India's Clean Industry Transition Faces Major Hurdles, Risks Missing Global Decarbonisation Opportunity

India is pushing to become a leader in the clean industrial transition among emerging economies, boasting a pipeline of 53 clean-industry projects, a number tied with Australia for the highest in the critical 'new industrial sunbelt.' However, a report by the Mission Possible Partnership highlights significant roadblocks preventing these projects from progressing. Crucially, none of these 53 projects have secured final investment decisions this year.

The report identifies several key hurdles: outdated construction rules and slow regulatory reforms are hindering the adoption of cleaner technologies, particularly in the cement industry. High financing costs in emerging markets like India also make clean-industry projects less bankable. Despite some projects having secured buyers and partial funding, they are stalled awaiting clear regulations, permits, and essential infrastructure like power transmission access.

Furthermore, the lack of demand-side regulation in India, such as mandates for blending clean products or green procurement rules, is a critical gap that fails to stimulate market demand for sustainable industrial goods.

**Impact** This situation has significant implications for India's economic future and its climate goals. If these policy and regulatory gaps are not addressed, India risks falling behind other regions that are actively investing in and benefiting from the global industrial transformation towards decarbonisation. The report contrasts India's situation with China, which has accounted for a substantial majority of global clean-industry investment decisions this year. This news is highly relevant for investors looking at the future of Indian manufacturing, energy, and infrastructure sectors, as well as the nation's commitment to sustainability and economic competitiveness. Rating: 7/10.

**Definitions** * **Clean-industry transition**: Shifting industries towards processes and products that significantly reduce greenhouse gas emissions and environmental impact. * **Emerging economies**: Countries that are in the process of rapid growth and industrialization, moving towards developed status. * **Project pipeline**: A list or collection of potential projects that are in various stages of planning and development. * **New industrial sunbelt**: A term referring to countries rich in renewable energy resources, considered crucial for the next phase of global decarbonisation efforts. * **Decarbonisation**: The process of reducing the amount of carbon dioxide emitted into the atmosphere. * **Final investment decision (FID)**: The point at which a company commits the capital required to fully fund and build a project. * **Calcined clay**: A type of clay that has been heated to a high temperature, used as a supplementary cementitious material in concrete to reduce its carbon footprint. * **Low-carbon cement blends**: Cement formulations that incorporate alternative materials or processes to reduce the overall carbon emissions associated with cement production. * **Bankability**: The ability of a project to secure financing from lenders, usually based on its financial viability and risk profile. * **Demand-side regulation**: Government policies aimed at influencing consumer or industrial demand for specific products or services, such as mandates or incentives. * **Blending mandates**: Regulations requiring the use or inclusion of a certain percentage of a specific product (e.g., low-carbon materials in cement) in final goods. * **Green procurement rules**: Policies that require government agencies or corporations to purchase environmentally preferable products and services. * **Enabling policy frameworks**: A set of supportive laws, regulations, and government strategies designed to facilitate and encourage specific economic activities or transitions.