NITI Aayog Roadmap for Cement Sector Decarbonisation: Accelerating Industrial Net-Zero
SDG 9: Industry, Innovation and Infrastructure | SDG 11: Sustainable Cities and Communities | SDG 13: Climate Action
NITI Aayog | Ministry of Commerce and Industry | Ministry of Power | Ministry of Housing and Urban Affairs
The NITI Aayog roadmap titled ‘Roadmap for Cement Sector Decarbonisation’ outlines strategies for reducing greenhouse gas emissions in India’s cement industry, which is a significant contributor to national emissions.
India is the world’s second-largest cement producer, contributing 13% of global output, with production projected to rise sevenfold by 2070 to 2,100 million tons. Currently, the sector accounts for approximately 6% to 7% of India’s total greenhouse gas emissions, primarily driven by limestone calcination (55%) and on-site fuel combustion (33%). Under a Business-As-Usual scenario, annual emissions are projected to surge from 246 MtCO2e in 2023 to 1,323 MtCO2e by 2070, necessitating a fundamental shift in industrial processes.
Three Transformative Solution Pathways
The roadmap prioritizes three high-impact levers capable of reducing sectoral emissions by 80-85% by 2070.
Refuse Derived Fuel (RDF): Increasing the usage of processed municipal solid waste to achieve a 20% thermal substitution rate by 2030 could reduce energy emissions by 10%. This requires a 15,000 crore capital investment and could generate 65,000 green jobs.
Clinker Substitutes: Reducing the clinker-to-cement ratio from 67.5% to 62% by 2050 using materials like fly ash, slag, and calcined clay. Adopting Limestone Calcined Clay Cement (LC3) can reduce emissions by 7-15% while providing significant operational savings.
CCUS Scaling: Carbon Capture, Utilisation, and Storage is the most critical lever, with the potential to abate 35-54% of emissions by addressing hard-to-abate process sources.
Regulatory and Institutional Framework
Implementation is categorized by the level of required government intervention.
Energy Efficiency (EE): Seven economically viable initiatives, such as improved refractories and automation systems, can be implemented by the industry independently to achieve a 5-10% emission reduction.
Performance-Based Standards: A recommended transition from input-based to performance-based standards by the Bureau of Indian Standards (BIS) will facilitate wider adoption of low-carbon blended cements.
Carbon Markets: The transition from the PAT scheme to the Carbon Credit Trading Scheme (CCTS) provides the necessary pricing signals to reward early adopters and efficient plants.
What is the “Clinker-to-Cement Ratio” and why is it critical for decarbonisation? The clinker-to-cement ratio represents the proportion of clinker—the most carbon-intensive component produced through high-heat calcination—used in the final cement product. Reducing this ratio by blending in supplementary cementitious materials (SCMs) like fly ash or calcined clay directly lowers the amount of limestone required and the energy consumed, making it one of the most cost-effective strategies for immediate industrial emission reductions.
Policy Relevance
The decarbonisation of the cement sector is a strategic necessity to ensure India’s infrastructure-led growth remains compatible with its Net-Zero 2070 commitments.
Export Competitiveness: Aligning standards with global sustainability benchmarks is essential for Indian cement to remain competitive in international markets governed by carbon-intensity regulations.
Circular Economy Integration: Scaling RDF usage turns urban waste management from a liability into a resource, requiring deep collaboration between Urban Local Bodies (ULBs) and industrial clusters.
Infrastructure Lead: Large public agencies like NHAI and CPWD can act as “first movers” by updating procurement guidelines to mandate the use of low-carbon and blended cements.
Follow the full report here: Roadmap for CEMENT SECTOR DECARBONISATION