The Government of India issued a draft notification to bring the iron and steel sectors under the Centre for Climate Change Management & Standards [1].

This move represents a significant expansion of the nation's climate regulatory framework. By targeting heavy industry, the government aims to reduce the carbon footprint of sectors that are traditionally among the most pollution-intensive.

The proposed rules expand the scope of the CCTS, which was originally notified in 2023 [1]. Until now, the framework covered sectors such as aluminium, cement, petroleum refineries, and textiles [2]. Adding iron and steel is intended to drive greener production methods across the industrial landscape.

The CCTS serves as a central mechanism for managing emissions and setting environmental benchmarks. By incorporating these sectors, the government seeks to standardize how heavy industries track and report their climate impact.

Reuters said, "India’s new emissions trading scheme aims to drive greener production, but long-term investments will determine its success" [3]. The effectiveness of the CCTS depends on the willingness of industrial players to adopt new technologies and the government's ability to enforce these standards.

Industry experts said that the transition to greener steel requires substantial capital. The draft notification is the first step in a larger regulatory shift that could redefine how the iron and steel sectors operate in India. The government has not yet specified the exact date the notification will take full effect, but it builds upon the foundation established in 2023 [1].

“The proposed rules expand the scope of CCTS, notified in 2023”

The inclusion of iron and steel in the CCTS signals India's intent to move beyond low-hanging fruit in its decarbonization strategy. By targeting these high-emission sectors, India is aligning its industrial policy with global climate goals, potentially preparing its domestic industry for international carbon border adjustments and promoting a transition toward green hydrogen or electric arc furnaces.