India, Japan agree to collaborate in steel sector and decarbonization issues

The Minister of Economy, Trade and Industry (METI), Yasutoshi Nishimura recently met with the Indian Minister of Steel, Jyotiraditya Scindia in Delhi, India. They discussed the collaboration between the two countries in the development of the steel industry and its decarbonisation.

India's growing steel industry

India is the second-largest producer of crude steel in the world, with a production of 125 million tonnes (mnt) in 2022. With economic growth, it is expected to expand to 300 mnt in the future. Foreign investment, such as Japan's plans to invest in the Indian steel industry, which is crucial for its progress. One example of this is Japan Steel's potential joint venture with ArcelorMittal to expand their facilities in India. Both governments have agreed to support Japanese companies in making such investments.

Decarbonisation efforts

Japan and India, both major players in the steel industry, are working together to promote decarbonisation. They will collaborate in expanding the green steel market and advancing the Global Data Collection Framework (GDCF) for steel, which was agreed upon during the G7 summit. This partnership aims to accelerate efforts to reduce carbon emissions in the steel industry. Additionally, Japan and India will cooperate in spreading awareness of the GDCF to their respective steel industries.

Measuring CO2 emissions

One challenge for the GDCF is establishing a method for measuring carbon dioxide (CO2) emissions in the steel industry. Japan and India will work together to address this challenge and find effective ways to measure emissions. This will contribute to the overall goal of decarbonising the steel industry.

Once a method for measuring CO2 emissions is established, the next focus will be defining green steel and expanding the market. Japan seeks India's cooperation to drive market expansion and promote the use of environmentally friendly steel.

Continued cooperation between India and Japan

Last year, the METI and India's Ministry of Steel held the first Director-General dialogue involving private companies. This year, the second dialogue will take place in November. The concrete measures agreed upon by Japan and India will be further developed through working-level consultations, such as the dialogue.

Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.