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Fuel savings and emissions reductions in India's steel sector can be delivered firstly by improving energy efficiency in existing and new plants, secondly by shifting to efficient production processes, and thirdly by using steel more efficiently as a component or by substituting low-carbon alternatives. The CDM only supports energy savings and emissions reductions from efficiency improvements in the production process, but cannot target the other two opportunities. Domestic policies, including improved product standards and carbon pricing, can create broader benefits for the Indian economy and global climate. However, to achieve domestic support for these measures, international cooperation and coordination are necessary. A key question is how support can be structured without providing subsidies for the production of a carbon-intensive commodity.