Green Aluminum: Challenges and Opportunities for India

Abstract

Aluminium is among the most recyclable materials on Earth, with nearly 75% of all aluminium ever produced still in use, a testament to its infinite recyclability without degradation in quality. However, the production of primary aluminium remains one of the most energy and carbon-intensive industrial processes, contributing nearly 2% of global CO₂ emissions, a figure comparable to the total emission of some large countries. In sharp contrast, recycled aluminium requires only 5% of the energy used in primary production and emits as little as 0.3 tonnes of CO₂ per tonne, offering a significantly lower environmental footprint. As global demand surges for low-carbon materials across sectors like construction, transportation, and electronics, Green Aluminium, has emerged as a strategic imperative for climate-smart industrial growth. Despite noteworthy progress by global leaders such as Norsk Hydro and Alcoa, India remains behind the curve. Currently, less than 10% of its aluminium can be considered green, primarily due to a coal-dominated power mix, underdeveloped recycling infrastructure, and the absence of a green certification standard.

This paper evaluates India’s green aluminium readiness through comparative global benchmarking, domestic industry case studies, and a structural policy analysis. It identifies four critical levers for enabling the transition: scaling aluminium recycling, adopting round the clock renewable power, instituting a transparent carbon grading and labelling framework, and advancing technology and policy pathways, including CCUS, battery storage, and green hydrogen. The paper concludes with a central policy recommendation: that India must urgently define and adopt a national taxonomy for “Green Aluminium” as a foundational step toward aligning industrial policy, environmental goals, and export competitiveness in this vital sector.