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Decarbonizing India’s High Emission Sectors

A recent study from the Centre for Social and Economic Progress projects that India will require an extra $467 billion by 2030 to reduce carbon emissions in four significant emission-intensive sectors: steel, cement, power, and road transport

Deeksha Upadhyay 02 September 2025 14:16

Decarbonizing India’s High Emission Sectors

What Is the Meaning of Decarbonisation?

Decarbonisation refers to the process of decreasing carbon dioxide emissions (or their equivalents) to attain a reduced level of greenhouse gas emissions.

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According to the Paris Agreement, it is crucial to lower carbon dioxide emissions from transportation and energy production to achieve global temperature goals.

This procedure entails utilizing renewable energy sources such as wind, solar, and biomass.

Requirement for Decarbonizing India’s high-emission sectors

Steel, cement, electricity, and road transportation collectively comprise the majority of India’s CO₂ emissions.

Minimizing their carbon emissions is essential to fulfill international and domestic climate obligations.

India's Nationally Determined Contributions (NDCs) as part of the Paris Agreement demand significant reforms across various sectors.

Public Health & Air Quality: Sectors with high emissions play a major role in PM2.5 and NOx concentrations, affecting city health.

Energy Security: Decreasing reliance on fossil fuels boosts strategic independence and lowers import costs.

Economic Competitiveness: Worldwide markets are transitioning to low-carbon supply chains; India may forfeit trade benefits without green transformations.

Obstacles

Environmental necessity: More than 70% of electricity continues to originate from coal; eliminating it demands significant expansion of renewable sources.

Technology Shortfalls: Green hydrogen, CCS (carbon capture and storage), and battery storage continue to be expensive and not fully developed.

Regulatory Fragmentation: Conflicting responsibilities among central and state agencies delay execution.

Funding requirements: By 2030, India requires approximately $467 billion to reduce emissions in its four primary sectors.

Steel and cement—two of the toughest sectors to decarbonise—demand the majority of this funding ($251B and $141B respectively), mainly for technologies such as carbon capture and storage.

The energy sector, currently moving towards renewable sources, requires $47B, whereas the roadway transportation sector needs $18B.

Millions working in fossil fuel industries require reskilling and social support.

Advancement

India has attained a significant achievement in its energy shift by reaching 50% of its installed electricity capacity from non-fossil fuel sources—five years prior to its 2030 goal under the Paris Agreement.

This advancement demonstrates robust policy guidance, particularly through initiatives such as PM-KUSUM and PM Surya Ghar, which have enabled farmers and families with solar power.

Utility-scale solar farms, wind power, and bioenergy have grown quickly, providing additional benefits like rural job creation, enhanced public health, and lower air pollution levels.

India's success establishes it as a worldwide climate leader, promoting fairness and sustainable living.

Recommendations & Next Steps

India reaching 50% non-fossil fuel capacity before the expected timeline showcases its firm dedication to sustainable development.

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It demonstrates that economic expansion and decarbonization can occur simultaneously.

With India aiming for 500 GW of non-fossil capacity by 2030 and net-zero by 2070, it needs to adopt an ambitious, inclusive, and technology-driven approach to spearhead worldwide climate efforts.

For decarbonizing essential emission-intensive sectors, India requires targeted roadmaps with distinct milestones, grid modernization, and robust public-private collaborations.

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