Greening India's Industrial Landscape: Accelerating the Transition to Renewable Energy
Key Ideas
  • India aims for 500GW of renewable energy capacity by 2030, with 209.4GW already achieved, driving economic growth and job creation.
  • Green manufacturing focus on solar panels, wind turbines, steel, cement, automobiles, oil & gas sectors to reduce emissions and transition to net-zero.
  • Challenges include high upfront costs, lack of ecosystem, requiring incentives, R&D, public-private partnerships, and access to capital for acceleration.
  • Initiatives like 'Green Cement,' 'Green Steel,' biofuel blending, Green Hydrogen, and CCUS are paving the way for a sustainable industrial landscape.
India has set an ambitious yet achievable target of 500 GW of installed renewable energy capacity by 2030, with significant progress already made by reaching 209.4 GW as of January 2025. The focus on manufacturing solar panels and wind turbines not only accelerates renewable energy capacity creation but also contributes to job creation and economic growth. The next critical step involves greening manufacturing processes, emphasizing the need to move beyond substituting fossil fuels with green alternatives and integrating Carbon Capture, Utilization, and Storage (CCUS) technologies to capture final emissions. The transition towards green manufacturing necessitates conscious production strategies that deviate from current practices, particularly in high-emissions industries such as Steel, Cement, Automobiles, and Oil & Gas. For instance, the steel sector is gearing up to meet growing demand by expanding 'green steel' production pathways, aligning with the objective of achieving net-zero emissions. Similarly, the Cement industry is focusing on 'Green Cement,' incorporating alternative materials like fly ash and slag to reduce clinker content, leading to more sustainable structures with minimal waste. In the Oil & Gas sector, both public and private companies in India have committed to Net Zero targets and are implementing various initiatives such as biofuel blending, renewable energy capacity expansion, utilization of Green Hydrogen as a fuel and feedstock, as well as CCUS technologies. The report by EY highlights the current stage of green manufacturing in India and outlines the necessary steps to expedite this transition. Challenges include the higher capital and operational costs upfront, the absence of a conducive ecosystem for green manufacturing, necessitating incentives, policy support, investment in research and development, fostering public-private partnerships, and facilitating access to capital. Despite these obstacles, initiatives like 'Green Cement,' 'Green Steel,' biofuel blending, Green Hydrogen adoption, and CCUS deployment are reshaping India's industrial landscape towards sustainability. The future path will rely on collaborative efforts to overcome challenges and establish a robust framework for accelerating the transition to green manufacturing and achieving the renewable energy targets set by the Indian government.
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