The Indian steel industry is at the brightest spot in the world stage scenario said Ashwini Kumar, Economic Advisor, Union Ministry of Steel while addressing the Conference on Carbon Border Adjustment Mechanism (CBAM) hosted by Assocham. "We are looking forward to the expansion of the steel industry and a robust economy with strong fundamentals, infrastructure and construction," he mentioned.
He added that there are certain challenges to overcome like how to improve a good carbon footprint. We are standing at 2.5 tonne of CO2 emission per tonne of crude steel which is a cause of inadequate gas resources and other factors. India is forced to do decarbonisation before development with constant optimisation. Green transition is necessary to achieve goals safeguarding climate.
Sabyasachi Bandyopadhyay, Co-chairman, Assocham National Council on Iron and Steel, Director, Technical Marketing and Innovation, Jindal Steel and Power stressed the impact of 0.5 per cent of GDP because of CBAM in India and how it will impose additional taxes of 20-35 per cent in the near future.
He highlighted the concern that new rules will impact various sectors and the economy as a whole. He called for a disciplined and strategic approach to adapting to these changes and encouraged individuals to consider their role in contributing to a better world.
Devasish Mishra, Executive Vice President, PDQC and TE (Steel, Mills & SS), JSW Steel outlined the goal of new regulations aimed at addressing carbon leakages and ensuring that products meet stringent environmental standards.
Mishra highlighted the challenges faced by the steel and aluminium industries in balancing industrial competitiveness and sustainability, as they are major contributors to carbon emissions. He also mentioned that the new European Union regulations necessities a comprehensive reassessment of production processes and carbon footprints.
Manish Mishra, Chief Corporate Affairs, Tata Steel shared insights on the impact of CBAM from the steel sector, focusing on implications for global supply chains, trade agreements and commodity markets at the Carbon Border Adjustment Mechanism (CBAM) Conference. He highlighted how sustainability is shaping business operations and stressed the need to weave CBAM into business strategies, technology choices, and investment plans.
Mishra also addressed the EU’s carbon pricing mechanism, the allocation of free allowances, and the challenges posed by cost increases and compliance requirements.
Dhiraj Nayyar, Group Director- Economics and Policy, Vedanta said for India priority should be fixing the manufacturing sector, creating jobs, raising per capita income, and becoming the third largest economy in the world in two or three years. The challenge remains in manufacturing for industrial competitiveness. Ultimately a carbon credit trading scheme, you know, will help streamline carbon taxation and support effective government, he said.
