Shubham Thakur: Hello and welcome to this special podcast by CleanCarbon.ai. Today, we are joined by Monica Bachchan Duvvuri, Founder & CEO of Metalogic PMS, to discuss the Carbon Border Adjustment Mechanism (CBAM) and its impact on the Indian iron and steel sector.
Shubham Thakur: Ma’am, considering your years of experience, how has the industry evolved, particularly regarding sustainability reporting?
Monica Bachchan Duvvuri: There have been massive changes. Commodities, which used to be stable for weeks, now see price fluctuations multiple times a day. Companies have also moved from being shy, technical entities to being active in branding and public knowledge sharing. Regarding ESG and carbon reporting, we have evolved from just discussing carbon capture to exploring carbon derivatives, byproducts, and financing systems.
Shubham Thakur: Is sustainability just a fancy word, or is it impacting revenues and trade?
Monica Bachchan Duvvuri: It is definitely not a fancy word; it is a need of the hour. With the steel industry accounting for 7% of global pollution, companies are investing heavily in R&D to adopt cleaner technologies.
Shubham Thakur: How will the recently announced Green Steel Taxonomy impact MSMEs?
Monica Bachchan Duvvuri: The taxonomy is a great initiative, primarily for exporters targeting Europe. However, most Indian MSMEs consume their steel domestically, so the immediate impact is limited. The bigger challenge for them is the high cost of adopting greener technologies.
Shubham Thakur: With CBAM, green steel requirements, and tariffs, is the sector under too much pressure?
Monica Bachchan Duvvuri: 80% of Indian steel is consumed domestically, so we are self-reliant. For exports, companies must comply. While the West is pushing for fossil-fuel-free steel, India is blessed with coal and will likely continue using it for the next 20-30 years. The goal is to use coal sensibly through technologies like coal gasification.
Shubham Thakur: What is the readiness of secondary steel producers for CBAM reporting?
Monica Bachchan Duvvuri: Readiness depends on the raw material—producers relying on high-quality scrap are better positioned than those using sponge iron. Currently, there is a lack of infrastructure for accurate emission data collection across the industry, especially among smaller players.
Shubham Thakur: What are the biggest challenges for the green steel transition?
Monica Bachchan Duvvuri: It comes down to cost economics and return on investment. Technologies are expensive, and we need to foster local research so we don’t have to rely solely on expensive foreign technology.
Shubham Thakur: What is your prediction for the next 5-10 years?
Monica Bachchan Duvvuri: We will see immense infrastructure development. Steelmakers will get creative with decarbonization, but coal will remain a key part of our energy mix. To stay competitive globally, we need to be aggressive in our marketing and stay open to evolving international compliances.