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Decarbonising the aluminium sector in India: implications of the Carbon Credit Trading Scheme

Author

Listed:
  • Selvaraju, Sangeeth
  • Kumar, Parth

Abstract

Few industrial materials are as crucial to the low-carbon transition in India as aluminium, which is essential in the manufacture of solar panels, and electric vehicle battery housings and transmission cables. But producing primary aluminium creates emissions of around 18–24 tonnes of carbon dioxide-equivalent (tCO₂e) in India, making it one of the most emission-intensive industrial processes in the world. The Indian Carbon Credit Trading Scheme (CCTS) aims to support the country’s climate commitments with a focus on decarbonising hard-to-abate sectors, including aluminium. This policy brief explores the reasons for the high emissions intensity of Indian aluminium, and the role of the CCTS in decarbonising the sector. It makes recommendations for ensuring that the CCTS delivers meaningful decarbonisation.

Suggested Citation

  • Selvaraju, Sangeeth & Kumar, Parth, 2026. "Decarbonising the aluminium sector in India: implications of the Carbon Credit Trading Scheme," LSE Research Online Documents on Economics 140335, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140335
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140335/
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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • N0 - Economic History - - General

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