Cement Manufacturers Association (CMA)

71 7. Industrial and Economic Impact For cement producers, CCTS changes emissions from a pure compliance issue into a cost-and- revenue variable. Efficient plants may generate surplus credits and improve competitiveness, while high-emission plants will face additional procurement and penalty costs. This creates a stronger incentive for investment in efficient kilns, waste heat recovery, alternative fuels, and product reformulation. For the broader economy, the scheme can stimulate waste management, biomass logistics, low-carbon materials markets, and green employment. It can also improve the international competitiveness of Indian cement by reducing exposure to carbon border measures and tightening global procurement standards. However, the transition costs may be uneven, especially for smaller or older facilities. 8. Conclusion The CCTS scheme is a significant policy shift for India's cement industry because it introduces a measurable, tradable, and enforceable carbon performance framework. Its success depends not only on emissions targets but also on credible MRV, market liquidity, and supportive industrial policy. In the cement sector, CCTS should be viewed as an enabling mechanism rather than a standalone solution. The strongest outcomes will emerge where the scheme is combined with RDF supply chains, clinker substitution, green procurement, performance-based standards, and targeted support for CCUS pilots. If implemented with regulatory consistency and technical discipline, CCTS can become a practical engine for industrial decarbonisation in India. References 1. ICAP Carbon Action, “Indian Carbon Credit Trading Scheme.” 2. NITI Aayog, Roadmap for Cement Sector Decarbonisation, January 2026. 3. Bureau of Energy Efficiency / Government of India, CCTS compliance mechanism and sectoral implementation information. 4. Down to Earth, “India sets first-ever GHG emission intensity targets under CCTS.” 5. India Climate Action Portal, sectoral CCTS coverage and scheme design details.