CRU explains how to understand India’s complex carbon emissions problem

India’s coal-dependent power infrastructure gives the country a high-carbon intensity for metal production. CRU’s Global Carbon Emissions Service will help to solve this complex power puzzle. Data from CRU’s Global Carbon Emissions Service shows the average intensity of CO2 emissions from Indian aluminium production is 48% higher than the global average. This is unsurprising as a significant proportion of India’s power production is coal-based.

Indeed, India’s environmental and developmental context is visible in the country’s power mix. For example, hydropower, which globally reduces carbon emissions in aluminium production, is a power source which brings its own share of problems in India. And while India does not have a carbon tax as defined in the rest of the world, there are other ways in which India does tax carbon in coal.

Indian aluminium producers can reduce their emissions, but the approach may be very different to other parts of the world. In this Insight, CRU explores the challenges and seeks to answer some of the most pressing questions.

Indian power generation growth will be primarily coal-based
The growth in power generation in India is expected to be primarily driven by coal. While there is competition expected to come from renewables – particularly from solar and wind – the share of coal is expected to remain high. Though the share of power from coal is expected to reduce only to 59% by 2030 (compared to 70% in 2019), actual power production from coal is expected to increase from 1,166 TWhr in 2019 to 1,492 TWhr in 2030.