What is India's pathway to limit global warming to 1.5°C?

Industry

Last update: 15 March 2022

The industrial sector accounts for the largest share of total primary energy demand, at 38% in 2019, growing at an annual rate of 5% during the last 10 years.1 Electricity demand across the sector has steadily increased since 1990, and reached 42% in 2019.2 1.5°C compatible pathways show the share of electricity in industrial energy mix increasing between 30-31% by 2030, and 46-71% by 2050 from the 2019 level of 19%. Additionally, all scenarios show the sector’s direct CO₂ emissions declining rapidly, between 59-60% by 2030, and 88-96% by 2050, from a 2019 level. This decline is mostly driven by an increased share of renewables in the energy mix and energy efficiency measures.

India's energy mix in the industry sector

petajoule per year

Scaling

Fuel share provided refers to energy demand only from the industry sector.

Currently, primary energy demand in industry is dominated by fossil fuels (58% in 2019), comprising of coal (35%) and oil (19%). All analysed 1.5°C compatible scenarios (except one) peak fossil energy demand by 2020, and show a declining trend thereafter to a 4-22% share by 2050.

In 2019, industrial process emissions accounted for 8% of total emissions (excl. LULUCF) (270 MtCO₂e/yr in 2019), and have been increasing since 1990 at an annual rate of 4%.3 The analysed 1.5°C pathways demonstrate a declining trend in process emissions from 2025 reaching –64 to 41 MtCO₂e/yr by 2050.

Energy efficiency measures in industries across India play a significant role in reducing energy consumption of this sector. One of the main energy efficiency instruments is the Perform, Achieve and Trade (PAT) Mechanism.4 Two cycles of PAT between 2012- 2019 resulted in total savings of approximately 92 MtCO₂e. Other energy efficiency initiatives and electrification in the Micro, Small and Medium Enterprises (MSME) sector have led to total avoided emissions of 0.124 MtCO₂ in 2018-19.5,6 India could further explore the scope of mitigation measures in the iron and steel industries, in particular the use of green hydrogen.7,8

India's industry sector direct CO₂ emissions (of energy demand)

MtCO₂/yr

Direct CO₂ emissions only are considered (see power sector for electricity related emissions, hydrogen and heat emissions are not considered here).

India's GHG emissions from industrial processes

MtCO₂e/yr

1.5°C compatible industry sector benchmarks

Direct CO₂ emissions, shares of electricity, and combined shares of electricity, hydrogen and biomass from illustrative 1.5°C pathways for India

Indicator
2019
2030
2040
2050
Decarbonised industry sector by
Direct CO₂ emissions
MtCO₂/yr
637
231 to 236
17 to 150
24 to 67
2037 to 2046
Relative to reference year in %
-64 to -63%
-97 to -76%
-96 to -89%
Indicator
2019
2030
2040
2050
Share of electricity
per cent
19
30 to 31
39 to 55
47 to 72
Share of electricity, hydrogren and biomass
per cent
46
57 to 62
72 to 86
79 to 95

Fuel share provided refers to energy demand only from the industry sector. BECCS are the only Carbon Dioxide Removal (CDR) technologies considered in these benchmarks.
Only direct CO₂ emissions are considered (electricity, hydrogen and heat emissions are not considered here; see power sector for emissions from electricity generation). All values are rounded. Year of full decarbonisation is based on carbon intenstiy threshold of 5gCO₂/MJ.

Cookie settings

Just like other websites, we use cookies to improve and personalize your experience. We collect standard Internet log information and aggregated data to analyse our traffic. Our preference cookies allow us to adapt our content to our audience interests.