India, the second-largest crude steel producer globally, targets a capacity of 300 million metric tons by 2030, increasing from the existing 180 million metric tons. The nation's intention to boost coal-based steel production capacity may hinder its aim of achieving net-zero carbon emissions by 2070, according to a report by Global Energy Monitor (GEM).

India's Prime Minister Narendra Modi has established the year 2070 as the goal for reaching net zero emissions, which is twenty years later than the timeline suggested by scientists to prevent disastrous climate consequences.

However, an effort to increase steel production to satisfy the growing demand spurred by India's swift economic expansion and heightened infrastructure investment poses a risk of elevating greenhouse gas emissions.

"India's ongoing investments in new coal-based steelmaking, coupled with a young fleet of emissions-intensive blast furnaces ... jeopardise the country's net zero by 2070 target and risk saddling the country with upwards of $187 billion in stranded assets," said GEM, a US-based research group tracking global energy projects.

According to GEM, India possesses the largest pipeline of developing steelmaking capacity globally, with projects announced or currently under construction amounting to approximately 258 million metric tons annually. Steel manufacturers in the world's fastest-growing major economy emit 2.55 metric tons of carbon dioxide for each ton of crude steel made, which is 38 percent greater than the global average of 1.85 tons, it stated.