India’s iron and steel sector is central to economic growth and also among the highest-emitting industrial sectors. Achieving India’s net-zero target will require a phased, cost-effective transition in this hard-to-abate sector.

Existing green finance mechanisms cannot fully support this transition, as many low-carbon technologies in the sector are still evolving. Transition Finance (TF) can help bridge this gap by enabling capital flows toward practical emission-reduction measures while green alternatives scale.

This brief examines the need for a dedicated TF approach in India’s iron and steel sector and proposes a financing solution to support the sector’s long-term decarbonization pathway.

Download the Technical Brief here