Decarbonization in Hard-to-Abate Sectors and MRV Frameworks: ESG BROADCAST shares key takeaways.
The Ministry of Steel has issued a corrigendum to its “Green Steel Classification” notification, refining the operational framework for the issuance and validity of Green Steel Certificates. Published in the Gazette of India on April 6, 2026, this amendment modifies the original notification from December 2024 to ensure a more seamless transition for steel plants undergoing rigorous Monitoring, Reporting, and Verification (MRV) processes. By introducing provisions for the provisional extension of certificate validity, the government is providing much-needed regulatory flexibility to an industry at the forefront of India’s industrial decarbonization.
Under the updated Article 12, while Green Steel Certificates remain valid on an annual financial year (FY) basis, a new mechanism allows for a provisional extension until June of the following financial year. This extension is specifically designed for units that have already applied for certification for the succeeding year and have submitted the required data. This “bridge” period ensures that compliant steel producers do not face a lapse in their “green-rated” status while the implementing agency concludes the technical MRV results for the new cycle. The National Institute of Secondary Steel Technology (NISST) has been designated as the implementing body with the authority to grant these extensions.
The corrigendum introduces strict accountability measures to prevent the misuse of this extension. If a steel unit fails to qualify for a green rating or is downgraded to a lower category during the formal assessment, the provisional extension will cease to exist retrospectively from March 31st of the preceding year. This “claw-back” provision ensures that the integrity of the “Green Steel” brand is maintained and that only truly decarbonized products benefit from the preferential market access or incentives associated with the certification. NISST is also required to submit monthly consolidated reports to the Ministry of Steel, providing justifications for every extension granted.
The applicability of these rules is significant for India’s “Hard-to-Abate” sectors, where the transition to low-carbon production involves complex technological shifts such as Green Hydrogen injection or Electric Arc Furnace (EAF) optimization. For international buyers and domestic infrastructure projects with “Green Procurement” mandates, the stability of these certificates is vital for supply chain transparency. The notification clarifies that these changes come into force immediately, providing a stable regulatory environment as the industry moves into the 2026-27 assessment cycle.
Strategic significance lies in “trust but verify” model for industrial ESG claims. For steel manufacturers, the 180-day alignment window provided by the extension allows for better synchronization of environmental reporting with financial auditing. Compliance with the NISST-managed MRV framework is now a prerequisite for any steel producer looking to capitalize on the burgeoning global demand for low-carbon materials. Ultimately, these refinements to the Green Steel framework reinforce India’s commitment to achieving a sustainable manufacturing base without compromising on the procedural rigors of climate accounting.
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