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Roadmap for
Cement Sector Decarbonisation
i
Roadmap for
CEMENT SECTOR

DECARBONISATION Authors and Contribution
Leadership
Shri Ishtiyaque Ahmed, Programme
Director, Industry & Foreign Investment,
NITI Aayog
Dr Anshu Bharadwaj, Programme Director,
Energy, Green Transition & Climate Change,
NITI Aayog
Shri Rajnath Ram, Adviser (Energy),
NITI Aayog
Research and Writing team
Shri Manoj Kumar Upadhyay, Deputy
Adviser, NITI Aayog
Shri Saksham Agarwal, Young Professional,
NITI Aayog
Ms Ankita Gangotra (f), WRI US
Shri Deepak Krishnan, WRI India
Shri NGR Kartheek, WRI India
Ms T S Gowthami, WRI India
Ms Kajol (f), WRI India
Ms Shivani Shah, WRI India
Shri Anurag Pandey, Young Professional,
NITI Aayog
Peer Reviewers
Dr L.P. Singh, Director General, National
Council for Cement & Building Materials,
DPIIT
Ms Aparna Dutt Sharma, Secretary
General, CMA-India
Shri Kaustubh Phadke, India Head,
GCCA - India
Ms Poonam Kapur, Research Officer,
NITI Aayog
Shri Vipul Gupta, Consultant,
NITI Aayog
Shri Vishal Kumar, Young Professional,
NITI Aayog
Shri K. Harshvardhan Reddy, Young
Professional, NITI Aayog
Dr Sunil K. Sansaniwal, Consultant,
NITI Aayog
Ms Afshan Ameer, Young Professional, NITI
Aayog
Dr Sanjena N.D.,Consultant,
NITI Aayog
Shri Ravi Kumar, Consultant, NITI Aayog
Ms Anupama Kumari, Consultant,
NITI Aayog (On Deputation from Vasudha
Foundation)
Disclaimer
1. This document is not a statement of policy by the National Institution for Transforming India (hereinafter
referred to as NITI Aayog). It has been prepared for the purpose of independent academic and policy-
oriented research by NITI Aayog with the technical support of WRI India (legally registered as the India
Resources Trust).
2. Neither NITI Aayog nor WRI India makes any representation or warranty, express or implied, as to the
completeness or reliability of the information, data, findings, or methodology presented in this document.
While due care has been taken by the author(s) in the preparation of this publication, the content is
based on independently procured information and analysis available at the time of writing and may not
reflect the most current policy developments or datasets
3. The assertions, interpretations, and conclusions expressed in this report are those of the author(s) and
do not reflect the views of NITI Aayog or the Government of India, or WRI India. As such, NITI Aayog and
WRI India do not endorse or validate any of the specific views or policy suggestions made herein by the
author(s).
4. NITI Aayog and WRI India shall not be liable under any circumstances, in law or equity, for any loss,
damage, liability, or expense incurred or suffered as a result of the use of or reliance upon the contents
of this document. Any reference to specific organisations, products, services, or data sources does not
constitute or imply an endorsement by NITI Aayog or WRI India. Readers are encouraged to independently
verify the data and conduct their analysis before forming conclusions or taking any policy, academic, or
commercial decisions. Roadmap for
CEMENT SECTOR
DECARBONISATION
January 2026 Roadmap for
Cement Sector Decarbonisation
v
Preface
India’s pursuit of sustainable and inclusive growth demands a delicate balance between
economic advancement and environmental responsibility. Among the key sectors driving
this progress, the cement industry holds a vital position as a backbone of the nation’s
infrastructure and economic development. As the world’s second-largest producer of
cement, India is on the cusp of significant growth, with production expected to rise nearly
sevenfold by 2070, from 391 million tons in 2023. However, this rapid expansion brings with
it a considerable environmental challenge, as emissions from the sector are projected to
increase from 246 million tons of CO
2
equivalent (MtCO
2
e) in 2023 to 945 MtCO
2
e in 2047
to 1,323 MtCO
2
e annually by 2070 under a Business-As-Usual scenario.
This dual challenge of meeting growing demand while addressing environmental concerns
underscores the need for a forward-looking strategy that aligns industrial growth with
climate action. Recognising this imperative, the report, ‘Road Map for Cement Sector
Decarbonisation’, provides a comprehensive framework to guide the sector toward a
sustainable future. It outlines a phased, long-term approach to significantly reduce emissions
while ensuring the sector’s continued contribution to India’s economic progress. At the heart
of this roadmap are three transformative solutions: scaling up carbon capture, utilisation,
and storage (CCUS) technologies, increasing the use of clinker substitutes, and developing
a robust supply chain for alternative fuels. This combination of technological, market-driven,
and policy-enabled interventions offers a practical, adaptable, and cost-effective pathway
to deep decarbonisation.
By 2030, the proposed measures have the potential to deliver measurable impacts,
including significant reductions in cumulative emissions, mobilisation of private capital,
creation of green jobs, and enhanced fiscal contributions. These outcomes demonstrate
that decarbonisation is not merely an environmental necessity but also a transformative
economic opportunity, enabling the cement sector to thrive in a low-carbon economy.
The roadmap is not just a strategy for emissions reduction; it is a vision for a thriving
and sustainable cement industry in a low-carbon economy. It equips the sector to
foster innovation, lower costs, and enhance its global competitiveness in an increasingly
sustainability-driven market. This report marks a bold step in turning ambition into action
and strategy into measurable outcomes, positioning India’s cement industry as a global
benchmark for sustainable industrial development.
We hope this report serves as a valuable guide for policymakers, industry leaders, and
stakeholders, encouraging collaborative efforts to build a resilient and sustainable future
for the cement sector and the nation. Together, we can embark on this journey to shape a
sustainable and prosperous future for generations to come. Roadmap for
Cement Sector Decarbonisation
vi
Foreword and Acknowledgement
The cement industry is central to India’s infrastructure and economic
development, yet it faces a pressing imperative to reconcile rapid
growth with deep decarbonisation. The Roadmap for Cement Sector
Decarbonisation draws on a wide body of technical evidence, extensive
stakeholder inputs, and practical field observations to outline a phased,
implementable pathway for the sector’s low-carbon transition.
I would like to acknowledge the guidance and support of Shri B.V.R.
Subrahmanyam, Chief Executive Officer, NITI Aayog, whose confidence in
the Working Committee enabled this exercise. My sincere thanks to Dr. Anshu Bharadwaj,
Programme Director (Energy, Green Transition & Climate Change), and Shri Rajnath Ram,
Adviser (Energy), NITI Aayog, for their strategic advice and continual oversight during the
preparation of this report.
This roadmap benefited substantially from the subject-matter expertise and constructive
engagement of the Working Committee members and peer reviewers. I am grateful to Dr.
L.P. Singh, Director General, National Council for Cement & Building Materials (DPIIT), and
Shri Vivek Negi, Joint Director, Bureau of Energy Efficiency, for their technical inputs. I also
extend my appreciation to industry leaders and association representatives- Ms. Aparna
Dutt Sharma, Secretary General, Cement Manufacturers Association; Shri Kaustubh Phadke,
India Head, Global Cement & Concrete Association- India; Dr. Raju Goyal, Executive President
& CTO, Ultratech Cement; Shri S. Dakshinamoorthy, Vice President, The India Cements; Shri
Ashwin Raykundalia, Chief Sustainability Officer, ACC/Ambuja; and Shri Anupam Badola,
Deputy Chief Sustainability Officer, Dalmia Cement for sharing practical insights on plant
operations, fuel substitution and material markets.
The study’s empirical foundation was strengthened by more than 20 stakeholder
consultations, reviews of 30+ national and international datasets and reports, and a field visit
to the Indore municipal solid waste and material recovery facilities to validate the feasibility
of RDF value chains. I thank the Bureau of Energy Efficiency, the Cement Manufacturers
Association, GCCA-India, and other partner organisations for their time and evidence-based
contributions during these consultations.
This report was developed with technical support from WRI India. I acknowledge the
exceptional contribution of Ms. Ankita Gangotra, Mr. Deepak Krishnan, Ms. T. S. Gowthami,
Ms. Kajol, Mr. NGR Kartheek and Ms. Shivani Shah, whose analytical inputs and drafting
support were indispensable. Their collaboration ensured rigorous analysis across the
technical, economic and policy dimensions of the roadmap.
I would like to recognise the dedication of the NITI Aayog research and coordination
team. Special thanks to Shri Manoj Kumar Upadhyaya, Member Secretary of the Working
Committee, and to Ms. Poonam Kapur, Research Officer; Shri Anurag Pandey, Young
Professional; and Shri Saksham Agarwal, Young Professional, for their sustained effort in
organising stakeholder consultations, collating data, and shaping the content of the report. Roadmap for
Cement Sector Decarbonisation
vii
I also appreciate the contributions of other colleagues across NITI Aayog, whose support in
peer review, logistics and quality assurance improved the final output.
Several government departments, state governments, research institutions, technology
providers, financing bodies and civil society organisations provided critical inputs. I am
grateful to all the experts, practitioners, and officials who participated in workshops and
bilateral discussions, as well as to the industry and service-provider representatives who
took the time to review the draft findings.
This roadmap represents a collective effort to identify pragmatic, scalable interventions,
ranging from alternative fuel supply chains and clinker substitution to CCUS pilots,that can
materially reduce emissions while maintaining the sector’s competitiveness. I hope it serves
as a pragmatic guide for policymakers, industry and finance partners to accelerate the
cement sector’s transition to a resilient, low-carbon future.
ISHTIYAQUE AHMED
Programme Director, Industry, & Foreign Investment
Chairman, Technical Working Committee on Decarbonisation
Roadmap for Cement Sector
NITI Aayog
Technical Working Committee Order is at Annexure-1 Roadmap for
Cement Sector Decarbonisation
viii Roadmap for
Cement Sector Decarbonisation
ix Roadmap for
Cement Sector Decarbonisation
x Roadmap for
Cement Sector Decarbonisation
xi Roadmap for
Cement Sector Decarbonisation
xii
Message
The report is a transformative blueprint for one of India’s most essential
industries. It presents a strategic pathway to reduce the sector’s carbon
intensity from an emission intensity of 0.63 tCO
2
e per tonne to a projected
reduction of emissions to 198-252 MtCO
2
e by 2070 demonstrating a
clear route to a net-zero future. The report identifies key economic and
technical levers, including the scaling up of cost-effective RDF usage
to achieve a 20% thermal substitution rate, the increased integration
of clinker substitutes to reduce the clinker-to-cement ratio, and the
advanced deployment of CCUS technologies, which alone can mitigate up
to 50% of process emissions. This comprehensive, data-driven approach not only outlines
actionable recommendations but also underscores the importance of collaboration among
policymakers, industry stakeholders, and research institutions to ensure a sustainable,
resilient future for the cement sector.
I commend the dedication of the working group, industry stakeholders, and experts whose
insights have shaped this vital document. Their collective expertise has ensured that this
roadmap provides a clear, actionable pathway for policymakers and industry leaders to
transition the cement sector toward a sustainable, low-carbon future. NITI Aayog remains
steadfast in fostering innovation and collaboration to realise these ambitious targets.
Dr Anshu Bharadwaj
Programme Director (Energy, Green Transition & Climate Change)

India’s per capita cement consumption is about 260 kg as compared
to global average of 540 kg. With rapid urbanisation and infrastructure
growth, the cement consumption is expected to double by 2030. The
cement sector contributes roughly 7% of GHG emissions, of which about
55% comes from limestone calcination, 33% from on-site fuel combustion,
and the remaining 12% from electricity use. Therefore, scaling up low
carbon technologies, alternate fuels and green electricity will be crucial
to decarbonise the Cement sector.
This report provides a robust policy recommendations and actionable steps to overcome the
regulatory, technological and financial challenges. I extend gratitude to the Working Group
for their rigorous analysis and providing inputs for shaping the critical recommendations of
the report.
Sh. Rajnath Ram
Adviser (Energy) Roadmap for
Cement Sector Decarbonisation
xiii Roadmap for
Cement Sector Decarbonisation
xiv
Table of Contents
Executive Summary��01
Increased Usage of Refuse Derived Fuel from Municipal Solid Waste��04
Increased Usage of Supplementary Cementitious Materials/Clinker Substitutes
in Cement Production��05
Carbon Capture, Utilisation And Storage Pilots for the Cement Sector��06
1. Introduction��10
1.1 Background��10
1.2 Scope and Objective��11
1.3 Methodology��12
2. Cement Industry at a Glance��14
2.1 Background��14
2.2 Cement Manufacturing Process��14
2.3 Energy Consumption and Fuel Use in Cement Production��16
2.4 Green House Gas Emissions��17
2.5 Carbon Credit Trading System��20
3. Key Levers of Decarbonisation for India’s Cement Sector��26
4. Decarbonisation Pathways: Strategies and Feasible Solutions Framework��32
Group A: Solutions that the industry can implement on their own��34
Group B1: Solutions that require regulatory support for implementation��35
Group B2: Economically viable solutions requiring regulatory support��38
Group C: Initiatives that require policy & financial support from government��39
Group D: Deprioritised solutions��41
5. Solution pathways: A Detailed Examination��44
5.1 Increased Usage of Refuse Derived Fuel from Municipal Solid Waste��44
5.2 Increased Usage of Supplementary Cementitious Materials/Clinker Substitutes��58
5.3 Carbon Capture, Utilisation and Storage for the Cement Sector��65
Conclusion��70
References��71
Annexure 1��76
Annexure 2��79
Annexure 3��80
Annexure 4��85
Annexure 5��87 Roadmap for
Cement Sector Decarbonisation
xv
List of Figures
Figure 2.1: Cement Manufacturing Process��15
Figure 2.2: Global GHG Emissions in 2022��17
Figure 2.3: India GHG Emissions��19
Figure 2.4: Emission Intensity of Cement Manufacturing��20
Figure 2.5: National Steering Committee for Indian Carbon Market.��21
Figure 3.1: Projections of India’s Cement Production and Installed Capacity��26
Figure 3.2: Key Levers of Decarbonisation��27
Figure 3.3: MACC for Key Levers of Decarbonisation�� 29
Figure 3.4: Emissions Reduction Impact of Each Lever Through 2070��30
Figure 4.1: Framework Adopted to Evaluate Recommendations and Prioritise Solutions�32
Figure 4.2: Prioritising Solutions: 3 High-Impact Solutions Selected from 22 Recommendations
��33
Figure 4.3: Economically Viable EE Solutions��34
Figure 4.4: Economically Viable Solutions, which Require Regulatory Support (Part 1)��36
Figure 4.5: Economically Viable Solutions Requiring Regulatory Support (Part 2)��38
Figure 4.6: Solutions, which Require Policy & Financial Support from the Government��40
Figure 4.7: Solutions Deprioritised Due to Iimited Impact and/or Low Implementation
Feasibility.��42
Figure 5.1: Journey of RDF from MSW to Cement Plants��44
Figure 5.2: The Projected Availability of Municipal Solid Waste up to 2030��47
Figure 5.3: Comparative Cost of RDF vs Pet Coke��53
Figure 5.4: Reduction in Clinker-to-Cement Ratio and Associated Process Emissions��58
Figure 5.5: Supplementary Cementitious Materials Cost Comparison, 2019��60
Figure 5.6: Composition of LC3��61
Figure 5.7: Proposed Interventions for Clinker Substitution��64
Figure 5.8: CCUS Abatement Potential in India; Cumulative Emissions by 2070, GtCO
2
e��65
Figure 5.9: Projections for CCUS Uptake by Usage Type in India by 2050��66 Roadmap for
Cement Sector Decarbonisation
xvi
List of Tables
Table 1: Evaluation of the Twenty-Two Recommendations for Decarbonising the Cement
Sector��03
Table 2: Increased Use of RDF from Municipal Solid Waste (MSW)��04
Table 3: Increased Usage of Supplementary Cementitious/Materials Clinker Substitutes��05
Table 4: CCUS Pilots for the Cement Sector��07
Table 2.1: CCTS Compliance Mechanism��21
Table 3.1: Key Model Assumptions for Driving Decarbonisation by 2070��28
Table 5.1: Benefits of Using RDF in Cement Industries�� 49
Table 5.2: Guidelines for Usage of RDF, 2018, MoHUA�� 50
Table 5.3: Challenges in the Uptake of RDF from MSW in the Cement Sector��51
Table 5.4: Institutional Mechanisms for Increased Usage of RDF from MSW��54
Table 5.5: Quality Parameters for Increased Consumption of RDF from MSW��57
Table 5.6: Comparison of Input-Based and Performance-Based Standards for Cement.��63 Roadmap for
Cement Sector Decarbonisation
xvii
Abbreviations
AF Alternate Fuels
AFR Alternate Fuels and Raw Materials
AR Alternate Raw Materials
ASTM Advancing Standards Transforming Markets
BAT Best Available Technology
BAU Business as Usual
BEE Bureau of Energy Efficiency
BF-BOF Blast Furnace-Basic Oxygen Furnace
BIS Bureau of Indian Standards
BREF Best Available Techniques Reference
CPP Captive Power Plants
CCU Carbon Capture and Utilisation
CCS Carbon Capture and Storage
CCTS Carbon Credit and Trading Systems
CCUS Carbon Capture Utilisation and Storage
CEA Central Electricity Authority
CEEW Council on Energy Environment and Water
CIDC Construction Industry Development Council
CII Confederation of Indian Industry
CMA Cement Manufacturers Association
CO Carbon Monoxide
CPCB Central Pollution Control Board
CPWD Central Public Works Department
CSA Calcium-Sulpho-Aluminate
Cr Crore
DPIIT Department for Promotion of Industry and Internal Trade
DST Department of Science and Technology
ECBC Energy Conservation and Building Code
ECRA European Cement Research Academy
EE Energy Efficiency
EN European Standard
EIA Environmental Impact Assessment
ESP Electrostatic Precipitator
EPD Environment Product Declaration
EPR Extended Producer Responsibility
EU European Union
FMC First Movers Coalition
FY Fiscal Year
GCCA Global Cement and Concrete Association Roadmap for
Cement Sector Decarbonisation
xviii
GCF Green Climate Fund
GDP Gross Domestic Product
GeM Government e Marketplace
GHG Greenhouse Gas
GJ Giga Joules
GRIHA Green Rating for Integrated Habitat Assessment
GSI Geological Survey of India
Gt Giga Ton
GtCO
2
e Giga Ton of Carbon Dioxide Equivalent
GPP Green Procurement Policy
GVA Gross Value Addition
HEP High Emission Plant
IBEF India Brand Equity Foundation
IBM Indian Bureau of Mines
IDDI Industrial Deep Decarbonisation Initiative
IEA International Energy Agency
IGBC Indian Green Building Council
IMC Inter Ministerial Committee
IPPU Industrial Processes and Product Use
INR Indian Rupee
IS Indian Standard
LC3 Limestone Calcined Clay Cement
LEP Low Emission Plant
LULUCF Land Use, Land Use Change and Forestry
MACC Marginal Abatement Cost Curve
MBT Mechanical-biological Treatment
MoEFCC Ministry for Environment, Forest and Climate Change
MoHUA Ministry of Housing and Urban Affairs
MoRTH Ministry of Road Transport and Highways of India
MSME Micro Small and Medium Enterprises
MSW Municipal Solid Waste
Mt Million Tons
MTPA Million Tons Per Annum
MtCO
2
e Million Tons of Carbon Dioxide Equivalent
NITI National Institution for Transforming India
NHAI National Highways Authority of India
NOx Nitrogen Oxide
OPC Ordinary Portland Cement
PAT Perform Achieve Trade
PIB Press Information Bureau Roadmap for
Cement Sector Decarbonisation
xix
PMAY Pradhan Mantri Awas Yojana
PCC Portland Composite Cement
PDC Portland Dolomitic Limestone Cement
PLC Portland Limestone Cement
PPP Public Private Partnership
PoPaP Polluter Pays Principle
PPC Portland Pozzolana Cement
PSC Portland Slag Cement
RDF Refuse Derived Fuel
RE Renewable Energy
RE RTC Renewable Energy- Round-The-Clock
RMI Rocky Mountain Institute
SCMs Supplementary Cementitious Materials
SDG Sustainable Development Goals
SEC Specific Energy Consumption
SIA Social Impact Assessment
SRF Solid Recovered Fuel
TERI The Energy and Resources Institute
TPD Tons Per Day
TPY Tons Per Year
TSR Thermal Substitution Rate
UNEP United Nations Environment Program
UNFCCC United Nations Framework Convention on Climate Change
USD United States Dollar
ULBs Urban Local Bodies
VGF Viability Gap Funding
VRM Vertical Roller Mill
WBCSD World Business Council for Sustainable Development
WEF World Economic Forum
WHR Waste Heat Recovery
WRI World Resources Institute Roadmap for
Cement Sector Decarbonisation
1
EXECUTIVE
SUMMARY Roadmap for
Cement Sector Decarbonisation
2
Executive Summary
India is the world’s second‑largest cement producer after China, contributing about 13%
of global annual cement output. As per the Cement Manufacturers Association (CMA), the
country has an installed capacity of around 622 million tonnes per annum (Mtpa), and in
FY 2024 it produced 427 million tonnes of cement. India’s per capita cement consumption
is about 260 kg a year, much lower than the global average of 540 kg and the demand is
fueled by the construction of new highways and metro systems, the expansion of urban
areas, and ongoing investments in rural housing and infrastructure projects. There are 333
cement manufacturing units in India comprising 159 integrated, large cement plants; 116
grinding units; 62 mini cement plants; and five clinkerization units (DPIIT 2024).
Globally, cement production is also a significant source of carbon emissions. In 2023, cement
manufacturing contributed roughly 2.4 GtCO
2
e of Scope 1 and 2 emissions worldwide. India’s
production of about 391 Mt of cement results in roughly 246 MtCO
2
e of emissions (PIB
2024) around 6% of national greenhouse gas emissions. Despite this sizeable footprint, the
Indian cement industry has already made notable progress in bringing down its emissions
intensity. Many cement plants in India now operate at energy‑efficiency levels comparable to
those of the best performers worldwide. This has been achieved mainly through investment
in modern equipment and better plant operation. The wider use of high‑efficiency kilns
with pre‑heaters and pre‑calciners has reduced the energy required per tonne of cement,
helping cut fuel use and related emissions.
Decarbonisation Roadmap - A Strategic Blueprint for India’s Cement Sector
To support the shift toward cleaner energy and net‑zero emissions, NITI Aayog has formed
specialised working groups to prepare decarbonisation roadmaps for the cement, aluminium
and MSME sectors. These documents are intended as practical planning tools, outlining
how each sector can move step by step toward more sustainable, lower‑carbon modes of
production.
The Cement Sector Decarbonisation working group assessed twenty-two recommendations
grouped under four categories of solutions, i.e. Immediate (e.g, energy efficiency initiatives);
economically viable solutions that may require regulatory support; solutions that can
become economically viable in the long run with government policy & regulatory support,
and initiatives that may have limited impact on decarbonisation.
Out of the twenty-two recommendations, seven solutions were prioritised, which required
regulatory and policy support from the government. The seven solutions were consolidated
into three high-impact solutions i.e.
(i) Increased usage of Refuse Derived Fuel (RDF) from municipal solid waste for substituting
thermal heating from coal.
(ii) Increased usage of Supplementary Cementitious Materials / Clinker Substitutes.
(iii) Scaling up Carbon Capture, Utilisation and Storage (CCUS) in the cement industry for
capturing CO2 in process emission.
These solutions were selected for their scalability and potential for significant impact,
even though their full benefits may only be realised in the long term. By using these three
solutions, Indian cement sector may reduce 80-85% GHG emission by 2070. Roadmap for
Cement Sector Decarbonisation
3
Table 1: Evaluation of the Twenty-two Recommendations for Decarbonising the Cement Sector
Group AGroup BGroup CGroup D
Solutions industries
can implement
independently
Economically viable
solutions, which
require regulatory
support for
implementation
Economically
viable solutions,
which
require
policy support from
the government
Deprioritised
solutions
Economically viable energy efficient initiatives
1. Improve
refractory
materials
8. Transition from
input-based
standards to
performance-based
standards
13. Development of
supply chains
for green and
alternative fuels
15. Public procurement
to drive the usage of
low carbon cement
Solutions deprioritised due to limited impact and/or
low implementation feasibility.
2. Kiln
Combustion
Improvement
Systems
9. Mapping of new
clinker substitutes
in India
14. Scaling of CCUS
for the cement
industry
16. 100% fly ash and
pond ash generated
in the country to be
allocated to cement
manufacturing
3. Efficient
clinker
coolers
10. Blending to
increase adoption
of alternatives to
fly ash and slag
17. Implementation
of polluter pays
principle
4. Efficient
kiln and
pre-heater
11. Amendment of
green building
ratings to increase
usage of low
carbon cement
18. Preferential
allocation to cement
sector for usage of
waste5. Automation
System
12. Assessment of
study for India’s
Recarbonation
potential
6. Burner
Retrofit
19. Freight subsidies for
the transportation of
fly ash
Solutions deprioritised currently but
may need further investigation
7. Heat rate
reduction
in captive
power plants
20. Ban on the export of
clinker substitutes,
which have a high
decarbonisation
potential
21. Propagation of pre-
cast structures for
the efficient use of
cement
22. Consideration of
WHR as RE for the
purpose of RPOs Roadmap for
Cement Sector Decarbonisation
4
Increased Usage of Refuse Derived Fuel (RDF) from Municipal Solid Waste
(MSW)
The country generates approximately 62 Mt of MSW annually, a figure projected to rise to
165 Mt by 2031 and 436 Mt by 2050 (CMA 2021). This surge in waste generation is expected
to strain the capacity of ULBs in collecting, transporting, treating and scientifically disposing
of MSW. Table 2 summarises the findings and recommendations for increased usage of RDF
from MSW as alternate fuel in cement sector.
Table 2: Increased use of RDF from Municipal Solid Waste (MSW)
Potential emission
reduction through
greater use of RDF
from MSW in the
cement sector
Increasing the use of RDF from MSW to achieve 20% thermal substitution rate
by 2030 could result in a cumulative emission reduction of approximately 80
MtCO
2
e (10% reduction in energy emissions compared to BAU by 2030)
1
.
Key challenges
in using MSW for
thermal substitution
in the Indian cement
sector
Low calorific value and high ash content: RDF from MSW has a low calorific
value and high moisture content, which leads to inefficient kiln operations.
Contaminants in RDF: The presence of sediment, stones, and glass in RDF
can damage kiln equipment and reduce shredder lifespan.
Inconsistent RDF supply: Supply disruptions caused by seasonal variability
and short-term contracts limit the availability of RDF for cement plants.
High infrastructure costs: Significant investment is required to develop
specialised RDF handling and processing infrastructure at cement plants.
Operational Issues: Low-quality RDF increases the use of energy
consumption, necessitates the use of high-grade limestone, and causes odor
and combustion challenges.
Interventions to scale
up the use of RDF
from MSW in the
cement sector
Run three to five pilots in cities to replicate learnings from Indore and Goa
on building municipal discipline.
Selection of pilot cities: Prioritise cities within a 100-150 km radius of cement
plants, with a focus on those with strong waste management infrastructure
and substantial waste generation capacity.
Stakeholder engagement and capacity building: Engage local governments,
NGOs, and municipal workers through city profiling, workshops, and public
awareness campaigns to ensure efficient waste segregation at the source.
Long-term agreements: A PPP model based long-term agreement among
ULBs and vendors/MSW collection & sorting groups, RDF producers and
cement plants needs to be established through policy initiative by MoHUA. The
agreement will not only ensure assured offtake of the RDF by cement plants but
it will also ensure the continuous MSW supply to RDF producer. This type of the
model will offset high capital investment costs for RDF production and reduce
the RDF price for cement plants, making the thermal heating substitution by
RDF technically & financially viable for cement plants.
Transportation cost coverage: Ensure that ULBs may bear transportation and
logistics costs for delivering RDF to cement plants in lieu of the disposing of the
MSW of their area or provide free of cost land and charge zero royalty or free
or revenue from RDF produce to offset the sorting of waste, transporting of the
RDF and other miscellaneous cost incurred upon RDF producer.
RDF standards and compliance: Establishment of the third-party audit
authorised/licensed by BIS to ensure RDF quality, technical specifications
(e.g., calorific value, moisture, and ash content) of RDF aligned with BIS
norms. a Cement plants may have the right to reject option for non-compliant
RDF shipments.
1 subject to feasibility studies and relevant technical standard Roadmap for
Cement Sector Decarbonisation
5
Project cost/
Investment
It is estimated that the cost of the interventions can be approximately INR
4,100 crore, which can eventually be offset through the implementation of
user charges and fines for non-compliance.
Socio-economic
benefits of scaling up
the use of RDF from
MSW India
Interventions to increase the use of RDF from MSW- thereby the
thermal substitution rates- could lead to additional capital investment
of approximately INR 15,000 crore and generate employment of
approximately 65,000 people.
Increased Use of Supplementary Cementitious Materials/Clinker Substitutes
in Cement Production
The Indian cement industry has pioneered the transition to green products by producing
blended cement using alternative raw materials. The extent to which clinker can be substituted
in the final cement product largely depends on the properties of the alternative raw material
and the intended application of the cement. According to the International Energy Agency
(IEA), displacing one tonne of clinker can save approximately 3.7 GJ of energy and avoid 0.83
tonnes of CO
2
emissions. India’s clinker-to-cement ratio- approximately 67.5%- is already
lower than global average of 77% and can be further reduced. SCMs /clinker substitutes
are essential for decarbonising the cement sector, with the potential to reduce emissions
by seven to fifteen percent by 2070
2
. Higher clinker content leads to higher limestone
consumption and increased GHG emissions during cement production. However, regulatory
challenges hinder broader adoption, as existing standards often impose strict compositional
requirements limit the use of clinker substitutes. Addressing these challenges is essential for
promoting the use of alternative materials in the cement industry. Currently, using clinker
substitutes is economically viable, providing savings of approximately INR 1600/tCO2.
Moreover, incorporating materials like calcined clay and bio-ash enhances effective waste
management. The circular economy framework this supports can actively help in creating
waste to wealth streams. Table 3 summarises the proposed interventions and their expected
impact.
Table 3: Increased usage of Supplementary Cementitious/Materials Clinker Substitutes
Clinker
substitutes are
important for
cement sector
decarbonisation
Clinker substitutes can address 7-15%
2
of cement sector emissions by 2070
Usage of clinker substitutes is economically viable at present (saving of ~USD
20/tCO
2
i.e. ~INR 1,600/tCO
2
).
Usage of Supplementary Cementitious Materials (SCM) like Hydraulic (granulated
blast furnace slag) and pozzolanic (calcined clay) materials

and bio-ash can boost
circular economy and helps in effective waste management.
Clinker to cement ratio in India is approximately 67.5% currently and it can go to
approximately 62% if key bottlenecks are addressed.
Key
bottlenecks in
greater usage
of clinker
substitutes
Limited availability: Availability of major clinker substitutes like fly ash and slag
will decline post 2050 due to phasing down of coal and BF-BOF steel.
Regulatory bottlenecks: Existing standards may not adequately support
widespread adoption of clinker substitutes due to specific prescribed composition
of cements.
2 subject to feasibility studies and relevant technical standards Roadmap for
Cement Sector Decarbonisation
6
Proposed
interventions
The transition from inputs-based standards to performance-based standards
to allow for greater usage of blended cement while focusing on quality. It is
recommended that BIS frame standard accordingly.
Definition of standards for CSA (Calcium-Sulpho-Aluminate) cement to
encourage adoption of low carbon CSA cement with clear guidelines for
production and application. Also, other cement types such as Portland Limestone
Cement (PLC), Hydraulic cement, and Increased fly ash to 40% (more than 35%) in
blended cement can be considered
3
. It is recommended that BIS frame definition
of standard accordingly.
As the availability of major clinker substitutes like fly ash and slag will decline post
2050 due to expected phasing out of coal and BF-BOF steel plants, hence exploring
calcined clay deposits in India, construction and demolition (C&D) wastes could
also be used as potential blending component in cement manufacture (GCCA
2022). Ministry of Mine and GIS can undertake the exploration and allotment of
the clay mines for production of the calcined clay material etc.
Expected
Impact
Cumulative emission reduction of approximately 25 MtCO
2
e (approximately 10%
lower emissions compared to BAU) by 2030.
Annual opex savings of approximately 12-15% for the cement industry.
Key risks to be
considered
High costs: Limited uptake of CSA cement due to high cost driven by import
of aluminium/bauxite. As a mitigation strategy, low-cost sources (e.g., through
recycling of aluminium waste) may need to be discovered and scaled.
Limited acceptance and high compliance cost of performance-based standards:
Performance based standards are still under discussion in most countries; may
suffer from higher compliance costs and lack of awareness of its advantages;
successful implementation of these standards would require close collaboration
with industry right from testing technologies to creating awareness.
Carbon Capture Utilisation and Storage (CCUS) Pilots for the Cement Sector
CCUS is emerging technology for decarbonising hard-to-abate and CO
2
intensive processes.
For supporting CCUS technology and making CCUS project economically viable, Ministry of
Power constituted an Inter-Ministerial Committee for drafting the CCUS Mission Document.
Under the Mission, the intended target for the cement‑sector is 2,000 TPD of capture
(~0.67 MTPA) and 2,000 TPD of utilisation (building materials, carbonates, polycarbonates)
for pilot projects, with integrated planning for transportation, storage and Enhanced Oil
Recovery (EOR). The initial phase of implementation of CCUS in cement sector is expected
to occur as part of the National CCUS Mission.
3 Other blended cements namely Portland Composite Cement (PPC) based on both fly ash and limestone, Portland
Limestone Cement (PLC), Portland Dolomitic Limestone Cement (PDC), and multicomponent blended cements
are at different stages of development in India - Blended Cement - Green, Durable & Sustainable 2022, GCCA Roadmap for
Cement Sector Decarbonisation
7
Table 4: CCUS pilots for the Cement Sector
CCUS and India’s
immediate
priorities
CCUS is a key lever for the Decarbonisation of hard-to-abate sectors like
cement (approximately 35 to 54% emissions).
The key pre-requisites for CCS project are mapping of storage sites, land
acquisition, development of transport infra, etc. which will require at least
5-10 years. Therefore, Carbon Capture and Utilisation (CCU) emerges the best
options for Cement Sector as captured CO2
may be utilised for preparing
building material, which is an established and commercially viable technology.
CCU can be a valuable interim option for sectors like cement
(approximately 10% of cement sector emissions at point source can be
addressed via utilisation in artificial limestone, carbon cured cement by 2050
(Mohd Hanifa et al. 2023).
Demonstration and pilots are critical for the eventual scaling of carbon
capture technologies and utilisation pathways.
Selection of Pilots
• Feasibility assessment by panel of experts based on technical maturity,
financial maturity, operational maturity and scalability.
• Financial evaluation based on technologies with the most cost-effective
emission reduction potential, developing economic and business models,
evaluating environmental and social impacts, creating CCUS regulations
(NITI Aayog 2025).
Capture
Technologies
and utilisation
pathways for pilot
projects
Selection of projects can be agnostic of technologies and utilisation pathways
focusing on different capture technologies and utilisation pathways to
increase the likelihood of selecting the most effective options for scaling of
the most effective technologies.
Government
support required
Government corpus can be funded through a combination of multilateral
funds (e.g., Green Climate Fund), government budget, donor funds and
green bonds.
Expected impact
of CCUS pilots
CCUS pilots can be used for identifying the most scalable technologies along
with the real cost of capture and quantum of support needed for scaling.
Operating Model
Government: Provide financial support, expedite regulatory approvals,
enforce verification, energy standards and lifecycle assessments.
Developer(s): Secure land and infra, adopt low-carbon energy, ensure
compliance and reporting, invest in proven technologies, and implement a
risk management framework.
Proposed
next steps for
launching pilots
National Mission on CCUS to oversee the launch and implementation of pilots.
Engage ministries, multilateral institutions and financial bodies to secure
funding.
Develop selection criteria, financing mechanism, and guidelines for pilot
projects.
Key risks to be
considered while
implementation
Economic viability: Changes in the quantum of VGF, low impact from revenue
streams.
Regulatory Challenges: Permit issues, regulatory support gaps, and long lead
times.
Change in Strategy: Shifts in company priorities towards other projects.
Others: Technical failures, operational and safety concerns, and socio-
economic factors. Roadmap for
Cement Sector Decarbonisation
8 Roadmap for
Cement Sector Decarbonisation
9
Chapter 01
INTRODUCTION Roadmap for
Cement Sector Decarbonisation
10
1 Introduction
1.1 Background
To drive inclusive and sustainable growth, the Government of India is expanding
infrastructure and manufacturing to meet the evolving aspirations of its people
while promoting environmental responsibility and long-term resilience. Recognising
the critical role of industries in economic development, the government is also
prioritising the decarbonisation of key sectors to reduce emissions, promote
green innovation, and ensure a sustainable future. According to the Economic
Survey 2023-2024, the industrial sector accounted for approximately 30.9% of
India’s GVA. In comparison, manufacturing accounts for 17.3%, construction 9.0%
and energy and other supply utilities 4.5%. Key government initiatives, including
Make-in-India, Housing for All, Smart Cities, Dedicated Freight Corridors and Ultra
Mega Power Projects, are expected to increase energy consumption and create
significant additional demand for steel and cement over the medium to long term.
While rapid development is creating new opportunities, it also brings substantial
social and environmental challenges. According to Emissions Gap Report 2024,
India’s emissions are relatively low at 2.9 tCO
2
e/capita compared with 18 tCO
2
e/
capita for the United States and 11 tCO
2
e/capita for China. However, it remains the
world’s third-largest emitter of GHGs, accounting for 4.14 GtCO
2
e in 2023, or eight
percent of global emissions (UNEP 2024) driven by energy production, industrial
activities, agriculture, and urbanisation. The energy sector contributed the most of
the overall emissions with 75.81%, followed by the agriculture sector at 13.44%, IPPU
by 8.41% and waste by 2.34% (MoEFCC, GoI 2024). In considering the adoption of
low-carbon solutions for the industrial sector, it is essential to balance the need for
substantial industrial growth with the country’s minimal historical contribution to
global emissions.
India’s dedication to reducing GHGs and transitioning to a low-carbon economy is
reflected in India’s “Long-term Low-Carbon Development Strategy” as per Article
4, paragraph 19 of the Paris Agreement, which was submitted to the UNFCCC in
November 2022 during the 27
th
Conference of Parties (COP27) at Sharm-El-Sheikh
in Egypt (MoEFCC 2023). This strategy outlines a continued focus on adopting
low-carbon technologies in industrial processes, enhancing energy and resource
efficiency and promoting the use of natural and bio-based materials. It also highlights
the critical role of innovation and sustainability, driving the transition to a circular
economy to further reduce carbon footprint. The strategy encourages manufacturing
to progressively embrace process and fuel switching, as well as electrification,
where it is feasible. Furthermore, the strategy explores CO
2
removal technologies,
with a particular focus on CCUS solutions. To facilitate the transition to a low-carbon
industrial future, public-private partnership frameworks will be explored to address
the significant resource requirements. Industrial decarbonisation is essential for
reducing emissions, driving sustainable economic growth and ensuring long-term
environmental resilience. Achieving this transition at scale will require substantial
climate finance, technology transfer and strong international collaboration. These
efforts will enable the widespread adoption of clean technologies, improve energy
efficiency and support the implementation of carbon reduction solutions across
industries, ensuring a sustainable and low-carbon future for India. Roadmap for
Cement Sector Decarbonisation
11
To develop a comprehensive decarbonisation roadmap for the cement industry,
a technical working committee (Annexure 1) was established. The committee’s
objectives include identifying emission sources across the cement production value
chain and establishing baseline sectoral emissions, analysing existing government
and private sector strategies and assessing international market trends to evaluate
the sector’s competitiveness. The committee was also tasked to identify key projects,
policy and regulatory frameworks, and technological interventions, coupled with an
evaluation of commercial viability.
1.2 Scope and Objective
The report focuses on developing a robust framework for identifying and prioritising
high-impact solutions to decarbonise the cement sector, which is one of the most
energy-intensive industries globally. Recognising the significant role the cement
industry plays in carbon emissions, the report sets out to explore practical, scalable,
and effective strategies to reduce the sector’s carbon footprint.
The report begins by presenting a comprehensive framework for evaluating and
prioritising solutions based on their potential impact, feasibility, and alignment
with long-term sustainability goals. This framework is designed to guide decision-
makers and industry stakeholders in focusing efforts on the most promising and
transformative solutions that can drive meaningful progress toward decarbonisation.
The report conducts an in-depth analysis of the prioritised solutions, providing
insights into their technical and economic viability, implementation challenges, and
potential benefits. Three high impact solutions are examined in greater detail:
1.2.1 Increased usage of Refuse Derived Fuel (RDF) from Municipal Solid Waste
(MSW): The utilisation of RDF from MSW in cement manufacturing presents
a sustainable solution to two critical challenges: waste management and the
reduction of carbon emissions. In cement production, MSW is co-processed in
clinker kilns, serving as an alternative fuel and raw material. This practice not
only minimises the volume of waste sent to landfills but also reduces the reliance
on conventional fossil fuels such as coal and natural gas, thereby lowering the
carbon footprint of the industry. Additionally, integrating MSW into the cement
manufacturing process aligns with circular economy principles, transforming
waste into a valuable resource while enhancing the overall environmental
performance and resource efficiency of the sector.
1.2.2 Increased usage of supplementary cementitious materials /clinker substitutes:
The production of clinker, a key ingredient in cement, is responsible for a large
share of the industry’s carbon emissions. By increasing the use of clinker
substitutes-such as fly ash, slag and other materials-cement producers can lower
their carbon intensity while maintaining product quality. The report examines
the technical considerations and market potential for scaling this solution.
1.2.3 CCUS Pilots for the Cement Sector: CCUS is identified as a critical technology
for reducing emissions in cement production. The report explores how CCUS can
be integrated into the cement production process to capture and either store
or repurpose carbon emissions, thereby contributing to significant reductions in
greenhouse gases. Roadmap for
Cement Sector Decarbonisation
12
The report goes into detail in these solutions, assesses the current state of the
cement industry’s decarbonisation efforts, provides recommendations for future
courses of action. By highlighting key areas for innovation and policy intervention,
the report aims to facilitate the transition towards a more sustainable and low-
carbon cement industry.
1.3 Methodology
This study is based on stakeholder consultations, data analysis and field visits. More
than 20 consultations were held with key stakeholders. These included international
experts on cement decarbonisation, the Bureau of Energy Efficiency (BEE), and
industry bodies such as the Global Cement and Concrete Association (GCCA) India
and the Cement Manufacturers’ Association (CMA). The discussions focused on
practical ways to cut emissions in the cement sector and on agreeing upon which
options are both effective and feasible.
The work also uses information from more than 30 national and international data
sources. These include datasets and reports from the World Economic Forum
(WEF), the World Business Council for Sustainable Development (WBCSD), the
Council on Energy, Environment and Water (CEEW), RMI, the Shakti Sustainable
Energy Foundation and the Confederation of Indian Industry (CII). A visit to the
Indore Municipal Corporation and the Indore material recovery facility provided
first‑hand observations on how municipal solid waste (MSW) can be used in practice
to support decarbonisation in the cement sector.
In addition, the study reviews published work from peer‑reviewed journals and
technical reports. Combining these sources helps to describe the current state of
decarbonisation in the sector and to identify options for further action. Roadmap for
Cement Sector Decarbonisation
13
Chapter 02
CEMENT INDUSTRY AT
A GLANCE Roadmap for
Cement Sector Decarbonisation
14
2. Cement industry at a glance
2.1 Background
The cement industry is central to construction and infrastructure. It supplies material
for buildings, roads and many other structures that support urbanisation, industry
and economic activity. At the same time, cement production is energy‑intensive. In
India, the sector emitted about 196 MtCO
2
e in 2020 (NITI Aayog 2022) making it a
major source of greenhouse gases. As sustainability has become a stronger concern
for government and business, the sector is expected to reduce emissions while still
meeting demand for cement. The challenge is to meet demand for cement while
keeping environmental impacts under control.
Cement is a fine powder made from limestone, clays, shells, silica sand and other
materials. These are heated together to about 1,500°C in a controlled process.
Cement has hydraulic binding properties: when it is mixed with water, it forms a
paste that hardens and keeps its strength after setting. For this reason, cement is
a basic binding material in construction. In mortar, it is mixed with fine aggregates
for masonry work. In concrete, it is mixed with aggregates (sand, gravel and other
materials) and water to form a composite building material. Concrete is the most
widely used construction material in the world. Different types of cement are
produced by changing the calcium source and the additives used.
2.2 Cement Manufacturing Process
The cement manufacturing process, as shown in Figure 2.1, begins with the
extraction of limestone, the primary raw material for cement production. Limestone
is mined from open-cast quarries through drilling and blasting. Once excavated, it
is loaded onto dump trucks, which transport the material to limestone crushers for
processing. Additional raw materials such as sand, coal, and pet coke are sourced
externally and integrated into the process. The raw materials are initially crushed
in the primary crushing unit and then transferred to the secondary crushing unit,
where they are combined with additives to further reduce their size. The resulting
raw mix is transported to a circular storage unit known as the raw mix storage. From
there, reclaimers retrieve the mix from the stockpile and convey it to the raw mix
bin for grinding. High-purity limestone and coal/pet coke typically have separate
crushing and storage systems, while other additives, such as sand, are processed
using a shared or common crushing system.
The process of drying, grinding, and homogenising the raw meal begins with blending
additives like iron ore or red mud with limestone using a weigh feeder to achieve the
desired composition and properties. The raw mill, consisting of a drying chamber
and a grinding chamber separated by a diaphragm, is used to process the materials.
Hot flue gas from the preheater or kiln system is used for drying, after which the
materials enter the grinding chamber for fine grinding. The grinding can be done
using a conventional ball mill or an advanced Vertical Roller Mill (VRM). The ground
material, along with hot gas, is fed into a separator that distinguishes between fine
and coarse products, with the coarse material being returned to the grinding unit.
Fine material and gases pass through a cyclone unit for further separation. Fine Roadmap for
Cement Sector Decarbonisation
15
material is collected in a multi-cyclone unit, while ultra-fine particles carried by flue
gas are captured in an ESP. The dust collected in the ESP is mixed with the fine
material via screw conveyors. Finally, the raw meal or kiln feed is stored in a blending
silo for homogenisation before being fed to the preheater for pyro processing. The
process route for different types of cement production is almost similar except for
the final blending and grinding process steps.
Figure 2.1: Cement Manufacturing Process
Source: McKinsey & Company
2.2.1 Clinker Manufacturing: Clinker is produced through the pyro processing of kiln
feed in a preheater-kiln system. This system typically includes a multi-stage
cyclone preheater (usually more than five stages), a combustion chamber, riser
duct, rotary kiln, and grate cooler. In the preheater section, heat transfer efficiency
is influenced by the number of preheater stages. Coal is also burned to meet
the additional heat requirements. The preheater plays a crucial role in removing
moisture from the feed while increasing its temperature through counter-current
heat exchange with the hot flue gas (NITI Aayog 2022).
• The preheated kiln feed undergoes partial calcination in the combustion
chamber and riser duct and then completes calcination in the rotary kiln,
where it is heated to around 1400-1500°C to form clinker components. Coal,
supplied through a burner, serves as the primary heat source for this process,
although alternative fuels such as biomass and other solid wastes are also used.
The hot clinker is then discharged into the grate cooler, where it is cooled from
1350-1450°C to approximately 1200°C using atmospheric air. After cooling,
the clinker is transported to storage hoppers. To produce cement, the cooled
clinker is finely ground and mixed with gypsum, limestone, and other potential
additives in precise proportions, as specified by standards, to create the final
cement product (NITI Aayog 2022).
2.2.2 Cement production: Approximately four to five percent gypsum is added to
clinker to regulate the setting time of the final cement. The cooled clinker and
gypsum mixture is then ground into a grey powder known as OPC or, when
combined with other mineral components, used to produce variants like PCC. Roadmap for
Cement Sector Decarbonisation
16
While traditional ball mills were commonly used for grinding, modern plants
increasingly adopt more efficient technologies such as roller presses, vertical
mills, or their combinations.
• Blending: Cement can be further mixed with finely ground materials like
slag, fly ash, limestone, or other mineral additives to partially replace clinker,
significantly reducing CO
2
emissions.
• Storage: The finished cement is homogenised and stored in silos before being
dispatched either to a packing station for bagged cement or to a silo for bulk
transport by road, rail, or water.
The Indian cement industry’s product profile has changed significantly over the
years to include more blended cement in the mix. This implies that the industry
has consciously shifted to high quality and low-carbon production, enhanced by
material use that promotes circular economy. For example, fly ash a by-product
of burning pulverised coal in a coal-fueled power plant, is used in some cement
plants as a raw mix component, while in most cases, it is added to cement to
produce Portland Pozzolana Cement (PPC). Approximately 25% of the total fly ash
generated is utilised by the cement industry promoting circular economy. However,
around 33% remains unutilised due to geographical imbalances and the limitation of
incorporating a maximum of 35% fly ash in PPC (CEA, MoP 2020).
2.3 Energy Consumption and Fuel Use in Cement Production
In 2022, the cement sector was the third-largest industrial energy consumer globally,
following the chemical and iron and steel industries, with an energy consumption of
12 EJ (3,333 TWh), accounting for 7.18% of global industrial energy use (IEA 2023).
The core process of cement production has remained largely unchanged, involving
the heating of limestone to temperatures as high as 1450°C.
Cement production requires both electrical and thermal energy, with total energy
consumption per tonne of cement ranging from 3.32 GJ to 3.38 GJ (922 kWh to
939 kWh) as of 2024. Thermal energy accounts for over 90% of this, with around
731 kcal/kg of clinker (860 kWh/ton) being used. In comparison, electricity
consumption ranges from 65.9 kWh to 83 kWh per tonne of cement (JMK 2024).
Energy consumption is projected to decline to about 2.89 GJ per tonne by 2030
and around 2.49 GJ per tonne by 2047 (CMA).
In India, coal and pet coke are the primary sources of energy used in the cement
manufacturing process with approximately 97% of the total fuel derived from coal
and pet coke, 1% from oil, and 2% from electricity. The average SEC in Indian cement
plants stands at 731 kcal/kg clinker (thermal) and 73 kWh/tonne cement (electrical).
In contrast, the global cement sector’s specific thermal energy consumption is
13% higher than India’s average, i.e., 827 kcal/kg clinker and specific electricity
consumption is 42% higher i.e., 102 kWh/tonne of cement (JMK 2024). The specific
fuel energy demand of clinker burning (as a global weighted yearly average) may
decrease from 827 kcal/kg clinker in 2019 to a range of 788-812 kcal/kg Clinker in
2030 (CII 2023).
Indian cement plants demonstrate energy efficiency comparable to global
counterparts. This can be attributed to the adoption of technologies such as high-

50,100
1,537
24,686
1,821
3,737
Global GHG
Emissions
China USA India Russia Brazil Others
5,604
12,715
100% 25% 11% 7% 4% 3% 50% Roadmap for
Cement Sector Decarbonisation
17
efficiency kilns with preheaters and pre-calciners, which help reduce SEC in cement
production. A significant portion of the existing cement production capacity in India
was commissioned since 2005 and has therefore implemented energy-efficient
manufacturing systems (CEEW 2023). Nearly 99% of cement plants in India have
transitioned to energy-efficient dry kiln technology, opting for it over the relatively
less efficient wet kiln technology. In India, a large share of cement production is in
the form of blended cements, which use less clinker than in many other regions.
Even so, most of the energy used in cement manufacture still comes from fossil
fuels, mainly coal and pet coke, and this adds a lot to the country’s CO
2
emissions.
On top of that, there are process emissions from the decomposition of limestone in
the kiln, and these occur no matter what fuel or energy source is used.
2.4 Green House Gas Emissions
2.4.1 Global Greenhouse Gas Emissions
Global GHG emissions reached a record high of approximately 50,100 MtCO
2
e in
2022, as shown in Figure 2.2, marking a 1.3% increase (700 MtCO
2
e) compared
to the previous year. This growth rate exceeds the average annual increase
of 0.8% observed in the decade before the COVID-19 pandemic (2010–2019).
Atmospheric CO
2
concentrations continue to rise and will persist until annual
CO
2
emissions are sufficiently reduced to balance removals (net zero). Fossil
CO
2
emissions, which account for approximately 68% of total GHG emissions,
are primarily driven by combustion of coal, oil, and gas in the energy sector
and by industrial processes such as cement and metal production. The six
largest global emitters are China, the United States, India, the European Union,
Russia and Brazil (UNEP 2024).
Figure 2.2: Global GHG Emissions in 2022
(Million tons of CO
2
e; Source: BUR 2024
4
, Climate watch)
4 The BUR report provides data for 2020. We have provided the latest available information, i.e., 2022 data. The
referenced sources are largely aligned with the BUR data, with less than ~1% variation. Memo items are also included
in this graph. Roadmap for
Cement Sector Decarbonisation
18
2.4.2 India’s Greenhouse Gas emissions
As shown in Figure 2.3, in 2021, India’s total GHG emissions amounted to 2,958
MtCO
2
e, with LULUCF contributing to a net absorption of approximately 521
MtCO
2
e. This resulted in net emissions of 2,437 MtCO
2
e. Among other sectors,
power generation was the largest contributor, accounting for about 40% of
total emissions. The industrial sector followed closely, contributing 24%. The
cement sector contributes around 6% of India’s total GHG emission.
2.4.3 Global Cement Sector Emissions
Global carbon emissions from cement production currently stand at approximately
2.4 GtCO
2
e per year, accounting for about 6% of global energy system emissions.
Under a BAU scenario, emissions could be 2.3 GtCO
2
annually by 2050. This
increase is expected to be driven by growing global cement demand, particularly
in regions where energy needs will compete with decarbonisation efforts. Current
fuel sources include coal (which varies in quality and carbon intensity by region),
petroleum coke, and various forms of waste. Globally, coal accounts for 66% of
cement production fuel, with usage ranging from over 86% in China to less than
25% in the EU (Mission Possible, 2018). Cement production in China accounts for
the largest share of global carbon dioxide emissions. In 2022, the cement industry
in China discharged 763 MtCO
2
e into the atmosphere, a quantity approximately
three times greater than India’s emissions.
Cement manufacture uses a lot of energy, and different steps in the process
release CO
2
and other greenhouse gases. The largest share of CO
2
comes from
the conversion of limestone to lime in the kiln (calcination). This process is mainly
heated by fossil fuels, especially coal and pet coke, and fuel use for calcination
accounts for about 57–60% of total emissions. A further 10–13% of emissions comes
from electricity use, either drawn from the grid or supplied by mainly thermal
captive power plants (CPPs). Another 27–31% is linked to thermal energy used
for process heating. Emissions from limestone mining are small in comparison, at
around 1–2% of the total. Scope 3 emissions in the cement sector originate from
activities across the entire value chain, including capital goods, purchased goods
and services, energy-related activities and transportation or distribution. These
emissions are influenced by factors such as fuel type, procurement practices, and
the extent of transportation involved. However, due to the nature of processes
within the cement industry, most of its emissions fall under Scope 1 and Scope
2. The relevance of Scope 3 emissions depends on the specific activities and
operations of individual cement companies (WBCSD 2016).
Net emissions 2437 Mt CO
2
e
GHG emissions by sector and sub-sector in 2020, Million tons of CO2e
Emissions 2,958 Mt CO
2
e
Absorptions -521 Mt CO
2
e
% of overall emissions 2020
Power Generation
40%
Industry
24%
Agriculture
14%
Transport
10%
Buildings
8%
Waste
3%
1%
Others
LULUCF
-12%
1.
Non-CO
2
emissions are converted into carbon dioxide equivalents according to their 100 -year global warming potential (GWP100)
2.
Memo items (not accounted in total emissions) amount to 802 Mt CO . Roadmap for
Cement Sector Decarbonisation
19
Figure 2.3: India GHG Emissions
(MtCO
2
e; Source: BUR 2024
5
, Climate Watch)
5 The BUR report provides data for 2020. We have provided the latest available information, i.e., 2022 data. The referenced
sources are largely aligned with the BUR data, with less than ~1% variation. Memo items are also included in this graph. Roadmap for
Cement Sector Decarbonisation
20
2.4.4 India’s Cement Sector Emissions
The Indian cement industry has made significant progress in reducing its GHG
emissions. As shown in Figure 2.4, the overall emission intensity was 0.63 tCO
2
e
per tonne of cement and total emissions in 2023 was approximately 246 MtCO
2
e
corresponding to cement production of 391 Mt.
Figure 2.4: Emission Intensity of Cement Manufacturing
Note: 1. tCO
2
e: tons of CO
2
equivalent
Source: Third National Communication and Initial Adaptation Communication to UNFCCC, 2019,: https://pib.gov.in/
PressReleasePage.aspx?PRID=2004762, Emissions intensity based on Evaluating Net-zero for the Indian Cement
Industry, CEEW (2023)
CMA website - Indian Cement Sector – A Hallmark of Energy Efficient Operations: Clinker to cement ratio = 69.5% in
2021 (https://www.cmaindia.org/indian-cement-sector-hallmark-of-energy-efficient-operations) CIDC website -
Decarbonisation in Concrete Industry – Opportunities & Challenges: : Clinker to cement ratio = 65% in 2023 (https://www.
cidc.in/support/ICM%202023/Cement.pdf)
2.5 Carbon Credit Trading System
Carbon markets aim to reduce GHG emissions by enabling the trading of emission
units (carbon credits), which are certificates representing emission reductions. By
putting a price on carbon emissions, carbon market mechanisms raise awareness of
the environmental and social costs of carbon pollution, encouraging investors and
consumers to choose lower-carbon paths. There are two main categories of carbon
markets: cap-and-trade and voluntary. Cap-and-trade sets a mandatory limit (cap)
on GHG emissions and organisations that exceed these limits can purchase excess
allowances to fill the gap or pay a fine. Voluntary markets enable the trading of
carbon credits outside of the regulatory environment
6
.
To establish a robust carbon market in India, key amendments were made to the
Energy Conservation Act, 2001, through the Energy Conservation Amendment Act,
2022. This empowered the BEE, to specify a CCTS. As a result, the CCTS was officially
notified in June and December 2023. The CCTS is designed to help India meet its
climate commitments under the UNFCCC and the Paris Agreement by creating a
framework for trading carbon credit certificates, thereby pricing GHG emissions and
incentivising decarbonisation across the economy. The BEE has also developed a
MRV framework to ensure transparency and credibility, including annual verification
of emissions data and accreditation of Carbon Verification Agencies. Figure 2.5
illustrates the National Steering Committee for the Indian Carbon Market.
6 National Indian Carbon Coalition Roadmap for
Cement Sector Decarbonisation
21
Figure 2.5: National Steering Committee for Indian Carbon Market
Source: BEE, CII
The CCTS operates through two mechanisms as shown in Table 2.1, a compliance
mechanism, where obligated entities must meet prescribed GHG emission intensity
reduction targets and can earn carbon credits for exceeding these targets; and an
offset mechanism, where non-obligated entities can register projects that reduce,
remove, or avoid emissions to earn credits. The transition from the Perform, Achieve,
and Trade (PAT) scheme to the CCTS is being managed to ensure alignment with
national climate goals.
Table 2.1: CCTS Compliance Mechanism
Key aspects Compliance mechanism Offset mechanism
Nature MandatoryVoluntary
Entities
involved
Large-scale emission
emitters
Corporations/companies/nonprofits/society
(No restriction on size or scale)
Level of
implementation
Facility levelProject level
Usage of credit
To meet legally binding
emission reduction targets
Crucial criterion, reduction must be beyond
baseline scenario
Additionality
Less or no emphasis, primary
focus is to meet the targets
Broad and diverse (sector scope based on
emission source/reduction)
Scope
Sector Specific, targeting
obligated entities
(designated consumers)
Broad and diverse (sector scope based on
emission source/reduction)
Boundary
consideration
Gate-to-gate boundary
Project boundary (but outside boundary of
obligated entity under compliance)
Credit issuance
Against the targets (only on
overachievement of targets)
Against the baseline and baseline are based
on methodology
In April 2025, the MoEFCC, released the Greenhouse Gases Emission Intensity Target
Rules (Draft, 2025) as part of the forthcoming compliance carbon market. For the
cement sector, 186 entities are covered with a targeted reduction of 3.62% i.e. 264
MtCO
2
e emission reduction potential. The baseline year is set as FY 2023–24, while Roadmap for
Cement Sector Decarbonisation
22
the compliance periods are FY 2025–26 and FY 2026–27, with the GEI reduction
targets distributed in a 40:60 ratio with an average reduction goal of 3% over 2
years for these units (MoEFCC, GoI 2025).
The following charts illustrate sample emission intensity targets for plants with the
lowest and highest emission intensities in their respective categories, showcasing
both LEP and HEP benchmarks. Roadmap for
Cement Sector Decarbonisation
23
The CCTS inherently supports cement industries in manufacturing low-carbon
cement by setting clear emission-intensity targets and creating financial incentives for
emission reductions. By assigning specific reduction goals, the scheme encourages
all facilities-regardless of their starting point-to improve their performance. Plants
that achieve or exceed their targets can earn carbon credits, which can be traded
for additional revenue or used to offset their own emissions, making investments in
cleaner technologies and processes more attractive.
This market-based approach not only motivates continuous improvement but also
helps cement manufacturers balance industrial growth with climate commitments.
By rewarding early adopters and efficient plants, while also pushing higher-emitting
units to catch up, the CCTS drives sector-wide progress toward lower carbon
intensity. Over time, this leads to the widespread adoption of best practices, energy
efficiency measures, alternate fuels, and innovative production methods, all of which
are essential for producing low-carbon cement and supporting India’s broader
decarbonisation goals. Roadmap for
Cement Sector Decarbonisation
24 Roadmap for
Cement Sector Decarbonisation
25
Chapter 03
KEY LEVERS OF
DECARBONISATION FOR
INDIA’S CEMENT SECTOR Roadmap for
Cement Sector Decarbonisation
26
3. Key Levers of Decarbonisation for India’s Cement Sector
3.1 Projections of India’s Cement Production and Installed Capacity
India’s cement production is projected to rise nearly sevenfold, from 334 Mt per
year in 2020 to 2,100 Mt by 2070. Figure 3.1 illustrates the forecast for cement
installed and production capacity in Mt per year through 2070, presented at decadal
intervals
7
.
Figure 3.1: Projections of India’s Cement Production and Installed Capacity
* All data are approximations
Source: Projections are drawn from the Cement Manufacturers’ Association (CMA). While CMA factors in GDP
growth, infrastructure investment, and other real-world demand drivers, its modelling approach differs from NITI
Aayog’s macro-economic scenarios; the two sets of numbers are therefore not directly comparable
The cement production and installed capacity show a steady upward trend reflecting
consistent growth in the sector. In 2024, approximately 427 Mt of cement was
produced, with production projected to reach 660 Mt by 2030 and 1750 Mt by 2047,
continuing to rise by 30 to 70 Mt per decade. A notable increase is expected until
2050, with production reaching around 1,920 Mt. Following this period, production
growth is anticipated to slow and plateau at approximately 2,100 Mt by 2070. This
trend suggests that while the cement industry has seen significant growth, it may
be nearing the limit of its rapid expansion. Therefore, focusing on sustainability and
decarbonisation strategies will be essential to meet future demand while reducing
environmental impacts.
Figure 3.2 illustrates a green transition strategy for the cement sector, outlining
various levers to achieve net-zero emissions. Emissions are projected to increase
from 246 MtCO
2
e in 2023 to 1,323 MtCO
2
e by 2070 due to demand growth.
However, through the implementation of key levers such as alternative fuels (AF),
7 Based on the Installed Cement Capacity data from the IBM Indian Minerals Yearbook 2018, the 2018-19 to 2024-25
data from the Survey of Cement Industry and Directory 2019, along with the IBM Indian Minerals Yearbooks, annual
reports, company websites, and media reports accessed on 2 February 2025. Additionally, data from the Monthly
Press Release on the Index of Eight Core Industries (available at https://eaindustry.nic.in/) as published by the
Office of the Economic Advisor, DPIIT, was also referenced, with access on 2 February 2025. Production figures
after June 2021 have been calculated based on the month-on-month growth percentage data published by the
Office of the Economic Advisor, DPIIT. 36

660 Mt by 2030 and 1720 Mt by 2047continuing to rise by 30 to 70 Mt per decade. A notable increase is
expected until 2050, with production reaching around 1,920 Mt. Following this period, production growth
is anticipated to slow and plateau at approximately 2,100 Mt by 2070. This trend suggests that while the
cement industry has seen significant growth, it may be nearing the limit of its rapid expansion. Therefore,
focusing on sustainability and decarbonization strategies will be essential to meet future demand while
reducing environmental impacts.

Figure 7 illustrates a green transition strategy for the cement sector, outlining various levers to achieve
net-zero emissions. Emissions are projected to increase from 246 MtCO
2e in 2023 to 1,323 MtCO2e by
2070 due to demand growth. However, through the implementation of key levers such as AF,
decarbonization of electricity, clinker substitutes and CCUS, emissions are expected to be reduced to
approximately 198
252 MtCO2e by 2070.

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u]??]}v??

Baseline
emissions 2023
Emission due to
demand growth
Total Emissions
2070
Alternative Fuels Decarbonisation
of Electricity
Clinker
Substitutes
CCUS Net Emissions
2070
246
1076 1323
80 - 172
80 - 133
145 - 200
463 - 715
198 - 252
6-13% 6-10% 11-15% 35-54% 15-19%
Green transition strategy to move towards net zero in cement sector using various levers
Emissions abatement by lever, Mn tCO
2e per annum
XX% % of total emissions in 2070
Source: Based in Data from WBCSD Reports, IBEF, Powerline, CEEW Roadmap for
Cement Sector Decarbonisation
27
decarbonisation of electricity, clinker substitutes and CCUS, emissions are expected
to be reduced to approximately 198–252 MtCO
2
e by 2070.
Figure 3.2: Key Levers of Decarbonisation
Source: Based on Data from WBCSD Reports, IBEF, Powerline, CEEW
[Note: The emergence of new technologies such as green hydrogen and kiln electrification presents transformative
opportunities for emission reduction in the cement industry by eliminating emissions associated with fuel combustion
such as carbon-intensive stages of cement manufacturing. In addition to adopting new technologies and scaling
up various decarbonisation measures, the remaining emissions can be addressed through the creation of carbon
sinks, afforestation initiatives, and similar efforts, further advancing the cement industry’s journey toward net-zero
emissions]
Adoption of green alternative fuels can reduce emissions by 6-13%, equivalent to
approximately 80-172 MtCO
2
e, while the decarbonisation of electricity through RE
8

integration and waste heat recovery can contribute an additional reduction of 6-10%.
Furthermore, adopting clinker substitutes may lead to an 11-15% reduction, cutting
emissions by 145–200 MtCO
2
e. The most significant impact, however, comes from
the implementation of CCUS, which has the potential to reduce emissions by 35-54%.
Additionally, the commercialisation of new technologies- including kiln electrification,
solar fuels, more efficient clinker production, and accounting for natural recarbonation-
could help the cement sector progress toward net-zero emissions.
While key levers such as CCUS, Alternate Fuels, Decarbonisation of electricity,
and clinker substitution are expected to drive significant emission reductions,
residual emissions by 2070 may persist. These remaining emissions could be
addressed through new technology development and developing carbon sink such
as afforestation, soil carbon enhancement, and wetland restoration. Lean Design
Principles such as pre-cast structures, waste reduction, optimised concrete mix
designs, and sustainable building practices will also support to reduce residual
8 To achieve 100% renewable energy (RE) electrical power, it is recommended that a dedicated banking policy
tailored specifically for the Cement sector is required. The policy should also enable the storage of surplus RE
generated during the peak production period into the grid, which can be accessed when renewable energy
generation decreases or ceases. Collaboration between different departments and ministries is necessary to
address the existing challenges and make provisions for transition towards 100% Renewable energy. Roadmap for
Cement Sector Decarbonisation
28
emissions. Nature-based solutions represent a critical area for further evaluation
and integration into long-term decarbonisation strategies.
Table 3.1 outlines key model assumptions for the 2070 scenario, which include the full
adoption of green and alternate fuels to meet 100 percent of thermal energy demand,
with 30% from green fuels and 70% from alternate sources, supported by efficient
supply chains for agricultural waste and RDF, alongside the commercialisation of
emerging technologies such as algae-based biofuels. The use of clinker substitutes is
expected to increase by 1.5 to 2 times by 2070, driven by advancements in recycling
systems and a reliable supply of alternative materials. It is assumed that up to 90%
of process emissions will be mitigated through CCUS, supported by advanced
carbon storage infrastructure and scalable capture technologies. Approximately
50-60% of electricity demand is projected to be replaced by RE RTC power, with
an annual availability of 70-80% through an open-access network. The remaining
electricity demand will be met through EE improvements (15-20%) and waste heat
recovery systems (25-30%). Additionally, establishing net-zero industrial clusters-
where cement plants share renewable power infrastructure-can further optimise
energy use and accelerate decarbonisation.
Table 3.1: Key model assumptions for driving decarbonisation by 2070
Levers2070 Scenario
Alternate fuels
100% of thermal energy demand met by alternate fuels, driven by efficient
supply chains for agricultural waste and RDF*, and by the commercialisation
of nascent technologies such as algae-based biofuels
Scaling of kiln electrification, solar-thermal and GH2 based technologies can
further support increase in thermal substitution
Supplementary
Cementitious
materials/
Clinker substitution
Use of clinker substitutes rises by approximately 1.5 to 2 times by 2070 driven by
Efficient systems for collecting and processing construction and demolition
waste
Ensuring steady supply of other clinker substitutes like calcined clay,
pozzolana, and bio-ash
R&D investments for developing low-clinker cement
Carbon capture
utilisation and
storage
Up to approximately 90% of process emissions abated through CCUS
Driven by robust carbon storage and transport infrastructure,
commercialisation and scaling up of capture (e.g, amine scrubbing,
membrane absorption, etc.) and utilisation pathways (e.g, methanol
production etc.)
Renewable
electricity usage
Approximately 50-60% of the electricity demand would need to be
replaced with Renewable Energy Round the Clock (RE RTC) power with
annual availability of 70-80% through open-access network. Of the balance
electricity demand, 15-20% could be reduced through EE and 25-30% could
be supplied by electricity generated through WHR
*
Alternate fuels such as MSW contribute to gross emissions but not to net emissions. However,
they can help solve the problems of waste management, reduced consumption of fossil fuels and
reduction in GHG emissions associated with landfill decomposition, CEEW Roadmap for
Cement Sector Decarbonisation
29
3.2 Marginal Abatement Cost Curve (MACC)
Figure 3.3 represents the MACC for the 2070 emissions. MACC analysis shows most
levers become economical once enabling measures unlock scale, thereby preserving
industry competitiveness. The clinker substitutes lever will have negative abatement
costs, indicating savings from adopting these technologies. Other levers including
renewable energy, alternative fuels, energy efficiency solutions and CCUS will have
positive abatement costs, with CCUS being the highest. It should be noted that this
analysis is based on a few assumptions including:
(i) Range of landed cost per tonne of clinker and key clinker substitutes: clinker
(INR 2,800-3,600 approximately), fly ash (INR 2,400-2,800 approximately)
9
,
slag (INR 2,200-2,600 approximately) and pozzolana (INR 2,400-2,800
approximately).
(ii) Cost of biomass (including collection, transport, storage and processing) may
range between INR 250-400/GJ approximately while the cost of coal/pet coke
is INR 160-320/GJ approximately.
(iii) Cement sector is characterised by low purity point sources of flue gas stream
driving up cost of carbon capture.
(iv) Technology for transport and storage infrastructure for CO
2
is at a nascent stage
limiting current CCUS scalability.
(v) Renewable Energy Round the Clock (RTC) base tariff of INR 3.6/kWh and landed
cost of INR 5.1/kWh based on recently floated tenders.
Figure 3.3: MACC for Key Levers of Decarbonisation
Source: GCCA, ECRA, Cembureau, CEEW
9 At present, freight charges for transporting fly ash through bulkers and trucks range between Rs. 800 per tonne
and Rs. 1,200 per tonne, (Narayan & Mangla, 2016), which is significantly higher when compared to transportation
costs by railways. Indian Railways has classified fly ash as Class-120 material for full rake load. As per current rates,
railway freight charges for transporting fly ash over distances 301-350 km - cement plants of the Rewa–Satna–Katni
region are within 250–350 km of power plants - shall be in the range of Rs 393-419 per tonne (Moving Towards A
Low-Carbon Transport Future Increasing Rail Share In Freight Transport In India Working Paper – Fly Ash). Roadmap for
Cement Sector Decarbonisation
30
3.3 Emission Reduction Projections for Key Decarbonisation Levers
The baseline net emissions in 2023 stand at 246 MtCO
2
e/year, while emissions driven
by demand growth are projected to reach 1,076 MtCO
2
e/year by 2070. This brings
the total projected emissions for 2070 to 1,323 MtCO
2
e/year (Figure 3.2), which serves
as the reference point for assessing the potential impact of various decarbonisation
strategies. By 2070, these strategies are expected to reduce net emissions from 1,323
MtCO
2
e in 2030 to 198-252 MtCO
2
e, with a lower emissions intensity of 0.09-0.13 tCO
2
e
per tonne of cement. The decarbonisation of electricity is projected to reduce emissions
by 80-133 MtCO
2
e by 2050 and then stabilise. This is based on the assumption that most
electricity generation will be sourced from renewables post-2050. Clinker substitutes
are projected to cut emissions by 145-200 MtCO
2
e by 2070 due to increased usage
of blended cement and alternate materials. CCUS is expected to reduce cumulative
emissions by 463-715 MtCO
2
e by 2070. However, significant reductions are anticipated
to start from 2040 onwards, with pilot projects planned for 2030s.
Figure 3.4 illustrates a progressive reduction in the emission intensity of the
cement sector. The primary levers contributing to reduced emission is divided into
distinct phases each marked by a combination of decarbonisation technologies.
Initially EE improvements and adoption of AF drive early reductions. With time and
decarbonisation of the electricity sector and increased clinker substitution, emissions
will drop further. In the later years, the implementation of CCUS technologies – first
at the pilot stage and then at full scale – will enable a significant drop in emissions
intensity, guiding the sector towards its long-term decarbonisation targets.
Figure 3.4: Emissions Reduction Impact of Each Lever Through 2070
[Note: The numbers presented in this table are indicative and have been derived from available literature, stakeholder
consultations, and a current understanding of the decarbonisation levers identified. These estimates reflect potential
emissions reduction pathways under existing assumptions and may evolve with further technological advancements,
broader stakeholder adoption, and detailed modeling. For example, higher adoption of clinker substitutes or extended
use of alternative fuels beyond 2050 could yield greater emissions reductions than currently estimated] Roadmap for
Cement Sector Decarbonisation
31
Chapter 04
DECARBONISATION PATHWAYS:
STRATEGIES AND FEASIBLE
SOLUTIONS FRAMEWORK Roadmap for
Cement Sector Decarbonisation
32
4. Decarbonisation Pathways: Strategies and Feasible
Solutions Framework
This section discusses the framework adopted to evaluate and prioritise various
decarbonisation solutions. It also highlights actions required for regulatory support,
demonstration plants and other necessary assistance. The working group through a
combination of literature review, data analysis and extensive stakeholder consultations
assessed the existing solutions for decarbonisation of India’s cement sector. All
decarbonisation solutions have been classified into four groups:
Group A: Solutions industry can implement on their own
Group B: Solutions that require regulatory support for implementation
Group C: Solutions that require policy & financial support from the government
Group D: Deprioritised solutions
Figure 4.1: Framework Adopted to Evaluate Recommendations and Prioritise Solutions
Figure 4.1 shows the framework adopted to evaluate the solutions. The various levers,
including green and AF, clinker substitutes, kiln electrification and decarbonisation of
electricity (Figure 3.2), were first assessed for their operational and economic feasibility.
If a solution was found to be neither economically nor operationally feasible, it was further
evaluated based on scalability, potential impact, the likelihood of delivering tangible
outcomes, and the need for government financial support. Solutions requiring policy
support from the government were prioritised. If none of these conditions were met, the
solution was deprioritised.
If the solution is economically and operationally viable, the existing regulations are reviewed
to determine if any modifications are needed for its implementation. If no regulatory changes
are required, the solution can be adopted directly by the industry. However, if regulatory
support is necessary, the solution is further assessed for potential regulatory adjustments
and approvals. The prioritised high-impact solutions, based on the framework will be further
detailed to include a comprehensive estimate of the required government policy support, Roadmap for
Cement Sector Decarbonisation
33
governance mechanisms (such as nodal and implementation agencies, task forces, etc.),
socio-economic impact estimations assessing benefits like employment, tax revenue, and
GVA, criteria for policy validity and milestones for implementation.
Based on an extensive literature review and stakeholder consultations with cement industries
and associations such as GCCA and CMA, a total of 22 recommendations for decarbonising
the cement sector were evaluated (Annexure 2).
Figure 4.2: Prioritising Solutions: 3 High-Impact Solutions Selected from 22 Recommenda-
tions
Of the 22 initiatives, 7 initiatives related to EE solutions (Figure 4.2) that can be implemented
by the industry, were prioritised. Throughout its growth and expansion, the Indian cement
sector has consistently relied on the BAT and advanced process setups to maintain efficiency
and sustainability. EE initiatives are economically viable for the cement sector and the Indian
industry is in advanced stages of adopting these best available technologies.
Of the remaining 15 recommendations, 5 initiatives that are already economically viable
and may not require government support have been deprioritised based on preliminary
assessments. Additionally, initiatives unlikely to significantly accelerate decarbonisation
were also been deprioritised.
The remaining 10 recommendations were evaluated based on defined criteria i.e. scalability,
potential impact, likelihood of delivering tangible outcomes along with necessity for financial
assistance, as well as policy and regulatory backing. Among the 10 recommendations, 3
solutions were deprioritised due to limited impact on decarbonisation and/or were low
on implementation feasibility. Out of the 7 solutions evaluated, 5 necessitate regulatory
changes, while 2 necessitate financial support from the government, as outlined in Figure
4.2. These 7 solutions have been consolidated into three high-impact solutions: Increased usage
of Refuse
Derive d Fuel
from
Municipal Solid
Waste
Increased use of
supplementary
cementitious
materialsLclinker
substitutes in
cement
productionK
Carbon Capture
Utilization and
Storage pilots
for the
cement sector
01 02 03 Roadmap for
Cement Sector Decarbonisation
34
Group A: Solutions that the industry can implement on their own
Group A solutions refer to EE initiatives that cement industries can implement independently.
These solutions are economically viable and contribute to sustainable operations. The
emission intensity of cement production is expected to decline from 0.63 tCO
2
e per tonne
of cement in 2020 to 0.33–0.37 tCO
2
e per tonne by 2050. Of this reduction, 5-10% will
result from implementing 7 energy efficiency initiatives. Six of these solutions involve a
combination of fuel and electricity optimisation, while 1 focuses exclusively on reducing
the heat rate of captive CPPs. The potential emissions reduction for each technology is
illustrated in Figure 4.3. In addition to reducing emissions, these initiatives offer substantial
economic benefits, enabling the industry to achieve significant cost savings.
Figure 4.3: Economically Viable EE Solutions
Refractory material improvements play a crucial role in improving EE in industrial processes by
minimising heat loss and optimising temperature control in high-temperature environments
such as furnaces and kilns. They can contribute to a 2-5% of emissions reduction by 2050
with a marginal cost saving of 2.8-3.6 (INR’000/tCO
2
). Roadmap for
Cement Sector Decarbonisation
35
Efficient clinker coolers and kiln pre-heaters together have a 1% emission reduction potential,
but efficient kilns and pre-heaters have higher marginal savings of 2.0-2.8 (INR’000/
tCO
2
) as compared to clinker coolers with marginal savings of 0.4-1.2 (INR’000/tCO
2
).
The automation system is projected to achieve a 0.4% emissions reduction from 2020 to
2050, with marginal cost savings of INR 3.2-4.0 (INR’000/tCO
2
). Burner retrofits have the
smallest emission reduction potential of 0.1% and a marginal savings of 0.4-1.2 (INR’000/
tCO
2
). Fuel is the biggest expense for a power plant and reducing heat rate in a CPP can
lead to significant savings of 1.6-2.4 (INR’000/tCO
2
) and lower emissions by 0.3% by 2050.
It should be noted that Carbon Credit and Trading (CCTS) mechanism designed to reduce
Green House Gas emissions is a crucial enabler for accelerating the adoption of energy
efficient technologies
10
.
[Note: EE measures contribute approximately 5-10% to emission reductions through initiatives such as kiln
combustion system improvements and heat rate optimisation in CPPs. However, there remains significant potential for
improvement in many cement plants, as a considerable gap exists between the performance of the best-performing
plants and others. Over the next two decades, advancements in cement manufacturing technologies are expected to
further enhance EE, offering substantial emissions reduction potential. Research suggests the cement industry could
cut three-quarters of its CO2 emissions by 2050 and 7% of overall emissions can be reduced by implementation of
existing EE technologies (CII 2023)].
Group B1: Solutions that require regulatory support for implementation
This section discusses economically viable solutions that require additional regulatory
support. A total of 5 technological decarbonisation solutions have been identified. Three
of these falls under the umbrella of clinker substitution (Figure 4.4), and the remaining 2
solutions are demand enablers and recarbonation (Figure 4.5). These include proposed
blending mandates to encourage the adoption of alternative materials such as CSA and
hydraulic cement
11
.
10 The Central Government has notified the Carbon Credit Trading Scheme, 2023 vide S.O. 2825(E) dated 28
th
June
2023 under the powers conferred by clause (w) of Section 14 of the Energy Conservation Act, 2001 (52 of 2001).
The Carbon Credit Trading Scheme (CCTS) in India is a mechanism designed to reduce greenhouse gas (GHG)
emissions through carbon pricing. It involves two key elements: a compliance mechanism for obligated entities
(primarily industrial sectors) and an offset mechanism for voluntary participation. The CCTS aims to incentivise and
support entities in their efforts to decarbonise the Indian economy. CCTS laid the foundation for the Indian Carbon
Market (ICM) by establishing the institutional framework (PIB. .
11 Other blended cements, namely, Portland Composite Cement (PCC) based on both fly ash and limestone, Portland
Limestone Cement (PLC), Portland Dolomitic Limestone Cement (PDC), and multi-component blended cements,
are at different stages of development in India - Blended Cement - Green, Durable & Sustainable 2022, GCCA Roadmap for
Cement Sector Decarbonisation
36
Figure 4.4: Economically-Viable Solutions, which Require Regulatory Support (Part 1) Roadmap for
Cement Sector Decarbonisation
37
Supplementary cementitious materials/ clinker substitutes
12
include a variety of naturally
occurring materials and industrial byproducts that can partially replace clinker in Portland
cement. Since clinker is the primary contributor to both cost and carbon emissions in cement
production, reducing its content (known as the clinker factor) provides dual benefits - lowering
production costs and minimising environmental impacts. By reducing the clinker-to-cement
ratio with these substitutes, energy consumption and process-related CO
2
emissions can be
lowered, promoting a circular economy. This approach is widely recognised as a key strategy
for decarbonisation, offering significant reductions in the industry’s carbon footprint in the
short term with near-zero costs. The clinker substitution technologies mentioned below are
economically viable but require regulatory support for wider implementation:
(i) Blending to increase the adoption of alternatives to fly ash and slag
In India, the production of OPC has been steadily declining, while the production
of blended cement has been on the rise. Currently, blended cements account for
73% of total cement production, compared to 27% for OPC (GCCA 2022). However,
successful implementation will depend on strengthening supply chains, revising
regulations and managing enforcement costs. Additionally, the financial viability
for the cement industry must be thoroughly assessed to ensure the sustainable
adoption of these initiatives. Industry adoption may take approximately 3 to 5 years.
This progress will be driven by an increased utilisation of alternate materials (GCCA
2022) in cement production, with targets of 5-10% by 2030 and 15-20% by 2050.
(ii) Mapping of new clinker substitutes in India
New clinker substitutes, such as calcined clay (produced by heating kaolinite to
650°C –750°C) and calcium silicate deposits, are promising alternatives. These
materials are available in large quantities and can reduce clinker content in
blended cements, contributing to eco-efficient cement production. However,
a feasibility assessment by the GSI is necessary. Moreover, GSI will need to
allocate funds for geological surveys and mapping of these reserves across
India. The estimated timeframe for completing the mapping and developing
the supply chain is 3 to 7 years.
(iii) Transition from input-based standards to performance-based standards
Performance-based standards, which focus on strength, durability, and environmental
footprint could facilitate a reduction in the clinker-to-cement ratio, promoting the
adoption of low-carbon cement and accelerating the industry’s decarbonisation,
especially given the current reliance on input-based standards. Additionally, there is
a need to establish standards for specific types of cement, such as Calcium Sulpho-
Aluminate Cement. BIS has published several cement standards in India that must
be amended to support the scaling up of low-carbon cement usage, starting with
large consumers like the Indian Railways, NHAI, and CPWD. BIS may require 3 to 7
years to conduct feasibility studies for updating standards related to SCMs. Currently,
there is no financial allocation or funding from the government; implementing these
initiatives will require revising or updating existing standards and testing procedures.
However, consumers are not expected to experience any increase in costs as a result
of these changes. This reduction is primarily driven by an increase in the share of
blended cement, which is expected to reach 80% by 2030 and approximately 85%
by 2050.
12 The terms ‘clinker substitutes’ and ‘supplementary cementitious materials (SCMs) are often used interchangeably.
However, SCM is more widely recognised. Roadmap for
Cement Sector Decarbonisation
38
Group B2: Economically viable solutions requiring regulatory support
Figure 4.5: Economically Viable Solutions Requiring Regulatory Support (Part 2)
Figure 4.5 shows technologies that need regulatory support, will be proposed to concerned
ministries - MoHUA and MoEFCC, to implement this roadmap. Roadmap for
Cement Sector Decarbonisation
39
(i) Demand enabler: Amendment of green building ratings to increase usage of
low carbon cement
To encourage the use of low-carbon materials, it is important to promote green
building rating systems in India. MoHUA can issue guidelines, in consultation
with agencies such as the IGBC, GRIHA to encourage greater use of low-carbon
cement and circularity-related practices within these rating systems. These
initiatives would entail updating the recommended measures within the ratings,
without necessitating state funding or incurring extra costs for consumers.
MoHUA may need to conduct an evaluation, and the construction industry
could adopt these guidelines at the earliest.
(ii) Recarbonation: Assessment study for India’s recarbonation potential
Cement recarbonation refers to the process where part of the CO
2
emitted
during the cement production is reabsorbed by concrete in use through
carbonation. Carbonation is a slow process that occurs in concrete where
lime (calcium hydroxide) in the cement reacts with carbon dioxide from the
air and to form calcium carbonate. At the end of their useful life, buildings
and infrastructure (reinforced concrete structures) are demolished. If the
concrete is then crushed, its exposed surface area increases, which in turn
enhances the recarbonation rate
13
(IVL Research Foundation and Cementa AB
2018). The amount of recarbonation is even greater if stockpiles of crushed
concrete are left exposed to the air prior to its reuse. To benefit from this CO
2

trapping potential, crushed concrete should be exposed to atmospheric CO
2

for several months before being reused (CEMBUREAU). An assessment study
for India’s recarbonation potential requires an evaluation led by the MoEFCC
and incorporated into the annual GHG inventory. This assessment will need
limited funding and can follow other country assessments that are built on the
internationally-recognised methodologies such as Tier 1, CO
2
uptake model -
Simplified Methodology, Tier 2, CO
2
uptake model - Advanced Methodology
and Tier 3, CO
2
uptake model - Advanced User Developed Models
14
. As a lower
bound estimate, the natural recarbonation of concrete over the 50-100 year
lifecycle accounts for approximately 20% of the process emissions for the
manufacturing of cement (IVL Research Foundation and Cementa AB 2018).
Group C: Initiatives that Require policy & financial support from Government
(i) Scaling CCUS for the cement industry
CCUS can be used to abate both process emissions and thermal emissions, making
it a particularly impactful decarbonisation option for the cement industry if scaled
Substantial fiscal support and a robust regulatory framework are essential
to facilitate progress. CCUS is currently in its nascent stage, and requires
considerable time and investment to establish a robust ecosystem in India,
which may take over 10 years to develop. The scale of impact will depend on the
high capture efficiency of advanced CCUS technologies, which are expected to
mature over the coming decades.
13 European Circular Economy Stakeholder Platform
14 Tier 1 represents a general but simplified calculation method for the uptake of CO
2
. Tier 2 and 3 represent more
accurate but complex calculation methods, which are preferred if sufficiently good input data on the use of cement
in concrete applications are available. Tier 2 is a proposed advanced methodology including several aspects that
will affect the CO
2
uptake. Tier 3 opens up for the use of even more advanced and accurate methods and models
developed in scientific projects in different countries. Roadmap for
Cement Sector Decarbonisation
40
[
iSteel, DPIIT, Fertiliser, Petroleum, Coal, Mines, etc.]
i
Figure 4.6: Solutions, which Require Policy & Financial Support from the Government Roadmap for
Cement Sector Decarbonisation
41
(ii) Development of supply chains for green and Alternate Fuels
The cement industry incorporates AF derived from waste through a combination
of material recycling and energy recovery, aligning with principles of a circular
economy. However, to ensure effective implementation, challenges such as
limited availability and variability in the quality of agricultural waste-based
fuels, must be addressed. This initiative requires investment in infrastructure
development, pre-processing facilities, and logistical systems. An increase in
costs may occur, which could be subsidised, passed on to customers, or impact
profit margins. Establishing a comprehensive infrastructure for collection, pre-
processing, and logistics, may take 3-5 years. The anticipated proportion of
green and AF is expected to reach around 20% by 2030 and 50% by 2050.
Group D: Deprioritised solutions
In this section, deprioritised solutions are discussed. The solutions are further classified
into two categories: those deprioritised due to limited impact and/or low implementation
feasibility and those that may require further investigation to assess their viability in the
future (Figure 4.7).
(i) Allocating 100% of fly ash and pond ash generated in the country for cement
manufacturing:
Currently, around 25% of the fly ash generated is utilised by the cement sector
(CEA, MoP 2020), and the demand for ash in this sector may surpass supply by
2030-2035. Allocating 100% of fly ash could reduce the clinker factor and might
not require financial support. It is also a low-hanging fruit that can be leveraged
to meet near-term decarbonisation goals; however, the availability of fly ash
is expected to reduce post 2050 due to the phasedown of coal plants. Also,
allocating significant share of fly ash is challenging due to potential negative
impacts such as the upward pressure on fly ash prices for consumers such as
brick factories. To support increased usage of fly ash in cement industry, it
could be provided at zero ex-plant cost. This would enable the cement industry
to allocate resources towards investing in decarbonisation technologies that
can be deployed at scale to mitigate its climate impact.
(ii) Implementing the Polluter Pays Principle (PoPaP) with preferential allocation
to the cement sector for waste
Implementing the PoPaP in India is challenging due to the absence of landfill
taxes and limited financial capacity of government bodies, such as ULBs. Waste
like MSW and hazardous waste may have a limited potential for decarbonisation
unless emissions from landfill decomposition are addressed. In India, it may take
approximately 2-5 years to fully operationalise the implementation of gate fees,
establish necessary infrastructure, and build reliable supply chains. In countries
like the U.S., cement plants typically receive an average gate fee of USD 2-5 (Rs
160-400) per tonne, which varies depending on the type of waste received.
Waste that cannot be recycled or reused should be preferentially allocated
to the cement sector, because the waste treatment enables both energy and
mineral recovery. Furthermore, energy recovery in a cement kiln (because the
heat generated acts directly in the industrial process) is significantly more
efficient than in a waste incinerator in which heat energy must be transformed
to enable energy recovery. Treatment in a kiln (co-processing) is above energy
recovery alone in the waste hierarchy. Roadmap for
Cement Sector Decarbonisation
42
Figure 4.7: Solutions Deprioritised Due to Limited Impact and/or Low Implementation Feasibility. Roadmap for
Cement Sector Decarbonisation
43
Chapter 05
SOLUTION PATHWAYS:
A DETAILED EXAMINATION Roadmap for
Cement Sector Decarbonisation
44
5. Solution Pathways: A Detailed Examination
As Carbon Credit Trading Scheme of the MoEFCC has given emission reduction targets to
cement plants under compliance mechanism, therefore, Working Group did not give any
emission reduction target for the Cement Sector but it has prioritised three high impact
long term advance technology & material-based solutions. To make the recommended
solutions commercially viable, policy and regulatory interventions from Central and State
Governments would be required. The cement sector may implement this solution based
on their requirement for decarbonisation in long-run. The solutions are (1) Increased usage
of RDF from municipal solid waste (2) Increased usage of Supplementary Cementitious
Materials / Clinker Substitutes and (3) Scaling up CCUS in the cement industry.
5.1 Increased Usage of Refuse Derived Fuel from Municipal Solid Waste
5.1.1 Journey of MSW to cement plants
Figure 5.1: Journey of RDF from MSW to Cement Plants
Source: Guidelines on Pre-processing and Co-processing of Waste in Cement Production, Lafarge Holcim and GIZ
(i) Waste Management
The Solid Waste Management Rules, 2016 specify the segregation of waste
at source into the following categories: biodegradable, non-biodegradable
(including recyclable and combustible components); sanitary waste, and
domestic hazardous waste. These rules also require the collection of solid
waste directly from households, shops, commercial establishments, offices,
institutions, and other non-residential premises. In the case of multi-storey
buildings, housing societies, or large residential, commercial, or institutional
complexes, waste must be collected from the entry gate or a designated
location on the ground floor. The Rules further specify the transportation
of solid waste - whether treated, partly treated, or untreated - ensuring that
it is moved in an environmentally sound manner. This involves the use of
specially designed, covered transport systems to prevent foul odors, littering, Roadmap for
Cement Sector Decarbonisation
45
and unsightly conditions during the movement of waste from one location
to another. Additionally, the Rules outline requirements for sorting different
waste components to enable further categorisation of waste to produce
suitable alternate fuels.
Alternative Fuels and Raw Materials (AFR) refers to selected waste and by-
products that can be co-processed in cement production. Among these,
Alternative Fuels (AF) have recoverable energy content (calorific value)
that can replace a portion of the conventional fossil fuels used in cement
manufacturing. For example, RDF is produced from the combustible fraction
of solid waste - including materials like plastic, wood, pulp, and organic waste-
excluding chlorinated materials. The waste is processed through drying,
shredding, dehydrating, and compacting to create RDF in the form of pellets
or fluff that can be co-processed in cement production. ARs contain valuable
minerals such as calcium, silica, alumina, iron and sulfur, which can substitute
natural raw materials in clinker production or as mineral components in
cement production. Co-processing AFs and ARs in the cement industry can
reduce both energy consumption and the environmental impacts associated
with fossil fuels.
AFs used in the cement industry can be either liquid or solid, depending on
their composition and organic content, with appropriate chemical properties
for combustion. The calciner and clinker-forming kiln are the primary sites
for thermal energy use and CO
2
emissions. Substituting conventional fossil
fuels with low-carbon alternatives can significantly reduce CO
2
emissions.
Additionally, the use of AFs has been shown to extend the lifespan of refractory
materials while lowering carbon emissions. Since most AFs are derived from
waste that would otherwise require disposal, they are more cost-effective than
fossil fuels. However, pre-processing, and logistical challenges associated with
AFs utilisation can pose economic barriers. Co-processing waste in cement kilns
results in a greater net reduction in global CO
2
emissions due to the biogenic
carbon content, which varies across different AFs. This approach provides a
more favorable CO
2
balance than incinerating waste in dedicated facilities.
While the adoption of AFs has grown significantly in developed countries and
is expected to continue, the TSR in the cement industry of developing nations
remains considerably lower, typically around 4% to 5%(CMA).
(ii) Pre-processing
Most waste streams are too diverse in their chemical composition and physical
properties to be directly co-processed in cement plants. Therefore, they require
initial treatment, known as pre-processing, to transform them into a uniform
AFR that meets the environmental and operational standards of cement
facilities. Pre-processing refers to the initial treatment and preparation of waste
materials before they are used in industrial processes such as cement production.
According to the ‘Guidelines on Pre- and Co-processing of Waste in Cement
Production’, pre-processing involves steps such as sorting, shredding, drying, and
removing any contaminants or hazardous components from the waste. The goal
is to ensure that the waste is suitable for use as an AF or raw material in cement Roadmap for
Cement Sector Decarbonisation
46
manufacturing. This treatment not only enhances the energy content of the fuel,
but improves combustion quality enabling it to effectively substitute fossil fuels
and raw materials- thus contributing to more sustainable and resource-efficient
cement manufacturing. Pre-processing typically involves separation/sorting,
mixing/blending, size reduction (shredding or crushing) and drying. The different
methods for producing waste-derived fuels are detailed in European Union’s Best
Available Techniques Reference Document (BREF) for Waste Treatment Industries
(BREF, 2017). Solid waste is generally pre-processed through mechanical systems,
biological treatment or a combination of both mechanical-biological (MBT)
systems to produce solid alternative fuels, such as SRF or RDF. When the waste
contains minimal biodegradable material, the pre-processing process mainly
involves mechanical treatment, focusing on size reduction and the removal of
non-combustible inert materials like stones, glass and metals. In contrast, waste
streams with significant biodegradable content often require a combined MBT-
based approach (GIZ, LafargeHolcim 2020).
(iii) Co-processing
The Solid Waste Management Rules, 2016 define “co-processing” as the use
of non-biodegradable and non-recyclable solid waste with a calorific value
exceeding 1500 Kcal, either as a raw material, a source of energy, or both, to
replace or supplement natural mineral resources and fossil fuels in industrial
processes. In cement production, co-processing involves the controlled use of
AFRs at designated feed-in points within the cement plant. This allows AFRs
to serve both as fuel and raw material, enabling the substitution of primary
fuels - such as coal, petroleum coke and natural gas - and raw materials. Co-
processing facilitates the recovery of energy from waste and the recycling of
its mineral content. Only qualified waste materials, meeting specific criteria
are allowed for co-processing, highlighting the significance of quality control
in the use of AFRs.
Effective co-processing in cement manufacturing requires addressing several
critical factors. Pre-processing is a fundamental step that transforms waste into
a homogeneous material suitable for co-processing. Following this, a testing
laboratory is essential to assess calorific value, ash content, moisture levels,
chloride concentration, the presence of heavy metals, and mineral composition.
These parameters directly affect the environmental impact, product quality and
the operational stability of the cement kiln. Additionally, a secure storage and
conveying system is required to transfer the processed waste from the storage to
the kiln in a controlled manner. This typically includes covered storage facilities and
conveyors to ensure efficient and safe handling. A dedicated feeding mechanism
must also be installed in the cement plant to introduce AFs into the calciner or
kiln.
Co-processing materials can be introduced into the cement production process
through various feed points such as main burner at the rotary kiln outlet, rotary
kiln inlet, pre-calciner, mid-kiln (for long dry and wet kilns). The selection of an
appropriate feed point depends on the physical, chemical and toxicological
properties of the waste material.

31
5
Availability of Municipal Solid Waste
(non-recyclable combustible fraction (million tonnes per annum)
2030 2029
4
2028
4
2027
4
2026
4
2025
4
2024
4
54
50
46
43
40
37
34
12
16
21
25
5
31
9
7
2030 2029
4
2028
4
2027
4
2026
4
2025
4
2024
4
2024
4
2025
4
2026
4
2027
4
2028
4
2029
4
2030
Source: Guidelines on Usage of Refuse Derived Fuels in Various Industries, MoHUA, Circular Economy in Municipal and
Liquid Waste, MoHUA
Municipal Solid Waste required in cement sector
(million tons per annum) Roadmap for
Cement Sector Decarbonisation
47
5.1.2 Availability of Municipal Solid Waste
India is expected to have sufficient MSW to ensure it contributes to
approximately 20% of total thermal energy required by the cement industry
by 2030. Figure 5.2 illustrates the MSW required by the cement sector and
its projected availability until 2030. The supply is expected to exceed the
demand, presenting a potential solution for decarbonising the cement industry
and promoting circularity. However, scaling would require an additional capital
investment of approximately INR 15,000 crore. Additionally, this initiative has
the potential to create employment for around 65,000 people across various
levels of the MSW supply chain.
Figure 5.2: The projected Availability of Municipal Solid Waste up to 2030
Source: Guidelines on Usage of Refuse Derived Fuels in Various Industries, MOHUA; Circular Economy in Municipal
Solid and Liquid Waste, MOHUA Roadmap for
Cement Sector Decarbonisation
48
5.1.3 Refuse Derived Fuel
According to the Solid Waste Management Rules 2016, RDF refers to fuel derived
from the combustible fraction of solid waste. This fraction includes materials such
as plastic, wood, pulp, and organic matter, and excludes chlorinated substances.
It is produced through processes such as drying, shredding, dehydrating, and
compacting solid waste into pellets or fluff. RDF typically comprises the residual,
dry, combustible portion of MSW, including paper, textiles, rags, leather, rubber,
non-recyclable plastics, jute, multi-layered and composite packaging, thermocol,
and coconut shells.
Processing the combustible fraction of MSW yields RDF, which can play a
significant role in replacing fossil fuels in cement kilns. Currently, the TSR of fossil
fuels with AFs- including industrial waste, biomass and municipal waste- remains
at approximately 3%, which is far below the double-digit rates seen in developed
countries. The use of SCF and/or RDF derived from MSW in cement kilns accounts
for only 0.6% of the overall thermal substitution. Organisations like the CMA and
the Cement Sustainability Initiative (CSI) are actively supporting the use of AFR.
The use of RDF is regulated under the Solid Waste Management Rules 2016. For
producing RDF, rigorous segregation must be implemented, and collection and
transportation of the dry fraction of the MSW must be carried out separately. The
dry fraction is first processed to remove the recyclable materials. The left-over
material, which is the segregated combustible fraction, is then processed through
a dedicated facility that can screen, shred, separate using air density, blend, etc. to
produce the desired quality of RDF.
(i) Refuse Derived Fuel and the Cement Industry
Over the last decade, the substitution rate has increased from less than
1% in 2010 to more than 3% in 2016. The industry aims to achieve a TSR
of 25% by 2025
15
. Currently, most cement manufacturers use a variety of
fuel types such as coal, domestic, and imported petroleum coke, etc. as
high calorific value inputs in kilns. The net CO
2
emission factor of pet coke
is the highest among all fuels used in cement plants-105% that of coal,
134% that of plastic and 1060% that of RDF (MoHUA 2018). Cement kilns
serve as a means of co-processing waste; hence EPR guidelines, which set
specific targets for collection, recycling, end-of-life management, and use
of recycled content, are essential. EPR is a policy framework that holds
producers accountable for the entire lifecycle of their products, including
their end-of-life management. By assigning responsibilities to respective
stakeholders, EPR helps divert waste from landfills and encourages its
use as an alternative fuel in industries like cement manufacturing. One
such example of this is the collection of plastic waste under EPR and
transporting it to the cement plant for co-processing (CPCB 2017).
15 Considering the projected cement production volume by 2070, along with an increasing TSR and decreasing
clinker factor, it is recommended that the industry be allowed to import AFs, alternative raw materials, and clinker-
substituting materials from other countries. This would help achieve the net-zero target with reduced investment in
CCUS projects, thereby lowering the financial burden on the Indian cement industry. Additionally, the government
should allocate degraded forest areas for the cultivation of biofuels and the creation of carbon sinks through
afforestation, in collaboration with both state and central governments. Roadmap for
Cement Sector Decarbonisation
49
5.1.4 Benefits of using RDF in cement industries
Table 5.1: Benefits of Using RDF in Cement Industries
Indicators Benefits
RDF
specifications
Cement plants typically require RDF to be shredded to particle sizes smaller
than 50 mm - a requirement that does not pose a technological challenge. In an
oxygen rich atmosphere as is present in a cement kiln, particles smaller than 50
mm disintegrate completely with 4-5 seconds.
Feeding of
RDF
Installing a dedicated AFs feeding mechanism enables RDF to be introduced
into cement kilns without any operational challenges. Cement factories typically
construct a separate entry point for AFs, which may include pharmaceutical waste,
FMCG waste, packaging waste, lubricants, etc. The same feeding mechanism is
suitable for RDF.
Impact on
product
RDF combusts completely at high temperatures of approximately 1400°C and a
residence time of 4-5 seconds in an oxygen rich atmosphere without affecting
the productivity. With a calorific value of around 3000 Kcal, RDF generates
sufficient thermal, reducing dependence on fossil fuels such as coal.
Environmental
impact
Using RDF in place of fossil fuels prevent waste from being landfilled, thereby
reducing GHGs. Avoiding improper landfilling also minimises the risk of leachate
polluting groundwater, which has become a major source of pollution. Emission
control equipment further reduces the release of dioxins and furans into the
atmosphere.
Residual
disposal
Acidic gases produced during RDF combustion are neutralised by the alkaline
raw materials in the cement kiln and are incorporated into the cement clinker.
The interaction between the raw materials and the flue gases in the clinker
ensures that the non-combustible residue is held back in the process and
incorporated in the clinker in an almost irreversible manner with no additional
waste generated.
5.1.5 Compliance by the cement industry
Some waste processing facilities producing RDF have struggled to find buyers
due to the high production costs. MoHUA came up with guidelines in 2018 (Table
5.2) to modify clause 18 of SWM Rules 2016, which deals with usage of RDF. The
modification was proposed in view of the current TSR of the cement industry
being <10% against a target of 25%. In 2020, the Central Electricity Regulatory
Commission (CERC) set the cost of RDF at INR 2,084/Mt to help RDF plants
recover expenses related to waste screening and processing. MoHUA issued
an advisory on the use of RDF in the cement industry, suggesting that the
process is financially viable with a payback period of just 3-4 years (MoHUA
2021). However, this pricing has not been widely accepted by stakeholders. Roadmap for
Cement Sector Decarbonisation
50
Table 5.2: Guidelines for Usage of RDF, 2018, MoHUA
Original Clause 18 of the
SWM Rules, 2016
In 2018 MoHUA modified Clause 18 of the SWM Rules, 2016
“All industrial units using
fuel and located within
100 km from a solid waste-
based RDF plant shall make
arrangements within six
months from the date of
notification of these rules to
replace at least 5% of their
fuel requirement by RDF so
produced.”
The cement plants located within 400 km from a solid waste-
based RDF plant shall make necessary arrangements to utilise
RDF in the following phase wise manner at a price fixed by state
government:
Replace at least 6% of fuel intake, within 1 year from the date of
amendment of these rules (equivalent calorific value/TSR) by
MSW-based SCF and/or RDF, subject to the availability of RDF.
Replace at least 10% of fuel intake within 2 years from the date
of amendment of these rules (equivalent calorific value/TSR) by
MSW based SCF and/or RDF, subject to the availability of RDF.
Replace at least 15% of its fuel intake within 3 years from the date
of amendment of these rules (equivalent calorific value/TSR) by
MSW-based SCF and/or RDF, subject to the availability of RDF.

5.1.6 Challenges in the uptake of MSW in the cement sector
The adoption of RDF from MSW in the cement sector faces multiple challenges
that impact both operational efficiency and sustainability as shown in Table
5.3: Challenges in the uptake of RDF from MSW in the cement sector.
The quality of RDF is compromised by its low-calorific value due to high
moisture and ash content. Contaminants like stone, glass, and low-quality
MSW further reduce its effectiveness and complicate operations. RDF supply
is inconsistent due to seasonal fluctuations, regulatory restrictions, and short-
term contracts, leading to disruptions and gaps in availability. Establishing
long-term agreements between cement plants and waste management
bodies can help further ensure consistent RDF supply and improve planning
for infrastructure investment. Cement plants also face challenges with limited
RDF storage capacity, requiring significant infrastructure investments and
specialised equipment. Burning RDF in smaller kilns is particularly difficult,
while additional issues include energy inefficiencies from moisture, odor, and
ongoing maintenance costs. These factors collectively impact the overall
efficiency and sustainability of RDF use in cement plants. Roadmap for
Cement Sector Decarbonisation
51
Table 5.3: Challenges in the Uptake of RDF from MSW in the Cement Sector
Material quality issues
Supply chain and
consistency issues
Infrastructural
challenges
Operational challenges
Low calorific value:
Limited RDF
storage capacity:
Technical
requirements:
Ash and moisture impact:
The RDF received has
a Gross Calorific Value
(GCV) of 1500-1600
Kcal/kg with 35-40%
moisture and 50%
ash. The resulting Net
Calorific Value (NCV) is
2,500 Kcal/kg.
(expected NCV for
usage in cement kilns
>3000 KCal/kg net)
Cement plants can
store RDF for only
10-12 days during
kiln stoppages or
surges, limiting
consumption.
Specialised
machinery –
mechanical feeders,
separate stockpiles
– are required for
RDF use.
High ash and moisture raise
specific heat consumption
and require high-grade
limestone, which is scarce
and often imported.
Contaminants in RDF:
Inconsistent RDF
supply:
High infrastructure
costs:
Energy efficiency issues:
RDF often contains
sediment, stones and
glass due to poor
sorting, damaging kiln
operations and reducing
shredder life.
Regulatory
restrictions and
seasonal issues
disrupt RDF
availability, and this
holds up operations
for months.
An estimated INR 15
crore is needed for
a 100 TPD RDF co-
processing platform
per cement unit.
High moisture in RDF
increases the need for
supplementary coal or
petcoke, undermining
energy efficiency.
Limited fresh MSW
processing:
Short term
contracts:
Burning difficulty:Odor issues:
Few facilities process
fresh MSW, resulting in
poor quality RDF.
MSW operator
agreements are
often limited to 18
months, creating
supply gaps of 3-4
months.
Small calciners or
short retention
times make it
difficult to burn
RDF efficiently.
Persistent odors from
RDF cause discomfort for
workers and communities.
Additional heat input, lower clinker production, and maintenance of RDF yards and staff contribute
to high operating costs. Support is needed for viable RDF substitution.
5.1.7 Urban Local Bodies and Municipal Solid Waste Management
Urban Local Bodies (ULBs) across India are primarily responsible for ensuring
efficient and sustainable waste management. In line with the Solid Waste
Management Rules, 2016, ULBs prepare Municipal Solid Waste Management
(MSWM) plans that align with their state’s policy or strategy. These state
frameworks guide ULBs in the planning, design, implementation, and
monitoring of waste systems, with an emphasis on environmental and financial
sustainability.
The Swachh Bharat Mission (Urban) (SBM-U) 2.0, launched on October 1, 2021,
by the MoHUA, aims to create a “Garbage Free” Urban India by 2026. Building
on the achievements of the first phase, SBM-U 2.0 focusses on intensifying Roadmap for
Cement Sector Decarbonisation
52
efforts in waste management, sanitation and hygiene. Key objectives include
100 percent door-to-door collection and segregation of waste, scientific
processing and disposal of all waste, and remediation of legacy dumpsites.
The mission also aims to reduce single-use plastics, manage plastic waste and
managing construction and demolition (C&D) waste.
Experiences from cities like Indore, Pune, Goa, and Ahmedabad show different
governance models for the MSW value chain. In Pune, a public–community
partnership operates through Solid Waste Collection and Handling (SWaCH)
Cooperative Society
16
, a fully member-owned cooperative of waste pickers
with over 3,500 members. In this model, pairs of SWaCH workers collect
segregated waste from about 150–400 households each and hand over wet
waste and recyclables to city-run collection vehicles with transport specific
contract terms. Their income comes from user fees paid directly by households
and commercial establishments, along with the sale of recyclables to scrap
dealers. Ahmedabad Municipal Corporation collects segregated (dry and wet)
waste from households and commercial areas in a collection vehicle with two
separate chambers. Three Material Recovery Facility (MRFs) are provided at
RDF premises. In each zone, there are transfer stations where small vehicles
transfer the waste to hook loaders which takes the waste to dumpsites/ RDF
facilities. Existing treatment and disposal facilities are for 2500 TPD, of which
1000 TPD is for Composting, 1000 TPD for C & D Waste, 100 TPD for Plastic
waste, 400 TPD is MRF. There are three composting plants for wet waste
developed on PPP mode with AMC providing the land to set up the facility
and receive revenue from the sale of compost
17
.
Goa follows a Design–Build–Finance–Operate–Transfer (DBFOT) model within
a Public–Private Partnership (PPP). The government provides land; a portion
of collection costs is recovered from households; Panaji practices 16 way
source segregation; and non recyclable waste, including Refuse Derived Fuel
(RDF) through Goa Waste Management Corporation’s (GWMC) facilities
18
.
Indore generates about 1,200 tons of municipal solid waste (MSW) per day.
The city practices source segregation, which helps produce high quality
Refuse Derived Fuel (RDF) for processing. The Goa and Indore Municipal
Corporation models offer detailed key insights that demonstrate their success
in utilising RDF from MSW leading to significant uptake in the cement sector.
This integration is facilitated by strong political support, active community
engagement, an effective communication strategy, structured user charges,
regular monitoring and robust technical oversight. The key learnings from
both models are detailed in Annexure 3.
16 https://swachcoop.com/
17 Gujarat Resilient Cities Partnership: Ahmedabad City Resilience Project (G-ACRP) 2022
18 https://gwmc.goa.gov.in/swmf-saligao/ Roadmap for
Cement Sector Decarbonisation
53
Figure 5.3: Comparative Cost of RDF vs Pet Coke
Figure 5.3 illustrates the cost comparison between RDF and coal/pet coke,
standardised to cost per 1,000 Kcal. The following assumptions are made: the
average net calorific value of RDF is around 2500 Kcal/kg, with RDF costs
ranging from INR 1,500 to INR 2,000 per ton. Transportation costs are INR 5
per ton per km for distances up to 200 km, and INR 4.5 per ton per km for
distances over 400 km. Given the current economics, the total cost of RDF is
significantly higher than that of coal or pet coke (which is around INR 1,200 to
1,500 per ton), primarily because transportation is a major cost driver.
5.1.8 Economic Impact of 20% thermal substitute using RDF for producing one ton
cement
For example, at a 20% thermal substitution rate (TSR) using RDF in Ordinary
Portland Cement (OPC) production (with 95% clinker per ton of cement),
the kiln requires 730 kcal/kg of clinker. The baseline case with 100% coal (for
thermal energy) at 1.5 INR/1,000 kcal costs about 5,600 INR/ton and emits
1,000 kgCO
2
/ton. With 20% RDF blending (RDF CV 2,500 kcal/kg; coal CV
4,000 kcal/kg), roughly 55.48 kg of RDF replaces 34.675 kg of coal per ton.
Energy costs are about 249.7 INR/ton for RDF and 208.1 INR/ton for coal,
resulting in an incremental cost of 41.6 INR/ton and a new cement cost of
5,641.6 INR/ton (+0.74%). Emissions drop by 52.53 kgCO
2
per ton (~5%). The
CCTS targets for OPC cement are about 7% by 2027, and this pathway can
approximately deliver 5% towards achieving the CCTS target. The additional
cost of RDF blending for thermal substitution maybe mitigated through a Public Roadmap for
Cement Sector Decarbonisation
54
Private Partnership model by Municipal Bodies. The PPP model for providing
land at concessional rate, collection, segregation and transportation charges
and other support is already being implemented by municipal corporation like
Indore, Goa, Pune and Ahmedabad
5.1.9 Proposed intervention by Centre & State Government and Local Urban Bodies
for making RDF commercially viable for cement sector
To promote the increased usage of RDF from MSW by cement plants, MoHUA
could consider developing a framework for MSW processing through a PPP
framework. Table 5.4 presents an overview of the operational framework
which adopts a collaborative approach to encourage RDF usage in the cement
sector through a PPP model. Municipal corporations will play a central role by
providing land for RDF plants, setting tipping fee per ton of waste collected
and segregated, ensuring the quality and offtake of RDF by cement plants.
Table 5.4: Institutional Mechanisms for Increased Usage of RDF from MSW
Recommendation ActionImplementation by
Model Framework for
establishing RDF Plant
PPP framework for municipal bodies
19

• Municipal Corporation to provide Land
on minimum lease rate, tipping fees for
waste collection and segregation to waste
processing plant
• Long-term offtake agreements with Urban
Local Bodies, vendors of RDFs and cement
plants
• Right to refusal of the low quality and
inconsistent supply of RDF (Grade I and
Grade II) to Cement plants
• Quality Compliance by third party inspection
MoHUA
Policy/ Rules for Fuel
Substitution
Modification of SWM Rules 2016
• The cement plants located within 400 km
from a solid waste-based RDF plant shall
make necessary arrangements to achieve
20% thermal substitution rate by 2030.
Currently, the clause mentions to replace at
least 15% of its fuel intake within 3 years from
the date of amendment of the rules for all
industries
• RDF processing (50% of total capacity) for
waste processing plants located within 400
kms of cement plant
• Municipal corporations to charge waste
handling cess from commercial and industrial
units to fund RDF processing
MoHUA
19 Using the PPP Model can reduce price of RDF (1.8 INR/1000Kcal) by 22% making it at par with coal (1.5 INR/1000Kcal) Roadmap for
Cement Sector Decarbonisation
55
Carbon Credits to waste
handling plant
• The National Steering Committee for the
Indian Carbon Market (NSC ICM), under the
Offset mechanism has approved ten sectors:
energy, industry, waste handling and disposal,
agriculture, forestry, transport, construction,
fugitive emissions, solvent use, and CCUS
• It is suggested that NSC-ICM may formulate
a suitable guideline for availing carbon credit
and benefit of the carbon market for selected
10 sectors including waste handling plant, i.e.,
RDF plants, etc.
MoEFCC
(i) Model Framework for Establishing RDF plant
A municipality can enable a waste processing plant by offering land on a low-
cost lease and paying tipping fees for collected and segregated waste. Together,
these measures create the financial incentives needed for private participation
in a waste management sector that might otherwise be commercially unviable.
Establish long term offtake agreements between ULBs, RDF vendors, and
cement plants. These contracts are foundational for bankability and scale:
they secure volumes, define quality standards, set prices with indexation, and
clarify performance obligations—unlocking investment across the MSW to
RDF to cement value chain. Also, including a clear right to refuse low quality
RDF that does not meet agreed specifications (grade, moisture, calorific value,
contamination, banned materials), protects operational integrity and product
quality, enforces adherence to standards, and creates incentives for reliable,
compliant RDF supply across the chain. To enhance the quality and technical
viability of using RDF in cement plants, it is essential to ensure a consistent and
reliable supply of high-quality RDF, particularly Grade I and Grade II, to meet
the operational demands of the industry. Technical feasibility testing should
be conducted to assess the compatibility of RDF with cement plant processes,
with a focus on maintaining chloride and sulfur balance in relation to limestone
quality, ensuring compliance with BIS norms. Also, evolving technologies
such as RDF gasification and Torrefaction can be considered to increase the
quality of the fuel. Additionally, stringent quality control measures must be
implemented, including third-party audits at the RDF processing facility prior
to dispatch, to maintain the required standards and optimise performance in
cement kilns. Quality standards for enhanced utilisation of MSW is provided
in Table 5.5.
(ii) Policy/ Rules for Fuel Substitution
It is estimated that Municipal Solid Waste (MSW) accounts for a significant
57.07% of alternative fuel (AF) use in the cement industry as of 2025. Other
contributors include biomass (33.97%), tyre waste (7.33%), hazardous waste
(3.46%), and spent pot lining (0.81%). Currently, about 4% of the Indian
cement industry’s total energy input comes from alternative fuels (CMA). It Roadmap for
Cement Sector Decarbonisation
56
is recommended that the cement plants located within 400 km from a solid
waste-based RDF plant shall make necessary arrangements to achieve 20%
thermal substitution rate by 2030.
It is recommended that waste processing plants within 400 km of a cement
plant allocate at least 50% of their capacity to RDF processing securing a
predictable supply for nearby kilns. It also recommended that municipal
corporations levy a waste handling cess on commercial and industrial units to
fund RDF preparation. Evidence from MSW-to-RDF supply chains shows that
proximity, assured volumes, and dedicated funding are critical to produce kiln
grade, consistent RDF and to raise Thermal Substitution Rates.
(iii) Carbon Credits to waste handling plant
Carbon Credits to waste handling plant: The National Steering Committee for
the Indian Carbon Market (NSC ICM), under the Offset mechanism has approved
ten sectors: energy, industry, waste handling and disposal, agriculture, forestry,
transport, construction, fugitive emissions, solvent use, and CCUS. Under
CCTS, non obligated entities may register projects that follow government
established sectoral methodologies to quantify GHG reductions or removals.
Projects that demonstrate verified reductions or removals are issued Carbon
Credit Certificates (CCCs), which can be traded for compliance or voluntary
purposes. The MoEFCC can issue guidelines for allocating carbon credits to
waste processing plants involved in waste management. Roadmap for
Cement Sector Decarbonisation
57
Table 5.5 : Quality Parameters for Increased Consumption of RDF from MSW
ii
ii Guidelines on Usage of Refuse Derived Fuel in Various Industries – MoHUA Roadmap for
Cement Sector Decarbonisation
58
5.2 Increased Usage of Supplementary Cementitious Materials/Clinker
Substitutes
Clinker is the principal component of cement that is responsible for the majority of
process-related emissions in the cement industry. BIS has outlined specifications for
16 types of cement and clinker, including Ordinary Portland Cement (OPC), Portland
Pozzolana Cement (PPC), Portland Slag Cement (PSC), Composite Cement,
Limestone Calcined Clay Cement, and various other special-purpose cements. PPC
enjoys the majority share (65%) of the total cement production in India followed
by OPC (27%) and PSC (7%) (DPIIT 2024). The Indian cement industry’s product
profile has changed significantly over the years to include more blended cement in
the mix and the clinker to cement ratio is already lower than the global average of
77% (GCCA 2022), and it can be reduced further through increased use of clinker
substitutes.
Figure 5.4 illustrates the reduction potential in the clinker-to-cement ratio over
the years, along with corresponding reductions in process emissions. The analysis
indicates that clinker-to-cement ratio is estimated to decrease from 67.5% in 2024
to 62% by 2050. This reduction is projected to result in a cumulative decrease of
approximately 170 MtCO
2
e in process emissions by 2050.
The key drivers of this trend include the increased use of clinker substitutes such as
slag and fly ash. However, the long-term availability of slag and fly ash is expected to
due to the phasing out of blast furnace technology. Alternate, low-carbon cement is
another key driver for declining cement-to-clinker ratio. Share of OPC that consists
of 90-95% clinker is expected to reduce over time and will be compensated by an
equivalent increase in blended cement such as LC3.
Figure 5.4: Reduction in Clinker-to-Cement Ratio and Associated Process Emissions
20
0
16
94
170
2030 2070 2050
2024
2070 2050 2030 2024
66
62
64
67.5
Clinker to cement ratio,
percent
Clinker Substitutes
India’s clinker to cement ratio is already lower than global average (~77%) and can be further reduced
Reduction in annual process CO2 emissions (Compared to BAU)
Mt CO2e
20 Based on available data; estimates are indicative, subject to change
0
16
94
170
2030 2070 2050
2024
2070 2050 2030 2024
66
62
64
67.5
Clinker to cement ratio,
percent
Clinker Substitutes
India’s clinker to cement ratio is already lower than global average (~77%) and can be further reduced
Reduction in annual process CO2 emissions (Compared to BAU)
Mt CO2e Roadmap for
Cement Sector Decarbonisation
59
Source: GCCA, Team Analysis
5.2.1 Availability of clinker substitutes
The availability of slag and fly ash will be significantly curtailed post 2050 due
to phasing down of coal and blast furnace plants. As a result, it will be necessary
to explore alternative materials to continue reducing the clinker-to-cement
ratio. Several promising substitutes beyond fly ash and slag including calcined
clay, limestone, bio ash, have been identified and need further exploration and
development.
Their indicative potential has been summarised below:
(i) Availability of slag and fly ash is expected to decrease post 2050.
(ii) Calcined clay: India has an estimated 1.5 Bt of utilisable reserves, with
additional unexplored potential reserves that could significantly contribute
to cement blending.
(iii) Limestone: Approximately 200 Bt of limestone reserves can be used as
substitute for clinker, beyond its current use in clinker production.
(iv) Bio ash: Rice husk, rice straw ash and bagasse ash can provide 15-20 million
TPY, provided strong supply chain essentials are developed.
(v) Construction & Demolition waste: BIS now permits the use of concrete
made from recycled material and processed C&D waste. However, concrete
users must integrate this into circular value chains.
As of 2022 in India, BIS had approved only three blended cements - PPC, PSC
and Composite Cement. The other types of blended cements namely PCC
made with fly ash and limestone (PCC), PLC, PDC, LC3 and multi-component
blended cements are at different stages of development in India (GCCA 2022).
Additionally, alternative low-carbon cements such as Geopolymer Cement and
Super Sulphated Cement are emerging as promising options and may warrant
further research and standardisation support. Roadmap for
Cement Sector Decarbonisation
60
5.2.2 The role of clinker substitutes in green cement
The increased use of clinker substitutes in cement production could significantly
enhance the green cement market. By replacing clinker with SCMs, carbon
emissions from cement production can be substantially reduced. This shift
supports global sustainability goals. As the demand for environment friendly
materials grows, clinker substitutes will serve as a catalyst for technological
innovation and investment in the sector. This evolving opportunity will add
substantial value to the sector. The cost comparison of the various clinker
substitutes varies in the range of USD 15-30 per ton and is presented in the
Figure 5.5.
Figure 5.5: Supplementary Cementitious Materials Cost Comparison, 2019
21
5.2.3 Alternative low-carbon cement
Limestone Calcined Clay Cement (LC3) is a blend of clinker, low-grade
limestone, calcined clay and gypsum. Figure 5.6 illustrates the composition of
LC3 cement. It has 50% clinker ratio, resulting in approximately 35-45% less
CO
2
emissions compared to OPC. In the production of LC3, clay is calcined
at lower kiln temperatures (800°C) as compared to the 1500°C required for
OPC. This lower temperature minimises CO
2
emissions associated with the
calcination of limestone. Furthermore, clinker produced for LC3 is softer as
compared to OPC clinkers, thus requires less energy in grinding Annexure 4.
21 Based on bagasse prices from CERC, bio-ash is likely to cost less; Based on recycled concrete prices in US (lower
cost in range assumed). These estimates are indicative based on available data and are subject to change Roadmap for
Cement Sector Decarbonisation
61
Figure 5.6: Composition of LC3
The raw materials required to produce LC3 are more readily available in India. As
of 2015, clay and limestone reserves were 2,941 Mt and 16,336 Mt respectively.
Notably, the production of LC3 does not require additional sophisticated
equipment. The equipment- old rotary kilns used in wet processing, suitable
for clay calcination, is already available in cement plants. LC3 exhibits a
similar performance and strength compared to OPC after 28 days setting of
concrete (comparable to CEM I). This efficacy can be attributed to the highly
reactive nature of calcined clay and its synergistic interaction with limestone.
However, the initial setting strength of LC3 concrete (1 and 3 days) is lower
compared to OPC-based concrete.
Currently, LC3 technology is being scaled up for commercial production,
particularly in Africa and South America, with some developments in Asia. Key
drivers for this expansion include reduced clinker imports, lower production-
related energy costs, and the availability of kaolinite clay. In India, LC3 is also
actively under development, and a BIS standard (IS 18189:2023) was released
in 2023 to support its adoption. Plants in Europe are also being established
and were expected to commence production by the end of 2023. Overall, the
cumulative global capacity for LC3 is projected to reach approximately 2.2 Mt
per year.
To promote LC3, several key actions need to be taken. While calcined clay is
available in abundance in Rajasthan, Kerala, West Bengal, a comprehensive
mapping exercise is needed to assess the feasibility of transporting clay to
cement plants. Building confidence among consumers is crucial by developing
knowledge products on the benefits of LC3. It is important to create a
compelling business case for developers, contractors and consumers by
assessing techno-economic benefits of LC3 over traditional cement. Roadmap for
Cement Sector Decarbonisation
62
5.2.4 Calcium sulfoaluminate
CSA cement, also known as Calcium sulfoaluminate, is another low-carbon
alternative cement being used in countries like China and Australia. CSA cement
or Belitic clinker, is a type of cement characterised by its high alumina content and
is known for its fast setting and low-shrinkage properties. The main constituents
of CSA are 20-45% ye’elimite, 45-75% belite and gypsum.
Key properties of CSA cement:
(i) Fast Setting: CSA cement has a rapid setting time, which can be advantageous
in construction projects requiring quick turnaround.
(ii) Low shrinkage: It exhibits low shrinkage, reducing the risk of cracking.
(iii) High early strength: It achieves high early strength, making it suitable for
applications where early load-bearing capacity is essential.
5.2.5 Environmental Benefits:
CSA cement is considered a green cement due to its potential to reduce carbon
emissions by 20-50% compared to traditional OPC. However, its production
involves the use of bauxite to achieve the desired ye’elimite content, which can
be expensive. This results in higher costs compared to OPC.
Cost considerations:
(i) Cost in Europe: CSA cement typically costs 2-3 times more than OPC.
(ii) Cost in China: In China, the cost is about 1.5-2 times higher than OPC.
Due to its higher cost, the use of CSA cement is typically limited to specific
applications where its benefits can justify the expense. These applications
include:
(i) Specialised construction projects: Projects requiring rapid setting and high
early strength, such as repairs and precast concrete elements.
(ii) Sustainability-Focused Projects: Projects aiming to reduce carbon
emissions and achieve lower emissions.
5.2.6 Market Dynamics:
The market for CSA cement is relatively niche, with production primarily
concentrated in a few countries. Major producers include companies in China
and Bluey CSA Cement in Australia. Currently, CSA cement penetration in the
global market is currently around 2-3%
(i) Input-based versus performance-based standards for cement
Input/recipe-based standards often focus on the composition, restricting it
to a set of predefined chemical and/or physical requirements. In contrast,
performance-based standards focus on the final performance of the
concrete mix rather than prescribing specific ratios or materials to meet
certain thresholds (e.g., strength), without specifying how these standards
must be achieved. This approach encourages the production of low-carbon
products aiming to reduce overall environmental impact (ECOS 2024). The
detailed comparison of the input-based standards and performance-based
standards is provided in Table 5.6. Roadmap for
Cement Sector Decarbonisation
63
Table 5.6: Comparison of Input-based and Performance-based Standards for Cement
Input-based standardsPerformance-based standards
Definition
Specify the composition and
physical properties of the raw
materials and additives used in
cement production.
Focus on the technical product
standards, including the hydraulic
and cementitious properties of SCMs.
Focus on the desired performance
outcomes of the final cement product in
real-world applications, such as strength
and durability, rather than prescribing
specific input materials or processes.
Pros
Ensures consistency and quality of
raw materials.
Provides clear guidelines for
manufacturers, facilitating
regulatory compliance.
Easier to enforce and lower
compliance costs for producers.
Allows for flexibility and innovation in
achieving desired performance outcomes.
Ensures higher quality and safety of the
final product.
Encourages adaptation to specific project
requirements.
Cons
May limit innovation and flexibility
in product development.
Does not guarantee the desired
performance of the final product.
Limits potential for maximising
clinker substitution and hence,
decarbonisation.
US: Requires more complex testing and
evaluation processes but advancements
in testing technology and methodologies
make them more reliable and efficient for
ASTM C1157
EU: Higher compliance costs for producers
and potential for non-compliance. This was
addressed with industry collaboration and
demonstration projects for EN 206
Australia: Requires re-evaluation of
existing standards and changeover. All
stakeholders were involved, and clear
guidelines were developed for the
Australian standard, AS 3600.
Examples
ASTM C150: This standard
specification for Portland Cement
specifies the allowable limits for
components such as calcium oxide,
silicon dioxide and aluminum oxide,
among others.
IS 269: This Indian standard
specifies chemical composition,
physical properties and
performance characteristics for
OPC. It also includes guidelines
for the use of raw materials and
additives.
ASTM
22
C1157: This is the American
Standard performance
23
specification
for hydraulic cement and has been
incorporated into the International Building
Code. It allows use of various raw materials
and additives if the final product meets
specified performance criteria, such as
strength, durability and setting time.
(ASTM standards are evolving and new
specifications are being developed to allow
the use of more sustainable materials)
EN 206: This European Standard similarly
specifies the performance requirements
for concrete allowing use of different types
of cement and additives.
22 Advancing Standards Transforming Markets Standards for cement and concrete
23 The Prescription to Performance (P2P) initiative by the National Ready Mixed Concrete Association (NRMCA) was
created to develop and encourage implementation of performance specifications. Roadmap for
Cement Sector Decarbonisation
64
(ii) Proposed interventions to expand the usage of clinker substitutes
To enhance the adoption of clinker substitutes and promote
decarbonisation in the cement sector, the following interventions
have been proposed: 1. Transition from input-based standards to
performance-based standards 2. Defining standards for CSA cement
usage 3. Mapping of new clinker substitutes in India (e.g, calcined clay,
calcium silicate deposits, etc.) 4. A mining and transportation policy
for new clinker substitutes like calcined clay.
The transition from input-based standards to performance-based
standards aims to enhance the efficiency and sustainability of the cement
sector. The BIS can lead the process of defining usage standards for CSA
cement as illustrated in Figure 5.7 For mapping new clinker substitutes,
efforts will focus on identifying alternative materials and conducting
geological surveys to pinpoint potential deposits. The GSI can undertake
resource mapping to detail the location, size, and quality of these
deposits. An evaluation of the current supply chain infrastructure will
help identify gaps in the transportation and processing of these new
materials, with support from Ministry of Mines and DPIIT.
Figure 5.7: Proposed Interventions for Clinker Substitution Roadmap for
Cement Sector Decarbonisation
65
5.3 Carbon Capture Utilisation and Storage (CCUS) Pilots for the Cement Sector
Conventional cement production presents limited deep decarbonisation pathways
due its combination of process-reared emissions and high heat demand- making
CCUS one the few viable solutions. By addressing both process and thermal
emissions, CCUS stands out as a particularly impactful option for reducing emissions
in the cement industry-provided it can be scaled effectively.
5.3.1 CCUS potential in India
Most roadmaps agree that CCUS will need to play a significant role in
decarbonising the cement sector. For example, the Global Cement and
Concrete Roadmap (GCCA 2021) shows that CCUS will need to be responsible
for 36% emissions reduction in a global net-zero scenario by 2050. This means
that out of the estimated 524 MtCO
2
e per year by 2070, CCUS will need to
abate 157-210 MtCO
2
e annually (McKinsey Sustainability 2022).
Figure 5.8: CCUS Abatement Potential in India; Cumulative Emissions by 2070, GtCO
2
e
Overall, out of the estimated 17 GtCO
2
per year demand for CCUS by 2070,
16.2 GtCO
2
i.e. 95% will be met through CCS in underground storage and 0.8
GtCO
2
i.e. 5% is likely to be through CCU (Figure 5.8). This 95% CCS potential,
however, has extensive pre-requisites related to investments and infrastructure
development, which will need 5-10 years of preparation to begin being viable.
These key pre-requisites include:
(i) Conducting geological survey and mapping to locate suitable storage
sites.
(ii) Identifying and securing land through government land leases and public-
private partnerships.
(iii) Conducting route planning and environmental assessments, securing rights-
of-way and constructing pipelines for the development of infrastructure. Roadmap for
Cement Sector Decarbonisation
66
These pre-requisite steps will also need extensive public consultation, complex
multi-stakeholder engagement to create a policy framework, along with
feedback channels to address local community concerns.
5.3.2 CCUS potential and key barriers
Figure 5.9: Projections for CCUS Uptake by Usage Type in India by 2050
Source: Decarbonising India, McKinsey, October 2022
Note: (MTPA of CO2 based on preliminary analysis)
Based on preliminary analysis by McKinsey, as shown in Figure 5.9, around 80% of
CCUS demand is expected to come from its application in construction materials.
However, several key challenges need to be addressed to unlock the potential of
CCUS in the cement sector. These include:
(i) Demonstrating the technical feasibility of various CCUS technologies,
which remains a significant challenge. Many technologies lack large-scale
demonstration projects, creating technical uncertainty.
(ii) Accurately estimating the real costs of carbon capture at a local level is
difficult and deters investments due to uncertainties on returns.
(iii) Uncertainties regarding the commercial potential and demand for CO
2
derived products
,
which poses market viability uncertainty.
(iv) The absence of local pilot projects results in inefficiencies and delays
optimisation of capture and utilisation processes for cost-effectiveness and
efficiency at scale.
(v) Insufficient infrastructure for the transportation, storage and utilisation
of captured CO
2
such as pipelines, transportation routes, injections wells
and facilities to temporary CO
2
storage facilities. Roadmap for
Cement Sector Decarbonisation
67
(vi) A lack of regulatory support and the absence of a robust regulatory
framework and incentives limits the adoption and scaling of CCUS
technologies.
5.3.3 Intervention approach to unlock CCUS potential in India
NITI Aayog constituted four inter-ministerial committees in the area of safety and
technical standard development, carbon capture, utilisation, transportation and
storage and presented it during the 25
th
Prime Minister’s Science, Technology &
Innovation Advisory Council (PM-STIAC) meeting. Based on the decision during
the meeting, Ministry of Power constituted an Inter-Ministerial Committee for
drafting the CCUS Mission Document.
Objectives of the CCUS Mission:
(i) To facilitate RDI (Research, Development & Innovation) of CCUS technologies
and undertake necessary steps for cost reduction of these technologies to
nurture human resource and infrastructure for capacity building.
(ii) Leverage bilateral and multilateral linkages for accelerating the CCUS
technologies to higher TRLs and market readiness levels.
(iii) To formulate strategic framework for CCUS aligned with national
environmental and energy commitments.
(iv) To identify the potential of carbon capture in India and mapping the source
and sink areas for development of potential hubs.
(v) To facilitate pilot level/large scale deployment of CCUS demonstration
projects in major CO
2
emission sectors.
(vi) To formulate/develop policy measures related to economic feasibility of
CCUS projects such as Direct Capital Grant, Operational subsidies, Carbon
credit mechanism, Tax incentive/penalty etc.
(vii) To take steps for increasing the manufacturing capacity for deployment of
CCUS projects.
(viii) To enable India to assume leadership in carbon capture, utilisation,
transportation and storage technologies.
5.3.4 Focus on the cement sector: targets and investments
Under the Mission, the intended target for the cement‑sector is 2,000 TPD
of capture (~0.67 MTPA) and 2,000 TPD of utilisation (building materials,
carbonates, polycarbonates) for pilot projects, with integrated planning for
transportation, storage and Enhanced Oil Recovery (EOR). The initial planned
CCU projects under the proposed National Mission on CCUS are expected to
capture and utilise 2,000 TPD, with an estimated investment of INR 1,100 crore.
The initial phase of implementation of CCUS in cement sector is expected to
occur as part of the National CCUS Mission. Roadmap for
Cement Sector Decarbonisation
68 Roadmap for
Cement Sector Decarbonisation
69
CONCLUSION Roadmap for
Cement Sector Decarbonisation
70
Conclusion
Decarbonising the cement industry will require a multifaceted approach. This report
prioritises three high-impact solutions given their significant emission reduction potential
and favorable cost-benefit analysis - Alternative Fuels, Clinker Substitutes, Carbon
Capture Utilisation and Storage. Each of these decarbonisation measures presents distinct
challenges. However, analysis indicates that implementing a combination of measures could
help achieve a cumulative emissions reduction of approximately 100-150 MtCO
2
e by 2030.
Increasing the usage of Refuse Derived Fuel from Municipal Solid Waste is projected to
cumulatively cut emissions by around 30 to 70 MtCO
2
e by 2030. Developing a robust MSW
management ecosystem could also attract investments of approximately INR 15,000 crore
and generate an estimated 62,000 jobs across the value chain
24
. This demonstrates how
resource circularity not only enables significant emissions reductions by providing alternate
fuels, low-carbon fuel sources and but also supports sustainable development by generating
substantial employment opportunities throughout the waste-to-fuel value chain.
Incorporating clinker substitutes, which is already underway in the cement sector, must
expand to incorporate alternative materials such as calcined clay and limestone. With the
expected decline of slag and fly ash post-2050, it will become essential to use recycled
materials, processed construction and demolition waste, establish robust supply chains and
integrate circular value chains across production systems.
CCUS is expected to play a critical role in decarbonising hard-to-abate sectors, especially
the cement industry, where process emissions alone account for nearly 50% of total
emissions. In this context, CCUS has the potential to reduce 35-54% of emissions in the
cement sector in a phased manner. CCS implementation, which represents nearly 95% of
the total potential, requires identifying and mapping suitable storage sites, land acquisition,
and developing transport infrastructure. As an immediate step, the cement sector can look
at implementing CCU-based projects. The initial planned CCU projects under the proposed
National Mission on CCUS are expected to capture and utilise 2,000 TPD, with an estimated
investment of INR 1,100 crore.
The successful decarbonisation of the cement sector will depend on: enhanced stakeholder
collaboration, advancement in research and development, adoption of innovative
technologies, and robust policy and regulatory support. Together these enablers will enable
the cement sector to achieve decarbonisation goals, while contributing to greener economy
and sustainable future.
24 Job creation rate of ~ 4.13 jobs per crore of investment
(These estimates are indicative based on available data and are subject to change) Roadmap for
Cement Sector Decarbonisation
71
REFERENCES Roadmap for
Cement Sector Decarbonisation
72
References
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https://iea.blob.core.windows.net/assets/d0cb5c89-3bd4-4efd-8ef5-57dc327a02d6/
CCUSPoliciesandBusinessModels.pdf.
CEEW. 2023. “Evaluating Net-Zero for the Indian Cement Industry Marginal Abatement
Cost Curves of Carbon Mitigation Technologies.” https://www.ceew.in/sites/default/files/
How-Can-India-Decarbonise-For-Net-Zero-Sustainable-Cement-Production-Industry.pdf.
CEMBUREAU. n.d. “European Circular Economy Stakeholder Platform.” https://
circulareconomy.europa.eu/platform/en/good-practices/cement-recarbonation.
CPCB. 2017. “Guidelines for Pre-Processing and Co-Processing of Hazardous and Other
Wastes in Cement Plant as per H&OW(M & TBM) Rules, 2016.” https://tnpcb.gov.in/HWM/
GuidePreprocessingCoprocessing.pdf.
DPIIT. 2024. “Department for Promotion of Industry & Internal Trade Annual Report - 2023
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GCCA. 2021. “Concrete Future ; The GCCS 2050 Cement and Concrete Roadmap for Net
Zero Concrete.” https://gccassociation.org/concretefuture/wp-content/uploads/2022/10/
GCCA-Concrete-Future-Roadmap-Document-AW-2022.pdf.
GCCA. 2022. “BLENDED CEMENT - GREEN, DURABLE & SUSTAINABLE.” https://
gccassociation.org/wp-content/uploads/2022/04/Report_Blended-Cement-Green-
Duratable-Sustainable_13Apr2022.pdf.
GCCA. 2024a. “CCUS IN THE INDIAN CEMENT INDUSTRY A REVIEW OF CO
2
HUBS AND
STORAGE FACILITIES.” https://gccassociation.org/wp-content/uploads/2024/06/CCS-in-
Concrete-India-Report-14-June.pdf.
GCCA. 2024b. “GCCA Policy Document on Co-Processing.” https://gccassociation.org/wp-
content/uploads/2024/10/GCCA_Co-Processing_Policy.pdf.
GIZ, LafargeHolcim. 2020. “Guidelines on Pre- and Co-Processing of Waste in Cement
Production Use of Waste as Alternative Fuel and Raw Material.” https://www.giz.de/en/
downloads/giz-2020_en_guidelines-pre-coprocessing.pdf.
Global Carbon Atlas. 2022. “Https://Globalcarbonatlas.Org/Emissions/Carbon-Emissions/.”
https://globalcarbonatlas.org/emissions/carbon-emissions/.
iCED, TERI. 2022. “Municipal Solid Waste Management in India-A Compendium Report.”
https://iced.cag.gov.in/wp-content/uploads/final%20copy%20of%20compendium.pdf.
IEA. 2018. “Technology Roadmap Low-Carbon Transition in the Cement Industry.”
IEA. 2019. “Putting CO
2
to Use September 2019 Creating Value from Emissions.” https://iea.
blob.core.windows.net/assets/50652405-26db-4c41-82dc-c23657893059/Putting_CO
2
_
to_Use.pdf.
IEA. 2023. “World Energy Outlook.” https://iea.blob.core.windows.net/assets/ed1e4c42-
5726-4269-b801-97b3d32e117c/WorldEnergyOutlook2023.pdf.
Indian Bureau of Mines. 2023. “Indian Minerals Yearbook 2022 (Part- III : MINERAL REVIEWS)
- CEMENT.” Roadmap for
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JMK. 2024. “Green Power Procurement Cement Sector in India.” https://jmkresearch.com/
wp-content/uploads/2024/08/Green-Power-Procurement-Cement-Sector-in-India_JMK-
Research.pdf.
Mission Possible. 2018. “Reaching Net-Zero Carbon Emissions from Harder-to-Abate Sectors
by Mid-Century.” https://www.energy-transitions.org/wp-content/uploads/2020/08/ETC-
sectoral-focus-Cement_final.pdf.
MoEFCC. 2023. “India - Third National Communication and Initial Adaptation Communication.”
https://unfccc.int/sites/default/files/resource/India-TNC-IAC.pdf.
MoEFCC, GoI. 2022. “India’s Long Term Low Carbon Development Strategy.” https://unfccc.
int/sites/default/files/resource/India_LTLEDS.pdf.
MoHUA. 2018. “Guidelines on Usage of Refuse Derived Fuel in Various Industries.” https://
sbmurban.org/storage/app/media/pdf/sbm_knowledge_center/Guidelines_on_Usage_of_
RDF_in_various_industries_GIZ.pdf.
MoHUA. 2021. “Circular Economy on Municipal Solid and Liquid Waste.” https://mohua.gov.
in/pdf/627b8318adf18Circular-Economy-in-waste-management-FINAL.pdf.
MoUD. 2016. “MUNICIPAL SOLID WASTE MANAGEMENT MANUAL.” https://mohua.gov.in/
upload/uploadfiles/files/Part2.pdf.
NITI Aayog. 2022. “Carbon Capture, Utilisation and Storage (CCUS) - Policy Framework and
Its Deployment Mechanism in India.”
PIB. 2021. “Government E-Marketplace (GeM).” https://pib.gov.in/FactsheetDetails.
aspx?Id=148586&reg=3&lang=1.
PIB. 2024. “Ecomark Scheme to Promote Sustainable Consumption and Eco-Friendly
Production with Strict Environmental Standards.” https://pib.gov.in/PressReleasePage.
aspx?PRID=2061878.
UNEP. 2024. “Emissions Gap Report.” https://www.unep.org/resources/emissions-gap-
report-2024.
wbcsd. 2016. “Cement Sector Scope 3 GHG Accounting and Reporting Guidance.” http://
docs.wbcsd.org/2016/11/Cement_Sector_Scope3.pdf.
WEF. 2023. “Net-Zero Industry Tracker.” https://www3.weforum.org/docs/WEF_Net_Zero_
Tracker_2023_REPORT.pdf.
WRI. 2023. “What Does ‘Green’ Procurement Mean? Initiatives and Standards for Cement
and Steel.” https://www.wri.org/insights/green-procurement-initiatives. Roadmap for
Cement Sector Decarbonisation
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Cement Sector Decarbonisation
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ANNEXURE Roadmap for
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Annexure 1
Technical Working Committee on Cement Sector
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Annexure 2
List of 22 Recommendations
S.no.No. of SolutionsCategoryRecommendations
1
7
Economically viable
solutions industries
can implement
independently based
on energy efficiency
Improved Refractory Materials
2Kiln combustion systems improvements
3Efficient clinker coolers
4Efficient kiln and pre-heater
5Automation system
6Burner retrofit
7Heat rate reduction in captive power plant
8
5
Economically viable
solutions, which
require regulatory
support
Transition from input-based standards to
performance-based standards
Definition of standards for CSA cement usage
9Mapping of new clinker substitutes in India
10
Blending mandates to increase adoption of
alternatives to fly ash and slag
11
Amendment of green building rating to increase
usage of low carbon cement
12
Assessment study for India’s recarbonation
potential
13
2
Initiatives that
require policy
support from the
Government
Scaling CCUS for cement industry
14
Development of supply chain of green and
alternate fuels
15
8

De-prioritised
solutions
(Economically viable
initiatives, which
may not need govt.
support, initiatives
unlikely to accelerate
decarbonisation)
100% fly ash and pond ash generated in
the country to be allocated to cement
manufacturing
16
Preferential allocation to cement sector for
usage of wastes
17Polluter Pays Principle
18Freight subsidy for fly ash transport
19Procurement of low-carbon cement
20
Substituting materials, which have a high
decarbonisation potential
21
Consideration of Waste Heat Recovery (WHR)
as renewable energy for the purpose of RPO
22
Propagation of cast structures for the efficient
use of cement
Roadmap for
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Increased usage of RDF from MSWComparative analysis of RDF usage across key sectors
Annexure 3 Roadmap for
Cement Sector Decarbonisation
81
Learnings from the Indore and Goa Municipal Corporation
Effectively managing MSW is a complex task that requires continuous monitoring and
efficient service delivery. The Indore Municipal Corporation has emerged as a national
benchmark of excellence in MSW management, demonstrating remarkable innovation and
efficiency under the Swachh Bharat Mission (SBM). Indore has consistently ranked among
the cleanest cities in India since 2017, according to the Swachh Survekshan Surveys. (iCED,
TERI 2022).
Municipal Solid Waste Management, Source: Indore Municipal Corporation
Indore’s success stems from its holistic, citizen-centric approach to implementing the SBM.
The city emphasises on sustained engagement, innovative solutions, and highly efficient
waste management systems. This sustained commitment to cleanliness and sanitation has
positioned Indore as a model city, continuously setting new standards for creating cleaner,
healthier urban environments across the country.
Indore has achieved nearly 100 percent door-to-door collection of segregated waste from
households, commercial establishments and institutions. Waste is segregated at the source
into categories such as wet waste, dry waste (plastic and other recyclables), sanitary waste,
Domestic Hazardous Waste (DHW) and e-waste. This significantly enhances the efficiency
of waste processing. The city has a dedicated waste stream collection system and operates
multiple waste processing facilities, including composting plants, bio-methanation units and
material recovery facilities (MRFs). This ensures that only non-recyclable residual waste is
sent to landfills, and scientific disposal methods are employed to minimise environmental
impact. The city has also made substantial progress in remediating legacy dumpsites,
converting them into green zones and reclaiming valuable urban land.
Indore leverages Information and Communication Technology (ICT) tools, utilising digital
platforms for real-time monitoring of waste collection and processing, to enhance waste
management and sanitation, while ensuring transparency and efficiency. The Swachhata
App and the Indore 311, a grievance redressal platform, launched in 2016, empower residents
to report sanitation issues, which are promptly addressed by municipal authorities.
Additionally, Indore has invested in capacity building for municipal staff and stakeholders
involved in waste management. Regular training programs and workshops equip them with
the necessary skills and knowledge to manage sanitation and waste effectively, contributing
to the city’s continued success in maintaining a clean and sustainable urban environment.
Moreover, Indore has successfully integrated MSW into the cement sector by transforming
the value chain, beginning with effective source segregation. Initially, the Indore Municipal Roadmap for
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82
Corporation faced challenges such as waste accumulation, frequent overflows and
inefficient collection systems. The image below highlights how these issues were addressed
through improved segregation, resource recovery, financial sustainability and technological
interventions.
Impact and Results: By the end of 2017, Indore had achieved near-complete source
segregation across households, with a three-bin system implemented in multi-storey
buildings and commercial establishments.
Waste-to-Energy: RDF generated from segregated waste has been utilised as AFs in
cement plants, reducing landfill dependency and promoting sustainable waste utilisation.
Contract with A2Z: Initially, the Indore Municipal Corporation (IMC) outsourced waste collection and
transportation to a private company, A2Z.
Secondary storage bins: Waste was primarily dumped in secondary storage bins, which led to waste
accumulation, overﬂows, and inefﬁcient collection.
Area-speciﬁc planning: Critical insights for area-speciﬁc waste collection strategies was essential.
High-density areas such as to urist zones required frequent cleaning-up to 4 times a day.
NGO engagement: NGOs we re brought in to proﬁle the city by analyzing family sizes, waste generation
patterns, and speciﬁc needs of different zones (commercial, residential, and to urist areas).
Scaling the workforce: The waste management workforce grew from 4,000 to 10,000 employees, with 90%
of them being contractual staff. IMC leveraged Smart City Mission funds, which allocated around INR 10 crore
per month for manpower.
Infrastructure improvements: Indore set up 10 garbage transfer stations (GTS) and a ﬂeet of vehicles mapped
through an ICT-based monitoring system to optimize collection routes and frequency.
Segregation at source: Households were taught to segregate waste into wet, dry, and other categories. Fines
of INR 2.5-3 lakhs per day were imposed for non-compliance, leading to a remarkable improvement in wa ste
segregation and resultant quality.
Material Recovery Facility: A material recovery facility was established, where dry wa ste was sorted into 13-14
components for recycling. The RDF generated from segre gated waste was supplied to cement plants, even up
to 600 km away .
User charges: Indor e implemente d a system of user charges in 2017, where households paid between INR
60-150 per month depending on the area. Religious fairs, political ra llies, and large gatherings were also
charged for the waste they genera ted.
Fines for non-compliance: A strict system of spot ﬁnes was introduced, enco uraging households and
businesses to comply with segregation and timely waste disposal.
Indore 311 App: The city developed a service -delivery model via the Indore 311 App, allowing citizens to raise
complaints and monitor the wa ste management process.
Vehicle monitoring and ﬂeet management: Waste collection vehicles were equipped with GPS, allowing
real-time tracking of ro utes and collection efﬁciency. The ﬂeet made 4-5 trips per day, covering over 1,000
pockets across the city
INITIAL CHALLENGES (2015)INITIAL CHALLENGES (2015)
DOOR-TO-DOOR COLLECTIONDOOR-TO-DOOR COLLECTION
INCREASED WORKFORCE AND INFRASTRUCTUREINCREASED WORKFORCE AND INFRASTRUCTURE
SEGREGATION AND RESOURCE RECOVERYSEGREGATION AND RESOURCE RECOVERY
FINANCIAL SUSTAINABILITYFINANCIAL SUSTAINABILITY
TECHNOLOGICAL INTERVENTIONSTECHNOLOGICAL INTERVENTIONS
Roadmap for
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83
The Goa Waste Management Corporation
In December 2016, the Government of Goa established the Goa Waste Management
Corporation (GWMC) under the Goa Waste Management Corporation Act, 2016 (Goa Act
19 of 2016) to address all the waste-related issues in the state, including remediation of
legacy dump sites. The GWMC is therefore a unique Special Purpose Vehicle (SPV), which
is proactively working on solid waste management in the state.
250 TPD Integrated solid waste management facility, Saligao. Source: GWMC
GWMC operates a 250 TPD Integrated Solid Waste Management Facility in Saligao, a first-
of-its-kind project in the country, which is fully compliant with the Solid Waste Management
Rules, 2016. The facility was developed on a former quarry site, which had been used as
a waste dumping ground for over 25 years, leaving the area severely degraded. With the
construction of the facility, the site was rehabilitated and restored to its natural state, making
it a unique example of brownfield development in India.
The project is overseen by the Department of Science, Technology and Waste Management
(DST&WM), which serves as the nodal department, while the Goa State Infrastructure
Development Corporation (GSIDC) acts as the managing associate. The facility was
developed a Design, Finance, Build, Operate and Transfer (DFBOT) model with a 10-year
operation and maintenance period. The facility processes waste from village panchayats
and urban local bodies in the northern coastal belt of Goa.
The facility underwent an expansion in response to increasing per capita waste generation
and seasonal spikes especially during the tourist season. The upgradation, carried out by
the GWMC, commenced on 29 August 2020 and was completed in December 2021 at a 59
Annexure 3
3 more projects are under development with cumulative capacity of 450 TPD
INR 2,209.6 +18% GST per
ton of waste paid by
GWMC to developer
Payment
terms
5-10 years
Contract duration
with cement
plants
50% transportation cost
borne by GWMC
Support
provided
Department of Science,
Technology and Waste
Management
Nodal
department
DBFOT
PPP Model
10 years
O&M Period
Hindustan Waste
Management
Private partner
30 May 2016
Commencement
of operations
Northern coastal belt
village panchayats and
ULBs
Source of waste
~3 lakh tons till
May 2022
Solid waste
treated
~ 25,000 + units per day
Electricity
generated
~INR 250 crore
Project cost
12 hectares
Land Roadmap for
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84
cost of INR 103.87 crore. Post-expansion, the facility’s capacity increased from 150 TPD
to 250-300 TPD, incorporating advanced waste treatment technologies. The GWMC pays
the developer INR2,209.6 per ton of waste, plus 18% GST. As of May 2022, the facility has
treated approximately 3 lakh tons of solid waste and generates around 25,000 units of
electricity per day. Additionally, three more projects with a cumulative capacity of 450 TPD
are under development.
Integrated Solid Waste Management, Goa Municipal Corporation
Key insights from the Goa and Indore models demonstrate their success in utilising RDF
from MSW in the cement sector. This integration is facilitated by strong political support,
active community engagement, an effective communication strategy, structured user
charges, regular monitoring and robust technical oversight. Roadmap for
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85
Annexure 4
Increased Usage of Clinker Substitutes - What is LC3?
Limestone Calcined Clay Cement or LC3 is an alternative binder to Ordinary Portland
Cement (OPC), the most widely used type of cement today.
Ordinary Portland Cement (OPC) Limestone Calcined Clay Cement or LC3
OPC is composed of 95% cement
clinker and 5% of other additives such
as gypsum
LC3 is prepared by combining
• 50-60% of OPC clinker
• Calcined kaolinite clay (30%), limestone (15%)
and gypsum (5%)
Key advantages of LC3:
(i) Lower carbon footprint: LC3 has an approximately 43% lower footprint compared
to OPC due to lower kiln temperature (800 °C) for the calcined clay compared to
1500 °C for OPC and no CO
2
emissions from limestone calcination.
(ii) Comparable performance: LC3 is similar strength to OPC, requiring 28 days to
set (comparable to CEM I).
(iii) Synergistic efforts: LC3 takes advantage of highly reactive calcined clay and its
synergy with limestone.
(iv) Highly scalable: Both limestone and calcined clay are abundantly available
worldwide supporting large-scale adoption.
Considerations while adopting LC3:
(i) Lower early strength: LC3 concrete (1 and 3 days) compared to OPC-based
concrete.
(ii) Commercial scale-up: LC3 is still evolving in terms of commercial viability and
cost competitiveness.
(iii) Higher water demand: Due to presence of metakaolin, LC3 requires more water
for
production.
Role of LC3 in decarbonising cement and concrete:
(i) Clinker substitution: LC3 production involves replacing 40-50% of OPC clinker
with LC2 to produce LC3.
(ii) Lower embedded carbon: LC3 cement has approximately 35-45% less embedded
carbon compared to OPC
(iii) Main decarbonisation driver: Clinker substitution through LC2 accounts for 55%
of net carbon reduction compared to OPC cement. Roadmap for
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86
Carbon reduction in LC3 compared to OPC
Source: Global Cement New, Cemnet News
Global Availability of LC3; Currently the largest plant is situated in Continental Blue investment (CBI)
Ghana with a capacity of 7,00,000 tons per year
Key Takeaways
(i) LC3 Technology is primarily being scaled up in Africa, South America with some
additions in Asia. Key drivers include reducing clinker imports, production-related
energy costs and the availability of kaolinite clay
(ii) Cumulative LC3 capacity globally of around 2.2 Mt/year

(Assuming 200,000
tons/year capacity for the unknown plant capacity Roadmap for
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1. CCUS: Oxyfuel, LEILAC, Amine are High Priority Carbon Capture Technologies (Part 1)Source: ECR A, CRS 2013, ZeroCO2.no, LEILAC.eu, NETL, NORCEM CO2 capture project (publ. Energy Procedia – 2014), Heilogen.com
Annexure 5 Roadmap for
Cement Sector Decarbonisation
88
2. CCUS: Oxyfuel, LEILAC, Amine are High Priority Carbon Capture Technologies (Part 2)
Source: ECRA, CRS 2013, ZeroCO
2
.no, LEILAC.eu, NETL, NORCEM CO
2
capture Project (publ. Energy Procedia – 2014), Heilogen.com Roadmap for
Cement Sector Decarbonisation
89
3. CCUS: Technological Pathways are Still being Developed, with Significant
Cost Variation
CEMCAP analysis of cement CO
2
capture technologies; Costs assumed for a plant with
1 million tons clinker capacity per year. Multiple carbon capture technologies being
developed in cement that may have lower costs than the primary industry pathways
today – meaning costs may continue to fall
4. CCUS: Global Examples for Carbon Capture Implemented in Cement Plants
Source: Global Cement and Concrete Association
Key insights
(i) Globally, approximately 26 cement plants currently implement carbon capture.
(ii) >80% of these projects are in the US, Canada and Europe
(iii) Industrial scale carbon capture and storage facility Norcem plant, Brevik in Norway
has been launched in June 2025 which aims to capture 400kCO
2
per annum. Roadmap for
Cement Sector Decarbonisation
90
5. CCUS: Portfolio of CO
2
Potential Utilisation Varies by Region
Source: McKinsey Energy Insights- CCUS demand model, 2022; 1. CIS, rest of Asia and rest of Europe
(i) North America and the EU27+UK have the highest demand for CO
2
feedstock for
synthetic fuel. In addition, North America and the EU also benefit from mature
technologies and economies of scale, making global market leaders.
(ii) The use of CO
2
in construction materials is mainly driven by Asian countries, as the
regional demand for cement and aggregates is the underlying engine.
CCUS: Global CCU pilots in the cement sector
Source: Rystad CCUS Database (July 2024)
CCUS: Snapshot of Cement CCU pilot projects across the world Roadmap for
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Source: Rystad CCUs Database, Press Search
CCUS: Snapshot of other CCU pilot projects across the world Roadmap for
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Source: Rystad CCUs Database, Press Search
CCUS: Snapshot of cement CCU commercial projects across the world
Source: Rystad CCUs Database, Press Search
CCUS: Snapshot of other CCU commercial projects across the world
Source: Rystad CCUs Database, Press Search
CCUS: Snapshot of government support provided to cement CCU projects across the
world Roadmap for
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93
Source: Rystad CCUs Database, Press Search
CCUS: Snapshot of government support provided to other CCU projects across the world
Source: Rystad CCUS Database, Press Search
CCUS: Break-up of premium required for CCS and CCU in USA
Source: Pathways to commercial liftoff: Low-carbon cement, US Department of Energy (September 2023) Notes Notes

Roadmap for Cement Sector Decarbonaisation