The study, titled “Achieving Net-Zero Emissions for India’s Industry: Roadmap and Investment Requirements,” identifies key industrial sectors like steel, cement, aluminum, chemicals, and textiles as major contributors to India’s greenhouse gas emissions. The research estimates that these sectors alone account for 22% of the country’s total emissions, a significant challenge in India’s push towards decarbonization.
Key Findings and Scenarios
The research explores four possible future scenarios, each illustrating different pathways for India’s industrial sector:
- Business-As-Usual
This scenario assumes minimal policy intervention, with emissions remaining high due to continued reliance on fossil fuels. - Development First
In this scenario, economic growth is prioritized, but there is a moderate effort to reduce emissions through technological improvements and policy measures. - Carbon Neutral
This scenario focuses on achieving net-zero emissions by adopting aggressive decarbonization strategies, including major technological advancements and stringent policies. - Synchronous (SYNCH)
The most ambitious scenario, it envisions a synchronous approach where strong actions are taken to reduce pollution across sectors, requiring an estimated $1.7 trillion investment by 2050. This scenario predicts a reduction of industrial emissions by 63% by 2050, achievable through a combination of cleaner electricity, advanced material recycling systems, and carbon capture technologies.
Investment Requirement and Action Plan
The study emphasizes that achieving the SYNCH scenario will necessitate substantial investments, estimated at $1.7 trillion by 2050. These funds would be directed towards clean electricity infrastructure, improving material efficiency, and expanding carbon capture and storage technologies. The study highlights three key actions to guide this transition:
- Energy Efficiency:
Immediate action is needed to improve energy efficiency within industries. This is seen as the most cost-effective and rapid way to cut emissions. - Material Efficiency:
Policies are needed to improve the efficiency of materials used in manufacturing, including enhancing recycling systems and promoting resource efficiency. - Policy Strengthening:
The study advocates for strengthening emission trading programs and establishing clear rules for carbon tracking and reporting, which will help businesses adopt sustainable practices and reduce emissions.
Global Collaboration and Technological Support
The researchers also stress the need for global collaboration to support India’s transition to a net-zero industrial sector. Emerging technologies such as hydrogen-based systems and carbon capture are still in their infancy but are crucial for the long-term sustainability of India’s industry. International financial support and technology transfers will be essential to scale these technologies and reduce the cost burden on India’s industries.
Expert Insights
Prof. Dipti Gupta, Assistant Professor of Business Sustainability at IIM Lucknow, who was a key contributor to the research, explained, “As India’s economy grows rapidly, the speed and scale of the industrial sector’s transition to net-zero emissions will be unprecedented. This transition is not only crucial for meeting India’s climate goals but also for ensuring that industrial growth does not come at the expense of the environment or societal welfare.”
She further emphasized, “Decarbonizing India’s industrial sector will require rapid technological development, international financial support, innovative business models, and standardized emission reporting to ensure that we stay on track to achieve our climate goals.”
The study concludes that while the path to a net-zero industrial sector in India is challenging, it is achievable with the right combination of policy, technology, and investment. Success will depend on a coordinated effort between the government, industries, and global partners to ensure that India’s industrial sector can continue to grow while reducing its environmental impact.
India’s industrial sector, a key driver of economic growth and employment, faces the dual challenge of scaling up while simultaneously transitioning to a more sustainable and low-carbon future. With the recommendations from this study, there is hope that India can meet its climate targets without compromising on its economic progress.
About IIM Lucknow
Established in 1984, IIM Lucknow is a premier business school in India. Known for its excellence in education and research, IIM Lucknow is also a leader in sustainable management practices. It has long been at the forefront of research in business sustainability and is home to several specialized centers of excellence, including the Centre for Business Sustainability, which played a key role in this study.
