Construction activity, particularly infrastructure development, is at the centre stage of India’s fiscal and public policy agenda. As a priority sector, government stimulus, coupled with increasing foreign investments and a healthy pipeline of construction projects, has boded well for the sector. Government-backed programmes such as the National Infrastructure Pipeline, the PM Gati Shakti National Master Plan, the Bharatmala and Sagarmala programmes, the construction of dedicated freight corridors and high-speed rail systems, and the development of greenfield airports, ports and urban rail-based transit systems have further provided an impetus to the construction business. Furthermore, the government is making efforts to improve the availability of affordable housing by offering subsidies. This initiative is promoting construction in smaller towns and cities across the country. A key ongoing initiative is the Central Vista Redevelopment Project in New Delhi. Under the recently announced Union Budget 2025-26, the centre has re-emphasised its strategic focus on Viksit Bharat @2047.
Currently, the sector is experiencing a much-anticipated economic upturn, after an intermittent period of pandemic-induced recession and election-related slowdown. However, it is essential to maintain an equilibrium between construction activities (infrastructure and buildings) and environmental conservation to effectively reduce the carbon footprint. This is especially true for embodied carbon, which are emissions associated with extraction, manufacturing, transportation, construction, installation, etc. For an economy like India, it is challenging to commit to the dual responsibility of fulfilling development aspirations while also curbing emissions and achieving net zero targets. This has brought both opportunity and responsibility into perspective. Parallel to the rapid construction taking place, there is a need to pursue carbon neutrality, a concept often emphasised but more often overlooked. This cannot remain a mere talking point and demands more concrete action, particularly with respect to the planning and management of embodied carbon. Both project contractors and the government are conscious of this, with policy and project execution efforts under way. Nevertheless, a foundation for a low-carbon future needs to be set. The construction sector – one of the most carbon-intensive industries – must lead this transformation.
Measuring policy wins and woes
Decarbonising the entire sector is a daunting task. Focus should be placed on sequestering embodied carbon, which becomes locked into long-term infrastructure assets. This requires emphasis on early-project-stage interventions for the sector to simultaneously improve compliance with current emission reduction targets and advance towards setting higher goals.
India has made notable policy strides in addressing overall climate change. Recent union budgets have embraced the green theme, balancing practical considerations and bold initiatives to pave the way for sustainable development and energy security. For instance, to mitigate the possibility of higher carbon emissions, India has introduced the Carbon Credit Trading Scheme. The Bureau of Energy Efficiency has finalised sector-specific emission targets for industries participating in the compliance mechanism. India’s climate strategy has been outlined in its nationally determined contributions under the Paris Agreement.
However, these policies, codes and standards do not necessarily address embodied carbons that get locked in long-term infrastructure assets. In fact, it is given little consideration in mainstream climate debates. Clearly, this concept can benefit from more public discourse. Moreover, it deserves to be on the agenda of international forums such as COP conferences to make a meaningful impact.
All in all, even though a host of policy measures have been implemented, the disconnect between policy formulation and practical implementation is a big setback. Addressing this requires a clear and focused top-down intervention from different levels of the government, complemented by active private sector participation.
The carbon we do not count
According to the Global Carbon Budget, India’s carbon emissions were projected to increase by 4.6 per cent in 2024, representing 8 per cent of global emissions, with projected increases from rises in emissions from coal (4.5 per cent), oil (3.6 per cent), natural gas (11.8 per cent, from a low base) and cement (4 per cent). This rise directly reflects the increasing energy demand in the country.
The development and construction of infrastructure are reliant on cement and steel, materials known for their substantial carbon footprint. However, the extensive use of these has been a result of the classic chicken-and-egg scenario. First, material providers have historically been slow to develop and offer low-carbon alternatives. Second, there exists minimal demand from contractors for such sustainable solutions.
Nevertheless, there have been some encouraging signs. A few key material providers, such as JSW Cement, the Navrattan Group and Ultratech Cement, have started manufacturing green cement. Many have committed to individual carbon neutrality targets by 2050. Additionally, serious efforts are under way to promote green steel – for instance, the recent introduction of the Green Steel Taxonomy.
These positive shifts suggest the sector is somewhat aligning itself with the broader decarbonisation goal. However, more needs to be done in terms of on-ground implementation. For instance, reduction strategies must be thoroughly studied to analyse their economic viability and scalability in India, required capital expenditure, technology maturity and other factors. Best practices from other countries can also help set the foundation and avoid potential pitfalls.
Strategic next steps and global learnings
Multiple cross-cutting enablers offer potential for decarbonising the construction sector, including carbon capture usage and storage systems, natural climate solutions, material circularity and green hydrogen. However, currently, the sector is being held back by challenges accompanying every solution.
A pragmatic starting point for the construction sector can be the adoption of prefabrication to reduce embodied carbon. Efforts have been made and shown promise across infrastructure projects such as the redevelopment of the Chandigarh railway station, Jewar airport, and the steel bridge on the Bajwa-Chhayapuri chord line of Western Railway. In fact, back in 2023, the centre approved the precast policy for constructing national highways. Another promising solution is ground granulated blast furnace slag, a by-product of iron manufacturing in blast furnaces. However, stricter and widespread on-ground implementation and adoption are crucial.
To promote a circular economy, globally, many countries are now making strides towards abating embodied carbon in the construction and building sector. For example, across Europe, geopolymer cement and calcined clay cement are being used and low carbon steel making and carbon capture storage facilities have gained traction. Similar efforts need to be mirrored in the Indian construction sector. Policy-wise, constant efforts are being made in the country, with equal emphasis being given to the construction of buildings, along with infrastructure development. For instance, the Achievable Action Plan for Net-Zero Carbon Buildings is a recent and remarkable initiative. In line with this, Nagpur has become the first city to take a decisive step towards sustainability by launching its Zero Carbon Buildings Action Plan.
Given its growth trajectory, the path to sustainable development offers India significant advantages that outweigh the costs involved. Taking decisive steps within this decade is crucial, as this forward-looking approach will allow India to harness its growth momentum.
From oversight to opportunity
The Indian construction sector, encompassing infrastructure and building development, faces gaps in addressing its carbon emissions. Fixing any one part of the built environment is not enough to stop climate change. This demands more than isolated solutions. Traditional approaches have proven insufficient in tackling the sector’s environmental impact. Instead, going forward, comprehensive evaluation methods, including whole-building life cycle assessments and systems-based approaches, are essential to accurately measure and address embodied carbon emissions in construction projects.
The sector has several opportunities to reduce emissions through practical implementation strategies. The adoption of alternative, low-carbon materials such as fly ash bricks, bamboo and timber offers significant potential to reduce embodied carbon emissions. Furthermore, implementing circular economy principles through material reuse and recycling can substantially minimise construction waste and associated emissions. The integration of solar panels and other renewable energy systems can decrease fossil fuel dependence. Increasing the construction and demolition waste recycling rates and recovering valuable materials presents another impactful solution. To this end, in September 2024, the Ministry of Road Transport and Highways issued guidelines to promote the use of urban solid waste in national highway construction, demonstrating growing regulatory support for sustainable construction practices.
Developing a comprehensive national road map for net zero carbon buildings is crucial for India’s sustainable economic development. Such a framework would create market certainty, address supply-demand gaps, facilitate necessary financing and drive market transformation. Right now, India has a unique opportunity to position itself as a global leader in low-carbon construction.
Building on its “Atmanirbhar” spirit, by developing manufacturing capabilities for low-carbon materials, India can compete effectively in global supply chains and prove that economic growth and emissions reduction are compatible goals.
By Harman Kaur Mangat
