India's steel sector accounts for 12% of the nation's overall greenhouse gas emissions, exceeding the worldwide average of 7%. This is mostly because it heavily depends on steel production derived from coal. The report proposes that India could prevent up to 20 million tonnes of emissions by 2040 by doubling ship recycling capacity by 2028, leading to greater utilization of scrap steel.

In order for this potential to be completely achieved, new ship recycling facilities need to embrace cutting-edge technologies and comply with global environmental and safety regulations. These steps will not just improve recycling efficiency, but also guarantee adherence to worldwide sustainability standards.

Atul Mudaliar, Director of Systems Change at the Climate Group, highlighted the critical role of scrap steel in reducing emissions. He noted that ship recycling, an often-overlooked sector, could become a significant contributor to the decarbonisation of India’s steel industry. “The circular nature of ship recycling supports sustainability while addressing the growing domestic demand for scrap steel,” he stated.

Using recycled steel helps conserve a significant amount of energy and natural resources. Using one tonne of scrap steel saves about 1,370 kg of iron ore, 780 kg of coal, and 270 kg of limestone. This doesn't just decrease reliance on resources but also significantly reduces emissions.