Introduction –
As the world races toward net zero, a handful of sectors stand at the fault lines of the energy transition—indispensable to modern life, yet among the hardest to decarbonise. From the vast oceans navigated by global shipping to the skies dominated by aviation, from steel mills and cement kilns powering industrial growth to the invisible yet energy-hungry backbone of information technology, these are the engines of progress that cannot simply be switched off.
In this cover story, we turn the spotlight on eight hard-to-abate sectors to unpack why cutting their emissions is uniquely complex. High energy intensity, legacy infrastructure, long asset lifecycles, and the lack of scalable alternatives pose formidable barriers.
Yet, change is underway. Across these sectors, new fuels, breakthrough technologies, efficiency gains, and bold policy interventions are reshaping pathways to net zero. This feature explores the tensions, transitions, and turning points defining the next chapter of industrial decarbonisation.
- Shipping – Tides of Change
Grappling With Complex Shifts And Extensive Asset Lifecycle
Behind the seamless flow of global trade lies an industry grappling with one of the hardest decarbonisation puzzles. Few sectors illustrate the complexity of the net-zero transition as starkly as global shipping. Ocean-going vessels rely on dense, affordable bunker fuels to power long voyages efficiently. While alternatives such as green hydrogen, ammonia and e-methanol show promise, they remain costly, less energy-dense and unavailable at scale. Adopting them would require major engine retrofits or new vessel designs—an expensive challenge for an industry built around 20–30-year asset lifecycles.
In India, the transition is even more complex. Most ports are designed for conventional fuels, and shifting to green bunkering demands new storage systems, safety protocols and integrated fuel supply chains. Although initiatives such as green-hydrogen hubs and cleaner coastal shipping are underway, supporting infrastructure is still nascent.
Uncertainty over future fuel choices and evolving global regulations makes investment risky for ship owners. With limited access to green fuels across international routes, pilot projects signal intent—but scaling them remains the real test.
Transition to Zero –Transition Towards Green Seas
India’s maritime sector is undergoing a huge structural shift towards sustainability. Through the Harit Sagar – Green Port Guidelines, the government has laid out a clear and actionable framework to align port operations with India’s net-zero ambitions and climate commitments.
A key pillar of the guidelines is clean energy adoption. Ports are expected to meet more than 60% of their power demand from renewable sources by 2030, with this share increasing to nearly 90% by 2047. Supporting infrastructure will be developed in parallel, including LNG bunkering facilities by 2030 and green hydrogen and ammonia bunkering by 2035. To enable cleaner internal mobility, ports will be equipped with EV charging stations by 2025.
The guidelines place strong emphasis on reducing emissions from day-to-day port operations. A phased electrification plan targets 50% electrification of cargo-handling equipment and port vehicles by 2030. Diesel-based cranes, forklifts and trucks will be progressively retrofitted or replaced with electric and low-carbon alternatives. Port crafts such as tugs and pilot boats are also expected to transition to future fuels, including hydrogen, methanol and ammonia.
One of the most impactful interventions is the introduction of shore-to-ship power. By allowing vessels to plug into onshore electricity while docked, ports can significantly cut emissions from auxiliary engines. This facility is planned to cover all major vessel categories by 2025.
Beyond energy transition, the framework prioritises resource efficiency. Ports are required to reduce freshwater use, reuse 100% of treated wastewater, harvest rainwater and explore desalination options. Continuous air and water quality monitoring, independent environmental audits, improved waste management and incentive-linked compliance further strengthen governance.
Collectively, these measures position Indian ports as active participants in the country’s journey towards a low-carbon maritime economy.
- Aviation – Shifting Skies
Riffed With Thin Margins And Rising Compliance Obligations
Despite rapid growth, India’s aviation sector faces one of the hardest clean-energy transitions. The challenge is rooted in physics: flying depends on energy-dense fuel, and jet fuel still delivers far more energy per kilogram than today’s batteries. As a result, electric or hydrogen aircraft remain limited to small planes and short routes—far from viable for a fast-growing, long-haul aviation market like India’s.
Sustainable Aviation Fuel (SAF) offers the most practical near-term solution. It can reduce emissions without modifying aircraft, and India has access to promising feedstocks such as agricultural residue, used cooking oil and municipal waste. However, SAF production remains nascent and costly. While refiners like Indian Oil Corporation are upgrading facilities, expected volumes this decade are modest, and blending targets remain in low single digits through 2030.
Cost pressures further complicate the transition. Airlines already operate on thin margins and face rising compliance obligations under global frameworks like CORSIA. With limited domestic SAF supply and evolving regulations, decarbonisation remains necessary—but deeply challenging.
Transition to Zero – A Pragmatic Policy-Led Approach
India’s push to decarbonise aviation is no longer limited to long-term pledges—it is taking shape through concrete, on-ground changes at airports across the country. Under the Sustainable Green Airports Mission (SUGAM), the Ministry of Civil Aviation (MoCA) has made sustainability a central pillar of aviation policy, with airports leading the sector’s transition toward net-zero operations
Airports are a natural starting point, as electricity accounts for nearly 90% of airport-related emissions. To tackle this, MoCA has driven a rapid shift toward renewable energy. As of March 2025, 87 Indian airports—most operated by the Airports Authority of India—are running on 100% green power through a combination of on-site solar generation, open-access renewable procurement and green electricity tariffs. The government now aims to extend this model to over 100 airports by 2025, creating a clear pathway to net-zero airport operations by 2050
Energy efficiency is reinforcing this transition. New terminal buildings are being developed as GRIHA- and LEED-certified green structures, while existing airports are being retrofitted with LED lighting, high-efficiency HVAC systems, smart energy management platforms and electric ground support equipment. These investments are delivering a dual benefit—lower emissions and improved cost efficiency for airport operators
Operational reforms are extending the impact beyond terminals. Air traffic management initiatives such as collaborative decision-making, performance-based navigation and continuous descent operations are helping airlines reduce fuel burn and congestion. At the industry level, the government’s push for Sustainable Aviation Fuel, with blending targets starting from 2027, signals a longer-term roadmap for decarbonising flight operations themselves
These measures reflect a pragmatic, policy-led approach—one that aligns industry growth with India’s long-term climate goals, without losing sight of commercial realities.
- Steel – Forging Tomorrow
Weighed By The Chemistry Of Production And Process Emissions
Steel sits at the heart of India’s economic growth, but it is also one of the most difficult industries to decarbonise. Unlike many sectors, steel’s emissions are not just linked to energy use; they are built into the chemistry of production. Most Indian steel is made using coal-based blast furnaces or direct reduced iron processes, where coking coal removes oxygen from iron ore, releasing carbon dioxide as an unavoidable by-product. Switching to renewable power alone does not eliminate these “process emissions.”
India’s challenge is compounded by its reliance on coal, the quality of domestic raw materials, and the scale of existing steel assets designed for long operational lifetimes. Cleaner pathways — such as hydrogen-based steelmaking, electric arc furnaces, carbon capture, and greater use of scrap — are emerging, but remain costly and infrastructure-intensive. Green hydrogen requires abundant clean power and new supply chains, while scrap availability is still limited.
At the same time, rising global pressure through carbon-linked trade measures adds urgency. For Indian producers, decarbonising steel is not a quick transition, but a long, capital-heavy transformation that must balance climate goals with growth and competitiveness.
Transition to Zero – Robust MRV System for Green Steel
As one of India’s most emissions-intensive industries, steel contributes nearly 10–12% of national greenhouse gas emissions, making government intervention both necessary and urgent. In response, the Ministry of Steel has laid out a structured roadmap to guide the sector towards a lower-carbon future, without compromising growth or global competitiveness.
A central pillar of this strategy is the creation of an India-specific definition of green steel. Acknowledging the sector’s continued dependence on coal and limited access to scrap and affordable natural gas, the government is adopting a pragmatic approach that rewards incremental emissions reduction rather than mandating an immediate shift to zero-carbon production. This framework will be supported by a robust monitoring, reporting and verification (MRV) system, a green steel certification mechanism and a national registry, aligned with the upcoming India Carbon Market.
The roadmap places strong emphasis on energy efficiency and renewable energy as near-term, scalable solutions. Existing initiatives such as the Perform, Achieve and Trade (PAT) scheme are being strengthened, while the Ministry has set an ambitious target of around 45% renewable electricity penetration in steelmaking by 2030–31. Policy coordination, access to finance and demand aggregation—especially for smaller producers—are key enablers of this transition.
The government is also promoting material efficiency through iron ore beneficiation, pelletisation and higher scrap utilisation to reduce emissions and resource intensity. At the same time, it is supporting process transitions, including the use of natural gas as a bridge fuel, pilot projects for hydrogen-based steelmaking, and early deployment of biochar and carbon capture technologies.
Together, these measures—reinforced by targeted support for finance, research, skills and governance—aim to deliver a realistic, phased transition that steadily lowers the steel sector’s carbon footprint while preserving its long-term competitiveness.
- Railways – On Track
Burdened Under Aging Infrastructure And Massive Scale
India’s railways represent an engineering feat but pose a decarbonisation challenge due to their massive scale, handling billions of passengers and vast freight annually. Small inefficiencies thus generate substantial emissions. Progress in electrification and efficiency has lowered carbon intensity, yet fully replacing fossil fuels across the expansive network is tough.
Long-haul passenger and freight trains require sustained high-power traction, which batteries can’t provide due to low energy density. Green hydrogen and synthetic fuels lack scale, while electrification merely relocates emissions to the power grid—needing renewables, storage, and upgrades for true cleanliness.
Challenges intensify with aging infrastructure, varied terrains, service continuity demands, plus financing and coordination hurdles, rendering rail among India’s hardest sectors to decarbonise fully.
Transition to Zero – A Systematic Multi-Pronged Strategy
Indian Railways is spearheading India’s transition to net zero emissions through a multi-pronged strategy, aligning with the Panchamrit goals of net zero by 2070. The focus includes shifting cargo from road to rail, rapid electrification, green energy adoption, and innovative technologies.
A key measure is the “Road to Rail” initiative. Cargo volume surged from 1,055 million tons in 2013-14 to 1,617 million tons in 2024-25, making it the world’s second-largest cargo railway. This shift has averted over 143 million tons of CO2 emissions—equivalent to planting 121 crore trees—while saving 2,857 crore liters of diesel and ₹2 lakh crore in fuel costs. Rail transport emits 90% less CO2 than trucks and cuts logistics expenses by nearly half, yielding ₹3.2 lakh crore in savings over the decade.
Electrification has accelerated dramatically: from 21,000 km in the 60 years pre-2014 to 47,000 km in the last 11 years, achieving 99% coverage of the broad gauge network. This reduces oil import dependence and powers cleaner operations.
Dedicated Freight Corridors (DFCs), with 2,741 km operational, are fully electrified high-capacity lines that decongest roads, slash diesel use, and curb emissions. Railways is integrating green energy for stations, factories, workshops, and train operations in partnership with states.
Cutting-edge zero-emission tech includes the world’s most powerful hydrogen-powered train, set to run between Jind and Sonipat in Haryana, carrying 2,600 passengers.
These efforts position Indian Railways to achieve net zero (Scope 1) by 2025—five years ahead of PM Modi’s 2030 target—balancing economic growth with ecological responsibility.
- Road Transport and Highways
Choking Under Vehicular Emissions And Massive Earthworks
The transport sector contributes about 14% of the total global emissions of greenhouse gases, including carbon dioxide. Pollution is a critical global issue, prompting significant efforts from governments and agencies worldwide, including India, to mitigate its impact. Vehicular emissions are a major contributor to this problem.
However, the road and highways sector presents a unique challenge—it is a hard-to-abate sector for environmental concerns, particularly in a developing economy where infrastructure expansion is crucial. While the Ministry of Road Transport and Highways recognises that economic growth and job creation depend on a robust road network, this development inherently impacts the environment in complex ways.
The challenge lies not just in vehicle pollution, but also in the physical construction process: quarrying materials, handling massive earthworks, and the emissions from construction machinery. Furthermore, the expansion of highways often leads to habitat fragmentation and land-use change, compounding the environmental toll. The government therefore, must balance this necessary infrastructure development with a commitment to preserving the environment, striving to make growth sustainable rather than costly.
Transition to Zero – On The Road To Cleaner Mobility
The Ministry of Road Transport and Highways (MoRTH) is actively spearheading several key initiatives to mitigate vehicular pollution and transition toward cleaner mobility, balancing crucial infrastructure development with environmental preservation.
A cornerstone of this effort is the Vehicle Scrapping Policy: Converting Waste to Wealth. This policy establishes an eco-system for the phased, eco-friendly removal of unfit and polluting vehicles. It is a strictly voluntary process, targeting both commercial and passenger vehicles based solely on their fitness, irrespective of age, aiming to significantly reduce vehicular emissions and air pollution.
To promote alternative fuels, the Ministry has mandated the adoption of mass emission standards for various blends of ethanol, specifically notifying standards for E10 (10% ethanol), E12, E15, and E20, and previously for E85 and E100. The Bureau of Indian Standards (BIS) has also set fuel specifications for E20. Vehicle manufacturers are now required to specify and display the ethanol compatibility level of their vehicles via a clearly visible sticker.
Furthermore, MoRTH is boosting electric vehicle (EV) infrastructure. E-Charging Stations at Wayside Amenities (WSAs) are being integrated into new projects awarded by NHAI. Under the FAME India Scheme Phase-II, MHI has awarded work to entities like EESL’s consortium for setting up EV charging stations along 16 major National Highways and Expressways.
Finally, the Ministry has ensured safety for green agricultural technology by amending the Central Motor Vehicle Rules, 1989. This includes inserting Rule 125J to incorporate safety requirements for electric power trains in Hybrid (A6) and Pure Electric (A7) Agricultural Tractors, mandating conformity to the Automotive Industry Standard (AIS) 168:2021.
- Cement Industry
Labouring Under Unavoidable Processes And Residual Emission
The cement industry is a hard-to-abate sector because its core manufacturing process inherently produces large amounts of CO₂. Cement production contributes 8–9% of global greenhouse gas emissions, and 5–7% of total global CO₂ emissions, making it one of the most carbon-intensive industrial activities. In India, the sector is a major source of both overall and residual emissions, and demand is expected to rise due to the country’s infrastructure expansion. A key challenge is calcination, the chemical process where limestone is heated to produce clinker; this reaction unavoidably releases CO₂, meaning emissions cannot be fully mitigated through process efficiency alone. Although 80–90% of emission abatement can be achieved through alternative fuels and CCUS, these solutions require significant investment. Decarbonizing the sector also brings an incremental cost of Rs. 2–2.5 per kg of cement, underscoring the financial and technological hurdles involved in transforming this essential but emissions-heavy industry.
Transition to Zero – The Vital Tool Of CCUS
Decarbonising the cement sector is vital for meeting the country’s long-term environmental goals, and CCUS must play a crucial role in reducing emissions in this hard-to-abate industry. Carbon Capture, Utilisation, and Storage (CCUS) provides essential tools for decarbonizing sectors critical to India’s economic growth, such as cement, which heavily relies on fossil fuels. It enables a cleaner coal-gasification economy, supporting the sustainable use of India’s vast coal reserves. CCUS also strengthens the hydrogen economy by enabling blue hydrogen production and paving the way for a broader shift toward green hydrogen based on renewable energy. Additionally, CCUS can create new economic opportunities in the cement sector by establishing emerging markets.
Leading cement companies are adopting multiple decarbonisation strategies, including optimising production processes, improving energy efficiency, and increasing the use of renewable energy sources. Maximising alternative fuels such as biomass and waste-derived fuels is another key approach to reduce dependence on fossil fuels. Companies are also developing and promoting low-carbon cements with higher levels of clinker substitutes. Moreover, they are actively exploring the feasibility of various CCUS technologies, including carbon capture, utilisation, and storage solutions.
Globally, around 48 CCUS initiatives have been undertaken by major cement producers, with a total emissions-reduction potential of approximately 36.44 MT CO₂ per year. While many projects remain in the study or pilot phase, several have advanced to full-scale commercial development and are expected to become operational within the next five years. The industry can further advance by producing sustainable cement with lower clinker content, reducing CO₂ emissions by nearly 40%, and accelerating the adoption of technologies like LC3 to support green infrastructure and real-world applications.
A combination of decarbonisation efforts and carbon capture technologies is crucial for achieving Net-Zero emissions in the cement sector.
- The Chemical Sector
Confounded by energy intensive reactions and complex processes
The chemical sector is considered a hard-to-abate industry on the path to net-zero by 2070 because its operations are inherently carbon intensive and deeply embedded in global value chains. As demand for chemicals rises with population growth and higher living standards, production is expected to expand significantly, making emissions reduction even more challenging. Many chemical processes require high temperatures, fossil-based feedstocks, and energy-intensive reactions, limiting the availability of low-carbon substitutes. At the same time, chemicals remain essential for a low-carbon transition itself—providing materials for solar panels, wind turbines, energy-efficient buildings, and lightweight automotive components that improve fuel and electricity efficiency. This dual role creates a complex challenge: the sector must decarbonise while simultaneously enabling decarbonisation across other industries. Transitioning to cleaner technologies, alternative feedstocks, and scalable innovations will therefore be critical, but difficult, making the chemical sector one of the toughest to transform in achieving net-zero by 2070.
Transition to Zero – An Alchemy Of Green Chemistry
The Union Government has identified the chemical and fertilisers sector as a critical focus area for achieving the national target of Net Zero by 2070. As part of its broader priorities—digital economy, education, energy transition, environment and climate sustainability—the government is pushing for rapid digitalisation, greener technologies, and circular economy practices across chemical and petrochemical manufacturing. The Department of Chemicals & Fertilizers has highlighted multiple initiatives aimed at promoting green chemistry, reducing waste, and encouraging efficient resource use. It is also working to strengthen technological capabilities and create a supportive policy environment to attract global green investment.
The manufacturing sector is a major contributor to India’s greenhouse gas emissions—with chemicals and fertilisers among the highest carbon emitters—the sector must undergo a significant transformation. Companies will need to adopt cleaner technologies and invest in extensive research and development, which may require higher capital and operating costs compared to traditional operations. Achieving deep decarbonisation will require a combination of demand-management strategies and technological innovations. Key measures include accelerating circular economy practices such as plastics recycling, improving energy efficiency, adopting advanced catalysts, and shifting to low-carbon fuels like biomass and green hydrogen.
Additionally, electrification of heat, including cracker furnace electrification, the use of electrochemical processes, and the deployment of carbon capture, utilisation and storage (CCUS) will be essential. Transitioning to hydrogen-based ammonia production, biomass-fired boilers, and bio-based feedstocks will further reduce emissions. Together, these efforts signal a comprehensive national push to align the chemical sector with India’s long-term climate commitments.
- Information and Technology
Riddled with a growing digital divide and consumer need
Digitalisation is rapidly increasing energy demand and resulting in greenhouse gas emissions, with two-thirds of the world now online. The Information and Communication Technology (ICT) sector is a significant contributor, with this report estimating its share of global carbon emissions at a minimum of 1.7 percent.
A major challenge is the people living, mostly, in low and middle-income countries, who remain unconnected. Bridging this digital divide will require substantial new infrastructure and devices, which will inevitably escalate demand for energy and further increase emissions if targeted interventions are not implemented. The report’s objective is to break down the sector’s energy and emissions profile, including an assessment of the 30 highest-emitting countries for telecommunications, and to provide global estimates for other ICT segments. This data, which utilises the GHG protocol corporate standard, will then be used to address crucial policy and regulatory implications.
Transition to Zero – The ‘Game-Changer’ Technology
The Ministry of Electronics and Information Technology (MeitY) plays a crucial role in India’s net-zero strategy by focusing on technology and innovation to drive sustainability and energy efficiency.
A key contribution is the support for developing Low Voltage Direct Current (LVDC) Systems, specifically 48V systems, through C-DAC. This technology is hailed as a “game-changer” for green energy integration and cost-effective power distribution, offering substantial 20-30% energy savings. Its potential is being piloted in administrative buildings through collaboration with the Kerala Development and Innovation Strategic Council (K-DISC).
MeitY also prioritizes Indigenous Technology Development for clean energy solutions. This includes developing wireless chargers for electric vehicles (EVs) that can charge batteries to 90% in three hours. This initiative directly supports the national push for e-mobility and aims to significantly reduce transport-related emissions.
Recognizing the country’s need for massive investments in data centers and digital infrastructure, MeitY ensures that its policies for rapid digitalization and data centers are aligned with the net-zero goals. This involves ensuring the energy consumption of this infrastructure is highly efficient and, where possible, powered by renewable sources.
Furthermore, MeitY engages in extensive collaboration with other Ministries. This includes working with the Ministry of Railways on indigenous propulsion technologies and participating in inter-ministerial working groups coordinated by NITI Aayog. These collaborations ensure a comprehensive, technology-driven approach to the national decarbonisation roadmap. Through these initiatives, MeitY is vital in creating the technological backbone for India’s transition to a low-carbon, sustainable economy.
