How Green is Your Steel? A Complete Guide to Green Steel Certification in India

The defined threshold limit for emission intensity is 2.2 tonnes of CO2e per ton of finished steel. Which means, any manufacturing unit producing steel with less than the threshold level of emission intensity can claim green steel ratings and certificates. 

The same threshold is applicable to all types of steel producers. This threshold value is planned to be revisited every 3 years.

To have fair accounting of emissions, the supply chain emissions are also included in the emission intensity calculation.

The emission calculation covers the scope 1 and scope 2 emissions of the manufacturing unit along with selected scope 3 emissions. The scope 3 emissions include the emissions due to agglomeration process (sintering, palletization, coke making), beneficiation and embodied emissions of purchased raw materials and intermediary products. However, a few other relevant scope 3 emissions, like Upstream and downstream material transportation, mining, entire downstream processes and transportation within the plant premises are excluded from the boundary of calculations.

Total finished goods production is to be considered for calculation of emission intensity of the unit.

Once emission intensity is calculated, it needs to be compared with threshold limit (defined as Et in notification). If the manufacturing unit’s emission intensity (defined as Ep in notification) is found to be lower than threshold limit, Et (whose current value is 2.2 t CO2e/tonnes of finished steel), the steel can be defined as green.

Every green steel producer can claim for % Greenness certificate and Green star ratings.

% greenness is calculated as = (Et-Ep/Et)*100

                                                          Where Et = Threshold emission intensity

                                                                        Ep = Manufacturing unit actual emission intensity

And, Green star rating criteria are defined as:

1. Ep between 2.0 to 2.2 t CO2e/tfs    is considered for 3 star rating.
2. Ep between 1.6 to 2.0 t CO2e/tfs    is considered for 4 star rating.
3. Ep < 1.6 t CO2e/tfs                             is considered for 5 star rating.

Time period for the above calculations is to cover 1 year period. The first year for which the claim can be made is FY 2024-25, i.e. 1 April 2024 to 31 March 2025.

Certificates can be claimed on an annual basis for each location. However, if any plant wants the same at a higher frequency, provisions are there to issue certificates more than once a year as per the requirements.

How to Claim the Green Steel Certificate:

The nodal agency for the verification and issuance of certificates and star ratings is National Institute of Secondary Steel Technology (NISST).

Any location willing to get certified, must register online at NISST site paying the registration fees. For certification purpose, additional fees are charged per 500 tonnes of steel produced.

The verification is to be conducted following the ‘Detailed Procedure for Compliance Mechanism under CCTS’ in July 2024, under Carbon Credit Trading Scheme (CCTS), as notified on 28 June 2023. It can be conducted by the Verification agencies Empanelled with BEE to undertake M&V & check verification activity under PAT Cycle - VI as on 28.11.2023 from Iron & Steel sector.  

How DQS can help?

Offer comprehensive support to clients aiming for green steel certification under the Green Steel Certification guidelines, inter alia:

 1. Readiness Assessment & Gap Analysis

•  Evaluate current emission intensity (Ep): Assess scope 1, 2, and selected scope 3 emissions.
• Benchmark against the 2.2 tCO₂e threshold (Et): Identify gaps between actual emissions and certification criteria.
• Scope 3 boundary evaluation: Ensure correct inclusion of sintering, pelletization, coke making, beneficiation, and embodied emissions of purchased raw materials.
   

 2. Data Management & Emission Calculation 

•   Data collection strategy: Support with digital tools to track and manage emission-related data (production volume, energy usage, raw materials, etc.).
• Standardized calculations: Help compute accurate carbon footprints using recognized methodologies.
• Normalization: Ensure total emissions are reported per tonne of finished steel as per requirements.
   

3. Greenness % and Star Rating Estimation

This helps clients set realistic improvement targets or position their product for marketing benefits.
 

4. Compliance Strategy & Documentation

• Align with CCTS procedures: Support compliance with “Detailed Procedure for Compliance Mechanism under CCTS” (July 2024).
• Verification preparation: Compile and structure documents to ease the 3rd-party verification process by BEE-empanelled agencies.
• Correct boundary setting: Ensure accurate and acceptable emission boundaries are used.
   

5. Registration & Certification Support

• NISST portal registration: Assist with online application and fee submission.
• Coordinate with empaneled verification agencies: Help schedule and prepare for site audits.
• Track certification timelines: Monitor and manage yearly or more frequent certification cycles.
   

 6. Improvement Planning for Lower Ep

• Technical recommendations: Suggest technology upgrades or operational improvements (e.g., renewable energy, energy efficiency, raw material optimization).
• Investment planning: Provide ROI analyses for emissions-reduction initiatives.
• Training: Train internal teams on green steel criteria and data protocols.
   

 7. Ongoing Monitoring & Advisory

• Annual review and recalibration: Assist in maintaining or improving greenness over time.
• Support during threshold revisions (every 3 years): Help adapt to newer standards.
• Internal audit support: Mock audits and health checks before official verification.