1

Perspectives on sustainable

development from

India’s cement industry

CSI Forum 2011

Caroline Twigg

WBCSD India Coordinator

2

156 large plants,

365 mini plants

World’s second

largest producer:

272 mt

37 mt capacity

added 2009-10

Average annual

kiln capacity

2,860+ tpd

India’s cement industry

3

Installed capacity and production

Installed

Capacity

Production

100

120

140

160

180

200

220

240

260

280

'05-'06 '06-'07 '07-08 '08-09 09-10 10-11

Mil

lio

n T

on

s

Source: CMA

4

Cement industry v economic development

Source: CMA

5

5

Projected growth

80% of India’s 2030 infrastructure:

‘not yet built’ (McKinsey)

Source: CMA

6

6

Proactive stance to

strengthen India’s

position re:

International cl ch

efforts

Clean technologies

Sustainable growth

BenefitsDrivers

Vulnerability to

climate change impact

Voluntary

commitment to lower

India’s emission

intensity by 20-25%

below 2005 levels by

2020

Rapid infrastructure

expansion -

technological choices

to be made

Encourage developed

nations to act on

climate change

mitigation, adaptation,

finance, and technology

transfer

Contribution to climate

change mitigation

Economic benefits Clean tech investment

Increased energy

security

Job creation and

economic growth

Low carbon growth in India

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Aims:

• Ensure low-emission growth trajectory

• Ensure developmental issues fully integrated into

climate change framework

• Become global hub for energy efficiency in industry,

buildings, residential and commercial sectors

• Play key role in identification, development and

utilization of new and renewable energy sources

India’s response to climate change

8

Initiativesof GoI

Expert Group (on Low Carbon Strategies for Inclusive Growth)

Prime Minister’s National Action Plan on Climate Change (NAPCC)

Perform Achieve and Trade (PAT)

Renewable Purchase Obligations (RPOs) and Renewable Energy Certificate (REC) Mechanism

Energy Efficiency Norms for Buildings

Standards and Labeling Scheme

National Urban Transport Policy

Govt of India’s key initiatives

9

Energy Intensive

Sectors

• Market-based mechanism

• Enhance cost effectiveness of en eff improvements

• Certification of tradable energy savings

‘Perform, Achieve, Trade’ (PAT scheme)

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10

1. 41 CDM projects (27 registered) = 29.55m Certified

Emission Reduction (CERs)

2. Increasing focus on AFR use

3. R&D on carbon capture eg algal growth

4. Increased RE use

5. Indian Cement Industry Low Carbon Technology

Roadmap (WBCSD/IEA + IFC support)

6. Continuous ambient air quality monitoring stations

installed in all plants: Dec 2011

Cement industry’s response to climate change

11

11

High energy efficiency

12

2000 & 2009 thermal energy consumption (MJ / ton clinker)

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

Africa +

ME

Asia ex.

China,

India,

CIS and

Japan

Brazil Central

America

China CIS Europe India Japan

Aus NZ

North

America

South

America

ex.

Brazil

2000

2009

Average energy efficiency: world-class (GNR)

80% of the Indian installations are more efficient than the 10% best in

Europe and North America

Limited potential to improve thermal energy efficiency per ton clinker

High energy efficiency

13

13

1980

DRY

33%

WET

61%

SD

6%

2010

DRY

97%

WET

2%

SD

1%

1990

DRY

76%

WET

21%

SD

3%

1960

DRY

1%

WET

94%

SD

5%

Changing process profile

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Low AFR use in Indian cement industry

No clarity yet on integration into PAT scheme

Thermal energy by fuel (All GNR Participants - Geographical)

(All GNR Participants - Geographical)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

1990

2000

2005

2006

2007

2008

2009

Africa + ME Asia ex. China,

India, CIS and

Japan

Brazil Central America China CIS Europe India Japan Aus NZ North America South America

ex. Brazil

Fossil and mixed wastes Biomass Fossil fuel

Room for improvement on AFR

15

Hazardous waste availability - State wise

Country’s largest consumer

Total HW generation 6.23mt (Source: CPCB)

Hazardous waste availability (by state)

16

Room for improvement on AFR

Barriers

• Considered ‘fairly new’ process = fear of:

• Loss of production

• Quality impact

• Equipment corrosion

• Safety issues

• ‘Lack of cheap technology’

• Lack of policy and regulatory incentives

• Unclear cost/payment structures with waste

providers

• Cross-state transport problematic

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India: highest number of road deaths globally

1% of world's vehicle population, but nearly 10% of

the road traffic fatalities

Road accident deaths increasing 1,140,000 (2007) to

1,180,000 (2008)

60-70% of fatal road crashes in India involve

commercial transportation vehicles, ie trucks, buses

Safety

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Challenges

• 3.3m km ‘roads’: 71,000km highways …

20,000km single lane, small % concrete

• Industry growth = increased transport

• Safety standards not implemented … corruption

+ poor regulation

• Vehicles often not roadworthy

• Driving training not adequate

• Majority of transport = contracted

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Water

• Industry = third priority for use after residential

and agriculture

• Low / inconsistent availability

• State-of-art plants:

70 L water / ton cement

• Extensive rainwater

harvesting

• Water-sharing dialogue

Source: Outlook India (2009)

20

CSI in India

54% of

national

production

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Activities

• CEO-led

• Driving safety project (safety breakout Tues pm)

• India Cement Industry Low Carbon Technology

Roadmap (LbS Wedn am)

• Growing relationship with Trade Association

(CMA)

22

Thank you