Team TrickyScribe: Reaffirming its commitment to India’s ambitious net-zero target by 2070, WRI India launched its expert note, Pathways to Net Zero: Policies and Measures for Industrial Decarbonization in India, in New Delhi. The report unveils strategic interventions that can make Indian industries cleaner, more efficient, and aligned with sustainable growth. It underscores the urgent need for early action, pioneering policies, and targeted investments to balance industrial expansion with environmental responsibility.
The Industrial Paradox: Growth vs. Emissions
Industries serve as the backbone of India’s economy, contributing 25% to the nation’s Gross Value Added (GVA) in 2019. However, this economic engine is also a major emitter, responsible for 30% of India’s total carbon emissions. Without decisive policy measures, industrial emissions could nearly triple by 2050—an alarming prospect that makes industrial decarbonization a national priority for sustainable development.
The Decarbonization Blueprint: A Pathway to Sustainability
Leveraging the India Energy Policy Simulator (EPS), the expert note explores a Long-Term Decarbonization (LTD) scenario, demonstrating that industrial emissions could be slashed by 65% by 2050. This ambitious reduction, amounting to a cumulative decline of 29,388 million metric tonnes of CO₂ equivalent (MMtCO₂e) between 2020 and 2050, is achievable through key interventions:
- Industrial Electrification & Hydrogen Adoption
• Mandating a shift from fossil fuels to electrification and hydrogen from 2025, aiming for 50% substitution by 2050.
• Expected emissions cut: 12,367 MMtCO₂e (42%). - Enhancing Energy Efficiency
• Achieving an annual 1.3% improvement in specific energy consumption.
• Expected emissions cut: 4,606 MMtCO₂e (16%). - Material Efficiency Mandates
• Promoting recycling and increasing product lifespan in cement and steel industries.
• Expected emissions cut: 3,546 MMtCO₂e (12%). - Carbon Pricing as an Economic Driver
• Introducing a carbon price that rises from $4 per tonne of CO₂ in 2019 to $50 per tonne by 2050.
• Expected emissions cut: 2,945 MMtCO₂e (10%).
Carbon Capture: The Missing Piece of the Puzzle
Despite aggressive mitigation strategies, fossil fuels are projected to still account for nearly 50% of industrial fuel demand by 2050. To address this, the report highlights the necessity of Carbon Capture, Utilization, and Storage (CCUS)—particularly for cement and chemical industries. However, significant hurdles such as high capital costs, inadequate geological storage data, and underdeveloped infrastructure must be tackled for CCUS to become a viable solution.
Six Policy Pillars for a Low-Carbon Industrial Future
The expert note lays out six transformative policy recommendations to fast-track India’s industrial decarbonization:
1. Invest in Low-Carbon Technologies – Encourage funding for green hydrogen and CCUS through sovereign green bonds and blended finance models.
2. Strengthen Demand-Side Policies – Implement robust circular economy policies, such as the National Circular Economy Roadmap and Construction & Demolition Waste Management (CDWM).
3. Support MSME Decarbonization – Provide credit guarantee schemes and public financing to help micro, small, and medium enterprises (MSMEs) transition to low-carbon solutions.
4. Boost Indigenous Manufacturing – Develop domestic capabilities in producing low-carbon technology components like electrolyzers and solar PVs to reduce dependency on imports.
5. Enhance Research & Development – Invest in scaling up emerging decarbonization technologies through targeted R&D initiatives.
6. Develop a Skilled Workforce – Focus on workforce training and reskilling, ensuring gender-inclusive employment opportunities in low-carbon industries.
A Call for Collective Action
Speaking at the launch, Ashwini Hingne, Associate Director at WRI India, emphasized: “India’s industrial sector is at a crossroads. Decarbonization presents a major opportunity to drive economic growth, create jobs, and strengthen India’s position in global markets. This expert note provides a clear roadmap for policymakers, industry leaders, and financial institutions to accelerate this transition.”With the right mix of policy support, technological innovation, and financial investments, India’s industrial sector can pave the way for a cleaner, greener, and more sustainable future—ensuring economic growth without compromising environmental well-being.
Total Views: 2,63,534