TERI Authors Urge $0.5 Trillion Public Procurement Push for Green Steel, Cement to Meet 2035 Targets
Updated
Updated · Hindustan Times · May 9
TERI Authors Urge $0.5 Trillion Public Procurement Push for Green Steel, Cement to Meet 2035 Targets
8 articles · Updated · Hindustan Times · May 9
India’s roughly $0.5 trillion annual public procurement market should be used to create demand for green steel and cement, Taruna Idnani and Shailly Kedia argued after the Cabinet cleared 2031-2035 climate targets.
By 2035, India aims to cut emissions intensity 47% from 2005 levels and lift non-fossil power capacity to 60%, making demand-side support critical for hard-to-abate industries.
Steel alone accounts for about 10-12% of India’s emissions, and green steel can cost 25-40% more to produce, though the authors said that raises final project costs by only 1-2%.
For cement, they pointed to LC3 as a lower-carbon option with operating costs 13-27% below conventional cement, but said procurement rules still favor the lowest-price bid over environmental performance.
The authors called for standard definitions, greener tender documents, lifecycle costing, a centralized procurement portal and financial support, arguing government buying can scale low-carbon materials and avoid long-term carbon lock-in.
As the EU’s carbon tax hits, can India's green procurement plan save its vital steel industry from a crippling 32% cost hike?
Producers are ready to make green steel, but can India’s government truly afford the 40% premium on its infrastructure projects?
India's $500 Billion Green Procurement Push: Transforming Steel and Cement for a Net-Zero Future
Overview
India is at a turning point in 2026, where the energy transition has become essential, not just a policy choice. With ambitious national targets like 500 gigawatts of non-fossil capacity by 2030 and Net Zero by 2070, experts are calling for a major public procurement push for green steel and cement. This move aims to unlock inclusive growth through new technologies and protect India’s economic security. By embracing green steel, India can bypass carbon tariffs and reduce risks from volatile coking coal prices, helping the country meet its 2035 climate goals and strengthen its position in global trade.