Cement, Energy and Environment

52 COP26 to reduce carbon emissions intensity of GDP by 45% by 2030 and to source 50% of power from renewables. India’s Carbon Credit Trading Scheme (CCTS) is a domestic emissions trading scheme (ETS) that plays a crucial role in meeting India’s Nationally Determined Contributions (NDC) and net-zero targets. Understanding the India Carbon Credit Trading Scheme 2023. This market-based mechanism is designed to align with India’s Net Zero by 2070 commitment while promoting industrial innovation and global competitiveness. The India Carbon Credit Trading Scheme 2023 (CCTS) was introduced to regulate and reduce carbon emissions across major industries by assigning specific Greenhouse Gas Emission Intensity (GEI) Targets to individual entities. The following sectors account for themajority of India’s industrial emissions: • Steel – 12% of total GHG emissions • Cement – 8% (due to process emissions and energy use) • Chemical and Fertilizer – High energy intensity and methane leaks • Textiles & Manufacturing – Significant use of coal-based power These sectors depend heavily on fossil fuels and lack energy efficiency, making decarbonization complex but essential. These industries can meet these targets either by: • Reducing their own emissions through clean technologies, or • Purchasing carbon credits from compliant businesses via the Indian Carbon Market (ICM). The following notified sectors are affected by CCTS 2023: • Aluminium manufacturers. • Cement producers • White Cement brands • Refineries • Portland Pozzolana Cement (PPC) and other cement categories. • Grinding units and ultra-low emissions plants. Over 130+ industrial giants are now accountable for their emission intensity per ton of equivalent production. The success of the India Carbon Credit Trading Scheme 2023 will depend on: • Industry cooperation. • Transparent governance. • Policy adaptability. When implemented efficiently, it could be India’s most significant step yet toward a green industrial revolution, with alignment of India’s Net Zero Ambitions with larger climate goals: • Net Zero by 2070. • Renewable energy target: 500 GW by 2030. • Hydrogen Mission: Scaling green hydrogen production. CEMENT INDUSTRY • Alternative fuels like biomass and RDF (Refuse Derived Fuel) • Clinker substitution using fly ash, slag • Carbon capture and storage (CCS) pilot programs • Role of Green Hydrogen - India is pushing ahead with its National Green Hydrogen Mission, aiming to make it a $12 billion industry by 2030. Heavy industries like steel and cement are expected to be early adopters, replacing coal-based energy with renewable-powered hydrogen. KEY STAKEHOLDERS FOR CCTS IMPLEMENTATION IN INDIA: • Ministry of Power: Oversees the regulatory framework of CCTS. • Bureau of Energy Efficiency (BEE): Administers CCTS. • Obligated Entities: Industries (e.g., cement, power) required to comply with emission reduction targets. • Non-Obligated Entities: Businesses and individuals who can participate in the voluntary carbon market. • Indian Carbon Market (ICM): The platform for trading carbon credits. CCTS IN THE MINING SECTOR: The mining sector is energy-intensive and a significant source of CO 2 emissions. Implementing CCTS in this sector involves several strategies: • Capture Technologies: Utilizing pre- combustion, post-combustion, and oxy- fuel combustion technologies to capture CO 2 emissions from mining operations and