Steel may prove deterrent in carbon reduction

  • 28/04/2010

  • Asian Age (New Delhi)

The Centre for nd Environment's Science and Environment's (CSE) landmark study on the cost and feasibility of emissions reduction to combat climate change believes steel will prove to be the problem sector for India. The study looks at six emission intensive sectors including power, aluminum, steel, cement, fertilizers and the paper and pulp industry which together contribute over 60 per cent of carbon dioxide emissions. From these, steel will not be able to reduce emission intensity significantly because the present technology choices are forcing them to move from blast furnace to sponge iron. Chandra Bhushan, who has authored the study titled "Challenge of the New Balance," points out, "Close to 60 per cent of India's steel will be produced using sponge iron whose emissions efficiency gains are few." The power sector, the single largest contributor to CO2 emissions, also has the biggest potential for emission reduction. The study highlights that India's biggest power utility, NTPC, operates at 33 per cent efficiency which is one of the highest in the world given the poor quality of coal being used. The cement industry can lower emissions intensity by increasing the proportion of blended coal, the fertilizer sector will have to do so by changing its feedstock from naptha to natural gas while the paper and pulp industry will need to change its raw material to wastepaper and market pulp. The study concludes that in the Business as Usual (BAU) scenario, industry at its own cost will reduce emissions by 20 per cent by 2030. This will help the world avoid 700 million tonne of CO2 emissions annually in 2030. Sunita Narain, director, CSE, points out that all technology options for emission reduction stagnate after 2020 and therefore this study must be understood in terms of its implications for global climate negotiations.