Green Data Centres

India’s digital economy is expanding at pace, and data centre capacity is set to grow from roughly 1.7 GW today to 9–12 GW by 2030, driven largely by AI and hyperscale cloud infrastructure. Electricity consumption from this sector alone is projected to jump from about 10–11 TWh in 2025 to 91 TWh by 2035 potentially reaching 7% of India’s total power demand by 2040, up from under 1% today.

Because data centres require 24x7 power reliability, decarbonizing them is not simply about adding renewable capacity; it requires round-the-clock (RTC) clean power, typically achieved through a combination of solar, wind, and battery or pumped hydro storage working together to match load at all hours. With most global hyperscalers holding 2030 net-zero commitments and over $120 billion in investment commitments flowing into India’s data centre sector, RTC renewable procurement is fast becoming the key pathway to keep digital infrastructure both reliable and clean.

Sustainable Manufacturing

Manufacturing is the backbone of India’s economic growth, and its decarbonization is central to achieving national climate targets without compromising industrial competitiveness. Energy-intensive processes such as captive power generation, process heating, and materials handling make manufacturing one of India’s largest industrial energy consumers, and several manufacturing-linked sectors (aluminium, cement, chlor-alkali, pulp & paper, petroleum refining, petrochemicals, textiles, fertilisers, and iron & steel) already fall under India’s mandatory carbon compliance framework.

Decarbonization pathways include shifting to round-the-clock renewable power through captive or group-captive models, adopting green hydrogen as a clean input for process heat, and integrating energy storage to manage load variability and cut reliance on fossil fuel backup power.

Carbon Market

Underpinning all sector-specific solutions is the need for a credible, transparent carbon market that can channel investment toward genuine emission reductions and reward early movers. India’s Carbon Credit Trading Scheme (CCTS), the country’s first mandatory compliance carbon market is now live, with binding emission-intensity targets notified for nine energy-intensive sectors covering roughly 740 entities and over 700 million tonnes of CO2e placing India among the largest emissions trading systems in the world.

Trading of Carbon Credit Certificates (CCCs) on regulated power exchanges is expected to begin around October 2026, with the first compliance filings due by 31 July 2026. Eight offset methodologies have already been approved, spanning green hydrogen, pumped hydro storage, industrial energy efficiency, and afforestation — creating a direct financial link between sector-level decarbonization projects and India’s evolving carbon economy.

Green Chemicals and Fertilizers

The chemicals and fertilizer industries are significant consumers of grey hydrogen today, primarily for ammonia and methanol production, making them among the earliest and most natural adopters of green hydrogen at scale. In a landmark move, SECI signed 10-year contracts in March 2026 locking in 724,000 tonnes per year of green ammonia supply to 13 fertiliser plants at roughly half the earlier benchmark price expected to save the country an estimated $2.5 billion in foreign exchange over the contract period and displace a share of the $6 billion in imported urea and DAP India currently relies on.

India formally notified national Green Ammonia and Green Methanol standards in February–March 2026, setting a clear emissions threshold (0.38 kg CO2e/kg) and certification pathway.

Clean Transportation

The transport sector is a major and growing source of India’s emissions, spanning road, rail, aviation, and maritime movement of people and goods. Decarbonizing mobility requires a mix of technologies suited to different vehicle classes and use cases: battery electric solutions work well for light vehicles and shorter distances, while green hydrogen and fuel cell technology are better suited to heavy-duty trucking, buses, and long-haul freight.

Shipping and aviation are increasingly looking toward green ammonia and e-fuels as viable low-carbon alternatives. Global engine manufacturers including MAN Energy Solutions, Wärtsilä, and WinGD are set to begin using ammonia in commercial cargo vessels this year, and India has designated Deendayal, Paradip, and V.O. Chidambaranar ports as dedicated hydrogen and derivatives hubs to support bunkering and export infrastructure.

Green Steel & Cement

Steel and cement are among the most carbon-intensive and hardest-to-abate sectors globally, given their reliance on high-temperature process heat and, in the case of steel, coking coal as a reducing agent. India’s steel industry is currently expanding capacity toward 300 million tonnes per year by 2030, but nearly 90% of its metallurgical coal is imported, exposing the sector to both emissions and energy-security risk.

Green hydrogen-based direct reduced iron (H-DRI) is emerging as a leading decarbonization pathway. India’s green steel demand could reach 4.49 million tonnes by 2030, requiring an estimated 5 million tonnes of hydrogen annually for steelmaking alone. In cement, producers are piloting hydrogen and its derivatives as kiln fuel substitutes, while carbon capture, utilisation, and storage (CCUS) offers a complementary pathway for residual emissions that fuel switching alone cannot eliminate.

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