Green Steel in India: EAF Plants, Clean Power and Carbon Credits
Is EAF steel green steel in India? Emissions by route, why EAF-route firms sit above the CCTS baseline, and how clean power earns carbon credits.
Swap a blast furnace for an electric arc furnace (EAF) and you have green steel. That is the common assumption. On India's coal-heavy grid, the numbers say otherwise.
Emission Intensity by Steel Route
| Route | tCO₂ per tonne of steel |
|---|---|
| BF-BOF, Indian average | 2.2–2.5 (older plants up to 3.83) |
| EAF on today's grid | 1.2–1.4 |
| EAF with ~50% renewables | 0.4–0.6 |
| EAF with near-100% renewables | under 0.3 |
Ranges: Reclimatize, 9 April 2026. Draft CCTS iron and steel baseline: 2.36 tCO₂/t.
The furnace swap roughly halves emissions. The power swap does the rest. A modelled 1-Mtpa EAF running at 0.3 tCO₂/t could earn an estimated ₹124–206 crore a year in credits under the draft iron and steel targets, depending on the eventual CCC price.
What the Draft List Shows
Three scrap or EAF-route companies in the 2025 draft list sit above the sector baseline: Shyam Metalics (2.71 against a 2.653 target), Shyam Sel and Power (2.638 against 2.582) and Prakash Industries (3.10 against 3.02). Mixed routes and captive coal power explain much of it. Under CCTS, a plant that only meets its target earns zero credits.
Two Swaps, Not One
The EU border adds a second reason. One estimate puts the CBAM cost near €19.50 per tonne for renewable-powered EAF steel against €162.50 for BF-BOF (EU CBAM rules). As of 22 October 2026, steel targets remain in draft and no CCC has traded yet.
ICT helps steelmakers prove the gap: our dMRV platform tracks furnace and power data monthly, builds the ACVA evidence pack and turns verified surplus into CCCs you can sell or bank.
Free green steel credit estimate: email your route, output and power mix to contact@internationalcarbontrade.com for an indicative CCC surplus or shortfall.
Keep Reading
- Iron and Steel Under CCTS: 255 Plants, Draft Targets Explained
- Is CCTS Cap and Trade? Intensity Targets, Zero Credits, Banking
- EU CBAM 2026 Update: What Is Law and What Is Only Proposed
Our CCTS Services
International Carbon Trade (ICT) is an India-based CCTS marketplace and dMRV platform offering 18 end-to-end services, from BEE ICM Portal registration and ACVA verification to buying, selling and banking CCCs on India's power exchanges.
| Register and Set Up | Monitor, Verify, File | Trade and Plan |
|---|---|---|
| BEE ICM Portal registration | dMRV platform, monthly data | Buying CCCs on power exchanges |
| Grid-India registry account | ACVA selection and booking | Selling or banking surplus CCCs |
| IEX / PXIL / HPX onboarding | Verification evidence pack | Offset CCC sourcing |
| Monitoring plan (BEE template) | E2 form and GHG emission report | Risk profiling (AAA–B) |
| Target gap and penalty analysis | Form A and Form D filings | Abate, buy or bank strategy |
| Five-year GHG reduction plan | BEE and registry query handling | CBAM and BRSR reporting |
For any services related to CCTS, contact International Carbon Trade:
- Email: contact@internationalcarbontrade.com
- Phone: +91 90544 01707
- Website: internationalcarbontrade.com
- LinkedIn: Follow International Carbon Trade
Frequently Asked Questions
- Is EAF steel green steel in India?
- Not automatically. On India's grid an EAF emits about 1.2 to 1.4 tCO2 per tonne. With near-100% renewable power it can fall below 0.3.
- What is the CCTS baseline for iron and steel?
- The draft sector baseline is about 2.36 tCO2 per tonne of steel. Final steel targets are not yet notified as of 22 October 2026.
- Can an EAF plant earn carbon credits under CCTS?
- Yes, if its verified intensity is below its target. A clean-power EAF could earn large volumes of CCCs; one that only meets target earns none.
- Why do some EAF companies sit above the baseline?
- Mixed production routes and captive coal-based power raise their listed intensity, as the 2025 draft list shows.
- Does green steel lower the EU CBAM cost?
- Yes. Estimates put CBAM near EUR 19.50 per tonne for renewable-powered EAF steel against about EUR 162.50 for BF-BOF steel.
- How can ICT help steel plants?
- International Carbon Trade offers dMRV monitoring, ACVA verification support and CCC trading. Contact contact@internationalcarbontrade.com or +91 90544 01707.