Decarbonisation Business Charter

Value Chain Approach to Decarbonize the Building and Construction sector in India.

India has significant potential to decarbonize the building and construction sector in line with its commitment to reduce the economy's emission intensity. A crucial step towards achieving this is to adopt a holistic approach encompassing the design, construction, and operational phases of a building's life cycle, with a primary focus on transitioning towards net-zero emissions.

The Indian government’s Pradhan Mantri Awas Yojna-Urban initiative is projected to increase the building footprint by 360 million sq. m., and the houses built under it are expected to last for about 40-60 years. This presents India with a unique opportunity to transition to a low-carbon pathway and achieve a net-zero building and construction sector. However, buildings and construction currently account for around 25% of India’s greenhouse gas emissions, and this is expected to rise due to increased energy demand driven by concentrated construction in urban areas, traditional building structures, and growing appliance use, primarily for cooling.

The Decarbonisation Business Charter was envisioned to establish a unified platform that unites key stakeholders and promotes the decarbonization of the building and construction sector while addressing shared challenges and opportunities. World Resources Institute India (WRI India), Alliance for an Energy Efficient Economy (AEEE), Mahindra Lifespace Developers Limited, and EcoCollab collaborated to develop this initiative. The charter serves as a framework to identify and prioritize critical actions towards achieving the goal of reducing carbon emissions in the sector. The Swiss Agency for Development and Cooperation (SDC) is supporting the planned activities for the year, such as enabling decarbonisation charter in three Indian metro cities, capacity building on sectoral decarbonisation, and implementation through technical support.

Reducing demand for costly virgin materials, adopting circularity, and decarbonizing the building sector are vital. Climate risks and financial impacts emphasize the need for sustainable practices. This Decarbonisation Business Charter provides strategies and actions for stakeholders across the value chain to address these challenges.