India’s Shifting Towards Green Cement Sector

Rising population, urbanisation and infrastructural development through government targets and programmes like the road development projects, Housing for All, Smart Cities Mission, etc. is leading cement demands  to grow manifold in the coming years. India, with an overall production capacity of 500 MTPA is the second-largest producer of cement in the world and contributes around 30% of the emissions resulting from the country’s manufacturing sector.

It is essential to explore opportunities for minimising emissions and optimising energy use as cement manufacturing generates emissions resulting from chemical processes (60-70%) and fossil fuel burning (30-40%). The Indian cement sector, till date, has undertaken initiatives for controlling emissions but been restricted to operational advances such as energy efficiency, alternative fuel use, clinker substitution, etc.

Reports from PAT II indicate that the sector exceeded its energy saving target by 41.82 %. As per a WBCSD (2018) report, the share of blended cement in the Indian production mix has gradually increased from 68% in 2010 to 73% in 2017. The overall clinker factor has also reduced from 0.74 to 0.71 during the same period. Technological innovations aimed at greening the industry would aid in emission reduction.

With potential high costs and the resulting disruptions in value chains, which perhaps the larger players can sustain, is an evident hindrance. However, for the smaller players it may be cheaper to continue producing using conventional methods and raw materials. In order to incentivise the transition, the government may consider introducing fiscal incentives by way of tax rebates for producers and subsidies for consumers of green cement.

India’s shift to green cement would be channelized by unlocking decarbonisation potential for which a customized approach is the need of the hour.