Surfacing Supply of Near-Zero Emission Fuels and Materials in India

The report identifies that steel, cement, and aviation account for nearly 20% of India's emissions. It argues that while breakthrough technologies like green hydrogen, CCUS, and SAF 85 exist, their adoption in India is hindered by high green premiums, fragmented supply chains, and a high cost of capital. The document recommends a combination of blended finance, carbon pricing, public procurement mandates, and the development of industrial clusters to accelerate the transition to near-zero emission industrial materials.

• The cement industry's emissions in India are expected to double to approximately 440 million tonnes per year by 2040, fueled by demand for housing and infrastructure.
• Indian aviation emissions, currently around 25 million tonnes of CO2e annually, are at risk of soaring as air traffic is predicted to triple by 2040.
• The Gasification Fischer-Tropsch (GFT) process is identified as the most promising technology for sustainable aviation fuel (SAF) in India, potentially yielding 16-20 Mtpa of SAF by 2030 using agricultural residues and municipal solid waste.
• Scaling near-zero emission steel is hindered by the need for massive renewable energy expansion; producing 300 Mtpa of steel via the H2-DRI-EAF pathway would require doubling India's 2030 target of 450GW of installed renewable capacity.
• The First Movers Coalition's threshold for near-zero emission cement (184kg CO2e/t) is considered unrealistic by some Indian participants because it relies heavily on carbon capture, utilization and storage (CCUS) technologies.
• Financial barriers to the transition include a high cost of capital—approximately 7% higher than in the US as of 2020—and a lack of a formal carbon trading market.
• The International Energy Agency estimates that India requires $160 billion per year across its energy economy between now and 2030 to reach net-zero goals, which is three times current investment levels.
• Key policy recommendations include implementing a cross-sectoral industrial cluster strategy for CCUS and green hydrogen, and establishing a domestic SAF mandate starting at 1% blending.
• Public procurement is highlighted as a critical lever for the cement sector, as it accounts for 40-60% of global concrete sales.

APA

World Economic Forum (2023). Surfacing Supply of Near-Zero Emission Fuels and Materials in India. https://www3.weforum.org/docs/WEF_Surfacing_Supply_of_Near_Zero_Emissions_Fuels_and_Materials_in_India_2023.pdf

Chicago

World Economic Forum. Surfacing Supply of Near-Zero Emission Fuels and Materials in India. 2023. https://www3.weforum.org/docs/WEF_Surfacing_Supply_of_Near_Zero_Emissions_Fuels_and_Materials_in_India_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Surfacing Supply of Near-Zero Emission Fuels and Materials in India |date=July 2023 |url=https://www3.weforum.org/docs/WEF_Surfacing_Supply_of_Near_Zero_Emissions_Fuels_and_Materials_in_India_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023surfacing, author = {{World Economic Forum}}, title = {{Surfacing Supply of Near-Zero Emission Fuels and Materials in India}}, institution = {World Economic Forum}, year = {2023}, month = jul, url = {https://www3.weforum.org/docs/WEF_Surfacing_Supply_of_Near_Zero_Emissions_Fuels_and_Materials_in_India_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }