UPSC Notes

India's Industrial Decarbonisation Strategy and Policy Gaps

PYQs

8

Articles

1

Momentum

21

Phase IFoundation

Background

Overview

This concept is central to India's sustainable development goals, its international climate commitments (Paris Agreement, Net-Zero 2070), and the effectiveness of its domestic environmental policies. It highlights challenges in policy implementation and data-driven governance.

Industrial decarbonisation is a critical component of India's long-term climate goals, including achieving net-zero emissions by 2070, while simultaneously pursuing economic growth targets like Viksit Bharat (2047). It involves reducing greenhouse gas emissions from manufacturing and construction sectors.

Phase IIStatic core

Facts & tables

Key facts

Industrial Emissions Contribution

Industrial sector contributed over 20% of India's total emissions in 2022, as per India's First Biennial Transparency Report (BTR1) to UNFCCC.

Existing Mitigation Mechanisms

Market-based mechanisms like the Perform, Achieve and Trade (PAT) scheme and the Carbon Credit Trading Scheme (CCTS) target specific energy-intensive industries (e.g., cement, steel, fertilizers).

Policy Gap: 'Non-specific Industries'

A significant policy gap exists as 'non-specific industries' account for over 40% of manufacturing and construction emissions but largely fall outside the scope of current mitigation policies.

Need for Data Disaggregation

Effective decarbonisation requires disaggregated data and targeted policies for these overlooked 'non-specific industries' to achieve national climate targets.

Reference table

Key Industrial Emission Mitigation Schemes

SchemePrimary FocusCurrent Status/Scope
Perform, Achieve and Trade (PAT)Reduce specific energy consumptionCovers 13 energy-intensive industries; 4 industries (thermal power, railways, DISCOMs, commercial buildings) continue under PAT.
Carbon Credit Trading Scheme (CCTS)Reduce emission intensityTransitioning from PAT; covers 9 industrial sectors (e.g., aluminium, cement, iron & steel, textiles).

Reference table

Static syllabus anchors

TypeReference
Conceptual areaEnvironmental Law & Policy
Conceptual areaAir Pollution & Emissions

Reference table

Institutions & roles

BodyRole
United Nations Framework Convention on Climate Change (UNFCCC)International reporting framework
Niti AayogData and policy analysis
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Multi-statement analysis

Prelims angle: Conceptual understanding

Quick revision

  • Industrial sector contributes >20% of India's total emissions (BTR1, 2022).
  • PAT and CCTS are key market-based mechanisms for industrial emission reduction.
  • PAT focuses on energy consumption, CCTS on emission intensity.
  • Over 40% of industrial emissions from 'non-specific industries' are largely uncovered by current policies.
  • Disaggregated data and targeted policies are crucial for effective decarbonisation and net-zero goals.

High-confidence PYQs

Topic timeline

Environmental Law & PolicyAir Pollution & Emissions

India’s patchy industrial climate strategy

24 Jun 2026 · India's industrial decarbonisation strategy, crucial for net-zero 2070, faces challenges due to a significant portion of emissions from 'non-specific industries' being outside the scope of key policies like PAT and CCTS, necessitating better data and targeted interventions.

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Current topic

India's Industrial Decarbonisation Strategy and Policy Gaps

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