Net Zero Report 20-5-2024
Net Zero Report 20-5-2024
Net Zero Report 20-5-2024
JOURNEY
TO NET ZERO
A CONCEPTUAL
FRAMEWORK
FOR ANALYSIS
Ajay Shankar | Sanchit S Agarwal | Taruna Idnani
INDIA’S JOURNEY TO NET ZERO
A CONCEPTUAL FRAMEWORK
FOR ANALYSIS
SUGGESTED CITATION
Shankar A, Agarwal S S, and Idnani T. 2024. India’s Journey to Net Zero: A Conceptual Framework
for Analysis, New Delhi: The Energy and Resources Institute.
TERI’s Industry Charter for Near Zero Emissions Ambition by 2050, instituted in the year 2020,
is a coalition of like-minded industries bound in their voluntary pledges to reduce greenhouse
gas (GHG) emissions and united in their belief in the role of industries in achieving the Paris
Agreement goals.
The Coalition shares best practices, facilitates outreach and communicates technology and
business models on industrial decarbonization among key stakeholders such as industry groups,
global organizations, government and financial institutions.
The findings, analysis and outlook from the paper “India’s Journey to Net Zero: A Conceptual
Framework for Analysis” will be helpful for the Coalition in their annual and long-term
planning. It will also aid in the allocation of resources towards credible actions on their
decarbonization pathways.
Dr Vibha Dhawan
Director General, TERI
1.0 INTRODUCTION..........................................................................................................................1
1.1 Objective of the Paper....................................................................................................................................... 2
1.2 Conceptual Framework..................................................................................................................................... 3
5.0 CONCLUSION.......................................................................................................................20
6.0 REFERENCES........................................................................................................................ 22
In the landmark 2015 Paris Agreement on Climate Change adopted at The Conference of the
Parties to the United Nations Framework Convention on Climate Change (UNFCCC) 21, or COP
21, all the 196 nations parties to the UNFCCC resolved to limit global mean temperature rise to
well below 2°C and pursue efforts towards restricting temperature rise to 1.5°C. According to
the Intergovernmental Panel on Climate Change (IPCC), temperature rise should not cross 1.5°C
(IPCC, 2023).
At COP28 in November 2023, the IPCC warned that with current policies, global warming was
set to cross 3°C (UNEP, 2023). This would be an unmitigated disaster. To avoid this, immediate
and deep emissions reductions were imperative. The G20 Summit held under India’s Presidency
in September 2023 in its declaration reiterated “…commitment to achieve global net zero GHG
emissions/carbon neutrality by or around mid-century…”
At COP26, held at Glasgow in 2021, Prime Minister Shri Narendra Modi announced that by 2030
India would create 500 GW of fossil fuel free power generating capacity and would reduce the
emissions intensity of its GDP by 45% from its 2005 level (MEA, 2023). This is one of the highest
increases in ambition of responsible climate leadership in the short run.
The Prime Minister also announced that India would become net zero by 2070. This gives India an
additional 10 years from 2060, the year that China has announced for achieving net zero. This is
reasonable as India is still at an early stage of development.
Figures 1 and 2 represent per capita and total emissions on a global level (Crippa et al., 2023).
Russia 17.99
USA 17.90
China 10.95
EU 27 8.09
Global Total 6.76
Brazil 6.05
Indonesia 4.47
India 2.79
0 5 10 15 20
tCO2eq/capita
China 15685
USA 6017
India 3943
EU 27 3588
Russia 2580
Brazil 1310
Indonesia 1241
Internaonal shipping 751
Internaonal aviaon 426
D1b D2b
R1
R2
D2a
D1a
Year Year
2.34%
8.41%
Energy
13.44%
Agriculture
Waste
Industrial Processes and
75.81% Product Use
1400
1240
1200
Electricity producon
1000 Manufacturing industries and construcon
Transport
Residenal
800 Commercial-Instuonal
MtCO2eq
Refinery
Fugive
600 Biomass burnt for energy
Manufacturing of solid fuels
405 Agriculture/Fisheries
400
315
200 159
110
83
36 15 9 3
0
Year Year
12 90
80
10
70
% of EV (3W and Bus)
8 60
50
% of EV
6
40
4 30
20
2
10
0 0
2015 2016 2017 2018 2019 2020 2021 2022 2023
Percentage
Time
Decline in per unit of electricity emissions
0.7 0.668
0.658
0.6
0.548
0.5 0.477
0.4
0.3
0.2
0.1
0
0
30
-2
-2
-2
-3
20
19
20
26
29
d
20
20
20
20
n
yo
Be
Figure 9: Change in share of ICE vehicles and EVs and decline of carbon emissions per unit of electricity
The Indian Railways have a 3% share of transport emissions. They have announced their intention
to reach net zero by 2030. This could be achieved with the following measures:
• Completion of full electrification of Railways for all passenger and freight movement.
• Electricity consumed by Railways would have to become carbon-free by 2030. For this the
use of captive solar power generation with green energy open access would be necessary.
R1
R2 D2
D1
Year
Hard-to-abate sectors are those in which current levels of technology and costs today are such
that decarbonization appears difficult. These sectors include industry, shipping, aviation, and
agriculture. In some sectors such as agriculture, carbon sinks will be the primary or the only
solution for achieving net zero.
India has plans to transition towards Green Hydrogen economy. The Ministry of New and Renewable
Energy (MNRE) has launched Green Hydrogen Mission (MNRE, 2023) which will build capabilities
to produce at least 5 million metric tonne (MMT) of green hydrogen per annum by 2030, with
potential to reach 10 MMT per annum with growth of export markets. It is envisaged that green
hydrogen production, supply, and uses would create the ecosystem and the domestic capacities
for rapid scaling up by the end of this decade. The Mission aims to develop and scale up green
hydrogen production technology and make it affordable and widely accessible.
4.1 Industry
India’s industry emissions (manufacturing industries and construction) is about 405 MtCO2eq
(NITI Aayog, 2024), which is about 13% of total national emissions. The industrial sector accounted
for 56% of total energy consumption in 2021–22 (BEE, 2022). Approximately half of all industrial
carbon emissions originate from the following six large industrial segments:
a) Iron & Steel
b) Cement
c) Aluminium
d) Fertilizer & Ammonia
e) Pulp and Paper
f) Petrochemicals
The CO2 emissions from the industrial sector can primarily be attributed to combustion of fossil
fuels in furnaces and boilers, process emissions and electricity usage in the plants.
The main pillars of industrial decarbonization are:
D1b D2b
R1
R2
D2a
D1a
Year Year
To shift to a greener path and decouple growth from increase in emissions would be a difficult
challenge for each industry. Technologies for doing away with the use of fossil fuels in production
need pilot projects to discover the cost. Pilot projects need to be taken up in each industry
segment as the technology for lower carbon or carbon free production emerges. India could try
and be on the global frontier in decarbonization of industry.
4.2 Shipping
Green hydrogen or green ammonia made from green hydrogen are potential carbon-free
substitute fuels for engines in shipping. In the shipping sector, pilot projects may be started to
discover costs for both.
From an air and water pollution perspective all inland waterways should become fossil fuel-
free under a national programme. Smaller boats can use electric engines and the larger ones,
hydrogen-based fuel.
4.3 Aviation
In the aviation sector, India may have to follow global trends. The key is development of planes by
the global majors, Boeing and Airbus, which can run on biofuel or hydrogen. For short haul flights,
even electric routes might be feasible.
India could also choose to become more ambitious. It could begin a programme for development
of hydrogen-based engines for aviation either on its own or in partnerships with others global
players.
4.4 Agriculture
The agriculture sector is the main source of CH4 and N2O emissions. Methane (CH4) emissions
250
223
Agriculture emissions (MtCO2eq)
200
150
100 88
73
50 28
8
0
Enteric Fermentaon Agricultural soils
Rice Culvaon Manure Management
Field Burning of Agricultural Residues
The pathway to decarbonization of electricity has some clarity. Modelling exercises and alternative
scenarios with cost implications which are reasonably realistic can be generated. These can
be revised and updated as the transition unfolds. Peaking of emissions from electricity can be
achieved without additional costs and may even result in some cost savings.
Reducing emissions from their peak to zero would have costs. But there could be potential gains
if the transition is well planned, and these may offset partially or even fully the costs from the
phasing out of thermal power and consequent closure of coal mines at a future date. This would
need ongoing analysis and stakeholder consultations in the coming years.
Electrification of surface transport creates the pathway for reduction of emissions in tandem
with the decarbonization of the electricity sector. As emissions from electricity reach zero and all
transport becomes green, about 50% of our present emissions would get eliminated.
For the hard-to-abate sectors, it is too early to see the contours of the journey to net zero. Pilot
projects for downstream use of solar thermal and green hydrogen in different segments need to
be implemented. Some clarity on the higher cost resulting from the giving up of the use of fossil
fuels as well as the potential for cost reduction with scale would emerge on completion of pilot
projects. A view on the affordable pathways to net zero in each of the hard-to-abate sectors could
then emerge under alternative scenarios.
Some emissions are expected to continue in segments where hydrogen and electricity cannot
be a full substitute for the existing use of fossil fuels. Cement is a good example. No substitute
is available to replace cement and no technological advancement has taken place to fully
decarbonize its manufacturing process.
The absorption of such residual emissions would be a challenge. Creation of sinks through
afforestation would be one option. Carbon capture and storage (CCS) and carbon capture
utilization and storage (CCUS) would be the other options. These may need to be utilized for the
last steps in the journey to becoming net zero.
This paper is a simplified macro view of the pathways to net zero in the major GHG emitting sectors
and sees the transition through the prism of decoupling of growth and increase in total energy
consumption from carbon emissions which would peak, plateau and then decline to become
net zero.
Each sector has complexity and would need detailed modelling, generation of alternative
scenarios with timelines and cost implications. Alternative policy instruments for facilitating and
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