Written by Neha Arora
New Delhi (Reuters) – India’s plans to increase coal-fired steelmaking capacity could derail the country’s goal of net-zero carbon emissions by 2070, the Global Energy Monitor (GEM) said in a report on Tuesday.
India’s Prime Minister, Narendra Modi, has set 2070 as the goal of achieving zero emissions, twenty years later than scientists recommend to avoid catastrophic climate impacts.
But the push to produce more steel to meet growing demand is driven by India’s rapid economic growth and increasing infrastructure use risks increasing greenhouse gas emissions.
“India’s continued investment in new coal-based steel production, combined with a large number of fossil fuels … jeopardizes the country’s net zero by 2070 target and puts the country at risk of more than $187 billion in lost assets,” GEM said. , a US-based research group that tracks global energy projects.
The additional furnace capacity could result in an additional 680 million metric tons of carbon dioxide—equivalent to carbon dioxide emissions from India’s steel sector, GEM said in its report.
India, the world’s second-largest producer of crude steel, aims to reach a capacity of 300 million metric tons by 2030, up from 180 million metric tons.
India has the world’s largest pipeline of steelmaking capacity under development — projects announced or in the construction phase — totaling 258 million metric tons annually, GEM said.
Steel producers in the world’s fastest-growing economy produce 2.55 metric tons of carbon dioxide per ton of crude steel produced, 38% more than the global average of 1.85 tons, he said.
Currently, 85% of energy used in the steel sector comes from coal, GEM said.
Steelmaking from coal-fired furnaces accounts for 69% of steel volume under various stages of development, compared to 13% from electric arc furnaces, it added.
(Reporting by Neha Arora; Editing by Mayank Bharwaj and Saad Sayeed)
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