India’s cement demand is set to soar. But what about the sector’s carbon emissions?

The paradox of being both essential and emission-intensive makes the cement sector a crucible of climate and economic challenges. (Bloomberg)
The paradox of being both essential and emission-intensive makes the cement sector a crucible of climate and economic challenges. (Bloomberg)
Summary

From housing to highways, India’s growth story rests on cement. But this is a ‘hard to abate’ sector as far as carbon emissions go. Thankfully, pathways exist to decarbonize it. 

As India charts its path towards becoming a developed nation by 2047, infrastructure is expected to be the backbone of this transformation. Every facet of this progress—from affordable housing to expressways—would rest substantially on cement as a foundation. As the sector is a critical enabler of growth and urbanization, its environmental responsibility will be in focus.

With transformative initiatives such as PM Gati Shakti, Housing for All and India’s Smart Cities Mission, cement demand is poised to rise sharply. At the same time, the sector contributes nearly 7% of the nation’s total greenhouse gas emissions. This paradox of being both essential and emission-intensive makes the cement sector a crucible of climate and economic challenges.

Projections indicate that cement production in India will rise from 427 million tonnes in 2023-24 to around 1.5 billion tonnes by 2070. Per capita consumption is expected to nearly triple from 290kg to 877kg. In line with India’s net-zero target for 2070, the cement sector must accelerate its decarbonization.

A recently unveiled roadmap jointly developed by TERI, the Global Cement and Concrete Association (GCCA India) and leading Indian industry stakeholders charts a pathway. Some of the key decarbonization strategies are as follows:

First, by 2070, 35% of fossil fuel waste can be repurposed as alternative fuels in cement plants, paving the way for a complete shift to low-carbon fuels which could significantly lower emissions. In addition, supplementary cementitious materials like fly ash and slag are gaining prominence; blended cements are expected to dominate the market.

Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC) are innovative options, alongside Composite Cement, Limestone Calcined Clay Cement (LC3), and Portland Limestone Cement (PLC), which will play a vital role in future production.

India’s cement industry has several immediate options to speed up its decarbonization. One such opportunity lies in increasing the permissible limit of supplementary cementitious materials (SCMs) in blended cement. For instance, raising the fly ash content in PPC from 35% to 40% could lead to a significant reduction in carbon emissions. It has been successfully implemented in Indonesia.

Adopting alternative cement types such as hydraulic cement offers another promising pathway. It is already widely used; for example, in Thailand, where it serves as a common replacement for Ordinary Portland Cement (OPC), particularly in the ready-mix concrete (RMC) industry. About 80% of Thailand’s annual cement demand is already met through hydraulic or blended cements.

These can substantially reduce clinker consumption, thereby lowering the carbon footprint and offering cost-effective routes to achieve emission reduction targets.

Second, the cement industry is increasing its reliance on waste heat recovery and renewable power through captive renewable energy plants and carbon-free electricity accessed via open-access models. Technologies like kiln electrification, currently at its pilot stage, hold long-term promise. These shifts will not only reduce emissions, but also cut dependence on fossil fuels, thereby helping decouple economic growth from environmental degradation.

Third, improving the efficiency of cement use is vital. Smart urban planning, design optimization and the adoption of ready-mix concrete, pre-cast structures and durable building materials will cut overall requirements by up to 30% by 2070. Innovations in construction practices, from improved site efficiency to optimised mix designs, will be crucial for efficient cement use.

Fourth, the efficiency of clinker production is expected to rise significantly. Cement plants can cut specific thermal energy use from 731kcal per kg to 705 in the near-term by adopting low-carbon fuels and advanced technologies.

Last, carbon capture and storage technologies are projected to account for a quarter of the sector’s emission reductions by 2070. Although currently at their pilot stage, once commercially commissioned, they will be critical for achieving deep decarbonization.

Indian industry plans to fast-track its deep decarbonization efforts. Strong policy frameworks will determine its pace. In the near term, regulatory incentives must promote energy-efficient technologies and market uptake of low-carbon (blended) and alternative cement.

In the long term, substantial public investment and policy support will be needed to scale up breakthrough technologies such as green hydrogen.

Market-based mechanisms also have a pivotal role. Carbon pricing and building certification systems that reward low-carbon materials can send powerful economic signals for innovation and sustainability.

Decarbonizing the sector demands the cooperation of cement- and policy-makers, researchers, financiers and civil society. Public-private partnerships, climate-aligned finance instruments and harmonized international standards will be crucial.

In pursuit of Viksit Bharat, India’s cement industry has a crucial role to play. The future demands more than incremental change; it calls for bold innovation, forward-looking policies and a shared determination to drive progress. If we act decisively to decarbonize the cement sector, it will help lay the foundation for a resilient, low-carbon India for generations to come.

The authors are, respectively, co-chair, GCCA India, and managing director, HeidelbergCement India; and director general, TERI, and president, GRIHA Council

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