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Looking Beyond Carbon

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Dr Uttam Sur, Global Head of ESG, Valency International, discusses the role of the 3Cs – Cut, Cement, Carbon – in decarbonising India’s cement sector for a sustainable future.

India’s cement industry, the second largest globally, is a cornerstone of infrastructure development and a significant contributor to carbon emissions. With the nation’s commitment to Net Zero emissions by 2070, the sector must undergo a transformative shift. The theme ‘The 3Cs – Cut, Cement, Carbon’ offers a strategic lens to guide this transition: Cut emissions, innovate Cement, and capture Carbon.

Cut: Reducing emissions at source
The first imperative is to cut emissions from both energy use and the calcination process.

Key levers:

  • Clinker substitution: Increasing the use of Supplementary Cementitious Materials (SCMs) like fly ash, slag, and calcined clay can reduce emissions by up to 30 per cent.
  • Alternative fuels: The sector is targeting a 35 per cent thermal substitution rate using biomass, municipal solid waste, and RDF by 2030
  • Energy efficiency: The Perform, Achieve and Trade (PAT) scheme has driven adoption of energy-efficient technologies, reducing specific energy consumption across plants

Cement: Innovating materials and processes
The second ‘C’ focuses on redefining cement itself to lower its carbon footprint.

Innovations:

  • Limestone Calcined Clay Cement (LC3) and Portland Limestone Cement (PLC) are gaining traction for their lower clinker content and comparable performance.
  • Geopolymer and alkali-activated cements offer potential for zero-clinker binders.
  • Circular economy practices: Use of industrial by-products and recycled aggregates is reducing virgin material demand and emissions.
    However, standardisation and regulatory approval (e.g., for LC3) remain critical to scaling these innovations

Carbon: Capturing and utilising emissions
The third ‘C’ addresses residual emissions through Carbon Capture, Utilisation, and Storage (CCUS).
Progress and potential:

  • India has identified CCUS hubs with a potential to abate 36.4 million tonnes of CO2 annually.
  • Utilisation pathways include mineralisation, carbonated aggregates, and methanol synthesis.
  • Pilot projects like microalgae-based photoreactors at IOCL Mathura show promising capture efficiencies of up to 75 per cent.

Despite its promise, CCUS faces high capital costs and requires robust policy and financial support to scale.

Policy impacts and success stories
India’s policy landscape is evolving to support deep decarbonisation in the cement sector. Several initiatives have already demonstrated success:

1. PAT Scheme (Perform, Achieve and Trade)

  • Cement was one of the first sectors included.
  • Plants participating in PAT Phase I achieved energy savings of over 1.5 million tonnes of oil equivalent, reducing emissions and operational costs

2. Decarbonisation roadmap by GCCA India and TERI

  • Launched in 2025, this roadmap aligns with India’s net-zero target and sets interim goals
    for 2047.
  • It outlines a structured pathway for reducing emissions through clinker substitution, CCUS and alternative fuels.
  • The roadmap is backed by industry leaders like JSW Cement and supported by the Cement Manufacturers’ Association.

3. CCUS policy frameworks

  • NITI Aayog and the Department of Science and Technology have initiated Centres of Excellence for CCUS in Mumbai and Bengaluru
  • These centers promote R&D, public awareness and pilot projects.
  • A CO2-to-methanol plant is under construction in Pudimadaka, showcasing industrial-scale carbon utilisation

International collaboration

  • India is engaging with global platforms like the Clean Energy Ministerial and Global CCS Institute to develop financing models and regulatory frameworks for CCUS.

Here are future policy directions that could accelerate decarbonisation in India’s cement sector, aligned with the ‘3Cs – Cut, Cement, Carbon’ framework:

1. Mandate low-carbon cement in public procurement

  • Why it matters: Government infrastructure projects are major consumers of cement.
  • Policy direction: Introduce mandatory use of LC3, PLC, or blended cements in public works (roads, housing, railways).
  • Impact: Creates demand-pull for low-carbon products and encourages manufacturers to scale production.

2. Expand and deepen the PAT scheme

  • Why it matters: PAT has proven effective in improving energy efficiency.
  • Policy direction: Include carbon intensity targets, not just energy metrics, and extend to smaller cement plants.
  • Impact: Drives holistic decarbonisation and brings more players into the fold.

3. Establish a national carbon market

  • Why it matters: A carbon pricing mechanism incentivizes emission reductions.
  • Policy direction: Launch a cap-and-trade system with sector-specific benchmarks for cement.
  • Impact: Rewards early movers and enables cost-effective decarbonisation.

4. Accelerate CCUS deployment with fiscal incentives

  • Why it matters: CCUS is essential for deep decarbonisation but capital-intensive.
  • Policy direction: Offer tax credits, viability gap funding, and accelerated depreciation for CCUS infrastructure.
  • Impact: Makes CCUS financially viable and scalable across clusters.

5. Support R&D and pilot projects for alternative binders

  • Why it matters: Innovation in cement chemistry is key to reducing emissions.
  • Policy direction: Fund academic-industry collaborations to develop and test geopolymer, magnesium-based, and bio-cements.Impact: Diversifies the cement portfolio and reduces reliance on clinker.

6. Create green certification and labelling standards

  • Why it matters: Buyers need clarity on the environmental impact of cement products.
  • Policy direction: Develop a national ecolabel for low-carbon cement, similar to BEE star ratings.
  • Impact: Enhances transparency and consumer awareness.

7. Promote circular economy regulations

  • Why it matters: Waste reuse reduces emissions and resource consumption.
  • Policy direction: Mandate co-processing of industrial waste, incentivise recycled aggregates, and streamline waste-to-fuel approvals.
  • Impact: Reduces landfill pressure and supports sustainable cement production.

Rethinking the 3Cs – A critical view
While the ‘3Cs – Cut, Cement, Carbon’ framework presents a structured approach to decarbonising India’s cement sector, it may fall short in addressing the complexity and urgency of the climate challenge. The model, though conceptually appealing, risks oversimplifying the multifaceted nature of industrial decarbonisation.
1. Overemphasis on technological fixes: The framework leans heavily on technological interventions like CCUS and alternative binders, which are still nascent, capital-intensive, and not yet scalable. This could divert attention from more immediate, systemic changes such as demand-side management and urban planning reforms.
2. Neglect of demand reduction: The ‘Cut’ component focuses on emission reduction at the production level but overlooks the need to reduce overall cement consumption through design innovation, material efficiency, and alternative construction practices.
3. Limited scope for socioeconomic integration: The framework does not adequately address the socioeconomic dimensions of decarbonisation—such as job transitions, skill development, and community engagement—which are critical for a just and inclusive transition.
4. Policy dependency and uncertain implementation: Many proposed solutions hinge on future policy support, fiscal incentives, and regulatory reforms. Without strong enforcement mechanisms and accountability, these measures may remain aspirational.
5. Carbon capture as a silver bullet?: The reliance on CCUS as a major pillar raises concerns. Given its high cost, energy intensity, and uncertain long-term viability, CCUS should be seen as a complementary—not central—strategy.

A more holistic path forward
India’s cement sector needs a broader paradigm shift—one that integrates material efficiency, behavioural change, urban design, and lifecycle thinking. Rather than focusing narrowly on the 3Cs, a more inclusive framework could be:

  • Rethink: Challenge the necessity of cement-intensive infrastructure.
  • Redesign: Promote low-impact construction and modular design.
  • Regenerate: Align industrial practices with ecological restoration.

ABOUT THE AUTHOR:
Dr Uttam Sur, Global Head of ESG, Valency International, is an ESG and CSR leader with over 20 years of global experience, driving SDG-aligned sustainability strategies and partnerships.

Concrete

FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

 

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Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

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Steel: Shielded or Strengthened?

CW explores the impact of pro-steel policies on construction and infrastructure and identifies gaps that need to be addressed.

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Going forward, domestic steel mills are targeting capacity expansion
of nearly 40 per cent through till FY31, adding 80-85 mt, translating
into an investment pipeline of $ 45-50 billion. So, Jhunjhunwala points
out that continuing the safeguard duty will be vital to prevent a surge
in imports and protect domestic prices from external shocks. While in
FY26, the industry operating profit per tonne is expected to hold at
around $ 108, similar to last year, the industry’s earnings must
meaningfully improve from hereon to sustain large-scale investments.
Else, domestic mills could experience a significant spike in industry
leverage levels over the medium term, increasing their vulnerability to
external macroeconomic shocks.(~$ 60/tonne) over the past one month,
compressing the import parity discount to ~$ 23-25/tonne from previous
highs of ~$ 70-90/tonne, adds Jhunjhunwala. With this, he says, “the
industry can expect high resistance to further steel price increases.”

Domestic HRC prices have increased by ~Rs 5,000/tonne
“Aggressive
capacity additions (~15 mt commissioned in FY25, with 5 mt more by
FY26) have created a supply overhang, temporarily outpacing demand
growth of ~11-12 mt,” he says…

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