NITI Aayog has released three reports outlining roadmaps for decarbonizing the cement and aluminum sectors, as well as promoting the green transition of Micro, Small, and Medium Enterprises (MSMEs). These reports provide actionable frameworks for emissions reduction, energy efficiency, technology adoption, and investment facilitation across critical industrial sectors, aligning with India's goal of achieving net-zero greenhouse gas emissions by 2070 and becoming a $30 trillion economy by 2047.
Cement Sector Decarbonization
The report on the cement sector highlights a projected sevenfold increase in cement production, from 391 million tonnes in 2023 to approximately 2100 million tonnes in 2070. To achieve decarbonization, the sector must reduce its carbon intensity from 0.63 tCO₂e per tonne of cement to approximately 0.09-0.13 tCO₂e per tonne by 2070. Key strategies include prioritizing the use of refuse-derived fuels, clinker substitution, scaling up Carbon Capture, Utilisation and Storage (CCUS), and effectively implementing a Carbon Credit Trading Scheme. NITI Aayog suggests increased usage of supplementary cementitious materials and scaling up CCUS in the cement industry for capturing CO2 emissions. The current GHG emissions from cement are 246 Mt CO2e, or 6% of India's total, and are projected to go up to 45 Mt CO2e by 2047.
Aluminum Sector Decarbonization
The report on the aluminum sector projects a significant increase in production from 4 million tonnes in 2023 to 37 million tonnes by 2070. The decarbonization roadmap identifies a three-phased approach:
- Short term: Transition to Renewable Energy-Round the Clock (RE-RTC) power and enhanced grid connectivity.
- Medium term: Adoption of nuclear power.
- Long term: Integration of CCUS.
India's current aluminum production is 5 million tonnes annually and is used for photovoltaic systems, grid connectivity, EVs, aerospace and marine, etc. India also exports 40–50 per cent of primary aluminium.
Green Transition of MSMEs
For MSMEs, NITI Aayog has proposed setting up a National Project Management Agency (NPMA) and allocating 8-9% of the credit-guarantee fund value to help MSMEs adopt green practices. A cluster-based framework will help in effective implementation of the roadmap.
NITI Aayog's Green Transition Initiative
NITI Aayog established the Green Transition, Energy, Environment, and Climate Change division to focus on climate change and green transition. According to CEO NITI Aayog, B.V.R. Subrahmanyam, this division is now the largest in NITI Aayog, comprising around 50 professionals with expertise in various fields.
These roadmaps are designed to align with India's developmental ambitions and climate commitments, paving the way for a sustainable and economically robust future.
