NITI Aayog releases decarbonisation roadmaps for cement, aluminium and MSMEs

NITI Aayog unveiled decarbonisation roadmaps on January 21, 2026, for India's energy-intensive cement, aluminium and MSME sectors to support the Net Zero by 2070 commitment. The blueprints set sector-specific transition pathways and funding mechanisms, directly shaping compliance and capital allocation for industrial entities facing risks including the EU's Carbon Border Adjustment Mechanism.

NITI Aayog unveiled a decarbonization blueprint on January 21, 2026, for India's cement, aluminium and MSME sectors, bridging infrastructure expansion goals with the Net Zero by 2070 commitment. The industrial sector accounts for approximately 24% of India's greenhouse gas emissions, a figure that could surge as production scales up to fivefold by 2047. The cement roadmap targets reducing carbon intensity from 0.63 tCO2e to between 0.09 and 0.13 tCO2e per tonne via Refuse-Derived Fuels, clinker substitutes, CCUS, and the Carbon Credit Trading Scheme.

Aluminium producers, cement manufacturers and 69 million MSMEs are directly affected. The aluminium sector, classified hard-to-abate because electricity makes up over 75% of manufacturing emissions, faces a three-phase transition: Renewable Energy-Round the Clock to 2030, nuclear power integration through 2030–2040, and CCUS post-2040. The transition also safeguards against international carbon taxes such as the EU's Carbon Border Adjustment Mechanism. NITI Aayog recommended a National Project Management Agency to help MSMEs transition to green energy, with funding and capital subsidy mechanisms targeting energy-efficient machinery adoption.

Affected sectors should pursue immediate implementation: securing renewable energy infrastructure, investing in carbon-capture pilots, and leveraging government subsidies to modernize legacy operations. MSMEs should track proposals allocating 8–9% of the credit-guarantee fund for green projects and a 15% capital subsidy for energy-efficient machinery, targeting a 20% reduction in energy consumption. As India approaches its 2047 economic milestones, low-carbon technology adoption will determine global competitiveness and international climate obligation compliance, making early investment in cleaner processes a strategic priority for industrial entities.

Key figure — Cement carbon intensity target: from 0.63 to 0.09–0.13 tCO2e per tonne