New Delhi: India’s ambitious push to expand coal-powered steelmaking could significantly hinder its goal of achieving net-zero carbon emissions by 2070, according to a report released by Global Energy Monitor (GEM) on Tuesday.
Prime Minister Narendra Modi has committed to reaching net-zero emissions by 2070, a timeline that lags behind scientists’ recommendations for avoiding severe climate consequences. However, the rapid expansion of coal-based steel production to meet rising domestic demand threatens to escalate greenhouse gas emissions.
“India’s ongoing investments in new coal-based steelmaking, coupled with a young fleet of emissions-intensive blast furnaces, jeopardize the country’s net-zero by 2070 target and risk saddling the country with upwards of $187 billion in stranded assets,” GEM, a U.S.-based research organization, warned.
The report estimates that the additional blast furnace capacity could result in an increase of 680 million metric tons of carbon dioxide-equivalent emissions from the steel sector alone.
India, the second-largest global producer of crude steel, aims to boost its steel production capacity from 180 million metric tons to 300 million metric tons by 2030. With around 258 million metric tons of steelmaking capacity under development, India holds the largest pipeline of such projects globally, GEM reported.
The environmental impact of India’s steel industry is stark. The country’s steel producers emit 2.55 metric tons of carbon dioxide per ton of crude steel produced, exceeding the global average of 1.85 tons by 38%. Currently, 85% of the energy used in the sector comes from coal.
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Additionally, the report highlighted that coal-based blast furnaces account for 69% of steel capacity under various stages of development, whereas electric arc furnaces—an environmentally friendlier option—make up just 13%.
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India’s rapid economic growth and infrastructure demands are driving this expansion, but GEM’s findings underscore the urgent need for a transition to greener alternatives to align industrial growth with environmental commitments.
