Regulatory landscape
The National Green Hydrogen Mission, launched in January 2023, is a cornerstone of this effort. It encourages the production and utilization of green hydrogen, a clean and adaptable energy source, to decarbonize sectors like steel and oil & gas. The Green Steel Mission, introduced in December 2024, aims to reduce carbon emissions in the steel industry, one of the most carbon-intensive sectors. These initiatives are complemented by climate change policies promoting energy efficiency and the use of eco-friendly technologies in manufacturing.
Sectoral impact
Critical industries such as steel, cement, oil and gas, power, and automotive are at the forefront of India's sustainable manufacturing efforts. The steel industry, for instance, is a significant contributor to the nation's GDP and employment. However, it is also a major source of emissions. The adoption of carbon reduction initiatives in oil and gas and impact of green hydrogen on steel industry, such as using green hydrogen in direct reduced iron processes and increasing the use of scrap in electric arc furnaces, is essential for reducing the sector's carbon footprint.
The oil and gas industry is actively contributing to India’s goal of net-zero emissions by channeling investments into innovative technologies such as role of CCUS in carbon neutrality and green hydrogen. These advancements are aimed at reducing emissions in downstream processes, while efforts are also being made to decarbonize upstream operations.
The power sector, which accounts for a significant portion of the country's emissions, is transitioning towards clean energy sources. India aims to achieve renewable energy targets of 500 GW of installed renewable energy capacity by 2030, significantly reducing its reliance on fossil fuels.