Union Minister Faggan Singh Kulaste on Thursday directed the domestic steel industry to increase use of scrap in their production, underscoring that carbon emission is a serious concern.

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India uses 30 million tonne (MT) scrap annually to manufacture steel, out of which 26 MT is generated domestically and remaining through imports.

Currently, India's overall steel production stands at around 120 MT.

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"Carbon emissions are a concern.... The steel sector must increase use of scrap in their steel production," he said at CII Steel Summit 2022 here.

The industry must also adopt new-age technologies to lower their carbon emissions, the Minister of State for Steel said.

However, he did not speak on the quantum of scrap which steel makers must include in their production.

According to a ministry document, the iron and steel industry globally accounts for around 8 per cent of total carbon dioxide (CO2) emissions on an annual basis, whereas in India, it contributes 12 per cent to the total CO2 emissions. The steel ministry has also asked the stakeholders of the sector to develop a time-bound action plan to lower emissions in the steel industry.

"100 per cent scrap using electric arc furnace / induction furnace ( EAF /IF) emit 0.4 to 0.8 tonne of CO2 per tonne of crude steel," Parth Kumar, of Centre for Science and Environment (CSE) said.

On an average, 2.5 tonne of CO2 is emitted on manufacturing of every one tonne of crude steel, he said.

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