensity threshold (Et) considered for defining greenness of steel. The emission intensity threshold is a fixed value of 2.2 t-CO2e/tfs. 5 C Et =2.2 Emission intensity (t-CO2e/tfs) Ep B A E = 0 Figure 1 A steel plant with emission intensity (Ep) lower than the threshold emission intensity (Et) shall be eligible for a greenness certification as explained below. 1). If Ep = E0, then the plant can be considered to be producing 100% green steel. 2). If Ep>Et, the plant is not producing steel with any greenness. 3). However, if E0<Ep<Et, then the greenness percentage (G%) of plant can be defined as: G% = |BC| / |AC| × 100 = |AC - AB| / |AC| × 100 = (Et - Ep) / Et × 100 = (1 - Ep/Et) × 100 or, G% = (1 - Ep/2.2) × 100 As an example, the green steel definition can be explained considering a steel plant having a CO2 equivalent emission intensity (Ep) of 2.0 t-CO2e/tfs. The greenness percentage (%G) of the total steel produced by the plant will be 9.1% based on the methodology indicated above. Therefore, as per the definition, the steel produced by the said plant will be 9.1% green. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. GORAKHA NATH YADAVA Digitally signed by GORAKHA NATH YADAVA Date: 2024.12.13 15:23:47 +0530

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