Decarbonisation in the Indian Cement Industry
India’s cement industry sits at a decisive turning point. However, reaching net zero will demand far more than the efficiency gains that have carried the sector this far.
Decarbonisation in the Indian Cement Industry, jointly authored by AEEE and ACEEE, sets out a strategic roadmap for aligning the sector with India’s national goal of net-zero emissions by 2070. Drawing on consultations with supply-side stakeholders, including cement manufacturers and sector experts, and with demand-side stakeholders, including developers, architects, and institutional buyers, alongside a comparative survey of decarbonisation policies across Vietnam, Indonesia, Malaysia, Thailand, Brazil, the European Union, Germany, and the United States, the report maps the technical, economic, and market barriers separating India’s current emissions trajectory from its climate commitments.
The report identifies five strategic levers to reduce emissions, profiles the most promising low-carbon cements and emerging process technologies, and outlines a phased implementation strategy spanning 2025 to 2070. Designed for policymakers, cement manufacturers, technology providers, developers, and the wider construction industry, it argues that India’s cement sector can decouple growth from emissions and become a blueprint for emerging economies across the Global South.
Key Insights from the Report
- Cement production accounts for roughly 6–7% of India’s greenhouse gas emissions, arising almost entirely from three sources: limestone calcination (approximately 56%), fuel combustion (32%), and electricity use (12%). Because calcination releases COâ‚‚ as an inherent chemical by-product of converting limestone into clinker, more than half the sector’s emissions cannot be eliminated through energy efficiency alone, making deeper structural interventions unavoidable.
- Five strategic levers, in order of near-term impact, can drive emissions abatement: alternative fuels and raw material substitution (21–24% of abatement potential), clinker factor reduction through supplementary cementitious materials (7–15%), energy efficiency improvements (foundational but now approaching thermodynamic limits), decarbonisation of electricity use (20–30%), and carbon capture, utilisation, and storage (CCUS) as the ultimate solution for unavoidable process emissions.
- India is already among the world’s most efficient cement producers, with one of the lowest clinker-to-cement ratios globally (approximately 0.73) and thermal and electrical intensities well below global averages. Yet its thermal substitution rate stands at just 6%, far behind the global average of 15–20% and the European Union’s 56%. This gap is driven largely by fragmented waste supply chains and regulatory barriers rather than limitations in kiln technology.
- Emerging low-carbon cements, including limestone calcined clay cement (LC3), composite cements, and geopolymer cements, can reduce COâ‚‚ emissions by 35–80% compared with ordinary Portland cement. Their potential has already been demonstrated through projects such as Noida International Airport—India’s first large-scale LC3 deployment—and the Delhi Metro. Scaling these solutions will require finalised BIS standards, reliable supply chains, green public procurement, and financing mechanisms to bridge the current green premium, estimated at 5–21%.
