According to independent studies conducted by the Council on Energy, Environment and Water (CEEW), India’s steel and cement industries, which are crucial to the country’s economic development, will necessitate an additional capital expenditure (CAPEX) of INR 47 lakh crore (USD 627 billion) to achieve net-zero carbon emissions. These industries are among the largest emitters of carbon due to their emission-intensive processes. Furthermore, sustaining their net-zero status will require an annual operational expenditure (OPEX) of INR 1 lakh crore each.
The CEEW analyses, supported by ‘bp’, a comprehensive energy company, indicate that adopting efficient technologies, such as waste-heat recovery and energy-efficient drives and controls, can reduce steel emissions by 8–25% and cement emissions by 32% without price increases. Notably, a 33% reduction in the combined carbon emissions of both industries could be achieved with just 8.5% of the total additional CAPEX and 30% of the extra annual OPEX. This reduction could be accomplished without the need for carbon capture, provided there is a supply of alternative fuels and raw materials.
Dr. Arunabha Ghosh, CEO of CEEW, stressed that decarbonizing these industries would align with India’s climate goals, enhance their competitiveness, and prepare them for sustainability-driven global regulations.
While the Indian cement industry is highly energy-efficient, inherent carbon emissions are a challenge due to limestone processing. The study recommends mechanisms for carbon management, such as carbon capture and storage (CCS), but also highlights the need for carbon pipelines to support this technology.
To achieve a net-zero status, the CEEW recommends implementing the best available energy-efficient technologies, promoting renewable energy, and developing a policy and ecosystem for CCUS, considering the pivotal role of hydrogen in this transition.
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