Aluminium Industry Needs Rs 2.2 Lakh Crore For Net-Zero Emissions: Study – EQ
In Short : A study suggests that the aluminium industry requires Rs 2.2 lakh crore investment to achieve net-zero emissions. This underscores the substantial financial commitment needed to transition towards sustainable production practices and combat climate change.
In Detail : New Delhi : The aluminium industry in India will require a capital expenditure of nearly Rs 2.2 lakh crore to achieve net-zero carbon emissions, according to a study released by the Council on Energy, Environment and Water (CEEW).
The study suggests that renewable energy could potentially abate 49 per cent of the industry’s total emissions.
However, a complete transition to renewable energy is unfeasible due to its intermittent nature, necessitating backup systems for reliability during grid failures.
The independent study provides an estimate for decarbonising this critical industry, which is one of India’s fastest-growing sectors.
Despite India’s relatively low per capita aluminium consumption of 2.5 kilograms compared to the global average of 11 kilograms, the industry emitted a whopping 77 million tonnes of carbon dioxide in 2019-20, primarily from the electricity used by the plants.
Achieving net-zero emissions could make aluminium production 61 per cent more expensive, with an annual operational cost of about Rs 26,049 crore, according to the study.
The study identifies energy efficiency improvements and waste heat recovery as potential emission-reducing measures without increasing aluminium costs, although these measures can mitigate only 8 percent of total emissions. Other measures, such as renewable energy adoption and carbon capture, entail additional costs.
India has committed to achieving net-zero emissions by 2070 and aims to have 50 per cent of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
