Built Environment: Growing infra with heat stress

Economic Opportunity

Over 50% of urban infrastructure that India needs till 2050 is yet to be built, with a USD 2.4 trillion investment estimate by 2050 for new, resilient, and low-carbon infrastructure [World Bank]. India is the second largest cement producer (8% of global capacity) and the second largest steel producer in the world [IBEF], and one of the fastest growing markets for cooling demand, presenting a huge market for adoption of solutions.

Growth drivers

Cooling Loads: 1Bn+ people in India could face extreme heat stress, and cooling demand is expected to 8x by 2037 signifying high building adaptation and cooling pull [RMI].

Building Energy Efficiency: Rising energy consumption in summer is causing increased stress on the grid, with building cooling alone being 40-50% of evening peak demand in 2024 [WRI India].

Green Infra Premium: Green certified buildings are already commanding a premium in major India cities, and the need for sustainable infrastructure is emerging in residential and commercial buildings, as well as data centres. [CREDIA Colliders]

Policy Tailwinds

Building Codes: Energy Conservation Building Code (ECBC) is guiding energy efficiency, sustainability and RE integration in commercial buildings.

Green Building Ratings: Buildings certified under GRIHA and IGBC get extra Floor-Area-Ration and property tax rebates from many states and cities.

CCTS: Under the new Carbon Credit Trading Scheme, cement plants now have emission intensity targets (2.7-6.6% reduction in FY27 against a FY24 baseline) [ICAP].

Customers

• Real Estate Developers, Architects and Structural engineers
• Cement manufacturers, RMC players
• Buildings Managers & Users (IT Sector, Hotels, Hospitals, RWAs)
• Industrial: Data centres,
• Urban Local Bodies (ULBs)

Policy Makers & Regulators

• Ministry of Housing & Urban Affairs
• Ministry of Power (Bureau of Energy Efficiency)
• Bureau of Indian Standards (BIS) sets National Building Code
• Central Pollution Control Board
• Green Building Councils (GRIHA, IGBC)

Embodied emissions overlooked

ECBC codes as well as green building certification bodies like GRIHA, IGBC and LEED have mainly focused on operational emissions, giving low importance to embodied emissions, which reduces incentive for builders to adopt new innovations.

Low carbon material usage and material waste

Traditionally conventional (OPC) cement is preferred over low carbon alternatives due to reliability and strength; frequent overspecification of material leads to redundancy.

ECBC has been upgraded to ECSBC 2024, which brings embodied carbon into focus, though the adoption depends on states notifying the new codes.

Nonetheless, developers are moving towards internal sustainability mandates due to higher rental rates and investor interest in green properties.This is expected to drive demand for new materials and innovations which meet green goals while keeping costs low.

The Bureau of Energy Efficiency (BEE) is incentivizing energy efficiency in buildings, as energy security for India could benefit from lower consumption in buildings, which can be achieved through passive design, building management systems and efficient appliances.