Stating that the levy of carbon tax will mean export opportunities only for Green Steel, Minister of New and Renewable Energy Pralhad Joshi has urged Steel manufacturers to speed up manufacturing of Green Steel as per five-star rating to avoid facing any export barriers across the world.
Speaking at the AIIFA Steelex 2025 event in Mumbai, the Minister said that tariff on steel imports under the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) will be decided based on carbon content.
Stating that the EU’s leadership during its India visit was pleasantly surprised to see the progress in the renewable energy sector, he said that India’s upcoming Free Trade Agreement (FTA) with the EU and an expanded FTA with Australia will create new opportunities for exports. He pegged the target for Green Steel production at 300 million tonnes by 2030, along with a targeted export of 50 million tonnes.
With five Green Hydrogen pilot projects underway in the steel sector; seaports at Kandla, Paradip, and Tuticorin are being developed as Green Hydrogen hubs to ensure large-scale availability in the coming years. Almost the entire amount of nearly ₹20,000 crores given under the Green Hydrogen Mission has been allocated, and incentives are being awarded for 3,000 MW of electrolyser manufacturing.
Among other measures to promote Green Hydrogen, ISTS waiver has been finalised till 2030, Green Hydrogen and Green Ammonia plants have been exempted from environmental clearance, and a National Single window portal is being launched.
Having launched the Green Hydrogen safety panel last week, the government will soon decide on safety measures. The Minister beamed that the government’s Green Hydrogen certificate scheme launched in April 2024 is ensuring certification as per global standards which is leading to its acceptance worldwide.
Stating the government’s intent to lower the cost of Green Hydrogen to less than $2, he pointed out that the cost of Green Ammonia in auctions has come down to ₹49.75 per kg, from over ₹100 per kg earlier. He highlighted that the over 125 GW capacity being added for Green Hydrogen will lead to 50 million tons of lesser Carbon emissions and generate 6 lakh jobs.
