Cement production is inherently emission-intensive, making the industry one of the hard-to-abate sectors, accounting for 7 per cent of the global CO2 emissions as of 2025. At the same time, rapid urbanisation and rising infrastructure and housing demand are expected to sustain strong global demand for cement. Given that the public sector is among the major consumers of cement through the numerous infrastructure projects they undertake, the use of public procurement as an instrument to drive low-carbon pathways assumes importance. In particular, it is expected that green public procurement would help bridge the green premium associated with producing low-carbon cement by creating assured markets, increasing technology deployments and associated price signals.
The study aims to employ a Computable General Equilibrium (CGE) model to assess the economy-wide impacts of Green Public Procurement (GPP) for cement. The model will simulate how procurement policies affect production, prices, trade, employment, fiscal outcomes, and emissions, while capturing interactions across sectors through backward and forward linkages.
