Delhi/ Mumbai, 16 April 2025: ArcelorMittal Nippon Steel India’s (AM/NS India) existing and
anticipated manufacturing footprint and sustainability actions are set to ensure the company is
ready to deliver a significant proportion of green steel in confirmation with India’s new Green
Steel Taxonomy, which is expected to be rolled out in FY 2026 – 27. With these endeavours, it
is poised to become the first integrated steel company to achieve a three-star rating.
Green Steel Taxonomy for India was published in December 2024 by the Ministry of Steel to
provide a common language and framework on what constitutes lower-carbon steel to advance
decarbonisation of India’s steel industry and catalyse demand for greener steels for and from
India.
Green steel, as defined in the taxonomy, is categorized based on the emissions intensity of the
steel plant where it is produced. To qualify, the CO2 equivalent (CO2e) emissions intensity must
be less than 2.2 tonnes of CO2e per tonne of finished steel (tfs). Steel with an emissions
intensity above this threshold will not be eligible for a green rating, while steel produced below it
will be rated on a three-tier system: three-star, four-star, or five-star green steel.
AM/NS India’s confidence in its ability to lead the steel industry under the thresholds set by the
taxonomy stems from its strong track record of emissions reduction over the past several years
and its clear plans to build on this progress in the years ahead. AM/NS India achieved a CO2
intensity of 2.17 tCO2/tcs in FY 23 –– 14% lower than the national average and aims to achieve
20% reduction in carbon emissions intensity by 2030 to 1.8 tCO2/tcs from the 2021 baseline.
The company has already reduced its carbon emissions intensity by over 35% since 2015.
Currently, 65% of AM/NS India's steel capacity is derived from the Direct Reduced Iron (DRI)
route that uses natural gas. This process has a low carbon footprint. Further, the ongoing
expansion incorporates state-of -the-art technologies that focus on lowering carbon emissions.
At the time the Green Steel Taxonomy was unveiled, Steel Secretary Sandeep Poundrik
underscored its mandatory status: “Adopting the Taxonomy of Green Steel is not optional; it is a
mandate. This will help reduce the emission intensity to 2.2 tCO2 per tonne by 2030, ensuring
global competitiveness and growth”.In the near to medium term, AM/NS India’s ability to align with this mandate will be supported by
several strategic initiatives to pursue more sustainable steel production, including:
A renewable hybrid project by AM Green Energy in Kurnool, Andhra Pradesh, with
energy storage services from a co-located pumped hydro storage facility will deliver
power to AM/NS India’s flagship steel manufacturing plant in Hazira, Gujarat. This
initiative will not only reduce the company’s carbon emissions but will also provide
environmental and cost benefits.
A new scrap processing facility in Khopoli, Maharashtra, which is already operational.
Along with three additional centers under development, this facility will enhance the use
of recycled materials, further reducing the company’s carbon footprint.
Continuously improving operational efficiency by leveraging advanced technologies such
as digitisation and machine learning to reduce energy and material usage in
manufacturing.
Dilip Oommen, Chief Executive Officer, ArcelorMittal Nippon Steel India (AM/NS India),
said, “As India pursues its decarbonisation goals toward net-zero emissions by 2070, it has
pioneered the world’s first green steel taxonomy. This landmark initiative provides a clear
roadmap for the steel industry to transition towards sustainable practices. AM/NS India stands
firmly aligned with this vision, and the initiatives we have undertaken give us confidence that we
will be ready when this taxonomy is implemented.”
AM/NS India’s green and specialised steel products help customers meet global standards,
export efficiently and promote a greener value chain. The company is among the lowest carbon-
intensive steelmakers in India, leading the way as India’s green steel taxonomy comes into
force.
AM/NS India well prepared for introduction of Ministry of Steel’s Green Steel Taxonomy
