CashNews.co
The green transition has become crucial for global economies, with governments, regulators, and the private sector implementing strategies to reduce emissions and foster green opportunities. However, the financing landscape is skewed toward mitigation sectors like renewable energy and transport, leaving hard-to-abate sectors underfunded despite their substantial carbon-removal potential. These sectors, including steel, cement, and transportation, contribute over 40% of global greenhouse gas (GHG) emissions.
In India, the third-largest GHG emitter globally, decarbonizing hard-to-abate sectors is critical to achieving net-zero targets. Industrial emissions, primarily from energy-intensive industries like iron, steel, cement, and aluminum, account for 21% of the country’s total emissions. While India’s transport and energy sectors are already undergoing decarbonization through electrification and clean energy, the industrial sector presents unique challenges due to emissions from industrial processes rather than energy consumption.
Achieving a low-carbon economy in India without de-industrialization will require an inclusive approach focused on circularity, energy efficiency, and material efficiency. Heavy industries can reduce emissions by improving material efficiency and adopting circular practices, which could lower carbon emissions by an estimated 40% globally. However, these efforts alone are insufficient to achieve net zero. A combination of electrification, clean hydrogen, and advanced technologies such as carbon capture utilization and storage (CCUS) will be necessary to fully transition India’s hard-to-abate sectors toward net zero.