Transforming construction: Strategies to slash emissions and achieve India's net-zero goals
India stands at a crossroads of economic prowess and environmental stewardship, with its rapid growth marking it as a pivotal player on the global stage. Home to nearly a sixth of the global population, the nation’s economic expansion is remarkable, yet faced with the profound challenge of climate change.
In a significant commitment made at COP26, India has set its sights on achieving net zero emissions by 2070. This is an achievable target, provided we know where to focus.
The construction and real estate sectors account for a substantial 32% of India’s greenhouse gas emissions. These sectors encompass both operational and embodied carbon where embodied carbon refers to the carbon footprint of a product before its use. In the case of a building, embodied carbon would be the carbon footprint from extraction & production of materials needed, their transport, and the construction process. Its operational carbon would refer to its carbon footprint during its usage lifetime.
The current policy landscape within India’s real estate and construction sectors, with initiatives like AMRUT, the Energy Conservation Building Code (ECBC), and the Eco Niwas Samhita (ENS), are focused on reducing operational carbon while embodied carbon has had lesser focus (the new ECSBC draft does include focus on embodied carbon which is a move in the right direction). This leaves a significant gap considering India is on the trajectory to become the world’s fifth-largest economy, coupled with an unprecedented rate of urbanisation projected to include 600 million people by 2031.
The promise to imbibe low-carbon materials
India needs to make a strategic shift towards low-carbon materials during the design phase. Supplementary cementitious materials (SCMs) such as fly ash and ground-granulated blast-furnace slag (GGBFS) can replace Portland cement in concrete mixes by up to 30% and 50% respectively, offering a comparable reduction in emissions along with enhanced strength and durability.
Innovative insulation solutions that incorporate recycled paper and natural fiber can further reduce embodied carbon, while also being scalable.
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Engineered wood products such as cross-laminated timber (CLT) and glue-laminated timber (glulam) can replace concrete and steel. These materials not just reduce embodied emissions but also bring aesthetic and structural diversity to building design.
Why (production) process matters
Substituting coal with biomass for fuel during cement production can reduce emissions by approximately 20%, resulting in only a 1% material cost increase by 2030. Further, advancement in furnace technology, such as using scrap steel and transitioning to renewable energy sources, can further cut embodied carbon.
It’s also possible to capture CO2 during cement production. Carbon capture can cut emissions up to 90%, although this will also escalate material costs by up to 15% by 2030.
Optimising the construction process
Transitioning to electric-powered heavy machinery and generators on construction sites can lead to a remarkable 90% decrease in emissions, contingent on sourcing electricity from renewable resources. This change not only diminishes reliance on fossil fuels but is also projected to become cost-neutral by 2030.
Making use of prefabrication also holds promise. This method can enhance project timelines, reduce costs, elevate construction quality, and minimise waste — all while reducing emissions.
Prefabrication only makes up only 2% of India’s construction, and that’s predominantly for warehouses, industrial spaces, and significant infrastructure projects like bridges and metro systems.
If extended to other areas like housing and healthcare, such structures can also bring the benefit of increased resilience to extreme weather conditions, such as heatwaves, floods, and cyclones, which are now increasingly common due to climate change.
Policy enablers
However, to unlock value from the above levers, we need the right policy enablers in place to.
Firstly, we need a national framework for assessing embodied carbon. We can build on existing reference frameworks such as the The Royal Institute of Chartered Surveyors’ Whole Life Carbon Assessment
Secondly, the central government needs to enforce a mandate on reporting and quantifying embodied carbon for all major construction undertakings. This can help accumulate valuable data and help identify areas for improvement
Given the carbon markets initiative with thresholds on carbon footprint per sector are to be mandated by FY 25 / 26 – the limits on embodied carbon could be enforced within this framework so we have one central market-based mechanism to drive down carbon.
Thirdly, any policy related to buildings will likely come under the concurrent list, so while the policies at the center can be well drafted and comprehensive, implementation from state governments is crucial to move the needle.
Finally, a free digital public good in the form of a national carbon emissions database for the built environment should be created, with extensive inputs from industry players and made available for free to practitioners. With aggregated data for each material category and sub-category, such tools should aim to demystify the process of assessing and reducing carbon emissions, making sustainable practices a standard consideration in all construction projects.
Financing the green transition
Last year heralded a wave of green finance initiatives in India. The national budget underscored green growth as a pivotal agenda, allocating funds for hydrogen energy, energy storage, renewables, and eco-friendly agricultural practices. A landmark moment was the issuance of India’s first green sovereign bond, which garnered $1 billion, showcasing the viability of securing funds at a lower cost than traditional debt. The Reserve Bank of India (RBI) has also announced forthcoming guidelines focused on climate stress testing, climate disclosure, and green banking practices.
However, there is a long way to go – the Council on Energy, Environment, and Water (CEEW) posits that upwards of $10 trillion is required from 2020 to 2070, emphasising the sheer scale of investment needed to achieve India’s ambitious net-zero targets.
India needs to define sustainable finance on its own terms. The taxonomy recommendations drawn up by India’s Task Force on Sustainable Finance incorporate social and just transition guidelines from the outset alongside familiar environmental financing goals. This fundamental human dimension could well become India’s signature contribution to global sustainable finance efforts.
There is a need to mobilise all the above enablers at pace to unlock all the levers outlined to mitigate embodied carbon. This year is crucial, and doubling down on the policy moves, particularly during the election season, could be the right start to this journey.
