JSW aims to reduce CO2 emissions intensity by 42% by 2030 compared to 2005 baseline
India’s JSW Steel has signed a memorandum of understanding with US fintech Smartex to explore low-carbon steel production. It is reported by Argus Media.
The companies will explore funding, green steel technology availability and market access to decarbonize India’s steel sector, reducing the risk to investment in the industry.
During Climate Week 2022 in New York, USA, Smartex announced the Steel Decarbonization Initiative, which will create a $1 billion SDF and ecosystem to support the steel industry in this matter.
The fund will create a technical assistance facility to prepare specific decarbonization projects and a blended technology debt fund to find low-cost long-term financing solutions, JSW Steel said.
According to JSW Group Chief Financial Officer Seshagiri Rao, the Indian steel industry needs low-carbon steel innovation and financing solutions at comparable costs to reach a new level of decarbonisation.
India, the world’s second largest steel producer, is responsible for more than 10% of carbon emissions in energy systems. JSW’s goal is to reduce CO2 emission intensity by 42% by 2030 compared to a 2005 baseline.
Recall that India will bet on the decarbonization of steel production – the country’s long-term goal is to reduce carbon emissions by 50% by 2047. The Indian Ministry of Steel outlined its vision for the evolution of the industry in the document Vision 2047. The presented roadmap contains plans for supply and demand, global market share, raw material requirements, etc.
As reported by the GMK Center, JSW Steel plans to invest 100 billion Indian rupees ($1.26 billion) to reduce carbon emissions from its plants. The projects will be implemented jointly with the German technology company SMS Group.