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Indian Industry Requires $1.7 Trillion to Achieve Net Zero by 2070, Reveals IIM Lucknow Study

By Sinam Guleria Published 10 Dec 2024

New Delhi, December 10, 2024: Like many other countries, India has set an aspirational target for achieving net zero emissions by 2070 and is en route its target. In cognizance with these targets, a joint study by Indian Institute of Management (IIM) Lucknow and Ahmedabad University reveals that India India’s industrial sector will need an estimated $ 1.7 trillion investment to achieve net-zero emissions by 2070.

Published in the journal Applied Energy, the report presents a comprehensive roadmap for decarbonizing major industries like steel, cement, aluminium, chemicals, and textiles. The study also highlights some key solutions for the sector (Responsible for 22% of the nation’s total greenhouse gas emissions) that's grappling with a dual challenge of reducing fossil fuel dependence while sustaining economic growth.

According to the study, improving energy efficiency, promoting material recycling, and investing in clean technologies like carbon capture and hydrogen are the key strategies to achieve net-zero emissions.

Talking about the report, Dipti Gupta, Assistant Professor, Business Sustainability, IIM Lucknow said, "The study is an attempt to understand what the transition looks like in the coming decades as India approaches its target of achieving net zero emissions by 2070. As the Indian economy grows rapidly in future, the speed and scale of India’s industry sector transition will be unprecedented. Developing the manufacturing sector while minimising negative environmental and societal impacts will be the key elements of a low carbon pathway for India. Decarbonising industry sector will require rapid technology development, international finance for scaling up key technologies, innovative business models and standardised emission reporting."

Based on expert insights and energy-economy models, the study has come up with four future scenarios - Business-As-Usual, Development First, Carbon Neutral, and Synchronous (SYNCH). According to the strongest action-oriented, SYNCH scenario, the industrial emissions could be reduced by 63 percent by 2050 if investments can be poured in clean energy, advanced recycling systems, and carbon capture technologies.

The key recommendations from the study include enhancing energy efficiency, improving material efficiency, and strengthening carbon tracking.

However, to make this transition, the study says, India needs investment support and technology transfers from other nations. New age technologies like carbon capture and hydrogen-based system are still under development, but has to see a robust growth to ensure sustainable industrial growth.