Forging Transition Decarbonizing the Indian Iron and Steel Sector through Energy Efficiency

August 20, 2026

India is the second-largest manufacturer of crude steel in the world.In FY 2023–24, the sector produced 144.3 million tonnes of crudesteel at an average intensity of 2.54 tCO2 per tonne, releasing 366.52 million tonnes of CO2. A major part of that emission comesfrom energy-related sources. The average Indian steel plant stillconsumes 30–42 per cent more energy per tonne as compared toglobal best plants.

Forging Transition argues that this gap is the opportunity. This reportassesses 15 energy-efficiency technologiesacross the blast furnace, coal-based DRI and electric furnace routes, quantifying the emissions that can be reduced from the existingcapacity. Complete deployment would cut sectoral emissionsby 21.6–34.8 million tonnes, or 5.9–9.5 per cent, with mosttechnologies paying for themselves within two years. This could alsobe a major contributor in achieving the upcoming Carbon CreditTrading Scheme (CCTS) targets.

For more information, please contact

Sayantan Haldar
+91-7980029939
sayantan.haldar@cseindia.org