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

Sangeeth Selvaraju and Parth Kumar

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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.

JEL-codes: J01 N0 R14 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2026-08-06
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