India's Green Steel and Cement Demand Through Public Procurement

India's Union Cabinet has set ambitious targets for its third Nationally Determined Contribution (NDC) for 2031-2035, aiming for a 47% reduction in emissions intensity from 2005 levels. Public procurement, which constitutes 20-22% of India's GDP, is identified as a critical mechanism to stimulate demand for low-carbon steel and cement, essential for the country’s infrastructure projects.

The steel sector alone accounts for 10-12% of national emissions and faces challenges in adopting green technologies due to cost barriers. Current procurement practices prioritize lowest price over environmental performance, hindering market incentives for low-carbon solutions.

Reforms in procurement policies, such as incorporating environmental criteria and lifecycle costing, can foster a transition to greener materials. The cement industry is projected to grow significantly, presenting opportunities for innovations like Limestone Calcined Clay Cement (LC3). Establishing clear guidelines and financial incentives within procurement processes could accelerate the adoption of these low-emission technologies.