Tata Steel, a leading Indian private steel company, has introduced a carbon bank as a virtual repository to transform carbon dioxide into a value-creating asset for future use. The carbon bank aims to measure and manage CO2 savings from various sustainability projects, contributing to environmental goals and generating potential revenue for further decarbonisation efforts.
CO2, a harmful by-product of fossil fuel usage in industries such as steel manufacturing, contributes significantly to environmental pollution. The steel industry, which often relies on coal and other fossil fuels, is a major emitter of CO2.
The process begins with Tata Steel identifying decarbonisation projects that can reduce CO2 emissions across one or more of its production processes. The carbon savings generated from these projects are meticulously tracked by an independent auditor, who verifies the savings according to the relevant ISO system. Upon successful verification, a carbon savings certificate is issued and virtually deposited in the carbon bank, securing the company’s achievements in sustainability and paving the way for future environmental and economic benefits.