The role of the cement industry in reducing the carbon footprint of a country cannot be underscored enough. As India strives to strengthen its position globally in cement manufacturing and tries to hike up production to meet domestic demands, our efforts at balancing emission and environment plays a vital role. ICR looks at the various factors and possible outcomes of environmental endeavours in cement production.
The primary driver to global climatic change is carbon and Greenhouse Gas emission from various industries of the world. To save the planet from the harmful effects of this emission, the world collaboratively needs to take strides in the direction of achieving a Net Zero environment.
According to the Global Carbon Project, the annual CO2 emission globally as of 2020 was 34.81 billion tonne (refer to Fig 1). Prior to the industrial revolution, these emissions were very low. With growing industrialisation this kept increasing in value. In 1990, the carbon emission quadrupled reaching a value of over 22 billion tonne per annum globally and continued growing rapidly. To tackle the issue of carbon emission across the globe, it is important to understand where it is coming from. From industry to country, breaking down the problem into smaller sections is likely to bring a solution at large. In a treemap published in 2017, Global Carbon Project indicated the countries and how much carbon they are emitting. As per the analysis, owing to having the largest population on the planet, Asia emits 53 per cent of the total carbon emission globally. China is the largest contributor the same followed by India and then other Asian countries. Concrete is the most consumed man-made material in existence. Cement, the key ingredient of concrete, also leaves a massive carbon footprint behind it. It contributes to emitting 8 per cent of carbon emission of the total world’s emission. According to a news report published by the BBC Network in December 2018, the cement industry emitted more carbon in the environment than aviation fuel which stood at 2.5 per cent then and wasn’t far behind the carbon emission from global agriculture business at 12 per cent. India is a growing and developing nation with an expected 250 million people to be added to its urban population across the region. This has led to the cropping up of many infrastructural projects which in turn shall increase the production of cement. India is also part of the Paris Agreement and has aligned itself with its goal of achieving Net Zero by 2070 as announced in the Glasgow Climate Summit.
The challenge that shall present is to maintain the goal of achieving a better for the nation as well as meeting the demands of a growing and developing nation. As mentioned in a report published by World Business Council for Sustainable Development (WBCSD), by adopting state-of-the-art technological interventions, innovative production techniques and climate-resilient resource optimisation measures, cement manufacturers in India are integrating sustainability within their growth aspirations. The sector has already surpassed the targets of the Perform Achieve and Trade (PAT) Scheme by 80 per cent and is now being recognised globally as one of the most energy-efficient and sustainable markets for cement. “Being an energy intensive industry, we are also focusing upon alternative and renewable energy sources for long-term sustainable business growth for cement production” says Dr Hitesh Sukhwal, Sr. Manager (Head Environment), North – West region, Udaipur Cement Works. “Presently, our focus is to improve efficiency of zero carbon electricity generation technology such as waste heat recovery power through process optimisation and by adopting technological innovations in WHR power systems. We are also increasing our capacity for WHR based power as well as Solar power in the near future. Right now, we are sourcing nearly 50 per cent of our power requirement from clean and renewable energy sources i.e., zero carbon electricity generation technology,” he adds.
Transition to Net Zero According to an article published by McKinsey & Company in April 2022, as the world will move towards a Net Zero scenario in 2050, capital spending on equipment and infrastructure with relatively low emissions intensity would average $6.5 trillion a year—more than two-thirds of the $9.2 trillion in annual capital spending during that time. During the Net Zero transition, energy systems of the world and its machinery will be re-engineered to utilise renewable fuels instead of fossil fuels. McKinsey’s analysis of the Network for Greening the Financial System (NGFS) Net Zero 2050 scenario suggests that the annual spending on low-emissions assets and the infrastructure to enable them would rise to about $3.5 trillion than today. Innovation needs to be accelerated, not only to accommodate renewable fuels, but also to transport the energy produced by them from creator to user. In the long haul, larger sunny terrains must be able to send the produced solar energy to lesser sunny terrains for renewable energy consumption.
Green the Future of Cement Green cement is essentially the cement produced by various manufacturing techniques that reduce carbon emission by either using supplementary cementitious materials, waste heat recovery, substituting fossil fuels with other renewable sources and using various other methods to reduce the impact of carbon on the environment. As the need of energy in the cement industry is paramount, the solution to its emission issues lies in finding renewable electricity that can produce clean, safe, affordable, and infinite energy. Across the globe and in India, companies are in the process of changing their manufacturing techniques to transition to clean energy and reduce their carbon footprint. The future also holds cement that supports zero carbon emission. According to news reports from May, academicians from the University of Cambridge have invented the world’s first ever process to produce zero-emission cement and have secured a patent for the same. This innovative process crafted by academicians – Dr Cyrille Dunant, Dr Pippa Horton and Professor Julian Allwood – is aimed to limit the need for green hydrogen in the cement sector. It uses waste concrete from the demolition of old buildings. This concrete is crushed, allowing the stones and sand constituents to be separated from the mixture of cement powder and water that bind them together. This recycled cement powder can then be used in the place of lime-flux in secondary steelmaking. The inspiration for this process struck when these researchers noticed that the chemistry of used cement is virtually identical to that of the lime-flux used in conventional steel recycling processes. The new cement could therefore be made in a recycling loop that eliminates the emissions of cement production, saves raw materials, and reduces the emissions required in making lime-flux. Capturing the emitted carbon cement plants can be a solution the world should be looking at. This would protect the environment from getting saturated with carbon dioxide while storing it in a form that won’t cause any harm. Throwing light on this subject and technology, Maarten van Roon, CCO, Carbon8, says, “We help enable circularity for hard-to-abate industrial sectors by combining captured carbon from their operations with industrial residues, from the very same operations, to manufacture new materials for the construction industry.” “In cement production specifically, cement bypass dust (CBD) and cement kiln dust (CKD) are produced as a by-product. CBD and CKD are reactive to CO2 because of the compounds they contain, making them a potential carbon sink. Our technology solution captures CO2 directly from the cement plant and permanently stores it in products, by valorising those residues. The product that ACT currently manufactures is CircaBuild, a carbon-negative alternative to natural aggregate,” he adds. Carbon neutrality is the key concern for nations across the globe. India, being the second-largest producer of cement in the world, has the power to impact global climate change and environmental health. A shift in consumer preference in India would significantly affect the global climate change war. The Government of India, with various policies, regulations and mandates on using green cement can drive this change and build an infrastructurally and environmentally strong nation in the years to come.
UltraTech Cement’s Kukurdih Cement Works in Chhattisgarh has met 100 per cent of its electricity requirement through green energy every month since April 2026. Commissioned in 2024, the integrated cement manufacturing unit has an installed grey cement capacity of 3.3 million tonnes per annum.
The plant meets its electricity requirement through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS). UltraTech said the combination enables the unit to meet its power needs through green energy while maintaining operational reliability.
Since April 2026, nearly a third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirement. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation.
The company is also progressively deploying Battery Energy Storage Systems (BESS) across its manufacturing network to support greater integration of renewable energy. UltraTech said it has not invested in new captive thermal power capacity at its integrated units, including greenfield projects and brownfield expansions, for more than 10 years.
As of Q1FY27, UltraTech’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable capacity from solar, wind and hybrid sources, and 434 MW of WHRS capacity.
Under its RE100 commitment, the company aims to increase the share of green power in its total power mix to 85 per cent by 2030 and 100 per cent by 2050.
Cement companies may seek to raise prices by Rs. 5 to Rs. 20 per bag across most markets in October, although the ability to sustain the increases will depend on demand recovery and dealer acceptance, according to a report by Centrum Broking. The outlook follows a pickup in pricing momentum during September after largely stable prices in July and August.
The all-India average trade price increased by Rs. 7 per bag month-on-month to Rs. 356 in September. Centrum Broking’s channel checks indicated gains across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets. However, higher company billing rates were not fully passed on to customers in several regions because dealers continued selling at earlier prices to meet quarter-end volume targets.
The brokerage said demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, with construction activity improving in several markets towards the end of the quarter. Demand remained range-bound across several markets in July and August, while September produced mixed regional trends. Higher rainfall affected activity in some areas, whereas lower rainfall supported construction work elsewhere.
South India recorded the largest price increase in September, at Rs. 11 per bag, followed by West India at Rs. 9. Central, East and North India each reported increases of Rs. 5 per bag. Despite the September recovery, the average all-India trade price for Q2FY27 stood at Rs. 351 per bag, down Rs. 1 sequentially, as weaker pricing in July and August offset the later gains.
Centrum Broking said the success of any October increases would depend on the pace of demand recovery and dealers’ willingness to accept higher prices. Fuel prices have also risen sharply in recent weeks, making the implementation and sustainability of price increases a key factor for the cement industry’s pricing outlook.
The Andhra Pradesh government has approved a greenfield cement project worth Rs. 30 bn by My Home Industries, along with incentives of up to Rs. 11.29 bn. The decision comes amid a political controversy in Telangana involving allegations about landholdings associated with My Home Group.
According to an Industries and Commerce Department order issued on September 25, 2026, the project is expected to create 2,000 jobs and begin commercial production by March 2029. The proposed facility will have capacity to produce 3.5 MTPA of clinker and 3.5 MTPA of cement.
The total investment includes fixed capital investment of Rs. 25.97 bn, pre-operative expenses of Rs. 2.23 bn, contingencies of Rs. 1.26 bn and working capital margin of Rs. 540 mn. The incentive package is capped at Rs. 11.29 bn, equivalent to up to 43.48 per cent of fixed capital investment, subject to completion of the committed investment by March 2029.
The package includes a capital subsidy of 39 per cent of eligible fixed capital investment, capped at Rs. 9.43 bn, payable over 10 years from the start of commercial production. It also provides reimbursement of Rs. 1 per unit on electricity purchased from distribution companies for 10 years, subject to a ceiling of Rs. 1.86 bn. A further incentive equivalent to 2 per cent of fixed capital investment is linked to the creation of the committed jobs and other policy conditions.
The state has approved the allotment of 27.19 acres through the Andhra Pradesh Industrial Infrastructure Corporation at actual cost. The project also involves land linked to two temples and the realignment of a canal across approximately 9.93 acres, with conditions requiring alternative temple facilities and company-funded infrastructure work. Telangana Chief Minister A. Revanth Reddy has separately raised allegations concerning land associated with My Home Group, including 2,463 acres near Shamshabad. The allegations remain subject to verification through official records and any investigations.