Indian Steel Association

InfluenceMap Score
C-
Performance Band
58%
Organisation Score
Sector:
Metals & Mining
Head​quarters:
New Delhi, India
Official Web Site:
Wikipedia:

Climate Lobbying Overview: The Indian Steel Association (ISA) appears to take a mixed approach to climate action and climate regulation, albeit with limited engagement. However, the ISA does not appear to support the transition to a zero-emissions energy mix, and on several occasions has advocated for the removal of India’s coal cess (tax).

Top-line Messaging on Climate Policy: The ISA has limited and mixed top-line communications on climate policy, In a September 2021 LinkedIn post, the association appeared to support reductions in the steel industry’s emissions in line with a 2°C target to limit warming. The ISA advocated for India to adopt a carbon pricing mechanism in a January 2022 Argus Media article, however, specified this would occur at an “appropriate time” without suggesting clear timelines. The association’s position on other forms of climate change regulation is unclear. The ISA does not appear to have disclosed a position on the UN Paris Agreement.

Engagement with Climate-Related Regulations: The ISA’s engagement with climate change regulation appears to take a mixture of positive and unclear positions. The group stated support for introduction of carbon credit emission trading mechanism (ETS) in India in a January 2022 Argus Media article, referencing China’s ETS and the EU ETS. In the same article, the association stated the need for the Indian government to adopt policy enablers for green steel, and for the government to “appropriately take up the issue related” to the EU carbon border adjustment mechanism at “various international platforms”. However, the association did not appear to take a clear position on the EU CBAM. Similarly, in its 2020-21 Annual Report, published in October 2021, the ISA stated that the EU CBAM was discussed in length during its attendance at the meeting of the World Steel Association National and Regional Association in March 2021, but once again did not disclose a clear position on the policy.

The Indian Steel Association appeared to support India’s 2030 renewable energy targets, stating that the targets would be a “big opportunity for steel-makers to power greener plants”, in a September 2021 LinkedIn post. InfluenceMap was unable to find any evidence of direct engagement from the ISA on energy efficiency or GHG emission legislation.

Positioning on Energy Transition: The Indian Steel Association appears to take mainly negative positions on the low-carbon energy transition. The association has supported the removal of the coal cess (tax) and import duties on coking coal on several occasions. For example, in a June 2022 article by The Hindu Business Line, the ISA’s secretary-general Alok Sahay appeared to advocate for government intervention to control the price of coking coal to enable cheaper use for the steel industry and prevent the cost being passed on down the supply chain. In a January 2022 Argus Media article, the group also advocated for the removal of the coal cess and recommended the government lower the customs duty on coking coal, enabling its long-term use by the steel sector. The ISA also advocated for the removal of duties on petrol and diesel, stating the tax would have created a “chain of economic consequences” for the steel sector in a May 2022 Twitter post.

With regard to the decarbonization of steel production, the Indian Steel Association has a mixture of positive and negative engagement. The ISA has supported the government of India’s efforts to promote green hydrogen. For example, the ISA president Dilip Oommen supported India’s Green Hydrogen Policy in a February 2022 Twitter post, stating that the policy would promote green energy and benefit the steel sector. In a January 2022 Argus Media article, the group supported measures to decarbonize the steel industry, including subsidies and tax incentives for green steel. The association also supported India’s National Hydrogen Mission in a September 2021 LinkedIn post, stating that it would support green hydrogen production, while supporting renewable energy and scrap-based electric arc furnace (EAF) technologies to decarbonize the steel sector.

In the same September 2021 LinkedIn post, the ISA advocated for the long-term role of blast furnace steel production and supported direct reduced iron using unabated fossil gas. In this post, the group emphasized that zero-emission steel production technologies were not market-ready, and stated the circular economy process of steel production would negate the use of coal. The ISA secretary-general Alok Sahay took a similar position in a December 2021 Steel Mint article, emphasizing that green steel would not be market competitive for “a long time to come”, and did not appear to support the decarbonization of the steel industry.

Details of Organization Score

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