India is the world’s second-largest producer of steel and cement, both of which have high emissions and are difficult to reduce. According to a research by the Council on Energy, Environment, and Water (CEEW), “India’s existing steel and cement plants will require Rs 47 lakh crore (USD 627 billion) in additional capital expenditure (CAPEX) to achieve net-zero carbon emissions.”

In order to reach net zero targets, the domestic steel and cement industries will need to invest an additional Rs 47 lakh crore. India is the world’s second-largest producer of steel and cement, both of which have high emissions and are difficult to reduce. According to a research by the Council on Energy, Environment, and Water (CEEW), “India’s existing steel and cement plants will require Rs 47 lakh crore (USD 627 billion) in additional capital expenditure (CAPEX) to achieve net-zero carbon emissions.”

Based on the research, these two industries will need an additional Rs 1 lakh crore in operational expenditure (OPEX) each year to achieve net-zero. According to the CEEW assessments, integrating effective technologies like waste-heat recovery and energy-efficient motors and controls will allow steel emissions to be reduced by 8–25 per cent  and cement emissions by 32 per cent without increasing costs.

Furthermore, with just 8.5 per cent of the entire additional CAPEX and 30 per cent of the additional yearly OPEX, the combined carbon emissions of the steel and cement industries could be reduced by 33 per cent. With the necessary supply of alternative fuels and raw materials, this reduction is feasible without taking the need for carbon capture into account. Arunabha Ghosh, CEO of CEEW, “Decarbonising India’s steel and cement industries will not only help it meet its climate ambitions but also make its industries market competitive and future-ready in a world with increasingly sustainability-driven regulations.”