Strategic innovation and public-private collaboration are enabling net zero goals for one of the country’s most carbon-intensive sectors. Neeti Mahajan, Consultant, EY India, discusses green technologies, renewable energy, and circular economy principles.
For the first time in India’s history, the percentage of renewable energy in our overall energy mix crossed the percentage of energy powered by fossil fuels. A marquee historic moment for India, and also a reminder that the Nationally Determined Contributions (NDCs)
taken by India are not far from reality. They rather have become more tangible and achievable as we move ahead.
The cement industry is among India’s most carbon-intensive sectors, contributing approximately 7 to 8 per cent of total national carbon dioxide emissions, with an estimated 0.6 to 0.8 tonnes of carbon dioxide emitted per tonne of cement produced. Of this, about 60 to 65 per cent of emissions originate from the calcination process, 30 to 35 per cent from the combustion of fossil fuels, and the remainder from indirect energy consumption in grinding, transportation, and auxiliary processes. As India advances toward its commitments under the Paris Agreement, these include a 45 per cent reduction in GDP carbon intensity by 2030 (from 2005 baseline) and achieving 50 per cent of cumulative installed electricity capacity from non-fossil sources by 2030. Hence, as we leap towards a greener India, the cement industry – one of the most fundamental yet hard-to-abate industries remains at the cusp of being instrumental to this transformation.
To align with India’s NDC targets, the cement sector is transitioning toward low-carbon production pathways that combine technology, innovation, and circular economy principles. A key lever is the adoption of green cement, produced by reducing the clinker-to-cement ratio through the incorporation of supplementary cementitious materials such as fly ash, ground granulated blast furnace slag (GGBS), calcined clay, and silica fume. This approach can lower carbon dioxide emissions by up to 30 to 40 per cent per tonne of cement compared to Ordinary Portland Cement. India, one of the world’s largest producers of blended cements, already uses over
35 per cent fly ash and 25 per cent slag in its cement mix, reflecting progress toward greener manufacturing.
Another major pathway is energy transition and efficiency enhancement. Cement plants are increasingly adopting waste heat recovery systems (WHRS), capable of meeting up to 25 to 30 per cent of their power needs, and shifting toward renewable electricity through solar and wind power purchase agreements. Sector leaders such as UltraTech, Dalmia Bharat and ACC have installed solar capacities exceeding 100 MW collectively, contributing to India’s broader target of 500 GW of non-fossil energy capacity by 2030. Additionally, the use of alternative fuels and raw materials, including biomass, municipal solid waste, and industrial by-products is expanding. Substitution rates of alternate raw materials, currently at around 4 to 5 per cent in India, have the potential to reach 25 per cent by 2030, further cutting fossil fuel dependence and aligning with circular economy objectives.
In parallel, the sector is exploring Carbon Capture, Utilisation and Storage (CCUS) technologies, particularly for process emissions that cannot be avoided through efficiency measures. Pilot projects by leading producers aim to capture and reuse CO2 in concrete curing, carbonated building materials, and chemical feedstocks. Such innovation aligns with India’s long-term net-zero commitment for 2070 and offers scope for integration with international technology transfer initiatives under Article 6 of the Paris Agreement.
India’s evolving carbon market ecosystem is another enabler for cement industry decarbonisation. The Indian Carbon Market (ICM), launched in 2023 under the Bureau of Energy Efficiency (BEE), provides a mechanism for industries to earn carbon credits by exceeding emission reduction benchmarks, which can then be traded or used to meet compliance obligations. Cement companies can leverage these credits from renewable energy use, waste heat recovery, or green cement production, providing both financial and reputational incentives. This complements voluntary markets and corporate net-zero frameworks that increasingly demand traceable, high-quality offsets. Recently, cement companies have targets to achieve through the ICM and the Carbon Credit Trading Mechanism (CCTS), leading to cleaner energy powered by greener finance.
Further, the cement industry’s contribution to India’s carbon sink target – creating an additional 2.5 to 3 billion tonnes of CO2 equivalent through forest and tree cover by 2030 – can be strengthened through afforestation initiatives, biodiversity conservation, and mine rehabilitation programs linked to cement plant operations. Policy instruments such as the Perform, Achieve, Trade (PAT) Scheme, Renewable Energy Certificates (RECs), and Energy Conservation Act, 2022 provide additional regulatory and market-based tools to encourage decarbonisation and resource efficiency.
Collectively, these initiatives position the cement industry as a key contributor to India’s NDC implementation. Through a combination of green cement innovation, renewable energy adoption, carbon market participation, and technology advancement, the sector can significantly reduce its emission intensity while ensuring competitiveness and sustainability.
As the government, leading organisations and we as the people, head towards a greener and cleaner future. The public private partnership here can really be a game changer. Think tanks, policy-research organisations, consulting companies can help all involved parties to better achieve a holistic target and a better future for all.
ABOUT THE AUTHOR:
Neeti Mahajan, Consultant, EY India, is a climate and sustainability professional, blending consulting and communication to drive people-centered climate action.