India Unveils Green Roadmaps for Cement, Aluminium, and MSME Sectors
India is on a transformative journey to become a Viksit Bharat, or developed nation, by 2047, aiming for a robust $30 trillion economy. To achieve this ambitious growth, a significant rise in industrial activity paired with extensive infrastructure development is essential. A key objective is to boost the manufacturing sector’s contribution to the GDP from 17% to 25%. As part of its overarching goals, India has also committed to reaching net-zero greenhouse gas emissions by 2070. In light of these objectives, NITI Aayog has introduced three pivotal reports aimed at facilitating green transitions in the cement, aluminium, and MSME sectors.
Cement Sector Insights
The cement industry is projected to experience a remarkable sevenfold increase in production, escalating from 391 million tonnes in 2023 to approximately 2100 million tonnes by 2070. To align with its decarbonization goals, the sector must significantly reduce its carbon intensity from 0.63 tCOâ‚‚e per tonne of cement to an ambitious target of 0.09-0.13 tCOâ‚‚e per tonne by 2070. Key strategies outlined include prioritizing refuse-derived fuels, clinker substitution, enhancing Carbon Capture, Utilisation, and Storage (CCUS), and effectively implementing Carbon Credit Trading Schemes.
Aluminium Sector Developments
The aluminium industry is set to expand from 4 million tonnes in 2023 to 37 million tonnes by 2070. The roadmap for decarbonization recommends a phased approach, starting with the transition to Renewable Energy-Round the Clock (RE-RTC) power and improved grid connectivity in the short term. Mid-term strategies focus on the adoption of nuclear power, while long-term plans emphasize the integration of CCUS technologies.
MSME Sector’s Green Transition
Micro, Small and Medium Enterprises (MSMEs) are crucial to India’s economy, contributing nearly 30% to the national GDP and employing over 250 million people, besides accounting for roughly 46% of exports. The Green Transition Roadmap for MSMEs emphasizes the implementation of energy-efficient equipment, the use of alternative fuels, and the adoption of green electricity solutions.
Suman Bery, Vice Chairperson of NITI Aayog, noted the integral role of MSMEs in both the domestic and international supply chains. He advocated for advancements in technology, affordable financing, skill development, and regulatory reforms to enhance the competitiveness of MSMEs. B. V. R. Subrahmanyam, CEO of NITI Aayog, emphasized that these roadmaps will act as valuable references for India’s pursuit of becoming a developed country while simultaneously achieving industrial decarbonization. S. C. L. Das, Secretary of MSME, highlighted the broad focus of the reports and stressed that a cluster-based framework will aid in effective implementation. Madhav Pai, CEO of WRI India, praised the timely release of these roadmaps, correlating them with India’s developmental ambitions and climate commitments. Ishtiyaque Ahmed, Programme Director at NITI Aayog, provided detailed insights, showcasing various levers such as energy efficiency, CCUS, and nuclear energy that can facilitate the decarbonization of the cement, aluminium, and MSME sectors.
For further information, access the full reports here:
- Cement Sector Decarbonisation Roadmap
- Aluminium Sector Decarbonisation Roadmap
- Green Transition Roadmap for MSMEs
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