Navigating CBAM: Renewables can cut 17% of India’s heavy industry emissions by 2030

For deep decarbonisation of industries in the longer run, the report finds that it is crucial that key technologies to electrify thermal processes become commercially viable. If these new technologies mature as expected and the government’s green hydrogen mission succeeds and hydrogen as a clean alternative fuel takes off, the share of electricity in the industrial energy mix could triple by 2050, requiring approximately 700 GW of renewables . This can avoid 737 Mt of emissions. However, advancing these technologies to achieve commercial viability and widespread deployment remains a challenge. 

Green electrification offers a pathway for industries to meet increasing national and international emission regulations. The declining costs of electricity sourced from renewables present economic advantages, especially in India where high tariffs result from cross subsidies. Industries stand to gain from primary energy savings and protection from volatile fuel prices. 

Moreover, the rising demand for renewables in industrial decarbonisation can attract large-scale investments in renewable energy projects, creating new jobs and invigorating India’s renewable energy ecosystem by integrating hydrogen into the energy mix. 

Immediate adoption of green electrification offers a win-win solution. It facilitates compliance with emission regulations, provides economic benefits and supports India’s renewable energy ambitions. This transition is essential for the sustainable growth of India’s heavy industries and broader environmental sustainability.