India's cement industry has made significant progress in adopting renewable energy over the past two decades, with leading companies installing a total capacity of 1,800 MW by 2024 and aiming to add another 5 GW by 2030, the Global Cement and Concrete Association India told Platts on Nov. 17.

GCCA India is the Indian arm of the international industry association GCCA, which promotes sustainability in the cement and concrete sector.

The sector "has transitioned to dry processes, adopted renewable energy, implemented waste heat recovery systems and increased the production of blended cement," GCCA India said. "Currently, the average use of alternative fuels in the sector is approximately 6%, although some plants have successfully achieved over 20% usage."

Regarding renewable energy, 3% of the electricity mix comes from renewable sources, while 11% is generated from waste heat recovery systems, GCCA India said. "There is also work going on the installations of hybrid energy systems providing round-the-clock power in the sector."

About 73% of India's cement production consists of blended cement, which has a lower clinker factor compared with ordinary Portland cement, according to GCCA India.

Additionally, the production of limestone calcined clay cement has commenced in India, and research is underway to develop other low-clinker cement alternatives, the association said.

Limestone calcined clay cement is a low-carbon cement that reduces emissions by replacing a substantial portion of energy-intensive clinker with calcined clay and limestone. This approach can lower emissions by up to 40% compared with ordinary Portland cement, while maintaining comparable strength and cost-effectiveness.

Carbon policies

The Indian cement industry is at a pivotal moment, facing pressure to scale operations while maintaining competitive costs.

Cement companies indicate that existing policies are not sufficiently supportive, highlighting the need for enhanced policy measures amid increasing cost uncertainties, according to GCCA India.

Carbon is anticipated to become a significant cost driver, with the World Cement Association warning that European decarbonization policies could potentially lead to a three to four times increase in cement prices. The EU's Carbon Border Adjustment Mechanism levies are expected to take effect in January 2026.

However, India's cement sector primarily serves the domestic market and does not export to the EU, according to GCCA India.

Industry observers have said Indian producers are expected to capitalize on key growth drivers, such as infrastructure and housing, while pivoting toward greener operations and more sustainable product portfolios.

According to a March report from GCCA India and The Energy and Resources Institute, India's cement industry is on track to achieve significant reductions in emissions intensity, with the average emissions projected to come down to 560 kg CO2/metric ton of cement by 2030 and 510 kg CO2/mt of cement by 2047, from an estimated 680 kg CO2/metric ton of cement in 2020.

The industry is expected to achieve net-zero emissions by 2070, according to the report. "By 2070, it is envisaged that the Indian cement industry will shift completely from fossil fuels to low-carbon fuels, e.g., biomass, societal wastes with biogenic content, green hydrogen and green electricity."

Industry outlook

India's cement industry is poised to add 160 million-170 million mt of grinding capacity between fiscal years 2026 and 2028, according to CRISIL, which is majority owned by S&P Global. India's fiscal year runs from April to March.

This planned capacity addition represents a 75% increase over the 95 million mt added over the past three fiscal years, driven by a healthy demand outlook and high capacity utilization, CRISIL said.

Over fiscal years 2026-28, Indian cement makers are expected to witness healthy incremental demand of 30 million-40 million mt annually, building on the robust compounded annual growth of 9.5% observed in the past fiscal three years, according to CRISIL.

Platts, part of S&P Global Commodity Insights, assessed cement clinker FOB Turkey at $45/mt on Nov. 13, compared with $45.5/mt on Oct. 16 and $47/mt on Sept. 11.

Platts assessed CEMDEX Turkey at $54.5/mt on Nov. 13, compared with $55/mt on Oct. 16 and $56.5/mt on Sept. 11.