Financing Steel Decarbonization

The Financing Steel Decarbonization (FSD) instrument is designed to mobilize private finance for the adoption of commercially available and pre-commercial low-carbon technologies in India's steel sector. It consists of two entities: the Steel Decarbonization Financing Facility (SDF), a blended debt fund, and the Steel Decarbonization Initiative (SDI), a service provider for project implementation. Over five years, FSD intends to deploy nearly USD 1 billion to mobilize an additional USD 3.4 billion in private investment, targeting a 25% reduction in emission intensity for approximately 20 MTPA of capacity.

• The FSD instrument is the first of its kind to target both the mobilization of private finance for commercially available and pre-commercial low-carbon steel technologies, while specifically focusing on financing technology adopters and providing technical assistance to steel companies.
• Global steel decarbonization requires an estimated USD 200 billion annually until 2050, in addition to USD 2 trillion for necessary infrastructure.
• Over a five-year investment period, FSD aims to deploy nearly USD 1 billion and mobilize USD 3.4 billion in private investments. This is expected to reduce the emission intensity of steel production by an average of 25% for about 20 MTPA capacity, resulting in cumulative emission savings of 250 MtCO2.
• The FSD mechanism is structured into two separate entities: the Steel Decarbonization Financing Facility (SDF), which uses a blended debt Technology Fund and a technical assistance facility to create bankable projects, and the Steel Decarbonization Initiative (SDI), which provides bespoke services including impact monitoring and the facilitation of off-take agreements for green steel and carbon credits.

APA

Climate Policy Initiative (n.d.). Financing Steel Decarbonization. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/FSD-overview.pdf

Chicago

Climate Policy Initiative. Financing Steel Decarbonization. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/FSD-overview.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Financing Steel Decarbonization |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/FSD-overview.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendfinancing, author = {{Climate Policy Initiative}}, title = {{Financing Steel Decarbonization}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/FSD-overview.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }