India produces roughly 4 billion tons of CO2e, about 17% of which is attributed to building and infrastructure (B&I) sector. As such, there is no viable route to net-zero without construction industry doing heavy lifting. I recommend that the Honourable Finance Minister include measures in the 2024 Indian Budget to promote a shift in the construction sector towards low-carbon and resource-efficient practices.

The construction sector mainly produces emissions from the use of high-carbon intensity materials, their transport to building sites, and the operation of heavy machinery. It's clear that without decisive action, the carbon footprint of the construction industry will continue to rise.

The B&I sector is highly fragmented with different stages, processes and stakeholders having an impact on the GHG emissions in the life cycle. Decarbonizing this sector is challenging and requires a targeted approach that addresses every stage from raw material extraction to debris disposal and recycling. Thankfully, the Government can play an outsized role in driving this transition, especially with its own spending being more than 70% of the total infrastructure investment in India.

Define:

• Publish detailed guidelines and standards for sustainable construction and green building material
• Develop a national green building rating system that considers both operational and embodied carbon

Drive:

• Implement a "green public procurement" policy that progressively increases use of sustainable and low-carbon materials and methods
• Give precedence to contractors which show dedication to sustainability and reducing carbon emissions
• Mandate a complete Scope 1-2-3 life-cycle assessment for all new construction projects over Rs 1,000 Crore

Invest:

• Establish a National Green Construction Fund
• Fund R&D of innovative building materials and tech
• Financial incentives for creation of precast and prefabrication centers
• Encourage use of low-carbon construction materials through incentives.

Finally, it's essential to aim high when implementing decarbonisation initiatives. It should be India's goal to attract top-tier technology and become a leader in the energy transition. That would mean competing with global economies for expert talent and manufacturing capabilities. Embracing a larger scale can offer cost advantages and serve as an incentive for investment.

By adopting these strategies, the Government can foster a supportive policy and economic landscape that encourages the sector to shift to low-emission alternatives. Not only would this assist India in achieving its environmental targets, but it would also establish the nation as a frontrunner in eco-friendly construction practices worldwide.

Himanshu Chaturvedi
Chief Strategy & Growth Officer
Tata Projects