India’s cement sector is intensifying its decarbonization drive as renewable energy adoption, efficiency gains and low-carbon technologies become central to long-term industry strategy. According to GCCA India via Platts, cement producers have already installed 1.8GW of renewable energy capacity and plan to add a further 5GW by 2030. Renewables currently supply around 3% of the industry’s electricity needs, while waste heat recovery contributes another 11%, reflecting steady progress in cutting fossil-based power use.
Alternative fuel usage is also increasing, with the industry averaging a thermal substitution rate of around 6%. Several leading plants have exceeded 20%, demonstrating the sector’s growing capability to co-process waste at scale. GCCA India additionally noted that hybrid energy systems capable of supplying 24/7 low-carbon electricity are under development, offering a pathway toward more stable and sustainable power consumption across the sector.
On the product front, blended cement now accounts for 73% of India’s total production, underscoring a significant shift away from high-clinker materials. The country has also begun producing limestone calcined clay cement (LC3), a lower-carbon innovation that can reduce CO₂ emissions by up to 40% compared with ordinary Portland cement. Research into other low-clinker and alternative binder options is ongoing as producers look to diversify their decarbonization toolkit.
Emissions reduction trajectories are becoming increasingly defined. A March 2025 report by GCCA India and The Energy and Resources Institute (TERI) projects that the industry will reduce emissions intensity from 680 kg CO₂/t in 2020 to 560 kg by 2030 and 510 kg by 2047. The sector has set a long-term target to achieve net-zero emissions by 2070, supported by a full transition to low-carbon fuels such as biomass, biogenic waste, green hydrogen and renewable electricity.
At the same time, India’s cement industry is preparing for a major expansion cycle driven by strong domestic demand. CRISIL forecasts that producers will add 160–170Mt/yr of grinding capacity between FY 2026 and FY 2028—around 75% more than was added in the previous three years. High capacity utilisation, sustained infrastructure activity and resilient housing demand are expected to support this growth, positioning the sector for continued expansion alongside deepening decarbonization efforts.
India’s cement sector is entering a decisive phase where rapid capacity expansion and ambitious decarbonization commitments must advance in parallel. With strong domestic demand, growing renewable energy integration and accelerating adoption of low-carbon cement technologies, the industry is positioning itself for both competitiveness and climate alignment. While policy support and cost pressures remain key challenges, India’s outlined pathway—significant emissions cuts by 2047 and net-zero by 2070—signals a sector preparing to meet rising national infrastructure needs while steadily reducing its environmental footprint.
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News sourced from https://www.spglobal.com
