Live on Bloomberg TV

00:00Isn't carbon zero and steel an oxymoron? Almost given that it's one of the biggest polluters. How do you become green? Hi, good morning. A pleasure to speak here. Well, yeah, the green energy initiatives are indeed very relevant and strategy not just to India, but also the steel industry and across across industries. So is how I would try to put it. Your Eminence has absolute confidence. Nippon Steel has taken a made in step this year to seek around the clock supply of renewable energy power with steel plant. ArcelorMittal has established a strategic partnership for use for bringing in hydro storage projects this year through a hybrid build. And you have an energy project that onto British soil. The initiative is there. If you look at the global numbers of the steel, manufacturing capacity is at one point nine billion tonnes per annum. And this is expected to pull up to maybe two point six billion tonnes per annum. As an industry, we're looking at 7 percent of carbon emissions coming from this industry and therefore they need to reduce. The carbon footprint is significantly high. ArcelorMittal has recently set a group target of reducing the carbon emissions globally by around 25 percent by 2030 and specifically within Europe by about 35 percent. So this from the steel industry are certainly very. Ambitious targets. Absolutely. So I think it give us a sense of how you progress. How keen are you to have carbon trading platforms there? Imposition of a carbon price? Does that help your business? Or does it hurt your business? Oh, the need for a carbon trading platform is pretty critical at this juncture. The Indian government has announced a platform this year and I think it is going to be an extremely important step. Traditionally, we all have been trading the hydrocarbons, so it could be oil that could be gas in one form or another. But if we have to move towards adopting carbon technologies, maybe to Assisi US or maybe exchanging carbon credits, we do need a carbon and established carbon market in India. And that would come with being able to price the carbon atom and the hydrogen atom more appropriately. I think it's a very critical step in order to invest for the capital in this segment. Our climate financing is key. If you want to accelerate decarbonisation and just wondering whether or not Indian steel mills are able to access low cost financing. Climate financing is quite the mantra. All of this decade and should remain as such, I think in addition to attracting capital just for the steel industry boasted, it has also had a need to have capital invested in the transmission and distribution segment of India as well. There is a lot of traction from large corporate houses through equity funding, through reaching out to bleeding banks so that private equity players have quite a few pension funds who have a clear mandate for investments in green energy and technology decarbonisation. C.S. Lewis Environment and Climate Conservation. I think as compared to already traditional fossil fuel funding, the commitment to this sector could be significantly higher from lending or investment institutions. So typical of structures like debt financing see no green bonds which are maybe not linked coming at cheaper funds. Project finance, construction facilities, etc. These are standard products which are being offered by most American, European and Asian banks. We know that India holds the next presidency for the G 20, what can India do to expedite the transition to clean energy? India has committed to moving towards 500, you go, what on? Did you have an energy capacity? Urbanization, of course, is on the rise and India is facing a twin challenge. I mean, you're looking at GDP to grow by 5 X by 2040. You're looking at multiple megacities, smart cities. Coming up, car manufacturing. If you look at that and the current ratio is about twenty two to a thousand for capital, whereas in the U.S. it is about 800 plus for a couple thousand. So the demand for steel policy or demand, generally the GDP is expected to grow up maybe over the next 10 to 15 years. And therefore, it becomes also the big challenge for India that they need to make sure that we as a country need to make sure that we are adequately fueling the growth. But we need to do it in a more carbon conscious mind, knows where we need to have less carbon. So I think the government is doing is supporting the industry in multiple ways. So they are promoting policies to the solar. Be a alive policy for manufacturing. There is the subsidy that has been released. So I think that's been done. Having said that, yes, there could be better though. Some of the policies could be better. Yes.

No schedule data available.

ArcelorMittal Nippon Steel's India Renewables Effort

Rewati Deshpande, ArcelorMittal Nippon Steel's India Renewable Energy Business Finance Head discusses sustainability in the steel production sector. She speaks on 'Bloomberg Markets Asia'. (Source: Bloomberg)

More From Bloomberg Markets
All episodes and clips

The David Rubenstein Show
The David Rubenstein Show: Peer-to-Peer Conversations" explores successful leadership through the personal and professional choices of the most influential people in business.
More episodes and clips