India's Push for Green Steel and Cement Through Public Procurement
Building demand for green steel and cement
Hindustan Times
Image: Hindustan Times
India's Union Cabinet has set ambitious targets for reducing emissions and increasing non-fossil fuel power capacity by 2035. Public procurement is identified as a key strategy to drive demand for low-carbon steel and cement, crucial for the country's infrastructure expansion and climate goals.
- 01India aims to reduce emissions intensity by 47% from 2005 levels by 2035.
- 02Public procurement can reshape industrial pathways and drive demand for low-carbon technologies.
- 03Steel and cement are major contributors to emissions, with steel accounting for 10-12% of India's total emissions.
- 04Green steel production costs are projected to be 25-40% higher but only increase final project costs by 1-2%.
- 05Policy reforms are needed to standardize procurement processes and incentivize low-emission materials.
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India's Union Cabinet has approved targets for the third Nationally Determined Contribution (NDC) under the United Nations Framework Convention on Climate Change (UNFCCC), aiming for a 47% reduction in emissions intensity from 2005 levels by 2035. Public procurement is highlighted as a critical tool to drive demand for low-carbon steel and cement, which are essential for the country's infrastructure projects but also significant sources of emissions. The steel sector alone contributes 10-12% of India's total emissions and faces challenges such as high costs for green hydrogen-based production. While green steel may be 25-40% more expensive to produce, it only marginally increases overall project costs. The article emphasizes the need for procurement reforms, including embedding environmental criteria in purchasing decisions and standardizing definitions to support low-carbon materials. Such measures can create a level playing field for producers and drive innovation, ultimately contributing to India's climate goals.
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The shift towards green steel and cement through public procurement can significantly reduce carbon emissions in India's infrastructure sector, fostering a sustainable industrial transition.
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