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<h1>Green steel needs targeted public finance to bridge financing gaps and prevent long-term carbon lock-in.</h1> India requires targeted public financing to bridge gaps for technically proven but commercially risky green steel projects to avoid carbon lock-in. Public support-via production linked incentives, concessional loans, risk guarantees and Green Public Procurement-can enable adoption of lower carbon pathways (EAF with scrap or DRI+EAF), while carbon trading and market instruments influence incentives but may be insufficient to mobilise the deep, capital intensive transition.