The Indian cement industry knows the premise it stands on, in terms of carbon emissions.
The Indian cement industry knows the premise it stands on, in terms of carbon emissions. What remains is an accelerated effort in tackling the imminent issue of climate change and making good all its commitments for net zero. The Race-to-Zero is not just a race against carbon emission, it is one against time.
The presentation below is taken from the Emissions Gap Report published by the partnership of UN Environmental Program (UNEP) and DTU late in October, just preceding the Climate Summit at Glasgow. The data is revealing, the message is loud and clear that the current pledges and actions included do not bode well for the trajectory of emissions moving forward into 2030 or beyond. There is a lot more that needs to be done.
The summary of the report, given as its foreword, states, “To get on track to limit global warming to 1.5°C, the world needs to take an additional
28 gigatonnes of carbon dioxide equivalent (GtCO2e) off annual emissions by 2030, over and above what is promised in updated unconditional NDCs.” NDC or the Nationally Determined Contribution is the guiding light for tracking initiatives against reduction in emissions as declared by nations.
What does the report card say so far on what we have done from 2010 to now; the current actions put in place will reduce 11 GtCO2e in 2030, now that is not a small number, had these actions not been put on ground, so much progress would not have happened.
But the reality is very different, the world still emits close to 50 GtCO2e per year and that means the stock of emissions is rising by the day and much more needs to be done till we reach a state of no further rise in stock. That is where the pledges of net zero come in, when from corporate to the common man to the communities and government, who take decisions every day, it will come as the overriding priority to act.
Realistic goals
Let us dig into some details of where we are headed, given this conundrum, despite the discussions and agreements so far, the Glasgow talks included. Let us start with some bad news that the euphoria about the 5.4 per cent drop in emissions in 2020 was short lived, thanks to the pandemic, as it is now predicted that the emissions will bounce back to a rise of 4.8 per cent over 2020 in 2021. The peculiar case is that despite a drop in CO2 emissions the concentration of CO2 in the atmosphere grew by 2.3 parts per million, which effectively means that the atmosphere would never even feel any change.
The second area to look at would be the mitigation pledges and where they fall short of the target. The way to look at these pledges is to look at the NDCs. Just under half (49 per cent ) of the new or updated NDCs submitted (from countries accounting for 32 per cent of global emissions) result in lower 2030 emissions than the previous NDC. Around
18 per cent of the NDCs (from countries accounting for 13 per cent of global emissions) will not reduce 2030 emissions relative to the previous NDC. The remaining 33 per cent of NDCs (from countries accounting for 7 per cent of global emissions) contain insufficient detail to assess their impact on emissions relative to the previous NDC.
As a group, G20 members are not on track to achieve either their original or new 2030 pledges. Ten G20 members are on track to achieve their previous NDCs, while seven are off track. The US EU27, the UK and Canada are the top countries that have shown a higher change in emission reduction.
Only 10 G20 members (Argentina, China, EU27, India, Japan, the Russian Federation, Saudi Arabia, South Africa, Turkey and the UK) are likely to achieve their original unconditional NDC targets under current policies. Among them, three members (India, the Russian Federation and Turkey) are projected to reduce their emissions to levels at least 15 per cent lower than their previous unconditional NDC emissions target levels under current policies.
A promising development is the announcement of long-term net zero emissions pledges by 50 parties, covering more than half of global emissions. However, these pledges show large ambiguities. Few of the G20 members’ NDC targets put emissions on a clear path towards net zero pledges. There is an urgent need to back these pledges up with near-term targets and actions that give confidence that net zero emissions can ultimately be achieved and the remaining carbon budget kept.
Twelve G20 members covering just over half of global domestic GHG emissions have currently pledged a net zero target, of which six are in law, two are in policy documents and four are government announcements. All are for the year 2050, with the exception of China’s 2060 target and Germany’s target for 2045. The remaining eight G20 members have so far not set net zero targets, but three of them have communicated long-term low GHG emission development strategies to the UNFCCC (Indonesia, Mexico and South Africa).
Only Canada, the European Union, France, Germany and the Republic of Korea have published their plans at the time of completing this report, and only these countries plus the United Kingdom have accountable processes for reviewing their targets.
The emissions gap remains large; compared to previous unconditional NDCs, the new pledges for 2030 reduce projected 2030 emissions by only
7.5 per cent , whereas 30 per cent is needed for 2°C and 55 per cent is needed for 1.5°C.
Two very significant findings are:
1. Global warming at the end of the century is estimated at 2.7°C if all unconditional 2030 pledges are fully implemented and 2.6°C if all conditional pledges are also implemented. If the net zero emissions pledges are additionally fully implemented, this estimate is lowered to around 2.2°C.
2. The opportunity to use COVID-19 fiscal rescue and recovery spending to stimulate the economy while fostering a low-carbon transformation has been missed in most countries so far. Poor and vulnerable countries are being left behind.
This leaves us with two decisive areas of focus:
A. Reduction of methane emissions from the fossil fuel, waste and agriculture sectors can contribute significantly to closing the emissions gap and reduce warming in the short term.
B. Carbon markets can deliver real emissions abatement and drive ambition, but only when rules are clearly defined, designed to ensure that transactions reflect actual reductions in emissions, and supported by arrangements to track progress and provide transparency.
The case for negotiations is well understood as with nations like India and China, who have a lot at stake on the Coal related tapering off to be done over the next decades and this is not an easy task. The next area is to focus on the investment vehicles to focus on decarbonising several of the fossil fuel guzzling industries, where the net zero pledges must have a way of formal review. This is where the world’s attention must be focused on.
Gautam Adani visited Godda on Sunday to carry out a first inspection of the power plant in the district, where electricity generation of 2,300 megawatts (MW) is being undertaken through five units. The visit involved a walkthrough of production areas and technical installations and included meetings with senior plant executives. The inspection was described by officials as focused on operational readiness and optimisation of output.
Officials said the establishment of the plant followed a request from the local member of parliament, who provided cooperation during project development, and indicated that plans to establish a cement plant in Godda are likely to materialise soon. The electricity produced at the facility is currently being supplied to Bangladesh, and officials confirmed that the possibility of exporting power to other neighbouring countries is under consideration. Company representatives indicated that the project aims to balance regional energy demand with commercial export obligations.
During the review of all units, plant leadership set out steps to accelerate commissioning and enhance maintenance regimes to ensure sustained generation. The commissioning of the power plant has already been credited with contributing significantly to the development of Godda, and the proposed cement plant is expected to add industrial capacity and create large-scale employment in the region. Local authorities are monitoring progress with a view to aligning infrastructure improvements and workforce development.
Stakeholders expect the visit to accelerate operational momentum at the site and to clarify timelines for further investment and local supply arrangements. The inspection was followed by technical briefings and an internal review of safety and environmental practices to support reliable operations. Officials said subsequent measures will focus on connectivity, logistics and community engagement to ensure the project delivers intended economic benefits.
The central government has exempted tailings recycling in mines from the requirement of a fresh environmental clearance, citing an effort to streamline approvals and promote resource efficiency.
The decision is intended to simplify regulatory procedures for operators seeking to process existing mine waste for recovery of minerals and other materials.
Officials indicated that the move should reduce administrative delays while maintaining compliance with existing safeguards.
Authorities said existing environmental safeguards would continue to apply to recycling operations.
Tailings recycling refers to the recovery of valuable materials from the fine waste generated by mining operations and the subsequent reprocessing of material to reduce the volume stored in tailings facilities.
Advocates argue that recycling can recover metals and minerals, lower the demand for new ore extraction and reduce the footprint of waste storage.
The policy change is expected to encourage the adoption of technologies that convert legacy waste into usable inputs for industry.
The mining industry welcomed the exemption as a way to accelerate projects and improve economics, while environmental groups urged robust conditions to prevent adverse impacts.
Conservation organisations stressed the importance of rigorous monitoring, independent audits and clear standards for waste handling and water management.
Regulators are likely to frame the exemption with specific compliance requirements to balance economic and environmental objectives.
Industry sources indicated that the move could attract investment in processing plants and associated infrastructure.
The change may prompt states and permitting authorities to update their frameworks to reflect the central clearance position and to clarify oversight roles.
Observers noted that effective implementation will depend on transparent reporting, enforcement capacity and investment in rehabilitation of legacy sites.
The long term outcome will hinge on whether recycling reduces the environmental risks associated with tailings while supporting a circular approach in the mining sector.
Stakeholders called for clear timelines for compliance.
A report by Nuvama Financial Services (Nuvama) said cement sector demand revived in the third quarter of fiscal year twenty twenty six as prices declined, supporting volume growth across regions. The note indicated that sequential price correction helped replenish demand that had been subdued by elevated pricing earlier in the year. Nuvama quantified the price decline as a sequential correction that varied across states and segments, facilitating restocking by merchants and traders.
The report suggested that improved affordability after the price correction encouraged housing and infrastructure activity, with developers and contractors adjusting procurement plans. It added that regional dynamics varied, with some markets showing faster recovery while others remained reliant on seasonal construction cycles. Housing demand was driven by both affordable and mid segment projects, while infrastructure segment recovery was contingent on timely execution of public works.
Analysts at Nuvama assessed that the price moderation eased inventory pressures for manufacturers and distributors and supported margin stabilisation at several producers. Demand improvement was visible in both urban and rural segments, although the pace of recovery differed by state and trade channel. Producers were seen balancing price realisations with volume targets and managing input cost volatility through operational efficiencies.
The report recommended that investors monitor volumes and realisations closely as market equilibrium emerges in the coming quarters, noting that sustainability of recovery would depend on monsoon patterns and government infrastructure outlays. Overall, the assessment pointed to a cautiously optimistic outlook for the cement industry as price correction translated into tangible volume gains. Market participants were advised to track early signs of demand broadening beyond core construction hubs to assess the depth of the rebound.