New Delhi, 26 November 2024 - India can use its ship recycling sector to avoid emissions from its steel industry, according to a new report launched by Climate Group and PWC today.
The country has the world’s largest installed capacity for ship recycling, which could be vastly increased given its extensive coastline and favourable geographical conditions. The ship recycling industry, primarily based at Alang in Gujarat, processes around one-third of the world’s decommissioned ships. About 80-85% of a ship is made of steel, making it a significant source for scrap or recycled steel, which can be melted down and used as a raw material in crude steel production.
India’s steel industry accounts for 12% of the country’s total greenhouse gas (GHG) emissions, well over the global industry average of 7%. This is because steel production is still heavily coal-dependent. According to the analysis, if India would double its ship recycling capacity by 2028 to accommodate a future upswing in decommissioned ships, upto 20 MT (million tonnes) of emissions could be avoided by 2040 by resulting steel. To fully realise the emissions saving potential, these new ship recycling facilities should adopt advanced technologies and comply with international environmental and safety standards.
Atul Mudaliar, Director of Systems Change, India at Climate Group said: “The availability of scrap is a key lever for India to decarbonise its steel industry. Our study explores scrap from ship recycling — an often-overlooked industry as a source of high-quality scrap steel. The report presents a forecast for scrap availability from recycling ships to meet the growing domestic demand for scrap steel. The circular nature of the ship recycling industry would boost the sustainability of the steel industry. We hope the report's recommendations will provide policymakers, ship recycling and steel industries with pragmatic insights to explore new ways to collaborate and bring down emissions.”
The use of scrap steel can substantially save energy and natural resources such as iron ore, thus avoiding emissions. It is estimated that, on an average, 1,370 kgs of iron ore, 780 kgs of coal and 270 kgs of limestone are saved for every tonne of scrap steel used in steel production.
The Turning the Tide: Ship Recycling as a Source of Green Steel in India report was released in New Delhi. The launch event today focused on the report’s findings and the substantial barriers facing the country’s ship recycling industry. Experts, including from the Ministry of Ports, Shipping and Waterways, Ministry of Steel, steel suppliers and consumers, civil society organisations also discussed the need to develop infrastructure and regulatory frameworks to unlock its true potential.
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For more details or to arrange interviews, contact Avantika Shrivastava at ashrivastava@climategroup.org.
Notes to Editors
About Climate Group
Climate Group is an international non-profit, launched in 2004, with offices in London, Amsterdam, Beijing, New Delhi, and New York. We've been in India since 2008 and have worked with 15 state governments, over 190 businesses on driving climate action, fast. Our goal is a world of net zero carbon emissions by 2050, with greater prosperity for all. We do this by forming powerful networks of business and government, unlocking the power of collective action and scale to move whole systems such as energy, transport, the built environment, industry and food to a cleaner future. Together, we’re helping to shift global markets and policies towards faster reductions in carbon emissions.
About SteelZero
SteelZero is a global initiative bringing together forward-looking organisations to speed up the transition to a net zero steel industry. Led by the international non-profit Climate Group in partnership with ResponsibleSteel, organisations that join SteelZero make a public commitment to procure, specify or stock 100% net zero steel by 2050. By harnessing their collective purchasing power and influence, SteelZero is sending a strong demand signal to shift global markets and policies towards responsible production and sourcing of steel.