India's newly introduced Carbon Credit Trading Scheme (CCTS) is set to encourage cleaner steel production by assigning emissions-intensity targets to steel plants. Companies that outperform their targets will be able to earn tradable carbon credits, creating a financial incentive to reduce greenhouse gas emissions while improving operational efficiency.
The scheme is expected to support the steel sector's transition toward low-carbon manufacturing, but experts caution that carbon credits alone will not drive deep decarbonisation. Significant investments in cleaner technologies, supportive policy measures, and long-term financing will be essential for India's steel industry to achieve meaningful emissions reductions while remaining globally competitive.
Reference: Business Today