NEW DELHI: In a strategic initiative designed to assist India's high-emission industries in adapting to the European Union's stringent carbon border tax regime, Niti Aayog, the government's premier policy think tank, has unveiled detailed and comprehensive roadmaps for the decarbonisation of the aluminium and cement sectors. This forward-looking move aims to facilitate the adoption of cleaner manufacturing processes over time, thereby positioning these critical industries for sustainable growth in a globally competitive market.
Aligning with India's 2070 Net-Zero Ambition
This development is particularly significant as it directly contributes to India's ambitious long-term goal of achieving net-zero emissions, or carbon neutrality, by the year 2070. The roadmaps serve as a crucial blueprint for transforming industrial operations, reducing environmental impact, and enhancing economic resilience against international regulatory pressures.
Understanding the EU's Carbon Border Adjustment Mechanism
The EU's Carbon Border Adjustment Mechanism (CBAM) represents a pivotal policy tool that imposes a price on carbon-intensive goods, including cement, aluminium, iron and steel, and fertilisers, when they are imported into the 27 member nations of the European Union. Without proactive measures to decarbonise, Indian exports in these sectors will continue to face substantial tariff burdens, potentially undermining the country's export competitiveness and economic interests on the global stage.
Roadmaps as Reference for Broader Climate Action
Released by Niti Aayog last Wednesday, the decarbonisation roadmaps for cement and aluminium are not only sector-specific guides but also intended to function as reference manuals for decarbonising other industrial sectors across India. This aligns seamlessly with the nation's climate action commitments under the Paris Agreement, reinforcing India's dedication to sustainable development and environmental stewardship.
Decarbonising the Cement Sector: Key Strategies and Targets
The report highlights that cement manufacturing is a major contributor to global carbon emissions, accounting for approximately 2.4 gigatonnes of carbon dioxide equivalent (GtCO2e) worldwide in 2023. In India, cement production resulted in roughly 246 million tonnes of carbon dioxide equivalent (MtCO2e) emissions, constituting about 6% of the country's total greenhouse gas emissions.
To address this, the roadmap outlines a decarbonisation strategy aimed at reducing the carbon intensity of cement production from the current level of 0.63 tonnes of CO2 equivalent per tonne of cement to a significantly lower range of 0.09 to 0.13 tonnes by 2070. Achieving this deep decarbonisation will involve prioritising several key approaches:
- Increased utilisation of refuse-derived fuels to replace traditional fossil fuels.
- Enhanced clinker substitution with alternative materials to lower carbon output.
- Scaling up Carbon Capture, Utilisation and Storage (CCUS) technologies to capture emissions at source.
- Effective implementation of carbon credit trading schemes to incentivise emission reductions.
Transforming the Aluminium Industry: A Three-Phase Solution
Similarly, the decarbonisation roadmap for the aluminium sector proposes a structured three-phase solution to curb emissions, which accounted for about 2.8% of India's total greenhouse gas emissions in 2023. The phased approach includes:
- Short-term measures: Transitioning to renewable energy sources with round-the-clock (RE-RTC) availability and enhancing grid connectivity to ensure reliable power supply.
- Medium-term strategies: Adopting nuclear power as a cleaner energy alternative to further reduce carbon footprint.
- Long-term integration: Incorporating Carbon Capture, Utilisation and Storage (CCUS) technologies to achieve comprehensive emission reductions.
By implementing these roadmaps, India's cement and aluminium sectors can not only mitigate the impact of the EU's carbon border tax but also pave the way for a greener industrial future, supporting both economic growth and environmental sustainability in the decades to come.
