Long-term buyer commitments, transparent pricing mechanisms and stronger producer-buyer linkages emerged as key requirements for accelerating demand for low-carbon steel in India at a workshop convened by the India Green Steel Coalition (IGSC), a joint initiative of the Confederation of Indian Industry (CII) and WWF-India. The workshop, themed “Driving the Transition to Low-Carbon Steel in India”, brought together more than 70 stakeholders from steel producers, large industrial buyers, sustainability professionals and other parts of the steel value chain. IGSC members represent around 70% of India’s crude steel production.
Discussions examined the commercial, technological and operational factors that could influence the pace of India’s transition towards low-carbon steel. Participants discussed long-term procurement and offtake commitments, green steel pricing and premiums, technology adoption, access to clean energy and investment requirements.
The discussions highlighted the need for greater demand certainty and transparent commercial frameworks to strengthen producer-buyer relationships, establish clearer market signals and provide confidence for investments in low-carbon steelmaking. In a session on “Navigating Low-Carbon Steelmaking, Clean Energy & Investment Challenges”, Gargi Mohanty, Senior Manager, Corporate Sustainability, Tata Steel Limited, highlighted the importance of collaboration across the steel ecosystem. She noted that India is the world’s second-largest steel producer and consumer and highlighted the country’s introduction of a Green Steel Taxonomy in 2024.
The taxonomy uses carbon emission intensity during steel production and introduces a star-rating system to categorise green steel according to defined emission-intensity thresholds. Mohanty outlined 14 levels of the green transition and discussed the potential for green steel across sectors, emphasising the role of both producers and consumers in accelerating adoption.
The demand-side perspective was discussed during a session titled “Driving Green Demand, Navigating Premiums & Securing Supply”, led by Amrit Sahu, Category Lead, Sourcing & Procurement, Blue Star Limited. The session examined challenges faced by buyers in incorporating low-carbon steel into procurement strategies, including green premiums, availability, quality and supply reliability.
Sahu identified verified carbon data, predictable pricing and assured supply as key expectations from green steel producers. He also highlighted the importance of clear pricing bands and capacity visibility to help original equipment manufacturers plan procurement and make informed purchasing decisions.
A fireside chat on “Aligning Production, Buyer Commitments & Market Pricing” brought together representatives from My Home Constructions, RMI Energy Solutions India Foundation, JSW Steel, L&T, Kirloskar Brothers and Ford Motor Company. The discussion was moderated by Vishal Dev, Director, Sustainable Business, WWF-India.
Participants discussed how stronger buyer commitments could provide greater market certainty for producers, while transparent approaches to pricing and green premiums could support procurement decisions. The discussion also focused on aligning production planning with customer requirements and improving clarity around the availability, pricing and performance of low-carbon steel.
The workshop concluded with a focus on sustained collaboration among steel producers, buyers, policymakers, financial institutions and technology providers. Participants highlighted the need to address commercial, technological and institutional barriers to enable low-carbon steel to become a more integrated part of mainstream procurement in India.
