NITI Aayog lays out a roadmap on cement and aluminum sector decarbonisation; green transition of MSMEs

NITI Aayog has proposed setting up a National Project Management Agency (NPMA) and allocating 8-9% of the credit-guarantee fund value to help an estimated 69 million MSMEs in the country go green as India works towards becoming Net Zero by 2070. MSMEs alone have contributed 135 million tonnes of carbon emissions in 2022.

“The NPMA to be an independent consultative and advisory entity, to be monitored through an inter-ministerial committee and shall be responsible for driving the on-ground implementation of the programme by closely working with MSME clusters through an effective and transparent cluster selection process,” the Aayog said in its report on ‘Roadmap for green transition of MSMEs’, released on Wednesday.

The Aayog has called for supporting MSMEs in terms of technology upgradation, market access, and green transition to fulfil ‘Viksit Bharat’ goals by 2047.


“Transitioning to greener operations enables these enterprises to reduce their carbon footprint, conserve resources, and minimize waste, while enhancing productivity and cost-efficiency,” the Aayog said.

In a separate report on Roadmap for Cement Sector Decarbonisation, the Aayog has proposed increased usage of Refuse Derived Fuel (RDF) from municipal solid waste for substituting thermal heating from coal.

Further, it has suggested increased usage of supplementary cementitious materials or clinker substitutes and scaling up Carbon Capture, Utilisation and Storage (CCUS) in the cement industry for capturing CO2 in process emission.

“By using these three solutions, the Indian cement sector may reduce 80-85% GHG emission by 2070,” it said.

In a third report on Roadmap for Aluminium Sector Decarbonisation a three-stage process to reduce the sector’s carbon footprint.

This includes transition to renewable energy-round-the clock (RE RTC) power and grid connection in the short-term till 2030 followed by adoption of nuclear power in the medium term (between 2030 and 2040) and integration of Carbon Capture Utilisation and Storage (CCUS) with captive coal-based generation in the long term beyond 2040.

As per the report, aluminium production accounted for approximately 2.8% of India’s GHG emissions or 83 MTCO2 e in 2023, and without intervention, emissions could rise to 376 MTCO2 e by 2070, it said.