CURRENT AFFAIRS | MARCH 2026
CLAT Relevance
Key points for GK section: CBAM full form and definition, India steel production rank, emission data, National Steel Policy targets — high-frequency factual GK.
Key points for GK section: CBAM full form and definition, India steel production rank, emission data, National Steel Policy targets — high-frequency factual GK.
India’s Steel Sector — Key Facts
- India = 2nd largest crude steel producer globally (after China)
- Production (2024-25): approximately 145 million tonnes (MT)
- National Steel Policy 2017 target: 300 MT capacity by 2030-31
- Steel contributes ~2% to India’s GDP
- Steel industry accounts for ~12% of India’s total CO2 emissions
- India’s per capita steel consumption: ~86 kg (global average: ~230 kg)
Key Fact: Steel production is one of the hardest-to-abate sectors — every tonne of steel produces approximately 1.8 tonnes of CO2 using traditional blast furnace route.
What is EU CBAM?
- CBAM = Carbon Border Adjustment Mechanism
- A carbon tax on imports into the EU based on their embedded carbon emissions
- Transitional phase: Started October 2023 (reporting only)
- Full implementation: From 2026 — actual payments begin
- Covers: steel, aluminium, cement, fertilizers, electricity, hydrogen
- Purpose: Prevent carbon leakage (industries shifting to countries with lax emission norms)
Impact on India
- ~15% of India’s steel exports go to EU
- Indian steel has higher carbon intensity than EU average (coal-dependent)
- Estimated cost: $1-2 billion annually in additional tariffs
- Most affected: Steel, aluminium, and cement exporters
- India has called CBAM “discriminatory” at WTO forums
Green Steel — The Solution
- Green steel = steel produced using green hydrogen instead of coking coal
- Process: Direct Reduced Iron (DRI) using hydrogen — near-zero CO2
- Tata Steel — announced India’s first green steel initiative
- JSW Steel — targeting 42% emission reduction by 2030
- SAIL — piloting hydrogen-based steelmaking
CLAT Angle: CBAM definition, India’s steel ranking (2nd after China), emission percentages, and National Steel Policy targets are direct factual recall for CLAT GK section.
Government Initiatives
- National Green Hydrogen Mission: Rs 19,744 crore — aims for 5 MT green hydrogen by 2030
- PLI Scheme for Specialty Steel: Rs 6,322 crore
- National Steel Policy 2017: 300 MT target by 2030
- Perform, Achieve and Trade (PAT): Energy efficiency in steel plants
- Carbon Credit Trading Scheme (CCTS): Indian carbon market launched 2023
Global Context
| Country | Steel Output (MT) | Green Steel Status |
|---|---|---|
| China | ~1,000 | Pilot stage |
| India | ~145 | Early transition |
| Japan | ~87 | Hydrogen pilot |
| Sweden | ~5 | HYBRIT — world’s first fossil-free steel |
Quick Revision Points
- CBAM = Carbon Border Adjustment Mechanism
- India = 2nd largest steel producer (after China)
- Steel = 12% of India’s CO2 emissions
- CBAM fully operational from 2026
- Green steel uses green hydrogen instead of coking coal
- National Steel Policy target: 300 MT by 2030
- Green Hydrogen Mission: 5 MT by 2030
Source: UPSC Essentials, The Indian Express — March 2026
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