As the world grapples with the urgent need for climate action, the manufacturing sector stands at a critical juncture in India’s journey toward achieving net zero emissions by 2070. Recognizing the sector’s significant contribution to greenhouse gas (GHG) emissions, the Indian government has committed to ambitious targets as articulated at the 26th Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC) in Glasgow. With industrial activities accounting for approximately 25% of the country’s GHG emissions, reducing the carbon footprint of this sector is paramount for India to fulfill its climate commitments, including reaching a non-fossil energy capacity of 500 GW by 2030 and achieving a 45% reduction in carbon intensity over 2005 levels.
India, the third-largest emitter of GHGs globally, saw its industrial sector’s emissions grow at an alarming average annual rate of 10.42% from 2005 to 2018, outpacing the overall growth rate of other sectors. If this trend continues, the industrial sector could account for about 30% of total GHG emissions by 2030. To meet its climate goals, including the reduction of one billion tonnes of projected carbon emissions, India must tackle the industrial sector’s challenges head-on. With expectations of becoming the world’s second-largest economy by 2050, the pressure is on to ensure that energy consumption does not spiral out of control, particularly in energy-intensive industries.
Recent reports from Climate Transparency highlight that India’s industrial emission intensity is nearly 2.5 times higher than the G20 average. This stark reality emphasizes the need for immediate action to decarbonize the sector. Transitioning to cleaner energy sources and adopting sustainable practices can significantly mitigate these emissions. As India’s energy consumption is expected to grow one and a half times faster than the global average over the next three decades, the focus must shift to enhancing energy efficiency and exploring alternative energy sources.
Research conducted by McKinsey & Company, Wood Mackenzie, and MIT Technology Review outlines a roadmap for India’s industrial transition. Key strategies include integrating green hydrogen, carbon capture, utilization and storage (CCUS), thermal batteries, and heat pumps into manufacturing processes. These technologies not only promise to decarbonize the sector but also position India as a leader in clean energy innovation.
In 2023, the Indian government launched the National Green Hydrogen Mission (NGHM) with the goal of establishing India as a global hub for green hydrogen production and manufacturing. The mission aims to achieve a production capacity of 5 million metric tons per annum (MMTPA) of green hydrogen and to add 125 GW of renewable energy capacity by 2030. This initiative represents a significant step toward reducing the carbon intensity of industries that have historically relied on fossil fuels.
To effectively scale green hydrogen adoption, efficient infrastructure is essential. This includes investments in R&D, establishing industrial hubs, and developing government policies that promote clean energy solutions. Engaging with industry leaders and experts can foster a collaborative environment where innovation flourishes, and the transition to low-emission manufacturing becomes a reality.
The manufacturing sector plays a pivotal role in India’s journey toward achieving zero emissions. By embracing innovative technologies and sustainable practices, industries can contribute significantly to India’s climate action goals. With robust government initiatives like the National Green Hydrogen Mission, the foundation is laid for a cleaner, greener industrial future. It is imperative that all stakeholders—from policymakers to industry leaders—collaborate in this transformative journey, ensuring that India not only meets its emissions targets but also leads the way in sustainable industrial practices globally. As we navigate this critical period, the manufacturing industry must rise to the occasion, driving the change necessary for a sustainable and resilient future.
To accelerate progress toward zero emissions, companies within the manufacturing sector must take proactive steps to integrate sustainability into their core operations. Firstly, investing in energy-efficient machinery and technology can reduce the energy consumption per unit produced, directly decreasing the sector’s carbon intensity. Secondly, companies should prioritize the adoption of circular economy practices, such as reusing materials, reducing waste, and optimizing resource use across the value chain. Additionally, establishing partnerships for green hydrogen supply, carbon capture, and renewable energy sources will facilitate the sector’s transition to low-emission energy alternatives. By setting clear, measurable sustainability goals and actively reporting progress, companies can also enhance transparency and accountability in their climate action efforts. These steps will not only support India’s climate commitments but also position companies competitively as leaders in sustainable manufacturing.
