As India races to build its future, green cement emerges as a powerful tool to balance growth with sustainability. Through innovative technologies and supportive policies, the cement industry is sculpting a low-carbon pathway for construction—toward climate-resilient infrastructure.
India’s rapid urbanisation and infrastructure development have positioned it as the second-largest cement producer globally. However, this growth comes with environmental challenges, as the cement industry contributes approximately six per cent of the country’s total greenhouse gas emissions. In response, the industry is increasingly turning to green cement—a sustainable alternative that aims to reduce the environmental footprint of construction activities.
According to a report by Ernst & Young Parthenon (published February 2025), India is positioning itself as a pivotal force in the global green hydrogen economy, leveraging hydrogen’s potential as a clean and adaptable energy source to drive its decarbonisation. The National Green Hydrogen Mission, launched in January 2023, encourages the production and utilisation of this clean energy source. Green hydrogen is set to play a vital role in decarbonising sectors like steel, cement, and transportation, significantly reducing the nation’s carbon footprint.
Hard-to-abate industries like steel, cement, power and utilities, oil and gas, auto-OEMs are high energy consuming and high emitting. These industries are pivotal for economic growth and hence its quintessential for them to decarbonise their production processes if India is to meet its emissions-reduction goals. The emission contribution of these sectors is expected to grow in the coming years. EY analysis indicates that the critical manufacturing sectors would reach a mark of ~2 gigaton CO2 emissions annually in the next 15 years.
Green cement minimises emissions by using alternative materials and low-carbon production techniques. Primary raw materials for this include industrial waste products like blast furnace slag and fly ash, reducing the clinker-to-cement ratio and an effort to close the loop across the cement production value chain as well.
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, says, “The future of green cement in global construction is set for rapid transformation, driven by sustainability goals and evolving industry demands. With stricter carbon regulations and a growing push for green-certified buildings, the shift toward low-carbon materials is accelerating. Green cement offers more than just environmental benefits. Its superior tensile strength and corrosion resistance make it a viable alternative to traditional cement. Builders are increasingly recognising its role in enhancing long-term project value while reducing carbon footprints.”
India’s cement industry, the world’s second-largest, plays a pivotal role in the nation’s infrastructure and economic development. However, it also contributes approximately 5.8 per cent of the country’s CO2 emissions as of 2022. Recognising this environmental challenge, India has committed to achieving net-zero emissions by 2070, with an interim goal of sourcing 50 per cent of its electricity from renewable sources by 2030. The transition to green cement—produced using alternative fuels and raw materials—offers a viable pathway to reduce the industry’s carbon footprint while supporting sustainable growth.
Understanding green cement
Green cement refers to cementitious materials produced using sustainable methods, incorporating alternative raw materials and energy-efficient processes. Unlike traditional Portland cement, which relies heavily on clinker—a primary source of CO2 emissions—green cement utilises industrial by-products such as fly ash, slag and silica fume. These substitutions not only reduce carbon emissions but also enhance the durability and performance of the final product.
The IMARC Group’s report on the India Green Cement Market highlights the pivotal role of alternative raw materials in driving the sector’s growth. In 2024, the market was valued at USD 1.6 billion and is projected to reach USD 2.8 billion by 2033, exhibiting a CAGR of 6.11 per cent during 2025–2033. This growth is largely attributed to the increasing incorporation of industrial by-products such as fly ash, slag and silica fume in green cement production. These materials, by substituting traditional inputs like limestone and clay, not only reduce the reliance on finite natural resources but also lower the carbon emissions associated with cement manufacturing. Additionally, certain green cement formulations have the capability to absorb carbon dioxide during the curing process, further mitigating their environmental impact.
The report also underscores a broader industry shift towards sustainable construction practices in India. The adoption of alternative raw materials aligns with national efforts to reduce the environmental footprint of the construction sector. By leveraging industrial waste products, the green cement industry not only addresses waste management challenges but also contributes to the creation of more sustainable building materials. This approach supports India’s commitment to environmental sustainability and positions green cement as a viable solution for eco-conscious construction projects.
Market dynamics: Growth and projections
The Indian green cement market has witnessed significant growth, valued at US$ 2.31 billion in 2024 and projected to reach US$ 3.28 billion by 2030, growing at a CAGR of 5.85 per cent. This upward trajectory is driven by increasing environmental awareness, government initiatives promoting sustainable construction, and the rising demand for eco-friendly building materials.
A key driver of the Indian green cement market is the growing environmental awareness among consumers, builders and developers. Heightened by visible climate change impacts, media coverage, and educational initiatives, this awareness has fuelled demand for eco-friendly construction materials that reduce the carbon footprint. Green cement, with its lower embodied carbon, reduced energy consumption during production, and responsible use of raw materials, is increasingly preferred over traditional alternatives. Certifications such as Leadership in Energy and Environmental Design (LEED) and recognition from the Green Building Council of India (GBCI) have further incentivised the use of sustainable materials, motivating developers to
adopt green cement in order to meet regulatory and client expectations.
Manoj Rustagi, Chief Sustainability Officer, JSW Cement says, “In India, in the last couple of years, there have been many policy interventions which have been initiated. One of them, namely the carbon market is under notification; others like Green Public Procurement, Green Cement taxonomy and National CCUS Mission are in the advanced stages and are expected to be implemented in the next couple of years.”
This shift aligns with India’s broader sustainability goals. The country, one of the world’s largest producers of renewable energy, had achieved over 175 GW of renewable energy capacity—including solar and wind power—by 2024. With an ambitious target of reaching 500 GW by 2030, the focus on reducing environmental impact across sectors, including construction, is stronger than ever. As a result, green cement is emerging as a crucial component in India’s transition toward sustainable infrastructure and development.
Environmental impact: Reducing the carbon footprint
Traditional cement production emits approximately 0.66 tonnes of CO2 per tonne of cement. By adopting green cement technologies, this emission intensity can be reduced to 0.53 tonnes, representing a significant step toward decarbonising the sector. Moreover, the utilisation of industrial waste materials not only mitigates environmental pollution but also conserves natural resources.
Ganesh W Jirkuntwar, Senior Executive Director and National Manufacturing Head, Dalmia Cement (Bharat), says, “Low carbon cement not only matches but, in some cases, exceeds the durability of traditional cement. It offers superior resistance to chemical attack, chloride penetration and sulphate exposure, making it particularly well-suited for marine and industrial environments. Cements made with materials like fly ash or slag can achieve compressive strength comparable to that of Ordinary Portland Cement (OPC), though they may exhibit a slower initial strength gain that improves significantly over time.”
The Council on Energy, Environment and Water (CEEW) report, Evaluating Net-zero for the Indian Cement Industry, underscores the significant environmental impact of cement production in India. In the fiscal year 2018-19, the industry produced 337 million tonnes of cement, resulting in approximately 218 million tonnes of CO2 emissions. Notably, 56 per cent of these emissions stemmed from the calcination process during clinker production, 32 per cent from fuel combustion for process heating, and the remaining 12 per cent from electricity consumption. The report emphasises that while energy efficiency measures can reduce emissions intensity by 9 per cent, and the use of renewable energy and alternative fuels can contribute an additional 13 per cent reduction, a substantial 67 per cent of emissions would still need to be addressed through carbon management solutions such as carbon capture, utilisation and storage (CCUS).
Financially, the transition to a net-zero cement industry is substantial. The report estimates a requirement of US$ 334 billion in capital expenditure and an additional US$ 3 billion in annual operating costs to achieve full decarbonisation. However, it also highlights that implementing decarbonisation measures with negative mitigation costs can reduce emissions intensity by 20 per cent and even lower the cost of cement by 3 per cent. Further reductions up to 32 per cent in emissions intensity can be achieved without increasing current production costs by adopting efficient technologies and practices. Nevertheless, achieving net-zero emissions would necessitate the adoption of more expensive technologies like CCUS, which could increase the cost of cement by 19 to 107 per cent, depending on the specific methods employed.
Radhika Choudary, Co-Founder and Director, Freyr Energy, says, “Solar-powered plants amplify the environmental benefits of green cement by ensuring that its production processes—from raw material handling to kiln operations—are powered by clean energy. This reduces greenhouse gas emissions across every stage of the cement’s lifecycle. In addition, leveraging solar energy aligns with emerging green building certifications and sustainability frameworks, making the final product more attractive to eco-conscious developers and construction companies. By adopting solar energy holistically, cement manufacturers not only meet regulatory standards but also position themselves as industry leaders in climate-resilient infrastructure.”
Technological innovations driving green cement
Advancements in technology are central to the production of green cement in India. Innovations include the use of alternative raw materials such as fly ash, slag, and calcined clay, which reduce the reliance on traditional clinker and lower CO2 emissions. Additionally, energy-efficient manufacturing processes and the adoption of renewable energy sources are contributing to more sustainable cement production. By embracing these technological advancements, India’s cement sector can progress towards its decarbonisation goals, aligning with national and global sustainability targets.
Several technological advancements are propelling the adoption of green cement in India:
- Alternative raw materials: Incorporating fly ash, slag, and other industrial by-products reduces reliance on clinker and lowers CO2 emissions.
- Energy-efficient processes: Implementing waste heat recovery systems and optimising kiln operations enhance energy efficiency and reduce greenhouse gas emissions.
- Carbon capture, utilisation and storage (CCUS): CCUS is emerging as a critical strategy for decarbonising India’s cement sector. Given that cement production is responsible for a significant share of industrial CO2 emissions, integrating CCUS technologies can substantially mitigate environmental impacts. The Global Cement and Concrete Association (GCCA) and the Global CCS Institute have identified potential CO2 storage sites across India, including saline formations and depleted oil and gas fields, which could be instrumental in implementing CCUS at scale.
Implementing CCUS in India requires a collaborative approach involving industry stakeholders, policymakers, and financial institutions. Developing supportive policy frameworks and financing mechanisms is essential to facilitate the deployment of CCUS technologies. Moreover, establishing CO2 hubs and infrastructure for transportation and storage will be crucial to the success of CCUS initiatives in the cement industry.
Dr Yogendra Kanitkar, VP – Research and Development, Pi Green Innovations, says, “CCUS is highly critical. If you are exporting to carbon-sensitive markets, you are likely to be hit with a carbon tariff. The Carbon Border Adjustment Mechanism (CBAM) is one such example. Even within India, the Carbon Credit Trading Scheme (CCTS) has been notified, and around 283 entities have been obligated to reduce their CO2 footprints. So, it’s extremely important for Indian industries to wake up to this reality. If you want to remain competitive in foreign markets, adopting CCUS is non-negotiable.”
Policy framework and government initiatives
The Indian government has introduced several policies to promote sustainable construction practices:
- Perform, Achieve, and Trade (PAT) Scheme: Encourages industries to improve energy efficiency and reduce emissions.
- National Action Plan on Climate Change (NAPCC): Outlines strategies for promoting sustainable development and reducing carbon emissions across various sectors.
- Incentives for green buildings: Provides tax benefits and subsidies for adopting eco-friendly construction materials and practices.
These initiatives aim to align the cement industry with India’s commitment to achieving net-zero emissions by 2070.
Challenges and barriers to adoption
Despite the promising outlook, several challenges hinder the widespread adoption of green cement:
- Cost implications: The initial investment for green cement technologies can be high, deterring small and medium-sized enterprises. The cost for decarbonising India’s cement industry amounts to more than US$330 billion in capital expenses and over US$3 billion in annual operating expenses, according to a report by Ernst & Young Parthenon (published February 2025)
- Lack of awareness: Limited knowledge about the benefits and availability of green cement among consumers and builders affects demand.
- Regulatory hurdles: Inconsistent regulations and standards across states can create confusion and impede adoption.
- Supply chain constraints: Ensuring a consistent supply of alternative raw materials like fly ash and slag is crucial for sustained production.
Future outlook: Strategies for sustainable growth
To overcome these challenges and promote the adoption of green cement, the following strategies can be implemented:
- Research and development: Investing in R&D to develop cost-effective and efficient green cement technologies.
- Public-private partnerships: Collaborations between government bodies and private companies can facilitate knowledge sharing and resource pooling.
- Education and training: Conducting awareness campaigns and training programs for stakeholders in the construction industry.
- Standardisation of regulations: Establishing uniform standards and certifications for green cement to streamline adoption.
Conclusion
The transition to green cement represents a transformative opportunity for India’s cement industry to align economic growth with environmental responsibility. As the country continues to urbanise and expand its infrastructure, the adoption of sustainable practices becomes not just desirable, but essential. Green cement offers a viable pathway to reduce the carbon intensity of construction through innovative technologies, alternative raw materials, and energy-efficient production processes. With the support of robust policy frameworks like the National Green Hydrogen Mission and Perform, Achieve and Trade (PAT) Scheme, the industry is well-positioned to meet the dual goals of reducing greenhouse gas emissions and maintaining its critical role in national development.
However, realising the full potential of green cement requires a coordinated, multi-stakeholder approach involving government, industry, academia, and financial institutions. Addressing cost barriers, improving supply chain logistics, and raising awareness among end-users are essential for scaling adoption. As India targets net-zero emissions by 2070, with interim renewable energy and efficiency milestones, green cement will play a pivotal role in the nation’s decarbonisation journey. By investing in innovation, standardisation, and education, India can emerge as a global leader in sustainable construction and set a powerful precedent for other developing economies facing similar climate and infrastructure challenges.
– Kanika Mathur
