A new report reveals India’s leading steel producers are failing to translate net-zero targets into tangible progress, risking long-term emissions lock-in amid rapid sector growth.
India’s steel industry has embraced the language of transition, but not yet the pace of change, according to an Institute for Energy Economics and Financial Analysis assessment that finds a widening gap between long-term climate commitments and the practical steps needed to deliver them.
The study, which examined seven major domestic producers including JSW Steel, Tata Steel, Steel Authority of India Limited, Jindal Steel, Rashtriya Ispat Nigam Limited, Jindal Stainless and Godawari Power and Ispat, says five of the seven have now set net-zero targets for 2050. But IEEFA concludes that ambition has not translated into strong progress on operations, technology adoption or financing, with no company scoring above 43% on overall decarbonisation readiness.
That matters because India’s steel sector is expanding at a very different pace from peers in mature markets. Saurabh Trivedi, lead specialist for sustainable finance and carbon markets at IEEFA South Asia, said India is the world’s second-largest steel producer and remains on a steep growth trajectory, even as demand in other major steel-producing regions has levelled off or fallen. In practice, that means today’s investment decisions will shape emissions for decades.
IEEFA’s central concern is that emissions intensity has worsened at most Indian steelmakers over the past three years, while global peers have reduced theirs. The report argues that this undermines the credibility of corporate net-zero claims unless companies back them with measurable capital deployment, clearer technology roadmaps and stronger financial planning.
The timing is particularly significant. IEEFA says around 43 million tonnes a year of blast-furnace capacity in India will need relining before 2030. Because relining can extend the life of these assets by another 15 to 20 years, those decisions risk locking in high-emissions production well into the middle of the century if operators do not pair them with lower-carbon alternatives.
Soni Tiwari, an energy finance analyst at IEEFA South Asia, said companies have started to set targets and some leaders are advancing technology planning, but capital allocation has not followed. That gap, the organisation argues, is one of the clearest signs that decarbonisation remains more of a strategic statement than an industrial transformation.
The risk is compounded by the sector’s pipeline. More than two-thirds of planned steel capacity additions in India are expected to rely on conventional emissions-intensive technology, according to IEEFA, increasing the likelihood of long-term carbon lock-in just as buyers and regulators are tightening expectations on industrial emissions.
The report warns that the consequences will not be limited to climate performance. Indian steelmakers could face growing exposure to carbon border measures, green procurement rules and investor scrutiny unless they can demonstrate credible transition plans. For an industry that is expected to expand sharply alongside domestic infrastructure and manufacturing demand, the ability to finance and deliver lower-carbon production is becoming a competitiveness issue as much as an environmental one.
IEEFA has previously argued that green hydrogen could become the dominant route to steelmaking in India by 2050, provided the cost falls and carbon is penalised more directly. It has also called for a legal definition of green steel and stricter enforcement of renewable purchase obligations to accelerate clean energy use across the sector.
The message from the latest assessment is straightforward: India’s steel producers may already be speaking the language of Paris-aligned transition, but without faster technology substitution, firmer policy backing and a shift in capital allocation, the sector risks entering the next decade with yesterday’s assets and tomorrow’s obligations.
- https://energy.economictimes.indiatimes.com/news/coal/indias-steel-sector-lags-on-decarbonisation-despite-paris-aligned-goals-ieefa/130577384 – Please view link – unable to able to access data
- https://ieefa.org/resources/decarbonisation-readiness-indias-steel-sector – A report by the Institute for Energy Economics and Financial Analysis (IEEFA) assesses the decarbonisation readiness of India’s steel sector. It highlights a significant gap between the climate commitments of major Indian steel companies and their actual progress in operational, technological, and financial infrastructure. The study reveals that while five out of seven major Indian steel producers have set net-zero targets for 2050, none scored above 43% in overall decarbonisation readiness, indicating insufficient capital allocation and execution. The report also notes a worsening emissions intensity over the past three years, raising concerns about the credibility of existing climate commitments without measurable investments. Additionally, it points out that over two-thirds of planned steel capacity additions in India are expected to use conventional, emissions-intensive technology, increasing the risk of long-term carbon lock-in. The report emphasizes the need for faster technology substitution and coordinated policy measures to avoid mounting pressure from international carbon border taxes, green procurement standards, and investor demands for credible transition plans.
- https://ieefa.org/articles/indian-steelmakers-must-match-ambition-action-on-decarbonisation – An article by the Institute for Energy Economics and Financial Analysis (IEEFA) discusses the widening gap between the climate commitments of India’s major steel companies and their actual progress in building the necessary operational, technological, and financial infrastructure for decarbonisation. The article highlights that while five out of seven major Indian steel producers have adopted net-zero targets for 2050, none scored above 43% in overall decarbonisation readiness, indicating a sector-wide shortfall in capital allocation and execution. It also notes that emissions intensity for most Indian steel companies has worsened over the past three years, despite global peers achieving reductions. The article emphasizes the need for coordinated government action and targeted public capital deployment to convert corporate intent into execution and avoid locking in emissions-intensive technologies for decades.
- https://ieefa.org/resources/steel-decarbonisation-india – A report by the Institute for Energy Economics and Financial Analysis (IEEFA) examines the decarbonisation trajectory of India’s steel sector. It projects that green hydrogen will become the primary route for steelmaking in India by 2050, provided the cost of green hydrogen reduces and a price penalty on carbon emissions is implemented. The report also suggests that a legal definition for green steel can guide the industry in making the right investments for decarbonisation. It advocates for strict enforcement of renewable purchase obligations on the steel sector to promote the use of clean energy. The report estimates that the steel industry will replace around 25-30% of its grey hydrogen requirements with green hydrogen in the early part of the 2030-2050 period, increasing to 80% by 2050. It concludes that with the right policies in place, India can successfully decarbonise its steel sector by 2070.
- https://manufacturing.economictimes.indiatimes.com/news/industry/indias-steel-sector-lags-on-decarbonisation-despite-paris-aligned-goals-ieefa/130577249 – An article from ETManufacturing highlights a report by the Institute for Energy Economics and Financial Analysis (IEEFA) stating that India’s steel sector has broadly aligned its long-term climate ambitions with the Paris Agreement, but progress in implementation remains limited. The report notes that while five of seven major Indian steel companies studied have adopted net-zero targets for 2050, most have shown weak advancement in operational readiness, technology deployment, and financial alignment. The study assessed seven Indian producers, including JSW Steel, Tata Steel, Steel Authority of India Limited (SAIL), Jindal Steel, Rashtriya Ispat Nigam Limited (RINL), Jindal Stainless, and Godawari Power and Ispat, alongside three global peers. The findings indicate that none of the companies scored above 43% on overall decarbonisation readiness, highlighting a sector-wide shortfall in capital allocation and execution. The report also raises concerns about the worsening emissions intensity for most Indian steel companies over the past three years, despite global peers achieving reductions.
- https://www.pv-magazine-india.com/2026/04/28/indian-steelmakers-must-match-ambition-with-action-on-decarbonisation-ieefa/ – An article from PV Magazine India discusses a report by the Institute for Energy Economics and Financial Analysis (IEEFA) highlighting a widening gap between the climate commitments of India’s major steel companies and their actual progress in building the necessary operational, technological, and financial infrastructure for decarbonisation. The report reveals that while five out of seven major Indian steel producers have set net-zero targets for 2050, none scored above 43% in overall decarbonisation readiness, indicating insufficient capital allocation and execution. The article emphasizes the need for coordinated government action and targeted public capital deployment to convert corporate intent into execution and avoid locking in emissions-intensive technologies for decades.
- https://solarquarter.com/2026/04/28/ieefa-report-warns-indias-steel-sector-risks-falling-behind-on-decarbonisation-despite-net-zero-commitments/ – An article from SolarQuarter reports on a warning from the Institute for Energy Economics and Financial Analysis (IEEFA) that India’s steel sector risks falling behind on decarbonisation despite net-zero commitments. The report highlights a growing disconnect between decarbonisation targets announced by Indian steelmakers and the concrete actions needed to achieve them, which could lock the sector into carbon-intensive technologies for decades, threatening its net-zero ambitions and long-term global competitiveness. The article emphasizes the need for faster technology substitution and coordinated policy measures to avoid mounting pressure from international carbon border taxes, green procurement standards, and investor demands for credible transition plans.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article was published on April 28, 2026, and references a report released on the same date by the Institute for Energy Economics and Financial Analysis (IEEFA). No earlier versions of this specific content were found, indicating high freshness. No recycled news or discrepancies were identified.
Quotes check
Score:
8
Notes:
The article includes direct quotes from Saurabh Trivedi and Soni Tiwari of IEEFA. These quotes are consistent with their statements in the IEEFA report and related articles. However, the exact earliest usage of these quotes could not be independently verified, as they are not found in other sources. This limits the ability to fully confirm their originality.
Source reliability
Score:
7
Notes:
The article originates from the Economic Times, a reputable Indian news outlet. However, the content is based on a press release from IEEFA, which may introduce bias. The Economic Times’ role appears to be summarising the press release rather than providing independent reporting, which affects the source’s reliability.
Plausibility check
Score:
9
Notes:
The claims about India’s steel sector’s decarbonisation progress align with IEEFA’s findings and are consistent with industry trends. The article provides specific data points, such as the 43 million tonnes per annum of blast furnace capacity due for relining before 2030, which are verifiable. The language and tone are appropriate for the topic and region, with no inconsistencies noted.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information from IEEFA’s press release, with some independent reporting from the Economic Times. However, the heavy reliance on IEEFA’s own statements and the lack of additional independent verification sources raise concerns about the content’s independence and reliability. The inability to fully verify the originality of the quotes further diminishes confidence in the article’s accuracy. Given these factors, the overall assessment is a FAIL with MEDIUM confidence.
