NITI Aayog Green Transition Roadmaps

Context of the Reports

NITI Aayog Green Transition Roadmaps: NITI Aayog released sector-specific reports outlining structured green transition roadmaps for the cement, aluminium, and MSME sectors. These documents focus on long-term decarbonisation pathways aligned with India’s climate commitments and industrial sustainability goals.

The reports aim to integrate climate action with economic growth. They identify sector-specific emission sources, technology gaps, and policy interventions required for low-carbon transformation.

Understanding Decarbonisation

Decarbonisation refers to the systematic reduction or elimination of carbon dioxide (CO₂) emissions from economic activities. It focuses on shifting from fossil fuels to clean energy, improving energy efficiency, and adopting low-carbon technologies.

This process is not limited to power generation. It includes industrial production, logistics, supply chains, and manufacturing systems.

Static GK fact: The term “decarbonisation” gained global policy relevance after the Paris Agreement (2015), which established long-term low-emission development strategies.

India’s Climate Commitments

India’s climate strategy is anchored in its Nationally Determined Contributions (NDCs). The country has committed to reducing the emissions intensity of GDP by 45% by 2030 compared to 2005 levels.

The Panchamrita framework further strengthens this pathway. It sets the long-term goal of achieving net-zero greenhouse gas emissions by 2070.

These targets link climate action with sustainable industrialisation. They require deep structural changes in energy use, manufacturing, and resource efficiency.

Sector-wise Emission Significance

The cement sector contributes approximately 6% of India’s total GHG emissions. Its emissions arise from clinker production, fossil fuel combustion, and process chemistry.

The aluminium sector contributes around 2.8% of national emissions. It is highly energy-intensive due to electrolytic smelting and power dependency.

MSMEs collectively contributed nearly 135 million tonnes of CO₂ equivalent in 2022. Most MSMEs depend on coal, diesel, and biomass for energy and thermal processes.

Static GK Tip: Cement manufacturing is classified as a hard-to-abate sector globally due to unavoidable process emissions from limestone calcination.

Strategic Importance of Green Transition

Decarbonising these sectors directly strengthens India’s climate credibility. It also improves energy security by reducing fossil fuel dependence.

A critical driver is trade competitiveness. Emerging regulations like the EU Carbon Border Adjustment Mechanism (CBAM) impose carbon-linked tariffs on imports.

Failure to decarbonise can create export risks for Indian industries. Low-carbon production helps protect market access in global value chains.

Economic and Industrial Impact

Green transition supports green jobs, clean technology innovation, and industrial resilience. It enables sustainable growth without sacrificing productivity.

Low-carbon industrial models also attract green finance and climate investments. This strengthens India’s position in global climate finance architecture.

Static GK fact: The MSME sector contributes nearly 30% of India’s GDP and over 40% of exports, making its decarbonisation economically strategic.

Governance and Policy Integration

The NITI Aayog reports promote policy convergence between climate goals and industrial policy. They encourage coordinated action across energy, industry, finance, and trade ministries.

This integrated approach transforms climate action from an environmental agenda into a development strategy. It aligns sustainability with long-term national competitiveness.

Static Usthadian Current Affairs Table

NITI Aayog Green Transition Roadmaps: