Driving the Green Steel Transition for India
India, one of the fastest-growing economies globally, is witnessing rapid urbanisation and infrastructure development. Steel reinforcement bar, or rebar, is the structural backbone of India’s growth, embedded in virtually every residential, commercial, and infrastructure project. In FY2024, rebar accounted for 42% (59 MT) of India’s finished steel consumption. The buildings and infrastructure sectors consume 68% of India’s total steel production, making rebar one of the most consumed and emission-intensive construction materials, accounting for ~20% of a building’s embodied carbon footprint. As India’s finished steel consumption is projected to nearly double to 230 MT by 2030, the scale and centrality of rebar demand warrant focused attention in the green steel transition. India’s development trajectory and its commitment to climate action hinge on transforming the rebar value chain, from production technologies to procurement.
The Challenge: Fragmented Demand, Limited Traceability, and Lack of Procurement Standards
Fragmented green steel interests and the absence of a collective demand signal constrain India’s transition to low-emission steel. Despite ESG and SBTi-linked commitments by developers, EPC contractors, and OEMs, most tenders do not specify recycled content thresholds, embodied carbon limits, or emissions verification requirements. This disconnect persists due to three key factors:
- First-Cost Barrier: Early-stage low-emission steel carries a 5%–7% premium. In the absence of collaborative procurement models that help distribute costs and risks, early adopters are exposed to bearing the cost premium and supply chain risks (limited supplier base, quality variability) independently, thereby hindering market acceleration.
- Traceability and Verification Gaps: Without verifiable emissions data, claims of “green” or “low-emission” steel cannot be reliably audited or compared. Environmental Product Declarations (EPDs), the globally recognised tool for lifecycle-based emissions disclosure, and green steel certificates, are not yet prevalent in Indian steel procurement.
- Absence of Regulatory Drivers: India’s building codes and green rating systems do not mandate embodied carbon thresholds for construction materials or provide ways to track decarbonisation progress over time.
Climate-conscious buyers are acting in isolation, each too small to shift the economics of suppliers and overall market behaviour. A coordinated market signal, such as a buyer’s platform, can aggregate demand, standardise emissions performance criteria and accounting frameworks, distribute transition costs and risks, and provide the necessary impetus to accelerate the green rebar transition.
A Green Steel Buyers Platform
The A green steel buyers platform is a demand-aggregation and market-enabling mechanism designed to accelerate India’s low-emission steel transition through collective buyer commitments that aggregate demand, offer supply chain certainty to manufacturers, and leverage coordinated purchasing power to bridge the green premium gap. It will be the first-of-its-kind initiative in India, enabling buyers to jointly send strong market signals, facilitate supplier investment, and meet corporate and public-sector supply chain decarbonisation goals. This green steel buyers platform will:
- Drive demand aggregation across major consuming segments (beginning with rebar and structural steel for buildings and infrastructure projects) and subsequently extending to other steel product categories.
- Define clear emissions thresholds aligned with India’s Green Steel Taxonomy.
- Launch procurement rounds to discover and navigate green premiums and unlock early supply.
- Collaborate on digital traceability and lifecycle emissions verification systems to ensure credible emissions data for procurement decisions.
- Build buyer awareness and procurement capacity for adopting low-emission steel at scale.
Getting Involved
RMI India Foundation, along with anchor partners Building Materials and Technology Promotion Council, Ministry of Housing and Urban Affairs, Government of India, and Lodha Foundation announced the launch of a green steel buyers platform at the Steel Decarbonisation Convening held in New Delhi on 21 January 2026. The first phase of this initiative features a series of workshops to finalise the programme requirements and the platform’s operational structure. Please express your interest by emailing info@rmi-indiafoundation.org with your name, organisation, and designation if you would like to:
- Participate as a prospective buyer or supplier
- Participate in Phase 1 workshops
- Receive updates on the progress of the buyers platform
- Submit any other questions
Anchor Partners
