Green aluminium revolution could unlock a triple win for India: it would help meet our net-zero targets, reduce reliance on fossil fuel imports, and position Indian aluminium as a premium, sustainable product globally

As India races to become a global hub for manufacturing and clean technology, aluminium has quietly become one of its most vital building blocks. From electric vehicles and solar panels to high-speed trains and data centres, aluminium forms the backbone of our energy-efficient future. With demand projected to surge from 4 million tonne today to 10 million tonne by 2030, it’s clear India is entering an aluminium age.

But there’s a critical question we must ask: Can we afford to fuel this growth with coal?

Aluminium’s Green Gap
India is already the world’s second-largest aluminium producer but also one of the most polluting. Much of our aluminium is produced using electricity from captive coal-fired power plants, giving it a carbon footprint among the highest in the world. One tonne of primary aluminium produced in India can emit up to 14 tonne of CO₂, more than three times the global benchmark of 4 tonne. In contrast, aluminium made from recycled scrap emits just 0.3 tonne of CO₂ and uses only 5 per cent of the energy compared to primary aluminium.

Despite the compelling environmental and economic case, less than 10 per cent of India’s aluminium today qualifies as green. The reasons are structural: weak recycling infrastructure, an overwhelming reliance on coal power and most critically a total absence of a national certification system to identify and promote low-carbon aluminium.

This last gap is especially concerning. In a world where carbon taxes and border adjustment tariffs are becoming the norm, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), India’s aluminium exports could face stiff penalties, or worse, be shut out of global markets. We risk being left behind, not just environmentally, but economically.

Meanwhile, the world is moving ahead.

• Norsk Hydro in Norway uses hydropower and 75 per cent post-consumer scrap to produce ultra-low-carbon aluminium.

• Apple, while not a producer itself, has pushed its suppliers to use only recycled or low-carbon aluminium.

• BMW now uses solar-powered aluminium sourced from the UAE.

Even other emerging economies are leapfrogging India in setting green aluminium standards and embracing renewable integration. But India doesn’t lack solutions, it lacks alignment and urgency.

Greening Aluminium Now
Here is what we must do to adress the gap-

• Define what green aluminium means: Just as the Ministry of Steel introduced a Green Steel taxonomy, India urgently needs a clear and enforceable definition for green aluminium. It should include thresholds for carbon emissions, recycled content and renewable energy use. Without this, even the most progressive Indian producers can’t credibly differentiate their aluminium in global markets.

• Supercharge aluminium recycling: Only 30 per cent of aluminium in India is recycled, compared to 70 per cent to 90 per cent in Germany or the USA, We must remove import duties on clean, certified scrap and formalize domestic scrap collection through tax incentives, reverse logistics, and traceability systems. This will lower emissions, reduce production costs, and create jobs.

• Expand clean energy access for smelters: Aluminium smelters require uninterrupted 24/7 power. Round-the-clock renewable (RTC Re) electricity through pumped hydro, solar-wind hybrids, and battery storage can meet this need. But to make it viable, we need targeted policies, reduced open-access charges, long-term green power contracts and dedicated infrastructure corridors.

• Back future-ready technologies: Green hydrogen, inert anodes, and carbon capture offer pathways to deep decarbonization, but they require capital and risk-sharing. India must attract ESG aligned investments and establish innovation funds to support these emerging solutions.

A green aluminium revolution could unlock a triple win for India: it would help meet our net-zero targets, reduce reliance on fossil fuel imports, and position Indian aluminium as a premium, sustainable product globally. More importantly, it would generate thousands of jobs in recycling, renewable energy, and clean-tech manufacturing, creating a new industrial ecosystem. But to realise this future, we must act now. The first step is clear: define what green aluminium is and build everything else around it.

Aluminium will shape the next chapter of India’s growth story. The only question is, will we shape it sustainably?

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the publication.