Resource Efficiency Report

Dimensions, Challenges and Possible Solutions
November 2013
Indias Future Needs for Resources

Institute for
Energy and Environmental
Research Heidelberg GmbH
The Energy and
Resources Institute
Consortium
IFEU Institut fr Energie - und Umweltforschung Heidelberg GmbH
(Lead of Consortium)
Jrgen Giegrich, Claudia Kmper, Axel Liebich, Chistoph Lauwigi
TERI The Energy and Resources Institute
Dr. Ligia Noronha, Dr. Shilpi Kapur, Arpita Khanna, Ipsita Kumar, Dr. Trishita Ray Barman,
Aastha Mehta, Souvik Bhattacharjya, Ankit Narula, Akshima Tejas Ghate, Priyanka Kochhar
Dr. Monika Dittrich Independent Consultant
SERI Sustainable Europe Research Institute
Stephan Lutter, Dr. Stefan Giljum
Wuppertal Institute
Prof. Dr. Raimund Beischwitz, Henning Wilts, Susanne Fischer
GIZ Deutsche Gesellschaft fr Internationale Zusammenarbeit
Dr. Dieter Mutz, Kristin Meyer, Dr. Ashish Chaturvedi, Enrico Rubertus, Dr. Detlev Ullrich
A. Introduction 1
B. Resources: What are we talking about? 3
C. General drivers of demand in India 6
D. Current and future dimensions of Indias resource requirements 10
D.1 Rationale and approaches for ecient use of natural resources 12
D.2 Past and current material requirements in India 15
D.2.1 Methodological and data-related preliminary remarks 15
D.2.2 Past and current material consumption in India 16
D.3 Future material requirements 19
D.3.1 Where will the materials come from? 22
E. Key raw materials within the sectors 33
E.1 Chromite 34
E.1.1 Trends in production, consumption, and trade 34
E.1.2 Supply security concerns for chromite 35
E.2 Molybdenum ores 37
E.2.2 Supply security concerns 37
E.3 Limestone 38
E.4 Copper ores 40
E.5 Cobalt ores 43
E.6 Conclusion 45
F. Concept of life-cycle thinking to analyse resource eciency 46
G. Challenges and solutions in the hot-spot sectors automobile construction,
and renewable energy 47
G.1 Automobile Sector 47
G.1.1 Introductory description of the sector in general and in India 47
G.1.2 Development of automobile sector worldwide and in India 47
Contents
i
ii Indias Future Needs for Resources
G.1.3 Economic relevance of the sector 48
G.1.4 Requirements of natural resources 49
G.1.5 Drivers of demand in the sector 49
G.1.6 Specic description of selected technical aspects 50
G.1.7 Meeting resource eciency 51
G.2 Housing Sector 59
G.2.1 Introductory description of the housing sector in general and in India 59
G.2.2 Development of the housing sector worldwide and in India,
and implications for mineral consumption 59
G.2.4 Requirements of natural resources in the housing sector 61
G.2.5 Drivers of demand in the sector 64
G.2.6 Specic description of selected technical aspects 65
G.3 Renewable Energy Sector 75
G.3.1 Introductory description of the sector in general and in India 75
G.3.2 Development of the Renewable Energy Sector Worldwide and in India 76
G.3.4 Requirements of natural resources in the renewable energy sector 77
G.3.5 Drivers of demand and future prospects 78
G.3.6 Description of selected technical aspects 80
G.4 Conclusions from the case studies 86
H. Resource eciency in the context of Asia 88
H.1 India 89
H.2 Resource-eeciency policies around the world 89
H.3 Europe 2020 strategy 90
H.4 UNIDO: Green Industry Initiative 91
H.5 Germanys Raw Materials Strategy 92
H.6 Germanys Resource Eciency Programme (ProgRess) 92
H.7 Japans resource agenda 93
H.8 Koreas resource approach 94
H.9 Taiwan 95
H.10 9. Further initiatives 96
I. Findings and Conclusion 97
J. Outlook and Recommendations 99
References 100
Image Source 109
Annex I 110
Annex II 113
Annex III 115
ANS Adjusted Net Savings
BEE Bureau of Energy Eciency
BGS British Geological Service
BIS Bureau of Indian Standards
BREEAM Building Research Establishments
Environmental Assessment Method
BRIC Brazil, Russia, India, China
Cafe Corporate Average Fuel Economy
CAGR Compound Annual Growth Rate
CASBEE Comprehensive Assessment System for
Building Environmental Eciency
CEA Central Electricity Authority
CMCR Centre for Macro Consumer Research
CIA Central Intelligence Agency
CIPEC Intergovernmental Council of Copper
Exporting Countries
CO
2
Carbon Dioxide
CP Cleaner Production
CPWD Central Public Works Department
CSE Centre for Science and Environment
C-WET Centre for Wind Energy Technology
DEMEA German Material Eciency Agency
(Deutsche Material Ezienz Agentur)
DGCA Directorate General of Civil Aviation
DG ENV Directorate General for Environment
DIREC Delhi International Renewable Energy
Conference
DMC Domestic Material Consumption
DRC Democratic Republic of Congo
ECBC Energy Conservation Building Code
EIO eco-innovation observation
Abbreviations
EITI Extractive Industries Transparency
Initiative
EU European Union
FAO Food and Agriculture Organization
GARC Global Automotive Research Centre
GDP Gross Domestic Product
GEFUNDP Global Environment FacilityUnited
Nations Development Programme
GHG Greenhouse Gas Emissions
GIZ Deutsche Gesellschaft fr Internationale
Zusammenarbeit
GRIHA Green Rating for Integrated Habitat
Assessment
GWEC Global Wind Energy Council
IEA International Energy Agency
IFEU Institute for Energy and Environmental
Research
IMF International Monetary Fund
IPCC Intergovernmental Panel on Climate
Change
KBA Kraftfahrt-Bundesamt
LCA Life Cycle Assessment
LCV Light Commercial Vehicle
LEED Leadership in Energy and Environmental
Design
M&HCV Medium and Heavy Commercial Vehicle
MNRE Ministry of New and Renewable Energy
MOEF Ministry of Environment and Forests
MFA Material Flows Accounting
NAPCC National Action Plan on Climate Change
NATRiP National Automotive Testing and R&D
Infrastructure Project
iii Abbreviations
iv Indias Future Needs for Resources
NCAER National Council of Applied Economic
Research
NGO Non-Governmental Organization
NRDC-ASCI Natural Resource Defense Council
Administrative Sta College of India
NOx Nitrogen Oxide
OECD Organisation for Economic Co-operation
and Development
OEM Original Equipment Manufacturer
OPC Ordinary Portland Cement
PPC Portland Puzzolan Cement
PPP Purchasing Power Parity
PSC Portland Slag Cement
PVC Polyvinyl Chloride
RC Rening Charge
R&D Research and Development
RE Resource Eciency
RECP Resource-ecient and cleaner production
RPO Renewable Purchase Obligation
SCV Small Charter Vehicle
SERI Sustainable Europe Research Institute
SIAM Society of Indian Automobile
Manufacturers
SNA System of National Accounts
SRREN Special Report on Renewable Energy
Sources and Climate Change Mitigation
SOx Sulfur Dioxide
SUV Sport Utility Vehicle
TC Treatment Charge
TEPA Taiwanese Environmental Protection
Administration
TERI Te Energy and Resource Institute
TMR Total Material Requirement
UBA German Federal Environmental Agency
(Umweltbundesamt)
UN United Nations
UNEP United Nations Environment Programme
UNIDO United Nations Industrial Development
Organization
USGS United States Geological Survey
VAT Value Added Tax
WBCSD World Business Council for Sustainable
Development
WEF World Economic Forum
WTO World Trade Organization
Introduction 1
A. Introduction
Natural resources are essential for our survival. Agricultural land provides us with food; a sucient supply of clean and
potable water sustains life; and raw material of various kinds is needed for shelter. Natural resources are required not
only for meeting our basic needs, but also for fullling our aspirations for a better quality of life, for higher standards
of living, for comfort and ease, and for economic and social well-being.
Every society depends on natural resources like biogenic and mineral raw materials, on energy sources like fossil fuels
and solar and wind energy, and on clean water. Te environmental media and ecosystems are also understood as being
natural resources, with their biodiversity, the dierent functions of their land areas, and their services. Tey constitute
the essential elements that keep our economy functioning and guarantee an increase in the well-being of mankind.
Consequently, we need to devote more attention to resource use, since global demand for various goods and services
is increasing, but the resources available to us are nite and limited. Industrialized countries already have high levels
of resource consumption, while emerging countries need resources to provide appropriate living standards for their
populations. Coordinated and collaborative eorts are required to ensure both availability and conservation of natural
resources. Industrialized countries need to demonstrate how they intend to maintain their living standards in the
face of considerably reduced resources, and emerging countries need to determine how their economies can continue
growing through the most ecient use of scarce natural resources.
In this context, GIZ initiated activities with Indian and European partners to understand the signicance of the
discussion for emerging countries in general, and for India in particular. Te perception of managing natural resources
eciently and sustainably is a key consideration in taking future decisions. With a supposed yearly growth rate of 8%
of GDP, Indias middle class is poised to grow tremendously in the near future. But among the 1.2 billion Indians are
millions of poor people who are also striving for a better life.
Tese developments will have consequences for consumption patterns in daily life. Food and nutrition, housing,
mobility, communication, and leisure time are only a few areas that will change in terms of both quantity and quality.
Physical and economic constraints might become increasingly important in the future. While the European Union
in general, and Germany in particular, have adopted appropriate resource policies to maintain their wealth, it is also
important for India to participate in the discussion on resource use and to identify its own areas for action. For the
European Union, as well as for India, what is on the agenda is not only the availability of natural resources, but also the
environmental conditions under which they are used.
Under the project Indias Future Needs for Resources Dimensions, Challenges, and Possible Solutions, leading Indian
and European research institutes came together, with the support of GIZ, to raise awareness among stakeholders in
India and Germany. It was decided to rst concentrate on the use of raw materials and to shed light on the dierent
areas that will play a crucial role in the development of India, and thus determine the use of natural resources. A sector-
wise approach has been adopted, and current situations and possible areas of development have been examined in the
three sectors short-listed for the study, i.e. mobility, housing, and electricity generation.
Clear visions and specic numbers will help us in understanding the challenges faced by a society like India and
hopefully lead to fruitful discussions and eective preparations for appropriate policies and measures. Tese visions
2 Indias Future Needs for Resources
and numbers will also help in emphasizing the responsibility of political leaders and social representatives of an
industrialized country like Germany, which is a partner in this project. Tey should be aware of the future needs of a
society like India, and base their decisions concerning industrialized countries on a just and fair collaboration between
dierent regions of the world.
Te focus of interest in the debate over natural resources is mostly on raw materials. All countries fear the decreasing
availability of materials like fossil fuels, rich metal ore deposits, and high-quality minerals. And all countries will be
aected, whether they depend on domestic extraction or on imports. Tis is the reason why this study starts with an
in-depth examination of raw materials. Other natural resources are also mentioned briey, but they require further
investigation in greater detail elsewhere. Water was identied by the participants of the GIZ workshop
1
as the natural
resource with the highest constraints and with the most awareness of its importance in India.
An economic perspective on the management of resources is, therefore, one particular approach, but the environmental
aspects must not be neglected. Te use of raw materials is always related to the destruction or intensive use of land,
thereby having a negative impact on ecosystems and biodiversity. It also aects people living in the vicinity of raw
material deposits.
Furthermore, the production of goods from raw materials needs energy and potentially emits pollutants, thereby
aecting air, water, and soil. Te capacity of taking up pollutants of these media is limited. Te pollution of an
environmental medium could lead to the loss of its service function as a natural resource within its ecosystem. More
careful analyses must be carried out to address these concerns in the future.
Besides the focus of the three case studies mentioned above, this exploratory project seeks to adopt a broader
perspective. It necessarily has to start by paving the ground for a common understanding, along with clear and
unambiguous denitions of the key terms and concepts. What are natural resources? What are raw materials? Which
criteria are applied to measure their ecient use? Tese are some of the questions that will be addressed in this study.
Further, it is crucial to investigate the evolution and growth of total material use along the development path of India.
Tis demonstrates the dimensions of material demand in the future as one example of the use of natural resources.
A breakdown of total material use into dierent single materials oers some insights into the specic problems of the
availability of key materials and economic dependencies related to them.
Finally, general key drivers and developments are considered before the three case studies are presented. Te general
picture, as well as the examination of mobility, housing, and energy generation by wind power, is restricted to a more
or less careful analysis of the status quo or current situation; an assessment of possible future developments; a study of
alternatives for action; and an analysis of the consequences of material and resource demands. Some specic resource-
eciency strategies have been examined for the case studies, but these are not intended to be exhaustive or complete.
Resource-eciency policies in Asia and Europe are examined briey. Tis is followed by a short concluding summary
on the main ndings and the preliminary recommendations in the nal chapter.
Tis study will contribute to the setting of agendas for natural resource policies in India and in other parts of the
world, and that it will oer a useful basis for conducting further studies and actions.
1 Te workshop was conducted on May 23, 2013, in Jacaranda Hall, India Habitat Centre, New Delhi. Te event generated a multi-
disciplinary discussion on dierent aspects of resource eciency. Te proceedings of the workshop are available at http://www.teriin.org/
les/resource_initiative_proceedings-23May2013.pdf (last accessed: 08/02/2013)
Resources What are we talking about? 3
Te word resource seems to have a clear and straightforward meaning. But a reading of dierent reports and
policy papers makes it obvious that various issues are involved in dening the term. Te use of dierent resources,
the inconsistent use of the phrase raw material, and an unclear scope of the expression natural resources lead to
confusion, and thus indicate the need for clear and unambiguous denitions. Te following denitions are suggested
in an attempt at nding a common ground to aid understanding, to help read the report, and to facilitate subsequent
discussions.
Te word resource originates from the Latin word resurgere, which means to pour out of something or to protrude.
Resource is normally used in an economic context and encompasses many dierent aspects like human resources,
nancial resources, natural resources, and time resources.
A resource can be dened as follows:
A resource can be a material or an immaterial good from which beneft is produced. It is commonly
understood as a means of production, a means of fnance, soil, raw material, energy, people, and time. In
the social sciences, a resource can refer to an ability, a character trait, or a mindset (psychology); or to
education, health, and prestige (sociology).
Source: http://de.wikipedia.org/wiki/Resource; as of September 2013
Outside the economic context, the word resource is used in various elds and has a certain meaning specic to that
discipline. For example, in psychology, resource means capabilities or character attributes, and in sociology, it means
education, health, or prestige. Te word always connotes an asset or capital that is good for or that can be used for
something.
In the context of the discussion about natural resources, dierent denitions exist. A widely accepted denition is
found in Tematic Strategy on the Sustainable Use of Natural Resources of the European Union, published in 2005:
Natural resources are:
Raw materials such as minerals, biomass, and biological resources
Environmental media such as air, water, and soil
Flow resources such as wind, geothermal, tidal, and solar energy
Space (land area)
Whether the resources are used to make products or as sinks that absorb emissions (soil, air, and
water), they are crucial to the functioning of the economy and to maintaining our quality of life.
B. Resources: What are we
talking about?
Tis denition oers a broad understanding of the concept of natural resources which entered into policy making in
Europe and in the United Nations Programme. It has been further developed and expanded by including the idea of
ecosystem services, which are the services provided by nature to human society, e.g. pollination of plants by bees.
On this basis, the denition of natural resources has been developed further by the Roadmap for a Resource E cient
Europe. It states the following as an objective for a strategy for sustainable resource development:
All resources are sustainably managed, from raw materials to energy, water, air, land and soil. Climate
change milestones have been reached, while biodiversity and the ecosystem services it underpins have
been protected, valued and substantially restored.
Following this understanding, various natural resources can be identied:
It should be noted that this understanding diers considerably from the very narrow denition of resource or natural
resource that is used in the context of geology. Te United States Geological Survey, for instance, denes a resource as
follows:
A concentration of naturally occurring solid, liquid or gaseous material in or on the Earths crust in
such form and amount that economic extraction of a commodity from the concentration is currently or
potentially feasible.
Tis narrow denition based on a geological point of view is the reason why the word resource often leads to
misunderstandings. Starting with the broader denition of natural resources, it is clear that raw material is just a sub-
category of natural resources, which can be subdivided again into dierent types of raw material. Te following gure
oers a possible way of characterizing raw materials.

Resources What are we talking about? 5
A raw material can be dened as:
Raw material is a substance or a mixture of substances which have not been subject to any treatment
besides its detachment from its source. It is gathered because of its utility value and directly consumed
or used in production processes.
Suggested by UBA Texte 01/12
Consequently, the word material can be understood as any substance or mixture of substances that is used in the
economy as a raw material, a semi-nished material, a nished product, or waste.
Finally, resource eciency is dened as:
Resource effciency is the relation of a certain beneft or result to the input of required resources.
beneft (product, function)
resource effciency = -----------------------------------------
input of (natural) resources
If the same beneft (numerator) is generated by a decreased input of natural resources (denominator),
resource effciency is met. The same accounts vice versa if more beneft is generated by the same input
of natural resources.
(Glossary of the German Federal Environment Agency, 2011)
Figure 1 depicts the concept of resource eciency as it is adopted in this study. Te selected resource-eciency options
in the case study have been chosen in line with this concept.
Figure 1: Concept of resource effciency as adopted and used in this study

For further clarication of this term, the following should be considered:

Resource productivity is synonymous with resource eciency, but is used more widely at a macroeconomic level.

Benets can be technical, monetary, aesthetic, cultural, etc.
For the

evaluation of resource eciency, it is necessary to have a quantiable benet.

Minimizing
impact on
environment
Creatng
more with
less
Resource
efciency
Transform
waste into
resources
Structural changes in a society also lead to transformations in consumption patterns and lifestyles, which then impact
resource consumption patterns. India is witnessing dynamic transformations due to its rapid economic growth, which
is characterized by ve main interlinked factors. Tese factors act as drivers of demand and have a strong impact on
resource consumption. Tese drivers of demand are:
Growing population
Expanding industrial and service-related production
Rising (average) income
Growing middle class and/or expanding cohort of middle class
Increasing urbanization
Growing population
After China, India has the second largest population in the world, with 1,224 million people (2010). It has the highest
population growth rate amongst the BRIC countries. Projections show that until 2050 this growth rate will still be
positive in contrast to numerous Western countries with already negative current growth rates. By 2025, India will
become the most populated country in the world.
Figure 2: Growth of Indias population (actual and projected) compared to China and Europe
Source: UN Population Statistics, 2012
C. General drivers of
demand in India
General drivers of demand in India 7
Tis increase in population would lead to a sharp rise in absolute consumption levels, and hence the need for
improving resource eciency will assume great importance. Due to the high saving potential in populous countries,
and the opportunity of changing the development path towards a resource-ecient economy, addressing resource
eciency in India makes perfect sense.
Expanding industrial and service-related production
Although the agricultural sector is still dominant in terms of employment, the industrial and in particular the service
sectors are increasingly contributing to employment and to GDP. In 2000, the agricultural sector still contributed
nearly one-fourth of GDP, but its share fell to around 14% in 2011 [UNStat, 2013]. In contrast, the service sector
is contributing increasingly to GDP, accounting for 58% in 2011. Some Indian companies in the IT and IT-related
service sector, and also in other sectors such as pharmaceuticals, are among the worlds leading companies. Tese
companies are contributing increasingly to rising income and growing employment in the Indian economy.
Rising (average) income
India has demonstrated faster and more stable growth than most other countries in the Dow Jones list of emerging
economies in the period 200611 [IMF, 2012]. With an average GDP growth rate of 8.28% in the period from
200405 to 20112012, India has been considered an emerging economy [Ministry of Finance, 2012]. In 2010, Indias
GDP ranked fourth after that of the USA, China, and Japan (World Bank, 2012). Per capita income (at constant
200405 prices) increased by a remarkable 81.5% between 1990 and 2005. However, the average per capita income of
Rs. 37,851 (at constant 200405 prices) was still low in 2011 [Reserve Bank of India, 2011].
Growing middle class
Given the past growth rate in India, it can be assumed that this economic growth will continue to lift people out
of poverty and that real incomes will continue to rise in the country. Rising incomes worldwide drive aspirational
consumer behaviour accompanied by high resource consumption. Tis holds true in particular for a rising middle class
as observed in India.
Figure 3: Growth of GDP in India
Source: World Bank, 2012; projection based on national targets.
According to a report by McKinsey [McKinsey Global Institute, 2007], in 1985, 93% of the populations real annual
household income was less than Rs. 90,000 a year, but by 2005, this number had dropped to 54%. If this growth path
continues, this number would be 22% in 2025. Tis increase will be seen especially in the urban areas and amongst the
middle class in India, which, both in their own ways, are growing at a rapid rate. Te average rise of incomes in India
will increase the potential of consumption and further trigger resource use in the country.
A study by Indias National Council of Applied Economic Research (NCAER) titled Who constitutes this middle
class in India? has been at the forefront of attempts aimed at estimating the size of the middle class in India and
studying their consumption patterns. According to NCAERs denition, the middle class comprises two sub-groups:
seekers with an annual household income between Rs. 200,000 and Rs. 500,000, and strivers with an annual
household income between Rs. 500,000 and Rs. 1 million at 2001/2002 prices. Most recently, in a NCAERCMCR
publication, Shukla (2010) rescaled this survey using national accounts data and found that the Indian middle class
had doubled in size over the decade 20012010, growing from 5.7% of all Indian households in 2001/02 to 12.8% of
all households in 2009/2010. Tis was equivalent to about 28.4 million households with a total of 153 million people
by 2010 [Shukla, 2010, p. 202].
In terms of middle-class consumption expenditure (in 2005 PPP $ billions), India is currently ranked 12th in the
world. However, thanks to the countrys current growth path, the Indian middle class will be the third largest consumer
in the world by 2020, with a share of 13% of world consumption, and will be the largest consumer by 2030, with a
share of 23% of world consumption [Kharas / Gertz, 2010]. By 2050, it will have the largest middle class in the world
[Kerschner / Huq, 2011].
Figure 4: Global Share of Middle Class Consumption
Data source: Kharas / Gertz, 2010.
Te middle class has the most signicant impact on the consumption patterns of a country since it enjoys considerable
purchasing power. Typical energy-intensive consumer products and services, such as cars and dwellings, are available
for, and aordable by, those with middle-class incomes.
In an emerging economy with a large cohort of the middle class, overall consumption patterns will change dramatically
and become resource intensive. A society with a majority of poor people is not able to purchase typical consumer
products or services because the main concern is the struggle to survive. In such a society, the consumption of resources
is very limited, and people tend to be more ecient in their resource use as they value these far more than people in a
more auent society. If resources are more aordable, their valuation might decrease and their wastage might increase,
as can be observed in the Western throwaway mentality.
Increasing urbanization
Besides witnessing a trend of rising population, India is also facing increased urbanization, similar to the situation in
other emerging economies. Indian cities are already home to roughly 340 million people, and by 2030, there will be
an estimated 590 million people living in cities (40% of the estimated population of India). Cities, which accounted
for around 58% of Indias GDP in 2008, will account for nearly 70% of GDP by 2030 [McKinsey Global Institute,
General drivers of demand in India 9
2010]. India has eight metropolises with more than 5 million inhabitants: Mumbai, Delhi, Kolkata, Chennai,
Bangalore, Ahmedabad, Hyderabad, and Pune (see Figure 4).
However, compared to the BRIC countries, India had a relatively low percentage of urban population (31%) in
2010. Indias urban growth rate has remained high since then, and is expected to continue to be so until 2050 [UN
Population Statistics, 2012]. Te migration trend from rural to urban areas creates huge pressure on infrastructure,
housing, and other goods and services, which, in turn, leads to a larger demand for resources in cities. At the
same time, cities also have the potential to use resources eciently since urban density means that there is a high
concentration of people, money, and goods. Hence, ecient distribution and reuse mechanisms can be developed and
implemented.
Figure 5: Selected Indian cities by population

Source: TERI 2013; based on data from the Ministry of Home Aairs, 2011.
As noted in the introduction, human survival and well-being are based on the use of natural resources. Humans
use biotic materials to satisfy basic needs such as food and clothing. Humans also use non-renewable materials for
dwellings, communication, and social interaction, as well as for the manufacture of commodities that make life more
pleasant.
While material consumption in industrialized countries has remained at high levels during the past few decades, the
relatively less industrialized countries are also increasingly emerging as large consumers of materials. Global material use
increased sharply from around 35 billion tonnes in 1980 to more than 67.8 billion tonnes in 2009 [SERI, 2012].
Out of these 67.8 billion tonnes of renewable and non-renewable materials used globally, India consumed around
7.1% or 4.83 billion tonnes while hosting around 14% of the global population. If India continues the impressive
economic development of the past few decades, it will more than triple its resource demand until 2030 using as
much materials as all the OECD countries combined consume at the present time.
Material productivity is usually measured as gained income per used tonne of materials [OECD, 2007]. Currently,
India is gaining 716 dollars
2
per tonne of consumed materials. During the last three decades, India increased its
material productivity by nearly 2.9% per annum starting from a very low level (to compare: material productivity
increased by an average of 2.3% each year during the past three decades in all Asian countries). If India continues
to make improvements in material productivity, it could gain around 1,306 dollars per tonne of consumed materials
in 2030. To compare: all OECD countries are currently gaining 1,768 dollars per tonne on an average of consumed
material, and many OECD countries have improved their material productivity faster than India has during the past
few decades.
It is interesting to note that on the adjusted net savings (ANS) indicator (Te Changing Wealth of Nations:
Measuring Sustainable Development in the New Millennium [World Bank, 2012]) India ranks below Germany ($412
billion) with an ANS of $380 billion; China ranks above both; and the USA ranks below all three. ANS are equal to
net national savings plus education expenditure and minus energy depletion, mineral depletion, net forest depletion,
and carbon dioxide and particulate emissions damage. A caveat is in order here, namely that ANS does not take into
account any net exports of natural resource services, so that a country high on the ANS indicator may seem unduly
sustainable despite importing substantial amounts of these services. On the ecological footprint indicator, although
both India and Germany are ecological debtors, their ecological footprints overshoot their respective bio-capacities.
Germany has consistently overshot its bio-capacity much more than India has. Figure 6 tracks the per-person resource
demand (ecological footprint) and the bio-capacity in China, India, and Germany since 1961.
2 Here and in the following: GDP in dollar in constant terms of 2005 and in purchasing power parity as provided by the World Bank,
2011.
D. Current and future
dimensions of Indias
resource requirements
Current and future dimensions of Indias resource requirements 11
Figure 6: Ecological footprint and biological capacities of China, India, and Germany from 1961 to 2009
A) Ecological footprint and bio-capacity of China

B) Ecological footprint and bio-capacity of India

C) Ecological footprint and bio-capacity of Germany
Source: http://www.footprintnetwork.org/en/index.php/GFN/page/trends/ (last accessed 09/02/2013).
Hence, even as material demand and material productivity inuence and shape the challenges confronting India, and
the way it deals with these challenges regarding the use of its resources, the country would be wise not to follow the
path taken by developed nations in the past, especially in the context of exploiting its natural resource base. It may
make more sense for India to adopt ways to save, reuse, and recycle resources, and thus become resource e cient, right
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e
r

c
a
p
i
t
a
Ecological
Footprint
Biocapacity
at this historical juncture of its growth story before it starts resembling the Western economies, which possess greater
economic wealth but have less sustainable wealth. As we argue for resource eciency later in this report, the ANS and
ecological footprint indicators seem to point towards an alternative future for India where it may be possible to sustain
a healthy economic growth rate without compromising its natural resource wealth by incorporating a comprehensive
resource-eciency plan into the economic processes and planning of the country. India is one of the most resource-
rich countries in the world [World Bank, 2006, 2012], but also one of the most populous. For three decades, Indias
net import of resources has increased [Dittrich et al., 2011, 2012; Giljum et al., 2010; Singh et al., 2012]. India is one
of several developing countries taking o, competing with the other emerging economies and with high-consuming
industrialized countries to gain access to more resources. Generally, all countries increase pressure on the natural
environment, ignoring natural limits and being incapable of distributing advantages and burdens internationally in a
fair way other than the manner in which the market mechanism currently does. In other words, the sustainable use of
natural resources is back on the international development agenda, and India has to prepare itself for the future. India
is at a crossroads: should it emulate the traditional development model with its principles of extraction and high levels
of resource use at any price, or should it adopt a smarter model with its principles of responsible mining and resource
eciency? Our report argues for the latter course of action, pointing to numerous business opportunities, economic
gains, and well-being.
D.1 Rationale and approaches for effcient use of natural resources
Internationally, global competition has given rise to strategic concerns due to resource nationalism and vulnerability
of supply. Rising and volatile commodity prices hamper the achievement of development goals and stall economic
planning. Since 2000, prices have been on an upward trajectory due to soaring demand, briey interrupted by
the global nancial crisis.
3
Despite increased investments in extraction, corporate mergers, capital ows to mining
companies, and a boom in non-conventional fossil energy carriers, the situation after 2013 is likely to remain
uncertain.
Newly discovered mineral deposits are generally low in concentration and yield. Quite often, they are located in
inaccessible regions, where new transport infrastructure will have to be put in place, or where the exploitation of these
deposits is in conict with the use of valuable forests or other ecosystems. Similarly, oshore drilling and mining
presents all kinds of challenges.
Conicts over access to raw materials and use of land and water resources are featured in the media almost on a daily
basis, along with reports about social unrest triggered by the rising costs of basic goods. For many countries, there
seems to be a signicant linkage between resource abundance and low scores in the Human Development Index. At
the same time, sustainability issues are a matter of growing concern. Te media addresses social issues such as the use
of child labour in the extraction of raw materials, thereby raising public awareness. One consequence of all these stress
factors is extreme price volatility. At the same time, the incentives for making a quick prot in illegal markets are
increasingly tempting. An estimated 20% of the world market in coltan
4
metals used in mobile communications is
traded illegally. Tese challenges, in turn, expose manufacturing industries around the globe to risks and uncertainties.
Tus, a new economic rationale is needed, one that enables market participants and civil society to adopt a more
ecient use of natural resources, emphasizing the economic, socio-political, and/or the environmental dimensions:
Te current transition in several emerging economies from an agrarian to an industrial society involves a two- to

fourfold increase in material and energy ows. Currently, most of these countries show relatively low material and
energy consumption per capita, despite witnessing rapid economic growth during the past decade. But, at the same
time, many of them are already approaching their limits in terms of domestically available resources, and have
become net importers of raw materials, especially of strategic resources such as iron, steel, bauxite, copper, and
fossil fuels that are required for the creation, operation, and maintenance of infrastructure, and for the supply of an
industrialized country. Te economic development of these emerging economies and developing countries will rely
3 Especially for metals, minerals, fuels, sh, timber, and biomass, see de Groot et al., 2012.
4 Stands for: columbium (niobium) and tantalum; see data, Bleischwitz et al., 2012.
increasingly on their capacity to gain further access to these strategic resources, both domestically and on the world
market [UNEP, 2011a].
During the past few decades, developing countries competing in the world market have expressed concern over the

low prices oered for their raw material exports by a few industrialized countries. One response to this issue has
seen an increasing number of economically successful emerging economies start to process raw materials into semi-
nished or nished goods. Tis has had a signicant impact on the global demand for raw material imports used in
manufacturing industries, leading to changes in prices and shifts in power relations. As the European Commissions
Raw Materials Initiative [European Commission, 2008] notes, a major concern for many industrialized as well as
emerging economies today is ensuring the secure supply of raw materials, dealing with the increasing expense of
procuring them, and grappling with the need for reducing potential market-distorting inuences.
Several studies, e.g. those of the EU Eco-Innovation Observatory [EIO, 2012], other EU studies [Bleischwitz et

al., 2011; Bleischwitz, 2012; Bringezu / Bleischwitz, 2009; Kemp, 2011; Meyer, 2011; Oakdene Hollins / Defra,
2011], as well as a recent McKinsey report [McKinsey, 2011], show that companies that succeed in improving their
energy and resource use optimization are likely to develop a structural cost advantage; to improve their ability to
seize new growth and job opportunities; and to reduce their exposure both to energy, resource, and environment-
related interruptions to their business and to resource price risk. Tese tangible benets are partly available within
the country pursuing such strategies along with some key technologies (see Figure 7) and are partly available
internationally. Opportunities especially for beneting from low-hanging fruits that is, measures that are simple
to implement and that require either no monetary investments or have payback periods of around one year are
documented and widespread. Empirical analyses of the cost-saving potentials of implementing these measures in
elds of action that do not require any investments show annual average company savings of 134,000.
5
From a
societal perspective, the resource-saving potentials in these 15 elds add up to a global total of $3,58 trillion by
2030 [McKinsey, 2011].
Figure 7: Resource-Saving Opportunities by 2030
Source: Own gure based on McKinsey, 2011
Extraction, processing, and each phase in a products life cycle or lifespan entail substantial harm to the

environment. Worldwide demand for products, and thus for natural resources, is increasing steadily. One reason
for this increase is the growth of global population, continued high levels of consumption in the developed world,
5 http://www.environmental-savings.com/index.php (last accessed 09/20/2013).
and rapid increases in the size in emerging economies. Currently, the world economy uses more material resources
than have ever been used in the entire course of human history. Tis imposes an unprecedented level of pressure
on the environment, leading most notably to climate change and loss of biodiversity. Estimates of the global
ecological footprint reveal that at the current level of resource use, we have already overshot the capacities of
global ecosystems by 50%. If humans continue with their current patterns of consumption, they will irreversibly
damage the planets natural environment, thereby jeopardizing its ability to provide these resources and endangering
the ecosystem services on which humans are dependent.
Furthermore, the consumption of energy, water, and raw materials is interlinked. Extracting and processing raw

materials, for example, often involves the use of large volumes of water and of amounts of considerable energy.
A recent report by the Organisation for Economic Cooperation and Development [OECD, 2012], for example,
notes that the production of one tonne of copper emits seven tonnes of CO
2
and uses 70 tonnes of water. Tus,
encouraging resource eciency and eco-innovation may also have synergies with other environmental and social
policies, which makes this a win-win situation for the resource-eciency objective. Te European Commissions
Flagship Initiative summarizes these synergies as follows:
o Increasing recycling rates will reduce the pressure on demand for primary raw materials, help to reuse valuable
materials which would otherwise be wasted, and reduce energy consumption and greenhouse gas emissions from
extraction and processing.
o Low-carbon technologies reduce emissions and often bring benets in terms of air quality, noise and public
health.
o Improving energy eciency reduces the need to generate energy in the rst place and the need for
infrastructures. Tis, in turn, eases pressure on land resources.
o Jobs created in sectors linked to sustainable growth are often more secure, with high potential for exports and
economic value creation.
o Action on climate change and energy eciency can increase energy security and reduce vulnerability to oil
shocks.
o Improving the design of products can both decrease the demand for energy and raw materials and make
those products more durable and easier to recycle. It also acts as a stimulus to innovation, creating business
opportunities and new jobs. [European Commission, 2011]
In summary, countries that look at resources in a comprehensive way, and that seek to improve the ecient use of
energy, raw materials, and other natural resources, will have more options for further economic development, become
more competitive, reduce dependence on imports, and help mitigate other environmental and social problems.
A key lesson for all manufacturing processes downstream is to address the business dimension of using materials,
energy, and water, and of processing food. Given that resources have a price (even if negative externalities are not
properly accounted for) and price expectations are generally upwards, businesses do have incentives to undertake
manufacturing at the lowest possible material costs. German manufacturing rms report shares of materials in their
gross production value of 40-45%:
6
European companies report similar shares [EIO, 2012]. Accordingly, the potential
for cutting these costs through process innovation is high. Te German programme DEMEA reports average savings
per company in the order of some 200,000, with increases of marginal returns to sales of 2.4%. Similar experiences
are found in the UK and in other EU member states.
It may be assumed that a majority of manufacturing companies have strong incentives to engage in eorts to save
material purchasing costs. Tey need to make resource eciency a core element of their strategy and business models.
Early barriers are lack of attention, information decit, absence of nancing, and uncertainty about future demand
[EIO, 2012, p. 63; McKinsey, 2011, p. 118]. Many of these early improvements will be on-site at the level of
individual companies and at the level of incremental process innovation, rather than address the entire life cycle of
products or material ow systems.
6 In 2011, the cost structure in the manufacturing industry in Germany had a share of material-related costs of 44.6%.
Only 16.8% of the costs were related to sta and only 2.1% to energy [Destatis, 2012].
Given that most business operations are value chain oriented, it is increasingly good management to monitor the ow
of materials along value chains and to establish material stewardship [ICMM, 2007] where by-products could be reused
and recycling oers tangible benets. Te resource nexus oers potential benets of reducing operating costs through
improved internal management of water, waste, energy, materials, carbon, and hazardous materials in an integrated
manner. Indeed, this can and should be combined with eorts to reduce environmental impacts. While these strategies
will improve the return on capital, other strategies can improve growth and contribute to better risk management
[McKinsey, 2011; World Economic Forum, 2012]:
Guide investment decisions at portfolio level based on resource trends and risk analysis
Develop new products and services with resource-ecient features able to attract customers
Manage risk-of-operation disruptions (be it from scarcities, climate change, regulatory changes, etc.).
A life-cycle approach helps to identify more tangible benets and to prioritize key initiatives such as the resource
eciency of buildings, thereby increasing the yields of large-scale farms, reducing food waste, reducing municipal water
leakages, and ensuring higher overall eciency rates in end-use products such as vehicles. As the World Economic
Forum points out, ambitious businesses will seek to transform demand through interactions with the consumer
and transform value chains through new business models [World Economic Forum, 2012]. It is worth noting that
many emerging economies are on the verge of entering the market for such eco-innovation. Walz [2010] points to
the catching-up competencies of countries such as South Korea; Singapore provides favourable conditions and high
absorptive capacities for eco-innovation technologies; and countries such as Brazil and Malaysia show a promising
specialization for renewable materials and recycling.
D.2 Past and current material requirements in India
D.2.1 Methodological and data-related preliminary remarks
Making comprehensive assessments of the resource requirements of various countries is a challenging task. Usually,
water, land, and material requirements are assessed separately, because of the dierent units and dimensions involved.
In the following paragraphs, the study focuses on material requirements.
With regard to materials, the methodological framework of material ows accounting and analysis (MFA) was
developed in reaction to the fact that many persistent environmental problems, such as high material and energy
consumption and related negative environmental consequences (such as climate change), are determined by the overall
scale of industrial metabolism rather than the toxicities of specic substances.
Since the early 1990s, when the rst material ow accounts at the national level were presented (for example, in Japan,
Environment Agency Japan, 1992), MFA has been a rapidly growing eld of scientic and policy interest, and major
eorts have been made to harmonize methodological approaches developed by dierent research teams. Today, the
MFA methodology is internationally standardized and is improved at regular intervals, and methodological handbooks
are available, for example, those from the European Statistical Oce [Eurostat, 2001, 2011, 2012] and the OECD
[2007].
For MFA, at the national level, two main boundaries for resource ows have been dened. Te rst is the boundary
between the economy and the domestic natural environment from which raw materials are extracted. Te second is
the frontier to other economies, with imports and exports as accounted ows. In general, four major types of resources
are considered in MFA studies: biomass (from agriculture, forestry, shery, and hunting), fossil energy carriers (coal,
oil, gas, peat), minerals (industrial and construction minerals), and metal ores. A further category, other, consists of
traded products that cannot be allocated to any one of the four types of resources in terms of their weight (tonnes).
Te compatibility of MFA with data from the System of National Accounts (SNA) enables a direct relation of material
ow indicators with economic performance indicators, such as GDP. Tese interlinkage indicators quantify the eco-
eciency (or resource eciency) of an economic system by calculating economic output (measured in monetary units)
generated per material input (in physical units), for example, GDP/DMC. Resource-eciency indicators are thus
suitable tools for monitoring the processes of de-linking or de-coupling of resource use from economic growth. In the
following paragraphs, this methodology will be used (further explanations of MFA are provided in Annex I).
Based on this methodology, several assessments of material use in India are available. Two pioneering studies were
commissioned by UNIDO [2010, 2011], and these focus on material use in selected Asian countries and in selected
emerging economies, respectively. Both studies cover Indian material use and productivity between 1980 and 2005,
and were also published as working papers [Dittrich et al., 2011; Giljum et al., 2010]. Singh et al. [2012] use another
dataset and present a longer historic perspective on Indian material use starting in 1961 and ending in 2008. It should
be noted that the dataset used by Singh et al. [2012] shows slightly higher values on material consumption than the
dataset presented by SERI and Dittrich.
As mentioned above, methodological and data-related improvements are still common in the assessments of material
ows analysis. Tus, in the following paragraphs, the most recent and updated dataset (covering the year 2009) on
Indian resource use will mainly be used. Te dataset is provided by SERI [SERI, 2012] concerning extractions and
by Dittrich [2012] concerning physical trade. Te data are taken mainly from international sources such as FAO
(biomass), BGS (metals and minerals), IEA (fossil fuels), and UNComtrade (trade).
7

D.2.2 Past and current material consumption in India
Per capita consumption of materials in India has changed during the past few decades. According to Singh et al.
[2012], per capita consumption of materials remained at a low level of less than 3 tonnes per capita a year, and even
fell slightly between 1961 and 1980. Tis is evidence of the fact that population size increased at a faster rate than the
rate of absolute material consumption. Tereafter, per capita consumption of materials grew faster than population
size. Also, per capita consumption of biomass declined, while consumption of non-renewable materials increased,
in particular non-metal minerals (Figure 8). According to Dittrich and SERI [Dittrich et al., 2012], per capita
consumption totalled 4.2 tonnes per capita in 2009; according to Singh et al. [2012] it amounted to 4.3 tonnes per
capita in 2008.
Figure 8: Per capita consumption of materials in India, 19802009

Sources: Dittrich et al., 2012; SERI, 2012; World Bank, 2012.
Per capita consumption of materials in India is still low compared to the rest of the world. With an average of
4.2 tonnes per capita, India ranked 151st out of 193 countries in the world in 2009, consuming less than half of the
global average of around 10.0 tonnes. In comparison, in the same year, average resource consumption per capita in
OECD countries was about 15.7, while it was around 3.5 tonnes in least developed countries [Dittrich, 2012; SERI,
2012; World Bank, 2012].
7 Te aggregated data are available at www.materialows.net, including a detailed description of data sources and applied methods.
In absolute terms, Indias material consumption amounted to 4.83 billion tonnes in 2009, compared to 1.70 billion
tonnes in 1980 (+184%, Figure 9). It should be stressed again that the amount is a conservative estimation; Singh et al.
[2012] calculated that Indias material consumption was more than 5 billion tonnes in 2008.
Te greatest increases can be found in the consumption of non-metal minerals, while the absolute consumption of
biomass has stagnated. Tus, the share of renewable resources in absolute material consumption declined from 79% in
1980 to 43% in 2009.
Figure 9: Absolute consumption of materials in India, 19802009

Sources: Dittrich, 2012; SERI, 2012.
In 2009, India was the third largest consumer of materials after China (with 21.5 billion tonnes) and the USA (with
6.1 billion tonnes). In that year, India accounted for 7.1% of global material consumption; 10.6% of global biomass
consumption; 6.6% of global fossil fuel consumption; 5.8% of global non-metal mineral consumption; and 2.3% of
global metal consumption, while hosting 17% of global population.
Indias material consumption in the past few decades exhibits a pattern typical of countries during the development
process from an agrarian or solar energy-based society to an industrial or fossil fuel-based society where usually the
consumption of non-renewable materials increases, in particular the consumption of minerals and metals required for
building infrastructure and the consumption of fossil fuels for energy supply (e.g. [Dittrich et al., 2012; Krausmann
et al., 2009]. India can be considered as a country in the rst stages of transformation, with a high share of biomass
consumption, reecting the high share of the rural population working in agriculture (Figure 10). Typically, the
demand for minerals and metals is exceptionally high when countries construct large parts of their infrastructure.
Tis is currently happening in China where not only buildings, but also the transportation, communications, and
supply infrastructure have been built up in a short period of time. Industrialized countries that already possess massive
and advanced infrastructure mostly have high levels of consumption of fossil fuels (depending on their main energy
sources), but a medium level of consumption of minerals and metals, required for the maintenance of their built
spaces.
Figure 10: Typical material consumption pattern during a development process and country-specifc examples
Sources: Stylized facts, own gure based on Krausmann et al., 2009 and Dittrich et al., 2012;
country examples based on Dittrich, 2012 and SERI, 2012.
In India, availability of data on the consumption of key resources like biomass, metals, and non-metals is an important
issue. Te Mineral Yearbook, published annually by the Indian Bureau of Mines, under the Ministry of Mines,
Government of India, contains data on the production and consumption of major metallic and non-metallic resources.
However, a detailed data review, as well as interaction with stakeholders, revealed that many of the production and
consumption gures are not updated, and hence may not reect the actual consumption of these resources. Most
often, the consumption estimates given in the Mineral Yearbook do not include the inventory adjustments made by the
manufacturing companies (i.e. resources actually used for production) and there may be under- or overestimation of
resource consumption.
Biomass is an important resource and serves as a key input for various industries, and provides formal and informal
employment, particularly in rural areas. Yet assessment about biomass consumption has been very poor. Te last ocial
estimate that is publicly available is from 2005. According to estimates by the Biomass Resource Atlas of India, the
total biomass generated (forest and wasteland) was 666.56 million tonnes while the surplus production was 249 million
tonnes. Since then, there has not been any ocial revision in the estimation of biomass availability, although certain
studies have estimated biomass generation in India.
Data related to the consumption of metals and non-metals have been compiled from Indiastat. Te compilation of data
on the consumption of resources covers those resources that had time series data. Metals included bauxite, chromite,
copper, iron ore, lead concentrate, manganese ore, zinc, tin, and dolomite. Non-metals included glass/ceramic,
graphite, marble, apatite, asbestos, barytes, chalk, dolomite, feldspar, re-clay, gypsum, kaolin, kyanite, limestone,
magnesite, mica, phosphorite, pyrites, rock salt, sillimanite, steatite, sulphur, varmiculite, and calcite.
India has a good inventory of data on energy production and consumption. Te Ministry of Petroleum and Natural
Gas (MOPNG) compiles and annually shares all oil- and gas-related data, while the Ministry of Coal publishes the coal
production and consumption gures in its annual publication, Coal Statistics. Te Ministry of Statistics and Programme
Implementation (MOSPI) compiles all the data pertaining to energy production and consumption, and imports and
exports, and presents these data in the form of Energy Statistics. Figure 12 uses the data related to domestic fossil fuel
consumption from Energy Statistics. It is important to note here that the estimates are for domestic consumption and
include resources embedded in imported items.
Figure 11: Consumption of various resources (million tonnes) between 2006 and 2011
Source: Compilation by TERI, 2013
Analysis of secondary data collected from various sources reveals that Indias consumption of resources has increased
signicantly. Consumption of fossil fuels (including coal, natural gas, and petroleum products) increased by a CAGR of
4.2% between 2000 and 2011 [TERI, 2013].Consumption of metals increased at a CAGR of 10% between 2006 and
2011, while non-metals increased by a CAGR of more than 6%. Te combined resource consumption in 2011 was 1.7
billion tonnes (including biomass), while the consumption in 2006 was 1.5 billion tonnes [TERI, 2013]. Te annual
growth rate in consumption was almost 3% during the period.
D.3 Future material requirements
Te structural changes faced by India as an emerging economy rising population, rising industrial and service-related
production, rising middle class, rising income, rising urbanization (see chapter C) will change the resource demand
signicantly in the country. Te need for food, water, energy, minerals, and metals will clearly increase in the coming
decades.
To estimate Indias future resource demand in detail, the overall patterns of resource use during the development
process, as explained above, are useful but not sucient. In addition, one has to make several further assumptions
about the past dynamics of Indias material use and also take into account the dynamics and consumption levels in
other countries as references. It should be noted that the study of the interlinkages between material use and the
economic and social spheres of societies is a young and still evolving eld of scientic enquiry, with several open-
ended questions. Many of the dierences in the performances of countries regarding material use have been explained
only partly but not yet suciently (e.g. [Steger / Bleischwitz, 2011], [Van de Voet et al., 2005]). Nevertheless, some
important and general linkages inuencing the dynamics of material use are already known (e.g. [Dittrich et al., 2012;
Krausmann et al., 2009; Steger / Bleischwitz, 2011]):
Te dynamic of biomass consumption is predominantly linked to the growth of population size. Further
inuencing factors are changes in diet, increasing use of paper and paperboard, and changes in energy carriers, both
from fuel wood to fossil fuels, and from fossil fuels to renewable energy carriers.
Te dynamic of mineral consumption is predominantly linked to per capita income until a specic level of
income (around US$11,000).
8
Hence, consumption increases at a slower pace than per capita income. Mineral
consumption is dominated by the consumption of construction minerals; thus, with rising income, the demand for
improved and larger housing units, and for the accompanying infrastructure, increases.
Te dynamic of fossil fuel consumption is predominantly linked to economic growth, reecting the demands of
both the productive sector and the private sector. Other inuencing factors include changes in the structure of
energy sources and changes in taxes and subsidies.
Te dynamic of metal consumption also depends on rising per capita income, which is in turn linked to rising
demand for construction, metal-based goods, and increases in demands from the industrial sector. Furthermore,
the dynamic of metal consumption has to consider the opening and depletion rates of sources in metal-extracting
countries.
In order to assess the spread and dimension of the future demand of Indias material requirements, one can distinguish
three dierent scenarios. A pessimistic scenario envisages a slowdown in economic growth; the ineectiveness of
poverty- reduction strategies, resulting in high population growth; and a depleting resource base because of the
absence of technological improvements in production techniques. In contrast, an optimistic scenario assumes a very
rapid process of catching up, with economic production of two-digit growth ra-tes, as observed in China; and a rapid
reduction of poverty, resulting in low population growth. In between the two extremes is a third scenario, which uses
projections of economic development made by the Government of India, linked to some improvements in poverty
reduction. In order to assess the nature and scope of the required materials, no resource constrains will be assumed in
the optimistic and medium scenarios. Table 1 lists the main assumptions of the three scenarios.
Table 1: Main assumptions of the three scenarios
Slowdown of development
process
Continuing current dynamic Fast catching up
Population size High population growth
[UN Population Statistics,
2012]
Medium population
2012]
Low population growth
2012]
Resource base Stagnation and/or depletion
of sources, no new sources
and technologies are found/
developed
New sources and technologies
are found and developed in the
next few decades according to
demand
New sources and
technologies are found
and developed in the next
few decades according to
demand
Economic
production and
consumption
Low growth of production,
in particular in industrial
and service sectors, resulting
in average GDP growth
rates of 5 % p.a. in analysed
period. Further slight
decline in food consumption
per capita
(biomass consumption
decrease from 1.8 in 2009
to 1.6 in 2030, thereafter
stagnating)
Medium GDP growth rate
of 8% p.a. as projected by
Indian government until 2030;
thereafter slow down to an
average of 5% as projected by
TERI
9
Stagnation in food and biomass
consumption
High GDP growth rate of
12% p.a. as observed in
other emerging economies
(in particular China) during
the following 10 years;
thereafter, slow down to
8% p.a.
Medium increase in food
and biomass consumption
(biomass consumption
increases from 1.8 in 2009
to 2.0 in 2030 and 2.1 in
2050)
8 Cement use linked to the further use of sand and gravel is the main factor in mineral consumption; Allwood and Cullen [2012]
observed a threshold of around $11,000 in a cross-country study.
9 TERI uses these GDP assumptions in most of its modelling exercises, and the same is also being used by the Planning Commission of
India for its own analyses. Based on this modelling assumption, TERIs estimates of future consumption of energy will be published in a
forthcoming publication on the energy security outlook of India.
Te three scenarios result in dierent dimensions of future material requirements. It should be stressed that the
scenarios are aimed at providing a sense of the dimensions of the required materials, not exact values.
While the pessimistic scenario results only in a doubling of material requirements until 2030, the optimistic scenario
leads to a quadrupling of material needs (Figure 12). Te medium scenario lies in between, with a tripling of the
material requirements compared to 2009, up to around 14.2 billion tonnes until 2030. Forecasting the scenarios until
2050, it is predicted that Indias requirements of materials will be between around 17 billion tonnes at a minimum, and
around 47 billion tonnes at a maximum.
Figure 12: Indias past material demand and future projections until 2050

Source: Projections based on data from Dittrich, 2012; SERI, 2012; World Bank, 2012;
UN Population Statistics, 2012.
Following the medium scenario, it is estimated that India would require around 2.7 billion tonnes of biomass,
6.5 billion tonnes of minerals, 4.2 billion tonnes of fossil fuels, and 0.8 billion tonnes of metals in 2030; per capita
consumption would reach around 9.6 tonnes in that year, which is nearly the current global average.
Figure 13: Future material consumption by material categories in scenario continuing current dynamic

Source: Projections based on data from Dittrich, 2012; SERI, 2012; World Bank, 2012; UN Population Statistics, 2012.
Based on the accumulated analyses of the material requirements until 2030, it is estimated that India would need 188
billion tonnes of materials (to compare: India extracted between 1990 and 2009 66 billion tonnes); 51 billion tonnes
of biomass (19902009: 37 billion tonnes); 81.6 billion tonnes of non-metal minerals (18 billion tonnes); 45 billion
tonnes of fossil fuels (8 billion tonnes); and 10.5 billion tonnes of metals (2.6 billion tonnes) between 2010 and 2030.
Global scenarios predict that global material consumption would more than double until 2050 (up to around 160
billion tonnes) if all countries and all humans in the world were to catch up to the lifestyle of Western countries during
the rst half of this century, and if no further improvements in resource eciency are made at all [Dittrich et al.,
2012; UNEP, 2011b]. Following this scenario, India, hosting 17% of the global population in 2050 according to UN
projections, would account for 17% of global consumption, which would equal around 27 billion tonnes.
Figure 14: Global resource use by world regions in the past three decades and future prospects
Based on the assumption that all regions will catch up to the average OECD level of 2008 by 2040, legend for
both fgures.
Sources: Dittrich, 2012; SERI, 2012; UN Population Statistics, 2012.
D.3.1 Where will the materials come from?
Like most countries, India meets most of its demand for resources domestically. Currently, around 97% of all materials
consumed are extracted within India, while only 3% are net imports. Tus, India is, on the whole, self-sucient (but
not with regard to all materials; see below). Te net imports in physical terms equalled a net trade value of US$161
billion in 2011 [UNComtrade, 2012].
However, net imports increased substantially in the past few decades, at a faster rate than the rate of domestic
extraction. In 1980, India imported less than 0.2% of its material consumption requirements. Extraction per area
10
in
India, which could be used as a rough estimation of environmental pressure, is already the highest in the world, with
1,579 tonnes per sq km land area compared to the global average of 454 tonnes per sq km (Data based on SERI, 2012
[extraction] and CIA, 2012 [country area]).
In the light of increased material consumption in India, and also globally, a key question arises: from where should
these materials be sourced? Materials come either from domestic resources (option A), or can be imported as raw
materials or as nished goods (option B). Both sources have advantages as well as limitations, as described in the
following paragraphs.
10 In contrast to productivity per unit area, which usually quanties the used production of specic agricultural goods, extraction per unit
area includes all extracted materials (all biomass, including feed and forest, all minerals, and all fossil fuels) and thus quanties the
overall average pressure on the domestic environment, including not only agricultural land but also forests, watersheds, as well as industrial
and settlement areas. It should be noted that the indicator does not specify the particular pressure on single ecosystems or regions.
Option A: Increased exploitation of domestic sources
Here are some facts with regard to option A: Increased exploitation of domestic sources:
Due to insucient exploration, it is not known if India could satisfy its future demand domestically (see also
chapter E on key materials). India has a land mass of around 1.8 million sq. km. However, only 3% of this land
mass has been mapped geo-physically and 4% has been mapped geo-chemically.
11

Te technical constraints include lack of eective technologies for underground mining and for the extraction
of by-products. As a result, huge amounts of resources remain unexploited. Figure 15 shows dierences between
resources versus extractable reserves versus eective extraction of selected industrial minerals.
Figure 15: Resources, reserves, and production of selected industrial minerals
Source: Indian Bureau of Mines, 2012.
Many of Indias mineral reserves lie under dense forests and some are located in the watersheds of its rivers,
which are also inhabited by indigenous communities. Mining activity, over the years, has led to large-scale
destruction of forests, to displacement of millions, and to loss of livelihood for many. Owing to deteriorating socio-
environmental conditions, opposition of tribals and of other local communities against mining has increased in the
past few years. For instance, beach sand mining in the state of Andhra Pradesh has led to opposition from various
groups of shermen and from other communities, as the mining has a detrimental impact on the sea, which is their
main source of livelihood. Te considerable overlap between forest cover and mineral resources is seen in Figure 16,
which plots the two together. Further, increasing mining in forest areas would conict with Indias National Action
Plan on Climate Change, in particular with Green India, which focuses on the preservation and expansion of
forests in order to use them as CO
2
-sinks.
11 Assuming reserves and production remain constant at 2011 levels, iron ore would last for approximately 29 years and bauxite for
approximately 46 years.
http://mines.nic.in/writereaddata/lelinks/12277536_strategic_plan_nal%20draft%20v%208.pdf (last access: 09/20/2013)
Figure 16: Forest areas versus mineral resources
Source: CSE, 2007.
As seen in Figure 16, the locations of minerals resources in India overlap largely with forest areas. Mining thus leads
to huge loss of forest cover, destruction of biodiversity, and damage to the natural ecosystem. Around 60% of coal
resources, for instance, are located in forests [Ministry of Coal, 2005].
12
Similarly, 61% of current chromite mining
leases are in forest areas. With the rise in the demand for materials, the need for mining in forest areas will further
increase, leading to far greater destruction of forests, biodiversity, and ecosystems. Te Ministry of Coal [2005] has
estimated that the requirement of forest land for coal mining will increase from 22,000 hectares (i.e. 15% of the
current total land requirement) to 73,000 hectares (i.e. 25% of the projected total land requirement) by 2025.
Mining involves activities like drilling, blasting, excavation, construction of haul roads, movement of heavy earth
moving machinery (HEMM), etc., which results in dust emissions, fugitive emissions of particulate matter and
gases such as sulfur dioxide (SOx), nitrogen oxide (NOx), methane, carbon dioxide, carbon monoxide, etc. Te
release of greenhouse gas (GHGs) emissions compounds the problem of climate change. According to estimates,
the minerals industry contributes to around 32% of total GHG emissions of India [Majumdar, 2009]. In 2007,
CO
2
emissions from the minerals industry were estimated at 131 million tonnes. Te metals sector contributed
12 Ministry of Coal (2005), Coal Vision 2025, 70 pp.
about 122.7 million tonnes of CO
2
emissions (ibid.). In particular, the iron and steel industry, cement plants,
manufacture of sulfuric acid, and smelting of copper, zinc, lead ore, etc. are signicant contributors of CO
2
and also
SOx [Garg et al., n.d.].
Mining also leads to signicant degradation of land, which is perhaps the most serious environmental externality
resulting from the operations. Te problem is compounded because of the emphasis on open-cast mining in
India, which causes much greater land degradation than underground mining. In India, large tracts of land are
left degraded as a result of activities like excavation, stacking of waste dumps, discharge from workshops, and
construction of tailing ponds. In Jharia, in Jharkhand state, for example, a total of 75.77 sq. km of land has been
aected due to re (17.32 sq. km), subsidence (39.47 sq. km), excavation (12.68 sq. km), and dumps (6.30 sq. km)
[Singh et al., 2007]. Te area of land aected due to waste resulting from the production of minerals such as coal,
limestone, bauxite, and iron ore is given in Table 2.
Table 2: Mineral production, waste generation, and land affected in 200506
Mineral Production
(million tonnes)
Overburden/waste
(million tonnes)
Estimated land
aected (ha.)
Norms used (land in
ha/1 million tonnes of ore)
Coal 407 1493 10175 25
Limestone 170.38 178.3 1704 10
Bauxite 12.34 7.5 123 10
Iron ore 154.4 143.9 1544 10
Source: Sahu, 2011
Mining activities also lead to stress on water resources, whose availability and supply are limited in India. Tey
not only use a lot of water, but also aect the hydrological regime. Te major hydrological impact of a large and
deep open-cast mine is on the groundwater regime of the region. Many mining regions in the country confront the
problem of overexploitation of groundwater resources, resulting in the lowering of the water table. Te release of
mining waste into local water bodies leads to water pollution, which eects local communities. Te Damodar River
in Jharkhand and West Bengal, for instance, has been severely polluted due to coal-mining activities. Similarly,
mining in the mineral-rich Jaintia Hills district of Meghalaya has created an acute crisis of drinking water as the
major rivers in the region have been contaminated and declared unt for human use.
Option B: Increased imports
As seen above, the increase in domestic extraction raises serious questions about whether, and to what extent, it is
possible, feasible, and advisable to continue along this path, that is, increased domestic extraction. In the following
paragraphs, the strategic option B, that is, increased imports, will be analysed in terms of the challenges and risks it
presents:
Although the extent of global reserves is not fully known, scientists estimate that several resources have already
reached the highest level of their extraction or will peak in the next few decades. Tey predict that future extraction
would be limited or would be uneconomical due to, for example, deteriorating ore grades and increasing eorts
required to extract the resources in the face of increasing energy and water prices. Examples are oil and copper (see
also chapter E on key materials).
Many emerging economies are pursuing strategies for promoting their downstream industries and for preserving
their domestic reserves for future use. Tis is apparent in the proliferation of government measures that distort
international trade, especially in raw materials. Tese include quantitative export restrictions (quotas), export
taxes, reduction or cancellation of VAT rebates, mandatory minimum export prices, and stringent export licensing
requirements.
13
Materials such as gallium, antimony, cobalt, copper, chromium, germanium, indium, manganese,
13 As per the notication made to the WTO (by seven countries), out of the total export-restriction measures adopted for mining
products, 94 were automatic licensing, 1,001 non-automatic licensing, 746 quotas, and 60 prohibitions. Export restrictions on natural
resource products represented a large share of all notied restrictions, and all the restrictions fell fairly under GATT (World Trade
Report, Trade in Natural Resources).
molybdenum, nickel, platinum, palladium, rare earths, tungsten, titanium, and tantalum are all subject to trade-
distorting measures.
Even if resources were available from abroad, the question of aordability is an important factor. Scientists assume
that resource prices on the world markets will increase further. India as a net-importing country in physical terms
has a negative monetary trade balance. In the past few years, Indias monetary trade decit has increased. In 2009,
for example, Indias trading decit amounted to more than US$ 89 billion [UNComtrade, 2012]. If global resource
prices continue to increase, and given the ongoing weakness of Indias currency, Indias imports will become even
more expensive, widening the existing trading decit even further.
As explained with regard to an increase in domestic socio-environmental pressure, increasing imports implies
shifting the environmental burden to a place abroad. At best, tribals and valuable ecosystems are not aected, or are
aected to a small extent. At worst, tribals without rights are aected and ecosystems without any protection are
destroyed.
While India is, on the whole, still self-sucient in renewable materials, it is already import dependent in non-
renewable materials, in particular with regard to petroleum and specic minerals and metals. For example,
India imports 70% of its petroleum and 95% of its copper. With regard to several minerals, India is completely
dependent on imports (Figure 18).
Figure 17: Import dependencies in the case of selected raw materials

Sources: Dittrich, 2012 and TERI, 2013, based on values from Indian Bureau of Mines, 2012.
However, high import dependency exposes the country to geopolitical and geo-economic risks stemming from
changing dynamics in the international minerals market, in particular if
the reserves and production areas are concentrated in a small number of politically unstable countries. For instance,
only two or three nations account for over 70% of world production of silicon, rhenium, chromium, indium,
molybdenum, lithium, tantalum, and tungsten. Te concentration of production in the hands of a small number
of producing nations may increase the potential of supply disruption due to local disturbances in the producing
countries, politically inspired embargoes, or cartel actions that raise prices by limiting supplies.
14

resource-rich nations use their resource base as a tool to attain political objectives. Tis is evident from the recent
incident wherein the Chinese banned exports of rare earths to Japan in retaliation for the detainment of four
Chinese shermen whose boat had collided with Japanese patrol boats.
Increased concentration of resources at the level of producing companies, as observed, for example, in the case of
various metals. Te decreasing number of competitors, coupled with the growing size of the remaining rms in
the industry, makes it more likely for potential market power to exist. Market power may allow a powerful rm or
a group of rms to raise prices opportunistically to take advantage of a weak buyer. Tus, supply may be prone to
pressure from the opportunistic behaviour of companies.
Many mineral-rich nations are facing violent conicts because of competition to control mineral resources,
inequitable allocation of resource revenue, and social and environmental externalities resulting from mining
activities. Indeed, mining-related conicts have become a permanent feature of the political landscape in many
resource-rich countries such as Indonesia, the Democratic Republic of Congo, and Peru, where encounters between
mining companies and local communities are increasingly characterized by public protest, violent conict, and the
notable absence of state intervention.
Option C: Increased material effciency
As we have seen, both options A and B have their limitations and risks. As in the case of India, several other countries
and regions are re-orientating and analysing their options. One of the most promising options, improved resource
eciency, is being promoted in several countries (see also chapter H).
However, a major challenge in India is determining how to reduce poverty and improve the quality of life in a way
that requires as few resources as possible. Using resources in a more ecient manner would be a major part of such a
strategy.
Some facts about Indias resource productivity are given below.
In 2009, India gained 716 dollars (in purchasing power parity and in constant 2005 terms) per tonne of used material.
Te global average was much higher at 953 dollars in the same year [Dittrich, 2012; SERI, 2012; World Bank, 2012].
Resource productivity at a macroeconomic level depends on various factors. An economy with large resource-intensive
sectors such as mining, construction, and agriculture has usually lower resource productivity values than an economy
with large service and research sectors, which are, by and large, less resource-intensive. Furthermore, the mix of energy
sources largely inuences resource productivity; coal as a main energy source is less resource ecient than, for example,
gas or water. Tus, rather than comparing the absolute levels of resource productivities of various countries, the
improvements and productivities of sectors should be the focus.
Global improvements in resource productivity, dened as the average economic value gained per used tonne of material
in an economy, were around 27% between 1980 and 2009. Against this background, India has shown a remarkable
growth in resource productivity, with more than three times the global average (+98%; data based on Dittrich, 2013
[trade]; SERI, 2013 [extraction]; and World Bank, 2012 [GDP]). Te highest increases can be observed after India
began its liberalization and economic reforms in 1991.
However, Indias improvements are lower than those of China and Germany, 118% and 139%, respectively, during the
same period. It is interesting to note that resource productivity in Germany and China shows more uctuations during
the same period; in Germany, resource productivity dropped after the reunication; and in China, it dropped after the
14 Te attempts of producing countries to create mineral cartels [e.g. Intergovernmental Council of Copper Exporting Countries (CIPEC)]
in the 1970s met with little success. However, this does not mean that cartels will never succeed. Two of the conditions for the success
of cartel control of production and prices (at least in the short run) do exist for quite a few non-fuel minerals. Tese conditions are a
limited number of suppliers and inelastic demand, as indicated by their essentiality for certain industries, with, at least for the present,
no very good substitutes.
countrys entry into the WTO. In both cases, one factor that inuenced the decreases was the massive enlargement of
the resource-intensive construction sector.
Figure 18: Improvements in resource productivity* in India, China, and Germany, as well as the global average
between 1980 and 2008

Sources: Calculation based on Dittrich, 2012; SERI, 2011; and World Bank, 2011. * measured as GDP
(ppp, const. 2005) per DMC.
As explained above, national assessments of material productivity have to be analysed further in order to understand
the dynamics of this phenomenon. Te next step is usually an analysis of material productivity by sectors. Within
the scope of this study, this was done for India for the years 1997 and 2007 based on a multi-regional input output
(MIRO) methodology, as explained in the following paragraphs (see also Annex II).
For analyses of environmental issues in a global context and for calculations of comprehensive environmental
and resource indicators, inputoutput models are being applied increasingly by researchers, statistical oces, and
international organisations [Giljum et al., 2013; Wiedmann et al., 2011; Wiedmann, 2009]. Inputoutput models are
comprehensive models that integrate economic data for an entire economic system (one country or several countries).
Tey are also exible tools that allow the integration of environmental data (either in physical or monetary units) as
production inputs equal to, for example, labour or capital.
One of the most important applications of inputoutput analysis is the calculation of the total input requirements for
a unit of nal demand. By doing so, one can assess not only the direct requirements for the production process of the
analysed sector, but also all indirect requirements resulting from intermediate product deliveries from other sectors.
Tus, the total (direct and indirect) input necessary to satisfy nal demand (e.g. private consumption or exports) can be
determined [Leontief, 1936, 1986].
If an inputoutput model includes data on natural resource use (e.g. material inputs, water use, land use) or GHG
emissions, the total (direct and indirect) requirements of natural resources or the total emissions to satisfy domestic
nal demand, such as private or government consumption, can be determined. Tese results can be disaggregated to
economic sectors or products/ product groups, following the level of disaggregation in the economic core model.
Te results of the calculations show that in India the agriculture and forestry sector has remained the sector with the
highest direct and indirect material input due to Indias large agricultural production. However, the construction sector
and the sector group wood/metal/chemical products hence the main manufacturing sectors have been catching
up signicantly in the same period. Both sectors are not only the most dynamic ones in terms of physical growth, but
are also the second and third largest in terms of material input.
Figure 19: Material input in India by sectors, 2007
Source: SERI, 2012
Material productivity improved in several sectors in India during the past few years while it stagnated in others. While
the value added per unit of used material remained stable in the agricultural and forestry sectors, it improved in
particular in the service and business sectors, followed by the mining and quarrying sector.
Figure 20: Material productivity in India by sectors, 1997 and 2007

Source: SERI, 2012.
Comparing Indias productivity with the productivities in other countries sheds light on the potentials for
improvements given the existing or current technologies. For instance, the construction sector in Germany is twice
as resource ecient as the construction sector in India. Although the scope for making a direct comparison is limited
(due to the dierent structures of the sectors and the dierent kinds of construction methods followed, among various
reasons), the dierence can be taken as a rough indication that if India were to construct its infrastructure and houses
in a resource-ecient manner similar to the way that Germany does, it could save half the amount of materials used in
the sector, 900 million tonnes in 2007, more than 5 billion tonnes in 2050, and more than 125 billion tonnes between
2013 and 2050.
Following this rough estimation, using half of the amount of construction materials, including cement, could save
again based on a rough estimation half of the amount of emitted CO
2
and half of the amount of extraction material
and imports of construction minerals, etc. Of course, the rough estimations should be analysed in more detail to
provide a deeper appraisal of the savings (see chapter G).
A rough comparison of the manufacturing sectors in India and Germany in terms of their input costs for material and
energy and sectoral economic outputs
15
suggests that Indian manufacturing companies have remarkable potentials for
achieving resource eciency. In Germany, the manufacturing sub-sectors together have a material and energy cost share
of 45% [Destatis, 2012]. In India, the material and energy cost share for the same sub-sectors is 71% [Government
of India, 2012]. Figure 20 provides further sector-related details. Regarding a sectoral output of Rs. 35,597 billion
(2,058 billion in 2009 $), Indian rms could realize huge monetary savings and decreased material costs if they
increased their resource-eciency capabilities and lowered their use of materials. Taking the average 45% material
cost share of German manufacturing companies as a very rough benchmark, Indian companies that produce more
resource-eciently could have the potential to save around Rs. 8,888 billion (514 billion in 2009 $) material costs,
which would correspond to around one-third of all costs for materials and energy in Indias manufacturing, and to one-
quarter of total manufacturing output.
Figure 21: Resource-effciency potentials in Indias manufacturing sub-sectors

Source: Own calculation based on Destatis, 2012; Government of India, 2012a.
Indeed, such benchmarks need further analysis. Tey will also have to reect the structures of industry, their value
chains, price distortions resulting from subsidies, etc. German manufacturing, however, does not operate at its resource-
15 Te costs of material and energy are taken here as a proxy for de facto resource use. Since this is a monetary indicator reecting market
prices, one should complement the accounting for physical values, including the hidden ows and their environmental pressures (with
indicators such as Total Material Requirement [TMR]), see e.g. Kundu / v. Hau, 2008. Sectoral resource use data in a physical unit of
measurement for Indian manufacturing are not yet available.
eciency frontier either. Te potentials of resource eciency have by no means been fully exploited as yet. Tus, even
incremental improvements could lead to quick material and cost savings for Indias companies
16
[EIO, 2012]. Tese
incremental material-eciency measures could comprise changed production process parameters (e.g. temperature,
proportioning, shuing), the optimization of production processes (e.g. batch sizes, setup times), new production
elements or technologies (e.g. cartridges, lters, application technology), alternative production methods (e.g. for
coating, grease removing, segregation), as well as the qualication and training of employees (e.g. team-building
measures, denition of responsibilities, oering of incentives), etc. [Fischer / OBrien, 2012]. Assuming that companies
from the Indian and German manufacturing sectors are on a comparative level in terms of deploying relevant
technologies,
17
an extrapolation of material savings that are derived from a dataset from the German Material Eciency
Agency (DEMEA) [EIO, 2012] could result in material cost savings for Indian companies from the seven selected
manufacturing sectors amounting to Rs. 60,855 million (3.518 million in 2009 $). Most of these savings in Germany
have a payback period of less than one year.
Table 3: Extrapolation of additional incremental resource savings for selected sub-sectors in India
SECTOR
NACE 10 11 22 25 28 31 32
Resource-saving
potential
Food
products
Beverages Rubber
and plastic
products
Fabricated
metal
products
Machinery
and
equipment
Furniture Other
manufacturing
Sum
in % from total
sector output
0.44 0.18 1.01 0.62 0.88 1.99 0.36
in Rs. million 18,099 593 12,666 6,708 15,010 1,835 5,944 60,855
in current 2009
international
$, million
1,046 34 732 388 868 106 344 3,518
In a survey of the managers of top manufacturing companies in India [Bhattacharya et al., 2012; Confederation of
Indian Industry / Te Boston Consulting Group, 2012], the question regarding the future focus of governmental
and industrial action in order to boost the manufacturing sector had no reference to resource eciency. However,
improving the business environment in order to enhance resource eciency, and to support the better use of resources,
has the potential to make a key contribution to green growth [OECD, 2012] and thus to support the transformation
of the Indian manufacturing sector into a resource champion of the East. Hence, it should be of interest to policy
makers and business people.
16 On an average, German manufacturing companies that introduce incremental material-eciency measures can achieve material cost
savings of around 196,000 (per company and year) with a one-o investment of 129,000 (per company) [EIO, 2012].
17 Tis assumption should be supported by more in-depth analysis at the sectoral level comparing the amount of material input that
is needed to produce a certain output, measured by both the total material requirements (or comparable indicators) and the share of
material costs of the total sector output.
Box 1: Remanufacturing in India
Remanufacturing is the process of rebuilding a product, during which the product is cleaned,
inspected and disassembled; defective components are replaced; and the product is reassembled,
tested and inspected again to ensure [that] it meets or exceeds newly manufactured product
standards [Sundin / Bras, 2005, p. 917]. Thus, remanufacturing is part of the traditional
manufacturing business as the Original Equipment Manufacturer (OEM) in particular is able to provide
the necessary technology and competence in order to sell (fully and partly) remanufactured versions
of its own products.
India is one of the largest emerging medical equipment markets in the world, with a CAGR of 14%,
and is expected to exceed a market value of US$ 4 billion by 2015. The demand for refurbished
medical equipment is increasing in India, particularly in rural areas where there is a considerable
defcit of affordable healthcare facilities. As healthcare providers seek ways of offering better
services at lower cost, refurbished equipment offers an alternative because it comes with a warranty
and clinical applications support system, but costs 3040% less. In order to tap the opportunity,
GE Healthcare has come up with a unit in Bangalore that refurbishes used medical equipment.
Other companies like Siemens also refurbish entry-level medical equipment in India. The Ministry
of Heavy Industry, Government of India, under the auspices of the National Automotive Testing and
R&D Infrastructure Project (NATRiP) at the Global Automotive Research Centre (GARC) at Oragdum,
Chennai, has recently established a scientifc dismantling demonstration centre for automobiles. The
centre has been set up with the active cooperation of the Society of Indian Automobile Manufacturers
(SIAM), which helped to draw up the specifcations for the layout and the equipment for such
activities. The Indian automobile industry has shown signifcant interest in this venture, and has come
forward and donated many used vehicles, including 100 two-wheelers and 25 used cars and old cars,
to help kick start the setup. The centre also aims, in the future, to develop recycling processes that
would employ manual labour to the maximum extent possible (against the conventional automated
and/or mechanized processes used in the West), especially in dealing with Indias large numbers of
two-wheelers. The centre, in the long run, will also train personnel and help upgrade current units in
the unorganized sector dealing with such old cars and used cars. Certain auto components can also
be tested and certifed and sold through appropriate channels for future reuse.
Key raw materials within the sectors 33
Minerals and metals are considered important if their unavailability, either in terms of physical exhaustion or higher
prices (the latter being more probable),
18
aects the economic stability and technological competitiveness of a country.
Tus, security of metals has two dimensions: economic importance and supply risks (see Figure 22).
Figure 22: Scheme for evaluation of critical metals
Source: TERI 2013.
Te economic importance of a metal or material is determined on the basis of its application in key industrial and
strategic sectors, and the extent of its substitutability by other metals or materials. Since the study focuses on three
strategic sectors automotive, construction, and renewable energy the choice of materials selected for supply risk
analysis is limited to the ones used in these sectors. For understanding the material supply security of these sectors,
case studies of ve raw materials have been included here. Tese are chromite and molybdenum ore used in the
18 Tere will never be any physical exhaustion of minerals. As Tilton and Lagos (2007) note, Long before the last barrel of oil or the
last tonne of copper are extracted from the earths crust, the cost of production would become prohibitive, causing demand to decline
to zero. Also, many mineral commodities are not destroyed even though they are extracted and used. Activities like recycling limit the
ultimate scarcity of mineral resources.
E. Key raw materials
within the sectors
automotive sector, limestone used in the construction sector, and copper and cobalt ores used in the renewable
energy sector.
Tese short-listed materials do not constitute an exhaustive list of materials that are important for these sectors. Other
materials could equally be evaluated and determined to be important. Te idea here is to study materials that could be
illustrative of the dierent issues and challenges that may hamper availability of these materials to the sectors.
While studying the potential restrictions on the sustainable and aordable supply of these materials to the sectors, ve
broad factors or constraints have been considered geological, techno-economic, socio-environmental, geopolitical,
and geo-economic. Policy constraints and governance decits inhibit sustainable development and pose security threats
for almost all minerals. However, these factors or constraints are not discussed separately for each of the ve minerals.
Only material-specic policy constraints are examined in detail.
Te key dynamics, issues, and challenges associated with the ve short-listed materials are discussed in the following
sections.
E.1 Chromite
Chromite is used in dierent industries, i.e. metallurgical, refractory, and chemical. Almost all chromite is used in
metallurgical applications, i.e. in production of ferro-chrome, which is used in the production of stainless steel. Steel, in
turn, nds wide application in the automotive sector.
E.1.1 Trends in production, consumption, and trade
Details about the domestic production and consumption, and the imports and exports, of chromite for the period
19982009 are given in Figure 23 and Figure 24 respectively. Until now, India has been self-sucient in meeting
domestic demand, with the balance of production being exported. Exports have increased over the years owing to the
doubling of international prices. Most of Indias exports are to China. In 2010, for instance, China accounted for an
87% share in the total exports from India, followed by Japan, with a share of 13% [Indian Bureau of Mines, 2012].
Figure 23: Production and consumption of chromite (19982009)
Domestic consumption = Production + imports - exports
Data source: Ministry of Mines, Government of India.
Figure 24: Imports and exports of chromite (19982009)
E.1.2 Supply security concerns for chromite
1. Rising depletion of chromite reserves
Te rising production and increasing exports of chromite have led to concerns over the rapid depletion
of existing resources. Indias currently identied resources account for 1% of the total global resources.
Nevertheless, India is the third largest producer of chromite in the world [KPMG, 2012]. Its exports
constitute 3035% of the worlds share of chrome ore.
19
According to government estimates, reserves are
expected to last for only 20 years [Planning Commission, 2011a]. Te government, in the past, had imposed
export tax and export limits on chromite.
2. Technical constraints
Indias chromite resources are estimated at 203 million tonnes. However, appropriate technology for
increasing the feasibility of converting resources into reserves is not available. As a result, there is a large gap
between resources and economically mineable chromite reserves, as seen in Figure 25. Also, 90% of reserves
are located at depths between 100 and 300 metres. However, the currently prevalent open-cast technology is
not feasible beyond a depth of 100 metres [Planning Commission, 2011a]. Appropriate technology for the
exploration of deep-seated chromite resources is also not available.
Figure 25: Resources, reserves, and production of chromite
Production gures relate to 2010. Resources and reserves gures are as of April 2010.
Data source: Minerals Yearbook 2011; Indian Bureau of Mines, Ministry of Mines, Government of India.
19 http://www.iim-delhi.com/upload_events/MnOreCrOreFerroAllys.pdf (last accessed 11/21/2012).
3. Problems in benefciation owing to the export policy of the government
Beneciation is a variety of processes whereby the grade of the ore is improved by removing impurities,
stones, and other extraneous matter. Trough beneciation, a non-marketable grade of ore can be converted
into a grade that is directly useable. In the case of chromite, a considerable amount of low-grade ores are
generated during mining, which, through appropriate processing, can be converted into directly useable
grades of ores. However, the beneciation activities for chromite have not witnessed the warranted increase
in the quality of the ores.
Te reason for this is attributed to the export policy of the government. Te policy, which is otherwise
restricted, gives a free hand to beneciated concentrates with a feed grade of a maximum 42% of Cr
2
O
3
.
However, this has precluded genuine beneciation, which requires chromite with Cr
2
O
3
less than 38%
to be processed into a marketable grade. Te expert group constituted by the Ministry of Steel has also
recommended that exports of beneciated ore be conned exclusively to concentrates produced by genuine
beneciation. However, no policy steps have been taken so far.
4. Socio-environmental constraints
Orissa has 98% of Indias chromite reserves, most of which are located in the Sukinda valley in Jajpur
district and a few of them in Keonjhar and Dhenkanal districts. Tese districts have extensive forest cover,
and are also home to various indigenous communities. Figure 26 shows the areas of chromite mining in
dierent districts of Orissa and their overlap with forest areas.
Large-scale open-cast mining of chromite has led to extensive destruction of forests, particularly in
Sukinda valley [Bhushan, 2008]. Te valley has been included amongst the top 10 polluted sources in the
world primarily due to the widespread use of open-cast chromite mining [Blacksmith Institute, 2007].
Approximately 70% of surface water and 60% of drinking water in Sukinda is contaminated by the presence
of hexavalent chromium. Around 24% of the inhabitants in villages located less than one kilometre from
the mine sites are found to be suering from pollution-induced diseases (ibid.). A survey carried out by the
Orissa Voluntary Health Association in 1995 found that 84.75% of deaths in the mining areas and 86.42%
of deaths in the nearby industrial villages occurred due to chromite mine-related diseases. In addition,
around 7,000 people employed by chromite mines are constantly exposed to contaminated dust and water
[Centre for Environmental Studies, 2006].
Figure 26: Mining of chromite versus forests
Source: ENVIS Newsletter, Centre for Environmental Studies, 2006.
E.2 Molybdenum ores
Molybdenum does not occur in its free or native state, and is found only in chemical combination with other elements.
Te only molybdenum-bearing mineral that is of commercial signicance is molybdenite (MoS
2
). Molybdenum is also
obtained as a by-product of copper mining. Te metal is principally used in the form of ferro-molybdenum, which is
used for the manufacture of steel. Te steel, in turn, is largely used in the automotive sector.
Currently, there is no production of molybdenum ores in India, which makes the country 100% import dependent.
Most of the imports are from the USA, Chile, and Mexico, which together account for a 70% share in Indias total
imports of ores.
E.2.2 Supply security concerns
1. Inadequate exploration
Despite the limited availability of identied resources, no major attempts have been made to augment
resources through exploration. Te resources are estimated at 19.29 million tonnes, and the estimation has
not changed since 2005.
2. Lack of economically mineable resources
Te resources are estimated at 19.29 million tonnes and as containing about 12,640 tonnes of molybdenite.
None of the resources are economically mineable. Economic non-viability has been the main reason
deterring the mining of molybdenum ores in India.
3. Lack of production as a by-product
Molybdenum can be obtaining as a by-product of copper and uranium mining. However, currently, there is
no supply of the material from this source. In the past, attempts were made to obtain the ore from copper
and uranium mines, but no relevant results were reported due to the economic non-viability of extraction.
4. Reliance on imports and geopolitical and economic risks
Te lack of indigenous production makes India 100% dependent on imports, which, in turn, makes
it vulnerable to geopolitical and economic risks. Te risks result from the following dynamics in the
international market:
a. Concentration of world production and reserves
China, the USA, and Chile account for around 80% of world production. More than 80% of world
resources are also concentrated in these three countries, implying that future production will be similarly
geographically concentrated.
b. Limited reserves in major producing nations
Due to increased demand and the consequent increase in production, reserves in major producing
countries are being depleted at a fast rate. At the current rate of production, reserves in China will last
for 43 years, those in the USA for 27 years, and those in Chile for only 12 years.
c. Production of by-products
Primary mining of molybdenum constitutes about 33% of world output. Te remaining 67% is
obtained as a by-product of copper mining [Ministry of Mines, 2007]. Tus, the availability of
molybdenum is largely dependent on the dynamics of the copper mining industry. Tere have been
many instances where the supply of molybdenum was disrupted due to low copper prices.
d. Application of export restrictions by China
Owing to an unprecedented increase in domestic demand, China, which had previously been the major
exporter, is now applying export restrictions to save the material for domestic consumption. Exports
from China declined from 52 thousand tonnes in 2006 to 10 thousand tonnes in 2009 [TEX Report,
2008, 2010]. Chinas share in Indias import basket declined from 46% in 2004 to only 6% in 2010.
E.3 Limestone
Limestone is a sedimentary rock composed largely of calcium carbonate in the form of calcites. Rocks containing more
than 50% calcites are termed as limestone.
India is self-sucient in the production of limestone (see Figure 27). But despite its self-suciency in production,
India has been the net importer of limestone (see Figure 28). Net imports increased from 1 million tonnes in 2000 to
4 million tonnes in 2010, although this is still a small proportion of total domestic consumption. Net import reliance,
measured as a ratio of net imports to apparent consumption, was estimated at only 3% in 2010. Te reason for the
increasing imports, despite Indias self-suciency in production, is the increase in domestic production of cement
grade. Iron and steel grade, and chemical and other grades form only 3% and 2% of Indias total limestone production,
respectively. Hence, the requirement for steel and chemical grade limestone is met mainly through imports.
Figure 27: Production and consumption of limestone (19982009)
Consumption = production + imports - exports
Figure 28: Trade in limestone (19982010)

Limestone is available abundantly in the country, with total resources estimated at 184,935 million tonnes (as of April
01, 2010). Out of these resources, reserves constitute only 8%, but in absolute terms, the amount is signicant (i.e.
14,926 million tonnes). About 75% of these reserves are of cement grade and only 14% are of iron and steel grade, as
mentioned previously. Te 14% reserves (i.e. 2,090 million tonnes) are sucient to meet the demand for 261 years at
the current level of production. Tus, there are no constraints due to lack of geological potential. However, there are
other factors that may lead to supply risks. Tese are discussed below.
1. Lack of access due to environmental constraints
Despite the abundant geological availability even of limestone of iron and steel grade, India is import
dependent. Tis is because large quantities of limestone are located under forests and in environmentally
sensitive areas. Te strong overlap between limestone reserves and forest areas can be seen in Figure 29.
In addition to environmental constraints, logistical challenges in Rajasthan and in the Himalayas, where
considerable amounts of reserves are located, makes it more feasible to import the material than to mine it
domestically [Baijal, 2006].
Te government estimates that out of the total cement-grade limestone reserves, about 30% is under
forest and located in other inaccessible areas. Assuming that the cement sector grows at 12% per annum,
limestone reserves, excluding those under forest and located in other reserved areas, are expected to last for
only about 52 years [Planning Commission, 2011a].
Figure 29: Limestone reserves (in thousand tonnes) and forest areas

Source: TERI 2013, based on Forest Survey of India, Indian Bureau of Mines, 2011.
2. High environmental footprint of current extraction activities
Limestone mining has signicant environmental impacts, especially because the reserves in India are located
in hilly areas. Open-cast limestone mining in Uttarakhand has aected the local water resources signicantly.
About 40% of the major limestone-mining activities have breached the groundwater table [Bhushan, 2008].
Further, uncontrollable environmental impacts have also led to the closure of mines in some areas. In 1990,
for instance, a large number of limestone mines operating in the DoonMussoorie region were closed on
account of environmental impacts. Te impacts of uncontrolled mining, polluted air, reduced forest cover
(12%), silted streams, etc. can still be seen in the region [Srivastava, 2005]. More recently, people and
farmers in villages around the Lanjiberna limestone mines have opposed mining activities due to signicant
pollution levels and contamination of water.
20
3. Technical constraints
At present, limestone is mined to a depth of only 70 metres. Appropriate technology for extracting resources
located at greater depths is not available. Tis is not a major constraint at present, as the supply is sucient,
but with growing demand, supply could potentially be restricted if the issue of technical constraint is not
addressed soon.
E.4 Copper ores
India produces copper ores and concentrates. However, this production is sucient for meeting only 5% of the total
demand. For the rest, India is import dependent. Imports have increased signicantly at a CAGR of 20% during
the last 11 years. Figure 30 and Figure 31 give the trends in production, consumption, and trade for the period
1998-2009. More than 65% of Indias imports are from Chile, Australia, and Indonesia.
Figure 30: Production and consumption of copper ore (19982009)

Consumption = production + imports - exports.
20 http://newindianexpress.com/states/odisha/article1356548.ece (last accessed: 09/23/2013) and http://newindianexpress.com/states/
odisha/article1355117.ece (last accessed: 09/23/2013).
Figure 31: Trade in copper ore and concentrates (19982009)

Te availability of copper in India is limited as is the number of identied sources. Hence, copper has been
put under the decit minerals category by the government [Planning Commission, 2007a]. Hindustan
Copper Limited is the key company responsible for copper exploration in the country. Currently, it has an
exploration licence for an area of 60,000 sq km, out of which it has explored only 20,000 sq km.
21
Copper resources in India are estimated at 1.56 billion tonnes (estimated as of April 2010). Out of this,
only 25% (394 million tonnes) is estimated as reserves. Copper content in these reserves is estimated at
only 5 million tonnes (Figure 32). Given the low copper content in Indias reserves, the country is likely to
continue to depend on imports to meet the projected growth in demand.
3. Monopoly in copper ore production
Copper mines are subject to sub-optimal production primarily due to the monopoly status of Hindustan
Copper Limited in copper ore production. Out of the nine available mines in the country, only four are
in operation because of temporary problems like inadequate availability of equipment, breakdown of
equipment during specic periods, and water shortage. No steps are being taken to solve these problems and
to increase production in the country.
Figure 32: Resources, reserves, and estimated copper content

21 As indicated during a stakeholder consultation with ocials from Hindustan Copper Limited in 2011.
4. Environmental footprint
Te overburden ratio in copper mining is estimated at 1:9 [Sinha et al., 1998], which leads to the generation
of large quantities of waste. Tis waste is generally dumped on land, leading to problems like land
degradation and air and water pollution. Also, due to sub-optimal extraction, huge quantities of copper are
found in the soil. A study done at the Khetri mines of Hindustan Copper Limited in Rajasthan estimates
copper concentration in the soil at 885mg/kg as against the normal concentration at 5100mg/kg [Sheoran
et al., 2011]. Te copper industry is also a contributor to greenhouse gas emissions. In 2007, CO
2
emission
from copper production was estimated at 64.7 thousand tonnes [MOEF / Government of India, 2010].
5. High import dependence and geopolitical and economic risks
India is import dependent for meeting 95% of its indigenous demand for ores. Sterlite and Hindalco (the
two largest producers of rened copper in India) own copper mines in Australia. However, the production
from these mines meets only 8% and 26% of Indias concentrate requirements, respectively. Te rest of
the demand is met through contracts and the spot market [IMACS, 2010]. Tis high import dependence
exposes India to geopolitical and economic risks stemming from the factors described below:
a. Concentration in reserves and production
World copper mine production is mostly concentrated in Chile, Peru, China, and Indonesia, accounting
for 56% of the total production. Chiles share alone accounts for 34% of the production. Te world
reserves are equally concentrated in Chile, Australia, and Peru, accounting for more than a 50% share.
b. Risk of cartel actions
In the past, attempts have been made by major copper-producing nations to form cartels and to regulate
the copper market globally, e.g. International Copper Cartel (1935) and the Intergovernmental Council
of Copper Exporting Countries (CIPEC) (1970s). In the long run, cartels cannot succeed, as consuming
countries tend to nd alternatives or substitutes and to increase exploration activities. But in the short
run, due to inelasticity of demand, the actions of cartels can aect the functioning of global markets by
impacting the price levels.
c. Instability and declining production in major producing nations
Factors such as lower grades of ore, labour unrest, technical problems, temporary shutdowns, and
production cuts in the major producing countries are adding to the risks for world copper supply
[ICSG, 2012]. In Chile, for instance, acute shortages of power and opposition from environmental
groups have led to the closure of some mines. Declining grades of copper ores, in particular in Chile, has
also resulted in a fall in production. Te copper grade has declined from 1.72% in 2007 to 0.97% in
2011.
22
d. Increased merger and acquisition activities
Ten companies account for more than half of the copper production in the world. Codelco in Chile
alone accounts for 20% and 12% of the worlds copper reserves and production, respectively [National
Mining Association, 2012]. In addition, merger and acquisition (M&A) activities have been increasing
in the industry. In 2010, out of the total M&A activities in the mining sector, copper accounted for
a share of 19%.
23
In the rst quarter of 2012, there were about 10 instances of mergers in the copper
mining industry with a combined deal value of $13 billion (ibid.). Te trend towards consolidation
is expected to strengthen further given the consolidation plans of Canadian, Australian, and Chinese
companies. China, in particular, is expected to play a dominant role in acquiring copper companies in
order to meet its growing demand.
24

22 http://www.oracleminingcorp.com/copper/ (last accessed: 09/21/2012)
23 http://www.investmentu.com/2011/May/copper-sector-merger-activity.html (last accessed 09/21/2012).
24 http://copperinvestingnews.com/10984-time-may-ripe-copper-ma-ourish-anglo-american-bhp-billiton-glencore-xstrata-ivanhoe-rio-
tinto.html and http://www.investmentu.com/2011/May/copper-sector-merger-activity.html (last accessed 09/21/2012)
e. TC/RC margins (treatment charge/rening charge)
Indian copper smelters are import dependent, and hence their protability is dependent on the TC/
RC margins. Tese margins are charged by custom smelters to process copper concentrate into copper
cathodes. Tese charges are not determined by the cost of processing but by the decit or surplus in the
concentrate market. Te TC/RC is negotiated between buyers and sellers, and is often inuenced by
the price set by the larger players like China and Japan. Hence, domestic smelters whose protability is
determined by these margins are exposed to the uctuations in the global concentrate supply and to the
activities of the major players globally [CRISIL, 2007; IMACS, 2010].
E.5 Cobalt ores
Cobalt is rarely concentrated into economically viable deposits, and is produced as a primary mined commodity only
in Morocco. Elsewhere, it is obtained as a by-product of other metals such as copper and nickel. Cobalt ore is rened
to produce various cobalt products such as cobalt metal, oxides, and other chemical compounds.
Tere is no production of cobalt ores in the country. India is 100% import dependent in meeting domestic
consumption. Net imports increased at a CAGR of 17% during 200109 (Figure 33). More than 70% of Indias
imports are from the Democratic Republic of Congo (DRC). DRC and the Peoples Republic of Congo account for
more than a 95% share in Indias total imports.
Figure 33: Trade in cobalt ores and concentrates (20002010)

Cobalt, with total estimated resources of 44.91 million tonnes (as of April 2010), has been put in the scarce
mineral category by the government [Planning Commission, 2007a]. No attempts have been made to
augment domestic resources. Te resource estimation of 44.91 million tonnes has not changed since 2001.
Tere are no reserves of cobalt in the country. All the resources have been put in the remaining resource
category. Economic non-viability has been the main factor deterring the primary production of ores in the
country.
8. Lack of production as a by-product
Cobalt can be produced as a by-product of copper and nickel mining. Two possible secondary sources are
nickel-bearing laterite deposits in Orissa and copper slag produced by Hindustan Copper Limited, which
is now declining. Te potential of cobalt recovery from these deposits has not yet been exploited despite
ongoing R&D activities.
9. Import reliance and geopolitical and economic risks
India is a net importer of cobalt ores and concentrates. Te risks associated with import dependence for ores
and concentrates are described below:
a. Concentration in production and reserves
Production and reserves of cobalt ores are highly concentrated in one country. Te copper belt of Congo
accounts for 53% of total world production and for 45% of reserves.
b. Dependence on by-products1
Te production of cobalt as a primary mined commodity accounts for only 15% of total world
production. Te rest comes from the nickel (50%) and copper industries (35%) [Wilburn, 2011]. Tus,
the production of cobalt may be insensitive to changes in demand, at least in the short term.
c. Political instability in producing nations
Te Democratic Republic of Congo has been witnessing widespread conicts and political volatility. Te
political instability in DRC has led cobalt (along with tungsten and tantalum) to be termed a blood
mineral. Te instability in the region has had serious consequences for mining activities. For instance,
from 1995 to 2002, civil unrest limited mining in Congo, and even after a peace accord and a revised
mining code were signed in 2002, sporadic ghting continued, making cobalt mining dicult. Tese
conicts recently resulted in a complete ban on mining in the eastern part of Congo. Te situation has
led to a reduced global supply, and also has consequences for India, which depends mostly on these
African countries for ores. Supply from politically unstable parts of the world also leads to signicant
price volatility.
25
d. Imposition of export restrictions by the major supplier
In recent years, China has emerged as a major producer and consumer of rened cobalt. Chinas rened
cobalt production capacity has increased from 1% in 1995 to 31% in 2008. However, its share in mined
cobalt production has remained at less than 9% in the same period [Wilburn, 2011]. China is largely
dependent on Congo to meet its requirements for ores. Chinas increasing import demand led Congo to
impose a ban on the export of cobalt ores in 2007. Although the ban has now been lifted, there is still a
risk of the imposition of such restrictions in the future given the growing Chinese demand and the fact
of Congo being the major supplier.
25 Reports of predicted supply shortages (whether real or perceived) usually result in industry purchasers stocking their inventories. Tis
makes reports of supply tightness self-fullling and results in increased price. Once inventories are lled, there is normally a long period
of declining prices as buyers leave the market and run down their inventories.
E.6 Conclusion
Te various factors that could potentially constrain the availability of the ve materials discussed above are summarized
in the following table.
Key factors Chromium Molybdenum Copper Limestone Cobalt
Geological
Limited geological potential
Limited geological availability due to
inadequate exploration
x X x
Production in the nature of by-products x x
Techno-economic constraints x x X x x
Socio-environmental constraints x X x
High import dependency x X x
Geopolitical and geo-economic constraints x X x
Te analysis of key trends and supply-security challenges for the selected ve materials indicates that while India is
blessed with immense geological potential, the potential has not been realized due to inadequate exploration activities.
Te ow into exploration eorts is meagre in India, and requires urgent attention.
Te lack of appropriate technologies for improving the feasibility of converting resources into economically mineable
reserves has hindered the production of almost all the materials under consideration. Te indigenous reserves of various
materials are low in grade and not directly useable. Tese could, however, be utilized through beneciation, dressing,
and other activities. No major attempts have been undertaken to develop appropriate technologies in this regard. In
some cases like chromium, policy constraints hinder appropriate beneciation, which need to be corrected. Technical
constraint with regard to the production of by-products is also a major deterrent. Sub-optimal extraction of resources
due to the absence of appropriate mining technologies is also a challenge.
Tus, rather than the absence of geological potential, it is the techno-economic constraints and lack of exploration
activities that hinder the availability from domestic resources, and lead to high import dependence. Te techno-
economic constraints not only hinder supply, but also lead to various environmental problems, as seen in the case
of chromium and copper. It is important to address these techno-economic constraints as well as the negative
environmental and social consequences that result from mining. Te socio-environmental constraints are becoming
increasingly prominent and engendering a great deal of opposition from various quarters. Tese constraints have the
potential to hinder access to these resources if they are not addressed holistically.

Comprehensive environmental assessments must consider all stages of the life cycle of a product. In this study, our
products are a vehicle, a building, and a power plant. Te concept includes all stages of a products life cycle, such as
the production phase (material extraction, processing, transport, and manufacturing), the use/operation phase, and
nally the disposal or recycling (end-of-life) phase. Usually, if material demand is considered, attention is paid only
to the direct material input for the production of a product. Te concept of life cycle assessment (LCA) goes further
because it also analyses the raw materials consumed during other stages like the extraction phase, the use/operation
phase, and the end-of-life phase. Some examples of resource consumption during other life-cycle stages are given below:
Extraction of metal: High input of energy and water to extract metal from its ore
Operation of a thermal power plant: High input of fossil fuels to produce electricity
End-of-life of cars: Potential of using secondary metals from the car body
End-of-life of buildings: Potential of using secondary concrete from demolished buildings
Te analysed raw materials consumed during the life cycle are not only metals and minerals, but also other natural
resources like land, water, and energy. Another focus of this concept is analysing the emissions released into the
environment. Only such a life-cycle assessment approach (LCA) allows for a comprehensive comparison of dierent
product concepts, which is important for understanding the whole story of resource eciency. Te aspects of resource
eciency discussed in the case study are modelled with LCA software (method described in Annex III).
Figure 34: Life cycle of a car

Source: IFEU 2013.
F. Concept of life-cycle
thinking to analyse
resource effciency
Challenges and solutions in the hot-spot sectorsautomobile construction, and renewable energy 47
G.1 Automobile Sector
G.1.1 Introductory description of the sector in general and in India
Mobility is an essential factor in determining our quality of life. Increased mobility and enhanced infrastructure are
associated with economic growth and development. Mobility is essential because it connects people to jobs, markets,
and services, and gives people a chance to gain equity in the political, economic, and social spheres. In addition, it
enables the business sector to contribute to development and reduces the trade-barrier eect of costly and unreliable
transport, enabling poor regions and nations to become more competitive. Still, transportation has many negative
impacts, such as pollution, accidents, and congestion, which can aect the entire economy, but which are often felt
most by the poorest sections of the population.
Regarding dwindling resource availability, environmental destruction, and the challenges of climate change, developing
a sustainable model of transportation for the future is a matter of great signicance and urgency. Strategies for
achieving sustainable mobility involve promoting public transport, increasing the share of transport modes that do
not consume fossil fuels, reducing trip length or duration, and promoting clean fuel technology for motorized modes
[UBA, 2011].
G.1.2 Development of automobile sector worldwide and in India
Since the invention of the car or automobile in the late nineteenth century, the sector has experienced rapid
development. Te automotive industry was one of the most important sectors in Western countries like the USA
and Germany. Te introduction of mass production and the assembly line made the car aordable for many people
in Western countries. Rising incomes, cheap energy prices, and economies of scale prepared the ground for the
introduction of bigger, faster, and more resource-intensive models.
In India, as in most other countries, mobility relies heavily on rail and road infrastructure. Te major modes of
transport are two-wheelers, cars, auto-rickshaws, buses, and railways. Nowadays, the majority of trips in large Indian
cities are made by non-motorized or public transport. In 2003, 32% of all commuter trips in Delhi were made on foot,
while motorized trips amounted to 42%, with a large share of bus trips. In the 1990s, the share of personal transport
modes (cars, two-wheelers, auto-rickshaws) increased from 16.2% to 21.2% [Tiwari, 2003]. Conventional public
transportation witnessed an increase in absolute numbers, but could not keep up with the dynamic development of
individual personal mobility. Te highest increases in vehicle population took place among two-wheelers and auto-
rickshaws. But ownership of cars is expected to increase rapidly in the future due to rising incomes and an expanding
middle class. Figure 35 demonstrates the strong relationship between rising GDP and increasing car ownership. India
still has a very low car ownership rate at the national level, but, as Figure 35 indicates, this situation may change.
Nevertheless, India could follow any one of several dierent paths:
1. Low car density path (e.g. NLD, SWE, CHE, NOR, DK): Countries with a broad use of bicycles and public
transport
2. High car density path (e.g. USA, DEU, AUS, NZL, ITA): Countries with a strong car-dependent mobility.
G. Challenges and solutions in the
hot-spot sectors automobile
construction, and renewable energy
Figure 35: Car ownership: Growth potential and saturation level (2010)

Data Source: World Bank 2013.
G.1.3 Economic relevance of the sector
Te automobile sector is globally one of the largest industries, and thus a key driver of the economy. Te Indian auto
market is currently small, but has the potential for dramatic growth. Less than 1% of Indians own a car [International
Trade Administration, 2007]. Given the growing size of the middle class with its increasing purchasing power and
Indias young population (over half the population is less than 25 years of age), considerable potential exists to
penetrate a largely untapped market. Also, given the availability of cheap and skilled labour, India has the potential to
serve as a regional export hub for manufacturers in the Asia Pacic region.
After India began economic liberalization in July 1991, the automobile industry has grown at a rate of 17% on an
average for the rst few years, continuing the growth at approximately 12-15% per annum (see Table 4). Currently, it
employs 12.5 million people (about 1% of Indias population), directly and indirectly, and contributes nearly 5% to
Indias GDP. However, in 2008-09, the automobile sector was hit due to the global economic slowdown, whereupon
the government immediately took remedial action and announced stimulus measures, which have resulted in a return
to high growth rates as targeted by the Automotive Mission Plan for 2006-16. Currently, Indias auto production
amounts to 4.9% of world production, placing it fth behind China, Japan, Germany, and South Korea [Department
of Heavy Industry India, 2012].
Table 4: Indian automobile production in 1,000s
Segment 200708 200809 200910 201011
Passenger vehicle 1,778 1,839 2,357 2,987
Total commercial vehicles 549 417 568 753
Tree-wheeler 501 497 619 800
Two-wheeler 8,027 8,420 10,513 13,376
Total 10,854 11,172 14,057 17,916
Percentage growth -2.1 2.9 25.8 27.5
Source: SIAM, 2012.
G.1.4 Requirements of natural resources
India, as the worlds second most populous country, has a signicant impact on global emissions. Finding ways of
meeting the mobility demands of the population while seeking sustainable levels of resource use is a challenge. Te
harmful environmental eects of current transport patterns occur at every stage of the life cycle of vehicles. Te main
impacts are at the operational stage. Te transport sector is a major source of greenhouse gas emissions, generating 10%
of CO
2
emissions of total fuel combustion [World Bank, 2013]. In the last few decades, eorts have been made to
reduce the environmental impacts of the transport sector through technological innovations. In many countries, these
eorts have included more ecient use of raw materials, changes in production methods, adoption of cleaner fuels,
introduction of more fuel-ecient and alternative-fuel engines, and changes in the design of vehicles. Te concept
of recycling materials has also been developed. Such changes have been promoted through laws and regulations, and
through better and stricter enforcement.
When assessing the material requirements of India in general, and of the automobile sector in particular, it is important
to look not only at the direct raw materials in use whether they are extracted within India or are imported but also
at the quantities of raw materials that are embedded in the products and services that are imported and consumed
in India. Tis means that somewhere along the production chain, certain materials have been used to produce them.
Incorporating this indirect material use into the analysis means taking a consumption-based point of view and as such
analysing the real material requirement of an economy or an economic sector. Figure 36 shows the growth in the raw
material requirement of the Indian automotive sector in 1997 and 2007, disaggregated into the four main material
groups. Biomass, which has a large share, consists of grazing, forestry, and sugar crops, due to the considerable input of
leather fabrics and chemical products based on animal fats. It can be seen that the material requirement of the sector
has doubled in only 10 years; thereby, an increase has taken place in all the dierent material groups. While material
use might become more ecient in the future, the estimated numbers pertaining to future vehicle production suggest
that these eciency gains will be more than balanced out by increased demand.
Figure 36: Raw material requirement of the Indian automotive sector (1997 and 2007)
Note: All upstream ows are included.
Source: SERI 2013.
G.1.5 Drivers of demand in the sector
Tese increases in the rate of urbanization and the size of the middle class will lead to higher levels of aspiration and
demand for automobiles. Given the changes in the consumption patterns of Indian consumers, it is expected that
automobile consumption would rise from 37 billion to 354 billion Indian rupees in the period from 2005 to 2025, at a
CAGR of 12%. At the same time, the two-wheeler consumption is expected to increase from 99 billion to 496 billion
Indian rupees, at a CAGR of 8.4% [McKinsey Global Institute, 2007].
Te rising demand for vehicles needs to be satised by higher imports of foreign vehicles as well as by increased
production of vehicles within India. Table 5 shows the expected development of vehicle production in India.
Table 5: Expected Vehicle Production in India (1,000 units)
Passenger
vehicles
SCVs LCVs M &
HCVs
2 & 3 wheelers Tractors Construction
equipment*
Total
2009 2, 220 150 120 200 10, 230 420 40 13, 380
2015 (E) 5, 100 670 360 390 22, 100 710 100 29, 430
2020 (E) 8, 700
9, 700
1, 100
1, 220
470530 540600 30, 00033, 500 9401,050 170190 41, 920
-46,790
Source: Automotive Component Manufacturers Association of India, n.d.
*includes backhoes, track excavators, wheeled loading shovels, vibratory rollers, and liftalls
SCV: Small Charter Vehicle
LCV: Light Commercial Vehicle
M & HCV: Medium and Heavy Commercial Vehicle
Given the tremendous increases in the number of automobiles in the country, the road infrastructure needs to be
improved and expanded. Various fast-growing megacities in India have already exceeded their road infrastructure
capacity, especially on the major arterials connecting the central business district (CBD) [itrans, 2009]. If the need for
implementing a comprehensive infrastructure policy is neglected, the pressure on road capacity will increase further and
cause harm to the population, damage the environment, and disrupt the economic sector.
G.1.6 Specifc description of selected technical aspects
As discussed above, dierent factors contribute to the rising demand for mobility in India. Tis case study focuses
primarily on cars and two-wheelers, since these mobility options will have the greatest impact on the demand for
natural resources in the future. Hence, they also have the highest potential for improvements in resource eciency.
Cars and two-wheelers allow private mobility and maximum exibility. But cars in particular oer more than just
mobility, since they also provide convenience and aordability. Besides these rather practical aspects, cars worldwide
are seen as status symbols. Tese aspects contribute to an extensive use of advanced technology and to high material
intensities in private mobility.
In Western countries as well as in developing countries, the use of more resource-ecient cars is an important issue
in terms of costs and energy savings. Te Asian car industry has introduced smaller and lighter cars, which are more
aordable for mid-income groups. Similarly, the Indian car industry has recognized the demand for cost- and resource-
optimized vehicles, as innovations by leading Indian car manufacturers demonstrate.
Figure 37: Average distribution of certain metals in a compact car except steel

Source: Ecoinvent 2011.
An analysis of the material composition of a conventional compact car reveals that steel is the main contributor (76%)
to the total weight. Minor contributors are other metals and plastic components. Tese other metals may contribute
less to the overall weight of the car, but their environmental impact could be higher, or the availability of these raw
materials could be limited. Consequently, given the huge growth rates in car consumption, a deeper investigation of
these materials is necessary. Te material composition of two-wheelers is similar to that of cars, but on a much smaller
scale. Te share of aluminium and plastic components is higher in two-wheelers than in cars, which decreases the
overall share of steel to approximately 52%. If the total weight of both vehicles is divided by the number of passenger
seats, the car outnumbers the two-wheeler more than vefold. Since two-wheelers are experiencing even higher growth
rates, their resource demand should be considered as well.
Te material composition is based on the compact car, which is the most common car category in Germany (27%).
Together with minis and small cars, it has an overall share of 53.5% [KBA, 2013]. Nevertheless, other categories like
the middle-class car and the upper-class car account for about 25% of the car market in Germany. Growing numbers
of SUV sales in Europe and in other developing countries is a cause for concern from an environmental point of view.
Small and compact cars account for the largest share of the car market in India today. Since car purchases in India are
predicted to be dynamic in the coming years, the future distribution of car categories could change in a non-predictable
way.
Besides the material composition of cars and the various categories of cars, there are additional factors that contribute
to resource intensity and environmental burdens. In India, the following aspects will probably undergo dynamic
changes in the future:
- Average age of cars
It is obvious that a longer usage phase of a car limits resource consumption compared to a short usage phase.
Closed recycling loops for old vehicles may reduce the environmental impact of new cars, but there is always
a certain demand for primary materials in cars due to the need to maintain quality standards. In 2006,
the average age of a German car was 15 years; 20 years before, it was 13 years because of shorter longevity
[Hpfner et al., 2009].
- Auxiliary equipment
Tere is an increasing tendency to incorporate additional equipment within the car. Tis equipment serves
dierent purposes like security, convenience, and entertainment. Certain components like air conditioning
have a considerable impact on energy consumption.
- Type of energy source
Vehicles come with dierent fuel options, such as petroleum, diesel, biofuel, gas, and electricity. Te fossil
fuels petroleum and diesel have the highest share within the car category. Biomass is considered to be a
renewable source, but it has high resource intensities in land and water use. Electricity is generated by power
plants, and its environmental burdens are therefore dependent on the national electricity mix.
G.1.7 Meeting resource effciency
Private transportation contributes to a exible mobility pattern, which is increasingly required by modern society.
Tanks to the growing middle class in India and aordable private mobility options, it is expected that car and two-
wheeler ownership will increase in the future (see Figure 35). Vehicles are probably one of the most resource-intense
assets owned by people. Terefore, resource eciency in this sector generally has a high impact. Te potential for
resource eciency can be identied at dierent levels such as production, design, energy consumption, and end-of-life
treatment.
G.1.7.1 Cars as the focus of resource effciency
Between 2000 and 2010, the CAGR of the total number of registered cars was 10.8%. If this growth rate is further
projected until 2030, the total number of registered cars would be well over a hundred million (see Figure 38).
Figure 38: Growth in total number of registered cars in India*
Data source: Ministry of Road Transport and Highways, 2012.
Consequently, the total amount of metals used for the manufacture of cars will rise accordingly. In order to get a better
idea of this additional amount of material, it is assumed that all newly registered cars are average cars weighting 1.2 t
and reect the material composition discussed in chapter G.1.6. Following this logic, the annual steel demand for
cars in 2025 would account for 10% of the total Indian steel production and for 1% of the total Indian chromium
production of today (base year 2010). Indeed, the demand for not only steel and chromium but also for other metals
such as copper and aluminium will rise accordingly. Tis calculation demonstrates the development of material demand
and the high saving potential in the area of car production.
Figure 39: Projected annual demand for steel and chromium
Data source: Ministry of Road Transport and Highways, 2012; World Steel Association, 2011.
G.1.7.2 Resource effciency infuenced by car design
One of the most inuential factors in terms of resource eciency is the type of car, as this has a signicant impact on
resource consumption during the production and use phases. Te car industry produces many dierent types of cars.
Tis analysis focuses on the following car concepts:
Table 6: Different car types
Name Car type Length Weight
Compact car Average car 4,200 mm 1.2 t
City car Light mini 3,400 mm 850 kg
SUV Sports utility vehicle (SUV), Jeep 4,700 mm 1.8 t
Source: IFEU 2013.
Figure 40 shows the amount of extracted primary raw materials (e.g. iron ore, bauxite, and crude oil) that are required
during the course of the life-cycle. Te example shows a considerable reduction in primary raw material usage of the
city car in comparison to the compact car (-25%). Accordingly, a much heavier vehicle like an SUV could increase the
consumption of primary raw materials by as much as 40%. Te saving potentials are distributed over the production
and the use phases of a vehicle.
Another option in this context is related to exploring alternative materials for the same car. Te lightweight option
assumes the substitution of certain steel components with aluminium. Focusing on the primary raw material demand,
this would lead to a reduction of 10%, but the fact must be taken into account that aluminium is much more
expensive and has to be imported. Furthermore, it does not show high saving potentials if other resource categories are
considered. Annual land use even shows a negative eect if steel is substituted (see Figure 41).
Figure 40: Primary raw material demand for different car options
Source: IFEU 2013.
To highlight future demand for primary raw materials, the expected newly registered cars in the future are assumed to
be one of the dierent car types shown in Table 6, plus the lightweight option (see Figure 42).
Figure 41: Saving potential of a lightweight compact car in different resource categories*

*Infrastructure is not included.
Source: IFEU 2013.
Figure 42: Future raw material demand for different car options
Source: IFEU 2013; TERI 2013.
G.1.7.3 Closed Recycling Loops
Recycling systems contribute to resource eciency since materials are kept within the production system and are not
lost through unregulated disposal. Recycling needs a well-organised collection system and energy-ecient recovery
mechanisms to supply the market with competitively priced secondary materials. If these mechanisms are established,
recycling could reduce dependencies and stress on primary materials.
Since steel constitutes the largest amount of materials used in vehicles, its recycling potential is high. Additionally, the
steel components of a car are easy to remove and could be collected in homogeneous fractions. Steel recycling of an
Indian compact car would decrease raw material consumption theoretically by 23%. Te potential is determined by
the assumption of recycling rate 0% compared to 100%. Taking the increasing demand for cars into account, it is seen
that this could save up to 60 million tonnes of primary raw material in 2030. Since recycling is already taking place in
India, the unexploited potential is less than 23%.
Figure 43: Material-reduction potential in primary raw material demand by steel recycling
Source: IFEU 2013; TERI 2013.
G.1.7.4 Occupation rates
Te occupation rate of a vehicle has a signicant inuence on the resource demand if the consumption per passenger is
considered. An adequate occupation of vehicles saves space in the city in addition to conserving resources and reducing
emissions. Terefore, it is desirable to have high occupation rates within the guidelines of security standards.
Figure 44 demonstrates the per passenger raw material consumption based on the assumption of dierent occupation
rates. If a city car is compared with a two-wheeler, given an average occupation rate, the two-wheeler consumes 15%
fewer primary raw materials. If full occupation of the vehicle is assumed, raw material consumption per passenger
could drop even slightly below the consumption of a two-wheeler. It should be noted that the city car is the smallest
car option and that the lifetime of a car is usually longer than that of a two-wheeler. Tis example demonstrates the
impact of occupation rates and does not rank cars and two-wheelers.
Figure 44: Primary raw material consumption by different occupation rates
Source: IFEU 2013.
G.1.7.5 Discussing electric mobility in the context of resource effciency
Vehicles are usually equipped with internal combustion engines that run on fossil fuels such as gasoline, diesel, and gas.
Te concept of electric engines, however, is not new, since the rst electric vehicles were developed in the nineteenth
century. After the success of the internal combustion engine in the automotive sector in the twentieth century,
electric engines became merely an option for niche vehicles. Four main arguments have been made in support of the
renaissance of electric passenger vehicles:
1. Technical developments: More ecient engines and battery systems are making electric vehicles more
competitive.
2. Urban air quality: Electric vehicles can reduce emissions harmful to human beings in areas with high trac
concentration.
3. Global climate change: Electric cars have the potential to reduce greenhouse gases resulting from combustion
processes.
4. Energy security: Dierent energy sources can reduce the demand for gasoline, diesel, and gas.
Concerning argument three, it must be recognized that emissions are not directly released by the vehicle, but are
released earlier at the power plant. Calling electric vehicles zero-emission disguises the fact of electricity generation.
If the electricity mix of a country is based mostly on fossil fuels, the energy supply for electric vehicles is still CO
2

intensive, and energy dependencies could also persist further. Any real benets for the environment and for energy
security are possible only if renewable energy plays a dominant role in the energy supply for electric vehicles.
Talking about resource eciency, it is seen that electric mobility is not an easy issue to understand. Generally, electric
vehicles are more material intensive since they require large amounts of high-tech materials, instruments, and other
parts, such as the battery. Te large battery in an electric vehicle makes it heavier compared to a conventional car.
Te maintenance of electric vehicles is usually more complex, and if a new battery is needed, the overall balance, as
far as resource use in manufacturing in concerned, tilts against electric vehicles. Tus, resource eciency is restricted
primarily to the use phase of electric vehicles. Tis is closely linked to the discussion on the electricity mix. If a high
share of renewable energy is supplying electric vehicles, the CO
2
balance and the saving of energy resources are clearly
better for these vehicles. If we focus only on metal consumption, we nd that electric vehicles do not oer many
advantages. Hence, besides a renewables-based energy mix, an ecient recycling system is also needed to support
electric vehicles from a resource-eciency point of view.
G.1.7.6 Further potential of enhancing resource effciency by broadening the sector
If the automotive sector is considered in a broader context, a comparison could be made between dierent mobility
options. Te most environmental-friendly and resource-ecient mobility options are walking and cycling. Terefore,
trac infrastructure should be developed to support this form of mobility rather than threaten or undermine it.
Infrastructure for pedestrians and cyclists needs a comprehensive concept and a safe environment. In Indias fast
growing megacities, these groups are often threatened and marginalized by motorized vehicles and their attendant
infrastructure.
Figure 45: Development of absolute and per capita mobility* in India

Data source: TERI 2013.
Nevertheless, modern society expects high and exible mobility behaviour from every individual. Hence, daily
travelling distances are growing, which cannot be satised by non-motorized mobility alone. Figure 45 shows the rapid
development of passenger kilometres in India by road, rail, and air. According to this future projection, which is based
on historical trends, absolute passenger kilometres per capita will reach European standards shortly after 2020.
26
Tere
is no sign of saturation until 2030; all modes of transport will continue witnessing high growth rates due to long travel
distances between and within the relevant urban centres. Dierent options of motorized mobility are available in India
for managing daily trips.
Table 7: Different options of motorized mobility
Motorized mobility
Personal Public
Two-wheeler
Auto-rickshaw
Taxi
Car
Bus
Tram
Suburban train
Train
26 Tis means that the total number of passenger kilometers per capita will be higher in India than in Europe by 2030. But if this number
is examined more closely, it is clear that the passenger kilometres served by cars per capita is still higher in Europe than in India.
From discussions on climate change and urban air quality, it is well known that public transportation is better for the
environment and for urban air quality since it emits less CO
2
and other harmful substances per passenger. Te same
can be stated from the resource-eciency perspective. Figure 46 presents the dierent rates of primary raw material
consumption by dierent modes of transport. Te underlying model considers Indian conditions as far as possible. Tis
accounts for the electricity mix, the cars lifetime, and vehicle occupation rates. Private mobility options have higher
consumption rates per passenger kilometre than public modes of transport. Te bus shows the highest advantages in
comparison to all the other modes of transport. Te energy supply and the use phase are considerably high for rail-
based transport modes due to their energy supply, which is electricity. Electricity generation in India is highly fossil
fuel based, which is highly resource and CO
2
emission intensive. If renewable energy gains a larger share in the Indian
electricity mix, the resource consumption of these modes of transport will drop further.
Figure 46: Consumption of primary raw materials by different modes of transport
Source: IFEU 2013.
If the essential natural resource of fresh water is considered, a similar picture emerges. Not surprisingly, private
mobility is even more water intensive than public mobility. In this comparison, the rail-based mode of transport has
more advantages compared to the bus. Since the availability of fresh water is an important issue in India, the saving
potentials of public transport besides the saving potentials in materials is a relevant point of discussion.
Figure 47: Consumption of fresh water by different modes of transport

Source: IFEU 2013.
Te future distribution of dierent modes of transport the modal split has a signicant inuence on future demand
in the mobility sector. As discussed previously, private mobility has the highest levels in terms of primary raw material
consumption. To further emphasize the eect of a future modal split, two scenarios are elaborated in Figure 48. Te
future volume of personal mobility is projected in passenger kilometres (see Figure 45). If this amount of passenger
kilometres is served by Indias modal split (base year 2010), the results are far more advantageous compared to an
expected car-intense modal split (e.g. the German modal split). Tis example points to the signicance of future public
transport for achieving resource eciency. It is a challenge to meet the rapidly rising demand for mobility with an
ecient and cost-eective public transportation infrastructure and system.
Figure 48: Future demand for primary raw materials divided by modal split
Scenario: High share public transport Scenario: High share car

Source: TERI 2013; IFEU 2013.
G.2 Housing Sector
G.2.1 Introductory description of the housing sector in general and in India
Housing, which forms a major part of the construction industry, is a basic human need, ranking next only to food
and clothing as essential for survival. It has always had important socio-economic implications. Housing as well as the
entire infrastructural sector holds the key to the acceleration of the pace of economic development, in being a basic
requirement for urban and rural settlers, in being a central plank of poverty-reduction programmes with regard to slum
prevalence and slum clearance, and furthermore in being a major generator of employment in the national economy.
Tus, especially in countries like India, which are in the throes of rapid development, housing and infrastructure
development have come to play a crucial role.
Housing investments are made for several decades, or even for centuries. Given the volume of these investments, it is
essential to consider the monetary aspects seriously before taking further steps. In addition, it is advisable to consider
also the material aspect of the investments: location, design of houses, choice of building materials, and several other
factors that determine the consumption of natural resources such as land, water, and air, as well as of scarce materials,
not only during the construction phase of a building but also during the operational and demolition phases. To a large
extent, decisions about the material aspects determine future investments in materials that are essential for running
and maintaining the building. For example, the amount of energy required for heating and cooling the building is
determined in particular by the buildings insulation. Tus, a country like India facing rapid development in the
housing and infrastructural sector has an opportunity to choose and move on a material- and natural resource-ecient
path of housing for decades ahead, and possibly even for the next century.
G.2.2 Development of the housing sector worldwide and in India, and implications for
mineral consumption
Ever since humans settled down in permanent locations, the construction, maintenance, and demolition of buildings
has been a central task and a major economic activity. With improvements in construction skills and techniques,
even common residential buildings have become stronger, larger, and longer lasting than before. One example of this
trend is the increasing use of durable instead of non-durable building materials in the housing sector. Furthermore,
residential buildings have become increasingly comfortable as a result of sophisticated technical equipment and
appliances, including basic equipment like sanitation facilities and also complex technical equipment like ventilation
systems.
In spite of the socio-economic importance of housing, a census on the global housing stock and the global housing
sector is not available. Housing stocks and housing sectors are very dierent all over the world due to dierent cultural
traditions of housing, locally available materials for construction, and dierent national frameworks. Nevertheless,
some general trends with regard to material consumption are observable. Te processes of industrialization,
urbanization, and rising income usually result in a rapid increase in investments in the housing and infrastructure
sector. In particular, during periods when the building and infrastructure sector is witnessing a boom, the demand
for construction minerals increases signicantly, while the demand increases slightly or stagnates during periods when
infrastructure needs to be mostly maintained rather than be built or created anew (Figure 49). It is noteworthy that
densely populated countries usually show lower per capita values of construction minerals than less populous and
particularly large countries where more infrastructure has to be built to connect widely spread and scattered settlements
(e.g. [UNEP, 2011b]).
Figure 49: Mineral consumption per capita during the build-up and maintenance of infrastructure in selected
countries, 2008

Sources: income: World Bank, 2011; material consumption: SERI, 2012 and Dittrich, 2012.
India still has a very low average of mineral consumption per capita compared with other nations. Currently,
the consumption of minerals is around 1.5 tonnes per capita, which is a remarkable vefold increase since 1980.
Nevertheless, comparison with China or South Korea, two countries that have invested large amounts in housing and
infrastructure in the past few decades, indicates how the consumption of construction minerals might change in the
following decades given the forecasted demand for housing, as shown in Figure 50.
Figure 50: Consumption of minerals in India, China, and South Korea between 1980 and 2009

Sources: Dittrich, 2012; SERI, 2012; World Bank, 2011.
In the last few decades, India has increased its housing stock and housing equipment to a remarkable degree. According
to the 2011 census, Indias housing stock amounted to more than 330 million housing units [Government of India,
2012b], of which around 221 million houses were located in rural areas and 110 million houses were located in
urban areas. Tis is a remarkable increase compared to 2001 when the rural and urban housing stock amounted
to 178 and 72 million houses, respectively. In addition to the increasing demand for residential construction,
particularly by the growing middle class, slum prevalence in India fell from 41.5% in 1990 to 28.1% in 2010
[empulseglobal, 2008]. However, according to a UN estimate about the percentage of slum dwellers in 2009, the
number still amounted to about 29.4%, which means that 105 million Indians were still living in slums in 2009
[UN, 2012].
Te housing sector plays a major role in Indias national economy in terms of employment generation and contribution
to national income. In economic analysis, the housing sector is usually subsumed in the construction sector. Te
information in the following paragraphs mostly pertains to the construction sector. Te share of the real estate segment
in the construction sector accounts for about 50% of construction activities, according to the Planning Commission
[2011b], and the remaining 50% is contributed by infrastructure.
Te construction sector forms the second largest segment in Indias economy in terms of employment, after
agriculture. It provides employment to about 35 million Indians and accounts for about 52.4% of the gross xed
capital formation of the country [Planning Commission, 2011c]. Furthermore, investments in the construction sector
have a multiplier eect on income and employment. It is estimated that the overall employment generation due to
additional investment in the housing/construction sector amounts to eight times the direct employment [Planning
Commission, 2008]. Moreover, housing has a direct impact on the industries related to steel, cement, marble/ceramic
tiles, electrical wiring, PVC pipes, and various types of ttings, all of which contribute signicantly to the national
economy.
Te Indian construction sector has been growing at an average annual growth rate of 10% over the past 12 years,
with its contribution to GDP increasing from Rs. 1,554 billion in 200102 to Rs. 4,046 billion in 201112.
Tus, the construction sector currently contributes around 8% to Indias GDP [UN, 2012] and the real estate
segment contributes about 56% to Indias GDP, with residential housing accounting for about 9095%, commercial
buildings contributing about 45%, and the organised retail forming 1% of the total share [Planning Commission,
2011c].
G.2.4 Requirements of natural resources in the housing sector
Buildings are one of the biggest consumers of all natural resources and also one of the biggest creators of waste
in Indias economy. Although the assessment of natural resource consumption by the building sector is a
relatively new eld of research, there are some studies that provide information on resource consumption by the
building sector.
A study by CSE [2011] shows that the overall constructed area in 2005 was estimated to be close to 21 billion
square feet. Te construction industries are major contributors of CO
2
emissions in India. CSE estimates that the
construction industries contribute almost a quarter of the total CO
2
emissions in India, which mostly come from
the energy-intensive production of cement and steel, and from the extraction of bricks and limestone (Figure 51).
It is not only the construction phase of a building that has a substantial resource footprint, but also its operational
phase. Figure 51 gives the current resource consumption of buildings throughout their life-cycle in India based on
the limited data available [CSE / Roychowdhury, 2011]. Buildings are said to impose a burden on the environment
because they not only consume a substantial amount of resources such as energy, raw materials, water, and land, but
also because they produce emissions and waste.
Figure 51: Share of buildings in resource use and pollution
Source: CSE / Roychowdhury, 2011.
Te operational phase of buildings accounts for about 8090% of the total energy that is consumed by buildings as
a whole [Ramesh et al., 2012, 2013]. GEFUNDP [2012] assessed the average energy consumption by commercial
buildings in India. On average, a commercial building in India consumes about 210 kWh/m
2
per year of energy
vis--vis less than 150 kWh/m
2
per year in developed countries in North America and Europe. Te UNDP study
estimates that a commercial building in India, if it adheres to the energy-eciency codes established by the Energy
Conservation Building Code, would consume about 180 kWh/m
2
of energy per year [GEFUNDP, 2012]. As analysed
by Ramesh et al. [2012], the operating energy consumption by a conventional residential building using re-clay is
around 174 kWh/m
2
. Maintenance consumes about 10% of the building material used during the construction phase.
Te waste generated by construction and demolition is also substantial in India. On an average, about 1214 million
tonnes of construction and demolition waste is generated annually in India. Tis waste accounts for a substantial share
(about one-third) of the total solid waste generated in the country. Te waste from soil, bricks, and concrete accounts
for a substantial amount of the total construction and demolition waste generated (Figure 52).
Figure 52: Composition of construction and demolition waste

Source: IL&FS Ecosmart Limited, n.d.
Focusing on all the materials used in the construction sector (building and infrastructure), it is seen that the
construction sector is one of the most material-intensive sectors. In India, the construction sector was the second
largest sector with regard to material consumption in 2007, accounting for around 20% of all material demand
[SERI, 2012]. Further, the construction sector was the fastest growing sector with regard to increases in absolute
material consumption: between 1997 and 2007, material consumption grew by more than one billion tonnes. Tus, if
this trend continues, in the years 2013/2014 material consumption in the construction sector will outweigh material
consumption in the agricultural sector, the sector with the highest level of material consumption so far.
Te predominant materials used in the construction sector are minerals, in particular bulky ones such as sand and
gravel (Figure 53). However, between 1997 and 2007, the share of metals used in the construction sector increased
more rapidly (around +400%) than the share of fossil fuels (around +70%), reecting, amongst other things, increasing
energy eciency within the sector and the more intensive use of structural metal elements in constructions. Te
biomass used in the sector includes wood, grass, bamboo, and thatch.
Figure 53: Raw materials in the construction sector by main aggregates
Source: SERI, 2012.
Furthermore, materials constitute the dominant part of the costs of construction activities. Tey account for about
half of all costs in the construction part and for nearly two-thirds of the total construction costs of buildings (Figure
54). Of the raw materials, cement and steel are the most important inputs, and constitute the largest amounts of
components being consumed in the industry [Planning Commission, 2007].
Figure 54: Building cost components (in %):
Data source:[Planning Commission, 2007b.
Indias construction sector relies increasingly on imports. In 2007, 90% of all materials required in the construction
sector originated in India, while 10% were imported, compared to 97% and 3%, respectively in 1997. In recent years,
net imports of limestone and gypsum have increased in particular, while net exports of building stones and mineral
products such as cement have decreased (see also chapter E).
Figure 55: Increasing import dependencies in the construction sector, 1997 and 2007
Sources: left: SERI, 2012. Please note: upstream ows are included.
G.2.5 Drivers of demand in the sector
Te main drivers of future housing demand in India have been described in chapter C: increase in population; rapid
rate of urbanization; and increase in income, in particular increase in income of a rising middle class demanding better
housing conditions, particularly in large cities.
In the past few years, the rising demand for housing in India has led to shortages. In rural areas, the housing shortage
decreased from 34 million units in 2001 to 26 million units in 2010 thanks to the initiatives taken by the government
to provide housing facilities and, more importantly, because of migration to urban areas. At the same time, the housing
shortage increased from 15.1 million to 20.5 million units in urban areas [IBEF, 2011]. Cushman and Wakeeld
[CSE / Roychowdhury, 2011] further point out that real estate development during 20082012 was concentrated in
just a few megacities of India. Almost 80% of the projected demand was in seven major cities in India, that is, National
Capital Region (NCR) of Delhi, Bangalore, Mumbai, Pune, Hyderabad, Chennai, and Kolkata.
Te above-mentioned trends of growing urbanization, rising income, and increasing population make it necessary
to develop housing facilities and to create infrastructural facilities more rapidly and extensively. Real estate and
infrastructure development is therefore a key priority for India. Tis is seen clearly in the increased investments made in
the sector in the past few years. As a result, the construction sector in India is expected to grow rapidly in the coming
years. It is expected to grow by more than 70% from the 201112 value to reach a level of Rs. 13,590 billion by
201617. Consequently, the real estate segment is expected to grow at an average annual rate of about 20% in the next
ve years [ASA & Associates, 2012].
Given the strong growth drivers, the built-up area in India is expected to increase exponentially. According to
ASCINRDC [2012], at the current level, about 70% of the buildings that will exist in 2030 have yet to be built.
Considering the current housing stock of 330 million housing units, the estimation by ASCI-NRDC is that around
770 housing units will be built until 2030 (Figure 56). CSE predicts that the overall constructed area will swell to
around ve times the current size, reaching approximately 104 billion square feet by 2030. CSE further expects that
the demand for low-cost housing will rise to 38 million aordable housing units by 2030 (from 25 million housing
units in 2007; [CSE / Roychowdhury, 2011]).
Figure 56: Existing housing stock and housing units to be built according to NRDC-ASCI until 2030
Source: Own gures based on Government of India, 2012b and NRDC-ASCI, 2012.
G.2.6 Specifc description of selected technical aspects
As described above, the choice of materials used in the construction of buildings depends on various factors such
as regional availability, aordability of prices, technical and legislative standards, municipal regulations, skill and
knowledge of builders or labourers, as well as the further requirements of a building in order to meet, for example,
housing demands in dierent climate zones.
Te Indian census divides housing units according to the materials used for the construction of roofs, walls, and oors.
Te predominant material for roofs is concrete in about 30% of houses, while brick is the key ingredient for walls in
about 50% of houses. Floors in about 32% of houses are made of cement, which is next only to mud, which accounts
for 45% of houses (Figure 57).
Figure 57: Predominant materials used for construction of roofs (above) and walls (below)
Source: Government of India, 2012b.
In India, data on the quantity of each material that goes into the creation of a building are limited. However, some
studies, in particular those undertaken by Ramesh et al. [2012, 2013], have analysed the material composition of
a conventional residential building. Ramesh et al. [2012] focused on a building in the state of Hyderabad (Andhra
Pradesh), and Ramesh et al. [2013] on a building in Allahabad (Uttar Pradesh), to assess the material and energy
requirements of the same. Table 8 provides an overview of the material composition of both buildings.
Table 8: Material composition of buildings analysed by Ramesh et al. 2012 and 2013
Hyderabad Allahadad
One-storey, two bedrooms, living
room, and kitchen building, with
an area of about 85.5 m
Four-storey multifamily residential house comprising
44 apartments with useable oor area of 2960m
(average per apartment: 67.3 m)
Key Materials (kg/m)
Cement 268.77 186.93
Steel 51.13 86.59
Aluminium 0.05
Brick 1,583.56 1,426.38
Aggregates 567.02 697.51
Glass 2.12 0.54
Copper 3.13 0.10
Ceramic tile 19.20 80.07
PVC 0.92 0.71
Marble 71.39 46.35
Sand 649.12
Paint 0.19
Flush door 4.76
Grey cast iron pipe 3.72
Sources: Ramesh et al., 2012, 2013.
Tus, the census and the above-mentioned studies point to the importance, and partly even the dominance, of cement
and concrete (a compound of cement, sand, and aggregates) as well as brick as material inputs of a residential building
or house. Te specic materials used in construction have an important impact on the raw material demand during the
construction, operational, and demolition phases. Tis issue is discussed in detail in the following chapter. In addition
to the material inputs, other factors also inuence the resource intensity of a residential building or house, in particular:
- Average life span of a building:
Constructing residential buildings or houses requires large investments, and they are often built to last for
generations. Naturally, a building that lasts several decades, or even centuries, is less resource intensive than
a building that has to be demolished some years after its construction. Although the life spans of buildings
vary widely (some buildings last for several centuries), Ramesh et al. [2013] noted a service life of 75 years
in his study on the building in Allahabad. Tese data will be used for calculating the average life span of a
building in the following paragraphs.
- Type of energy source:
As in the automotive sector, in the building sector also, the type of energy source employed inuences
the resource intensity of a building. Particularly during the operational phase of a building, energy is used
for cooling, heating, lighting, and for running electrical appliances. Fossil fuels (e.g. petroleum, coal) and
renewable energy (e.g. wind, water) are used as energy sources in India (see also the following case study on
renewable energy, chapter G.3). Buildings mostly do not produce energy themselves, but purchase energy
from public energy producers, and thus use the typical Indian energy mix in which coal is the dominant
energy source.
- Technical equipment and appliances
Buildings increasingly contain more technical and electrical appliances. Sanitation appliances inside
buildings, part of the basic equipment, require water pipelines and canalization. Currently, 53.1% of
buildings in India do not have a latrine within the premises [Government of India, 2012c]. Te penetration
and technical conguration of other appliances such as televisions and refrigerators, and also of ventilation
systems, mainly determine the electricity demand of a building during the operational phase.
- Location of building
India has ve climate zones: hot-dry, warm-humid, composite, moderate, and cold. Each climate zone
entails specic demands on the functionality of buildings, in particular for cooling and heating.
- Average living space per person
Te average living space per person changes signicantly the material input required for meeting the given
housing demand. Currently, the average living space per person is around 20 m. In the international
context, it was observed that average living space increases with rising income. For example, in Germany,
the average living space per person increased from 18 to 42 m between 1960 and 2009. In urban China, it
increased from 17 to 30 m between 1998 and 2005.
Given that buildings are among the largest resource consumers in the economy, several initiatives worldwide are
aimed at improving resource inputs and at reducing the environmental impacts of buildings. In the past, particular
emphasis was laid on improving the energy eciency of buildings. In recent years, the embedded energy of buildings,
such as the energy used to produce building materials, has gained increasing attention. Several initiatives, in particular
rating programmes, also address additional environmental aspects such as water and (toxic) materials. Examples in the
international context are BREEAM (Building Research Establishments Environmental Assessment Method), one of the
rst building environmental assessment methods developed in the UK; CASBEE (Comprehensive Assessment System
for Building Environmental Eciency) in Japan; and LEED (Leadership in Energy and Environmental Design) in the
United States; for an overview, see [MNRE / TERI, 2010] and [MNRE / TERI, 2010]).
In India, TERI has developed an India-specic rating system named GRIHA (Green Rating for Integrated Habitat
Assessment), which was adopted as the national rating system for green buildings by the Government of India in 2007.
GRIHA is a tool that facilitates the design, construction, and operation of green buildings in India, that is, it measures
the greenness of a building. GRIHA compliance for a typical oce building used for 8 hours results in 30%50%
reduction in energy consumption compared to the GRIHA base case and to the implementation of good practices
on-site at no or at negligible incremental cost. Further, the experience of GRIHA implementation on site helps in
inuencing and implementing policy at various levels at the centre and at the state.
GRIHA was developed to meet the specic requirements of the Indian housing and environmental context. Te
rating system is highly comprehensive, including several stages from site planning to construction, to operation and
maintenance of buildings, and providing several options for improving resource conservation and enhancing resource
use and eciency of buildings (Figure 58).
Figure 58: Overview of GRIHA criteria
Source: TERI, 2013.
GRIHA is already part of the national policy pertaining to the building sector. MNRE launched GRIHA as a national
rating system in 2008, and CPWD adopted GRIHA as a Green Building Standard in 2009. Te Government of India
made GRIHA 3 stars (that is, scoring at least 71 out of 100 points) mandatory in all new central government buildings
in 2010.
As GRIHA already oers various possibilities for resource savings and for improvements in resource eciency, the
present case study analyses selected aspects of material eciency in the building sector in order to provide additional
supporting evidence and to point to further potentials for improving material eciency in the sector. Hence, two
aspects will be analysed: rst, cement as an example of why and how material savings during the construction phase of
a building could be improved; and second, the choice of materials used for the walls of buildings to show the impacts
of the selected materials over the life span of the building.
G.2.7.1 Construction material: Choosing a particular cement
Concrete, a compound of cement, sand, and gravel, is one of the most common materials found in buildings in India.
Tus, cement production oers large resource-eciency potentials in the housing sector.
Cement and also mortar are very old building materials. Some of the worlds most remarkable constructions, such as
the Pantheon in Rome and the Great Wall of China, were built with cement and mortar. Cement and mortar are not
only very old and long-lasting construction materials but are also widespread. Tere is hardly any region in the world
where cement and mortar are not used for construction.
Te basic component of cement is limestone (largely CaCo3). When limestone is heated to more than 1,000C in
a kiln, carbon dioxide and lime (CaO) are released. Lime is mixed with water and sand in a specic proportion to
make mortar. Mortar prepared in this way hardens when it is exposed to air, as carbon dioxide is reabsorbed into the
atmosphere. When lime is mixed with silica, alumina, and sand, and water is added, it leads to a chemical reaction
called curing. Te result is a very hard, long-lasting, and water-resistant material. Further additives enhance specic
product characteristics. Portland cement, the cement used most commonly around the world to produce concrete, is a
mixture of lime, clay (which contains silica and alumina), sand, and iron.
Te cement industry is one of the main emitters of CO
2
. According to the International Energy Agency [2009], it is
responsible for 5% of CO
2
emissions globally. In India, the cement industry is currently responsible for approximately
7% of the countrys total anthropogenic CO
2
emissions [Wbcsd / IEA, 2013]. Two sources are mainly responsible:
rst, the chemical reaction of the decomposition of limestone into lime, as mentioned above; and second, the heating
process in the kiln up to 1,450C to produce the pellets of clinker. While the rst emissions are inherent in the
production of cement, the second emissions depend strongly on the energy sources used to heat the kiln. However, in
the following paragraphs, the case study does not focus on the output side of the cement industry, but analyses aspects
of resource input in cement production against the predicted cement demand.
Future demand for cement and limestone
Global cement production increased from around 1 billion tonnes in 1980 to around 3.5 billion tonnes in 2010
mainly due to growth in production in China, the largest producer of cement currently. In India, the second largest
producer, around 210 million tonnes of cement were produced in 2010, which was 6.3% of global production. India
nearly quadrupled cement production between 1996 and 2010 [USGS, various years]. At present, India still has a low
per capita consumption of cement, that is, of less than 200 kg per person [Wbcsd / IEA, 2013]. In the international
context, as income increases, so does the consumption of cement [Allwood et al., 2012]. Based on with this
observation, the road map for the Indian cement industry predicts that per capita consumption of cement will increase
to between 400 tonnes (low-demand case) and 565 tonnes (high-demand case) in 2030
27
[Wbcsd / IEA, 2013]. In
absolute numbers, this means a projected cement production of between 600 and 850 million tonnes in 2030, and of
between 780 and 1,360 million tonnes in 2050 (Figure 59).
Figure 59: Projected growth of cement production in India
Source: Own gures based on Wbcsd / IEA, 2013.
27 Wbcsd and IEA (2013, p. 47) project the cement demand intensity (expressed in kilogramme of cement per capita) using the expected
growth in GDP per capita and the expected elasticity of cement demand and per capita income.
Te main raw material used for the production of cement is limestone. Limestone, in particular for cement production,
is usually seen as an abundantly available resource in India. Reserves amount to 14,926 million tonnes (see chapter
E). Te specic amount of limestone required to produce a unit of clinker and following that a unit of cement varies
according to the specic limestone source. Te British Geological Survey [BGS, 2005] estimates that the raw material
requirement for each tonne of cement is typically 1.65 tonnes of limestone (with a variation of 1.5 to 1.8 tonnes per
unit of average cement, which is predominantly OPC).
Following BGS, the average input of limestone combined with the predicted demand for cement, as mentioned in
the road map for the Indian cement industry, it is estimated that the yearly demand for limestone will increase to a
gure between 1,000 million tonnes (low-demand case) and 1,400 million tonnes (high-demand case) in 2030 (Figure
60, left). By cumulating the yearly required amounts of limestone for cement production in both scenarios, and by
comparing this gure with the size of the known Indian reserves of limestone, we can estimate that the known reserves
may last until 2028 in the high-demand case, and until 2031 in the low-demand case (Figure 60, right).
Figure 60: Projected demand for limestone in India, yearly (left) and cumulated (right)

Sources: Own calculation based on BGS, 2005; Wbcsd / IEA, 2013.
Improvements in Material Effciency
However, the particular demand for limestone depends on the type of cement required, and thus leaves room for
resource-eciency improvements. In OPC, the share of limestone input as clinker is higher than 95%, and in blended
cements, the share of limestone input is less. In blended cements, the input of clinker is partly substituted by other
materials such as puzzolan, y ash, slag, and red mud. Tus, the substitution of clinker input not only reduces energy
input in the production process signicantly, but also reduces limestone input because less clinker is required. However,
it should be noted that the substitution of clinker leads to a decrease in the density of the cement and concrete. Tus,
OPC, the densest and strongest cement, may not be substituted in all cases [BETON, 2012].
Te current share of cements in India is 25% OPC, 67% PPC, and 8% PSC [Planning Commission, 2007b]. Te
Government of India is already promoting the blending of cement, which improves resource eciency considerably. In
the GRIHA rating (criterion 15), the use of cement and of further structural elements containing yash is also scored.
Figure 61 shows the demand for limestone depending on the type of cement employed, using the low-demand scenario
of the cement industry roadmap and comparing the limestone demand for OPC and for blended cements, presenting
the spread between the lowest and the highest shares of limestone substitution. Given the estimates of future demand
for cement in India, it is clear that substitution contributes signicantly to the reduction of pressure on limestone
reserves (as described in chapter E). New types of cement, which are even less resource intensive in terms of limestone
and energy input, have been developed. One example is the award-winning Celitement cement, in which lime and
sand are bound at a low temperature of around 300C while water is added (and not reduced) during heating. Tis
leads to signicantly lower inputs of energy while producing the clinker. Furthermore, compared with OPC, only one-
third of limestone input is required to produce one unit of calcium-silicate-hydrate [Celitement, 2013]. Tis cement
is not yet marketable. Nevertheless, this example demonstrates how new innovations can further enhance resource
eciency in the sector. Te Building Materials and Technology Promotion Council under the Ministry of Housing
and Urban Poverty Alleviation, Government of India, is working towards the introduction of a number of building
materials and technologies based on agro-industrial wastes such as yash-based bricks/blocks, cellular lightweight
concrete, bamboo-based materials, and bagasse boards. Te council has taken initiatives such as the construction of
bamboo-based demonstration structures in the states of north-eastern India. It has formulated a number of Indian
standards in close association with the Bureau of Indian Standards (BIS) on cost-eective technologies such as yash
bricks, RCC planks and joist, and bamboo mat-corrugated roong sheets. However, there is considerable scope for the
wide-scale applications of such initiatives and for conducting research in new material-ecient technologies.
Figure 61: Demand for limestone depending on type of cement
Sources: BGS, 2005; Celitement, 2013; Planning Commission, 2007b; Wbcsd / IEA, 2013.
Tus, the case of cement as one of the most important inputs in the building sector has demonstrated that a basic
input material in the building sector, limestone, which is currently not scarce, will become scarcer given the future
demand in this sector. Te choice of cement type (where feasible) as well as the use of innovative technologies (where
feasible) could reduce signicantly the required amount of material input, that is, limestone (as well as energy input,
not analysed in this study), and improve material eciency in the building sector. Consequently, current and future
pressures on limestone reserves, particularly in environmentally and socially sensitive zones, could be mitigated.
G.2.7.2 Importance of selected building materials, for example, in building walls
Buildings can be constructed of a variety of materials. Te material composition of Indian buildings, that is, in oors,
walls, and roofs, as presented in the ocial census, involves a variety of materials. In the following paragraphs, a case
study of the wall of a building will be used to show how the choice of the material used to construct the wall can
inuence the material eciency of the building not only during the construction phase but also during the operational
phase.
Te walls of Indian buildings are constructed of several dierent materials such as brick, concrete, wood, metal,
mud, plastic, and grass. Burnt brick is the dominant material, with 48% of Indian buildings having burnt-brick walls
([Government of India, 2012c;], see also above). Further, brick is the dominant key material in terms of quantity per
square metre of area constructed, as shown by Ramesh et al. [2012, 2013], with 1,583.56 and 1,426.38 kg per m in
the analysed buildings in Hyderabad and Allahabad, respectively.
In the following paragraphs, the analysed building in Allahabad will be used to assess how global warming potential,
raw material input, energy demand, and freshwater consumption change throughout the entire life-cycle of a building
if the walls were not constructed with burnt brick but with alternative materials, namely:
Aerated concrete: Compared to burnt brick, aerated
concrete is a less dense material, although it fulls the
carrying specication for building walls. It is not ammable
and is open for the diusion of steam. Compared to burnt
brick, the insulation characteristic of aerated concrete is
signicantly higher. Ramesh et al. [2013] suggest the further
use of aerated concrete to improve the energy and material
eciency of a building throughout its life cycle.
Strawtec: Strawtec is made out of straw, a waste product
of agriculture. It was developed in Uganda, and its use
was approved in two level buildings, in the inside and
outside walls of the buildings.
28
Strawtec has won several
awards. It is now also produced in Europe and is used as an
alternative to dry walling inside buildings. In the following
section, Strawtec is modelled as an alternative for interior
walls.
Additional insulation material: As encouraged by the Indian
government and included in the GRIHA system, the
insulation of exterior walls may increase the energy eciency
of a building signicantly during the operational phase.
Various insulation materials are already available in India. In
the following model, a PUF PIR panel of Lloyd insulation
was chosen simply due to the fact that it is the rst product
described in the product catalogue of GRIHA.
Tese materials can be used and combined in several dierent ways in a building, compared to the basic house
described by Ramesh et al. [2013]:
1. Aerated concrete. All walls are constructed using aerated concrete instead of burnt bricks.
2. Strawtec. All inside walls are constructed using strawtec; the outside walls are made of burnt bricks.
3. Aerated concretestrawtec. Te outside walls are made of aerated concrete, and the inside walls are made out
of strawtec.
4. Burnt-brick insulation. Te building (wall, roof, and oor) as described by Ramesh et al. (2013) was insulated
with the above-mentioned panels until the point the building reached the passive-house standard as described
in Feist et al. [2011] for Dubai. Tis standard was chosen because there is no particular standard for India
available, and Dubai is the region with a climate most similar to that of India among the regions analysed by
Feist et al. In this and in the two following options, windows were also adopted in the standard.
5. Aerated-concrete insulation. As in combination 4, only based on a building with aerated concrete instead of
burnt brick. As aerated concrete already has insulation characteristics, fewer insulation panels are required.
6. Aerated concretestrawtec insulation. As in combination 4, only based on the building described in
combination 3 with aerated concrete-based outside walls and strawtec-based inside walls. As in combination
28 www.strawtec.com (last accessed 20/09/2013).
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5, the choice of aerated concrete for the exterior walls reduces the required thickness of further insulation
material.
Te passive house standard for the thickness of insulation was chosen because the concept of a passive house is an
innovative way of reducing the energy consumption of a building. A passive house is dened on the basis of the level of
energy consumption. For certication in Germany, for example, heating demand cannot exceed 15 kWh/(ma) for an
indoor temperature of 20C. Te low consumption standard is reached by making use of dierent strategies to prevent
energy ows at and within the building, such as insulation, high-quality windows, air-tightness, and the avoidance of
thermal bridges [Feist, 2011].
Figure 62 compares the primary raw material demand for the dierent usages and combinations of external walls
as described above. Te chosen basic unit is material input for housing space per person and year. Te raw material
demand in the basic standard house in Allahabad as analysed by Ramesh et al. [2013] is 1,108 kg of material input per
person and year. Te results show that the substitution of the burnt-brick wall by aerated concrete reduces the amount
of raw material demand of building materials by 39%. If the inside walls are substituted by strawtec, the raw material
demand for building materials would be reduced by 43%. Insulation naturally increases the raw material demand; if
the basic house in Allahabad could be insulated, as explained above, the raw material demand for building materials
would increase by 3%.
Figure 62: Primary raw material demand for a unit housing space per person and year by the different options of
building materials and potential savings
Source: IFEU 2013.
Te inclusion of the raw material demand (for electricity consumption, water consumption, and the disposal of the
building) shows the overall raw material demand of a building. In passive houses, as per the denition, the energy
demand, and thus the electricity demand, is low because insulation reduces in particular the electricity (energy)
demand for heating and cooling the building. Figure 63 shows that the substitution of burnt brick by aerated
concrete has an even greater overall eect on the raw material demand throughout the lifespan of the building than
the insulation of the basic building. Te greatest eect is produced by the combination of aerated concrete and
strawtec along with further insulation. In this option, the overall raw material demand could be reduced by nearly half
compared to the basic building in Allahabad.
Figure 63: Overall primary raw material demand of the building options per person and year
Source: IFEU 2013
Saving options can be realized not only in terms of raw material inputs but also in terms of primary energy demand.
In the model, both the operational energy and the embodied energy in the building materials are included. Embodied
energy is the energy required to produce the building material. Primary energy demand is signicantly lower in the
options that comply with the passive house standard (Figure 64).
Figure 64: Primary energy demand of the different options
Source: IFEU 2013.
Savings in material and energy input are usually also linked to savings in nal disposal. Not only is the amount that
has to be deposited reduced, but the raw material and energy demand used in the phase of disposal is also reduced.
Compared to the basic building in Allahabad, both raw material demand and energy demand could be reduced by
around one-third if aerated concrete is used (Figures 33 and 34; due to the small scale, visibility is not good). Te
recycling of building materials cannot be addressed in more detail in this case study due to limited space. However, it
should be stressed that recycling and reusing building materials could further reduce the primary raw material demand
and the energy demand, and thus contribute to resource eciency in the housing sector.
Given the housing demand in India, as explained above, the potential future savings in terms of resource eciency
are immense in absolute values. Even if average living space were to remain constant, the possible savings in primary
raw material demand would exceed one billion tonnes based only on the choice of the material(s) used for the walls.
Figure 67 shows the raw material demand in 2030 by the dierent options. Even if average living space were to remain
constant, the amount of raw material required for housing for all Indians would be 3 billion tonnes if all buildings were
built like the building analysed by Ramesh et al. [2013]. In contrast, the raw material demand for building materials,
electricity consumption, water consumption, and disposal would be only 1.56 billion tonnes if the buildings were built
in the most resource-ecient way among the analysed options, resulting in a saving of 1.4 billion tonnes in required
raw materials, including a saving of 697 million tonnes in building materials and a saving of 700 million tonnes in
material input for electricity consumption.
Figure 65: Raw material demand and potential savings for buildings in 2030 by the different options
Note: Projection is based on medium population growth as provided by UN.
Source: IFEU 2013.
It should be noted that the savings refer only to the year 2030. Given a life span of a building of around 75 years, the
dierence between a building in Allahabad requiring 146 tonnes per inhabitant to serve the function of housing versus
a building with aerated concrete in exterior walls, strawtec in inside walls, insulation, and high-quality windows would
require only 77 tonnes per inhabitant to serve the same function of housing. Tus, hypothetically and regardless of all
dierentiations, if all of the 770 million houses estimated to be built until 2030 were to be constructed with the most
resource-ecient option instead of the basic building option, more than 50 billion tonnes of dierent materials could
be saved throughout the life span of these buildings based only on the choice of wall materials.
G.3 Renewable Energy Sector
G.3.1 Introductory description of the sector in general and in India
India is one of the fastest growing countries in terms of energy consumption. Currently, it is the third largest consumer
of energy in the world [Enerdata, 2013]. At the same time, the country is heavily dependent on fossil fuels for meeting
most of its energy needs. To ensure economic growth in the coming years, it is important to address the issue of energy
security. At the moment, the required fossil fuels are largely imported. According to the World Energy Outlook Report,
India will become the third largest net importer of oil before 2025, after the USA and China [DIREC, 2010].
India has taken signicant steps to ensure its energy security while also taking action to achieve global climate-change
objectives. Te use of renewables is a potential option for achieving these twin goals. Renewable energy-based
decentralized and distributed applications have already benetted millions of people in rural areas by meeting their
cooking, lighting, and other energy requirements in an environmentally friendly manner [MNRE, 2012a]. With a
projected high-growth trajectory, and also keeping in mind the principles of sustainable development, India is now
focusing on maximizing its utilization of renewable energy potential.
G.3.2 Development of the Renewable Energy Sector Worldwide and in India
Tere are high expectations from renewable energy globally. In June 2011, the Intergovernmental Panel on
Climate Change (IPCC) released a Special Report on Renewable Energy Sources and Climate Change Mitigation
(SRREN). Te report suggests that in some scenarios, the renewable energy share in the global energy mix could
reach 77% by 2050 [IPCC, 2011]. Further, in some cases, renewable energy technologies are already economically
competitive, and if environmental impacts such as emissions of pollutants and greenhouse gases were monetized and
included in energy prices, more renewable energy technologies may become economically attractive.
India is the fourth largest country in terms of installed power generation capacity in the eld of renewable energy
[Ernst & Young, 2012]. Te demand for power is growing exponentially, and the scope of growth in this sector
is immense. Indias power supplydemand gap has averaged between 8% and 10% over the last decade where
electricity access exists. Average per capita consumption of electricity in India is 879 kWh per year [Central Statistical
Organisation, 2013], which is much lower than that in developed countries (Figure 66). Tus, this gure is expected
to rise sharply due to high economic growth and rapid industrialization. Undoubtedly, renewable energy is the most
feasible option for the country. Te Government of India estimated the renewable energy potential from dierent
renewable energy sources in the country as 245,880 MW [Government of India, 2013]. Te market for renewable
energy in India is growing at an average annual rate of 15% [DIREC, 2010]. Tis growth is expected to continue in
the near future as stricter environmental norms and regulatory pressures are applied and imposed on Indian industries.
Figure 66: Electricity consumption per capita in selected countries (2010)
Source: World Bank 2012.
In 2011, the share of renewable power installed capacity was 10.62% of the total installed capacity in power
generation, whereas wind accounted for more than 70% of installed capacity among the renewables. In the same year,
the share of renewable energy in total electricity generation was 5.5% [CEA, 2012a]. Te sector currently employs 0.2
million people [WIPRO, 2012]. Tis gure could be multiplied up to 14 times by 2030 with the right policies and
investments in place, according to the India Energy [R]evolution Report [Greenpeace International, 2012]. According
to this scenario, by 2050, about 92% of Indias installed energy infrastructure could be based on renewable energy
sources and comprise 74% of electricity generation, thereby helping the country reduce its carbon emissions in the
face of climate change. Figure 67 compares the dierent shares of energy sources in Indias electricity mix. Te installed
power capacity is the overall installed potential of power, and is measured in watts. Te numbers for energy generation
which is measured in watt-hours give better information on how much energy is actually produced. To clearly see
the contribution of renewable energy to Indias energy mix, installed capacity along with capacity utilization needs
to be considered (it is misleading to consider installed capacity alone, since capacity utilization factors for renewables
are much lower than those of conventional sources). In this context, it is the nal energy output that oers a proper
explanation for the requirement or demand, and for how much of this requirement or demand is met.
Figure 67: Indian electricity mix by installed capacity and energy generation
Data source: Central Statistical Organisation, 2013;
CEA, 2012b;
CEA, 2012a.
G.3.4 Requirements of natural resources in the renewable energy sector
Nevertheless, the generation of renewable energy also faces relevant resource constraints. Wind energy, which forms the
biggest part of Indias renewable energy supply, often requires certain key metals. In state-of-the-art wind turbines with
direct-drive permanent-magnet generators, about 550 kg of permanent magnets or 150 kg of neodymium (a rare earth
material) is used per MW [Kleijn / van der Voet, 2010]. At the moment, very few wind turbines actually use direct-
drive systems with permanent magnets. Most turbines use electromagnets in geared generators, which are primarily
made of copper and iron. Terefore, neodymium constraints will not inhibit the large-scale application of wind
turbines in general, but it will limit the market share of certain types of wind turbine systems. Other renewable energy
technologies also consume highly specialized materials, such as photovoltaic cells. A study conducted by the Fraunhofer
Institute suggests that some raw materials used in solar power technologies could become scarce compared to their
demand in future scenarios, due to their limited recycling possibilities among other reasons [Angerer et al., 2009].
In addition, Indias rivers have enormous hydro potential, which remains unexploited to a great extent. Tis is due to
nancial and technical constraints, but is also due to inter-state disputes fuelled by anxieties about increasing water
scarcity. As pressure increases on scarce water sources, conicts around energy production and water availability are
expected to continue. Te waterenergy conict is an increasingly important dilemma in India because both resources
are needed in an emerging industrial country. Tis is also the reason why India dierentiates between small hydro
projects (< 25 MW), which are categorized under conventional energy sources due to their critical environmental and
social implications, and large hydro projects.
G.3.5 Drivers of demand and future prospects
To understand the composition and direction of future demand in the renewable energy sector, it is crucial to identify
the factors that drive the dynamics of this sector. Tese drivers can be quantitative and/or qualitative (see Table 9).
Table 9: Quantitative and qualitative drivers of demand
Quantitative Qualitative
Energy decit as population increases

Increasing fossil fuel prices

Large untapped potential

R&D expenditure on renewable energy

technology
Environmental concerns (e.g. CO

2
emissions)
Government policy (e.g. public expenditure on

renewable energy sector)
Need for strengthening Indias energy security

Pressure on high-emission industries from their

shareholders and government
Complementing energy supply from non-

renewable sources (e.g. viable solution for rural
electrication)
Government policy (e.g. qualitative indicators, tax

subsidies)
Source: Based on Meisen, 2006.
Figure 4: Primary energy: Production, consumption, and defcit (TWh)
Figure: TERI 2013.
Data source: Central Statistical Organisation, 2013.
Mismatches between the economys total energy requirements and its capability to produce primary energy generate
an energy decit. Tis decit is an important indicator for measuring the magnitude of pressure on renewable energy.
In the 1970s, Indias production of primary energy from conventional sources exceeded consumption, but later in
200506 consumption overtook production. As of 201011, Indias energy decit was high, being of the magnitude
of 805.6 TWh [Central Statistical Organisation, 2013]. If production at the 201011 level is frozen, and if the
consumption requirement is projected until 2022 (13th Five Year Plan), the projected energy consumption would
outnumber the 2011 energy production by more than twofold. Hence, energy decit is acting as a driver of growth in
this sector.
In the electricity sector, generation more than tripled between 1985 and 2005. Te Central Electricity Authority of India
estimates an electrical energy requirement of roughly 1,400 TWh in 2016, and of 1,920 TWh in 2021 (see Figure 64).
Tis means nearly a doubling of electricity demand between 2010 and 2022. India faces a major challenge in meeting
this additional demand in a short period of time since it already suers shortages in electricity supply.
Figure 68: Development of electricity generation in India (TWh)
Source: British Petroleum, 2012 (19852011);
CEA, 2012c.
Te energy decit is also going to drive up fuel prices if adequate supply cannot be ensured. Te withdrawal of
subsidies has already driven up petroleum and diesel prices in 2012. However, as kerosene, diesel, and petroleum prices
rise, alternative energy sources become increasingly viable. Even if subsidies have to be provided initially to ensure
aordable alternative energy sources, they will help in making the industry mature and subsequently reap increasing
returns-to-scale benets and enjoy lower prices. In this context, public expenditure on the renewable energy sector will
not only serve to create capacity but also will act as a good indicator of the capability of this sector in meeting Indias
future energy needs.
Figure 69: Renewable energy investment in billion USD
Figure: TERI, 2013.
Data source: UNEP / Frankfurt School, 2012.
Another driver promoting renewable energy is growing concern over environmental issues, resulting from the burning
of fossil fuels for energy generation. In this context, rising CO
2
emissions can be taken as a rough indicator for this
driver. In India, CO
2
emissions per capita are very low in comparison to those in industrialized countries. But taking
into account the experience of other emerging countries like China and Korea, it is expected that CO
2
emissions
will rise signicantly in India.
29
Given the negative eects of climate change, every country is responsible for taking
measures to mitigate emissions that trigger climate change. India has the opportunity to follow a dierent path in
energy generation since the relevant technology and the required funding are available.
G.3.6 Description of selected technical aspects
Renewable energy potential in India is not uniform across all regions. Te availability of renewable energy depends
largely on the climate, location, and geography of the place. For example, coastal regions have access to tidal
energy, but not the interior of the subcontinent. Despite this, India has high potential in dierent renewable energy
technologies, especially wind energy, which already has a prominent share of around 70% within the renewables for
electricity generation. Wind power generation in India is mainly onshore, and there is no oshore installation till now.
Tis case study will focus on wind energy in the following discussion on resource eciency.
Te most prominent feature of wind climatology in India is monsoon circulation. Winds in India are inuenced by the
southwest summer monsoon, which starts between May and June, when cool, humid air moves towards the land; and
the northeast winter monsoon, which starts in October, when cool, dry air moves towards the ocean. Tus, the states
that lie directly in the path of these winds naturally are the prime locations for wind energy generation. Tese states
are Gujarat, Andhra Pradesh, Karnataka, Madhya Pradesh, Kerala, Maharashtra, Rajasthan, Tamil Nadu, Orissa, and
West Bengal.
Wind turbines can be set up in very dierent geographical settings, such as valleys, mountains, seas, and coastal areas.
Small turbines even have the potential to be set up in urban locations. Te construction and operation of wind turbines
have an impact on the natural environment, ranging from their striking appearance across the landscape to birds ying
into turning rotors. It is believed that the benet of wind energy far outweighs the damage caused by the use of fossil
fuel energy sources. Precautionary measures should help in mitigating potential negative impacts.
Tere are dierent types of wind turbines, which convert wind energy into electricity. Te main dierence is the type
of drive system used. As discussed earlier, electromagnets in geared generators are the most common drive systems, but
the use of direct-drive systems with permanent magnets may increase in the future, as they demonstrate a high level of
eciency. Generally speaking, a conventional wind turbine consists of a foundation, a tower, a nacelle module, rotor
blades, a turbine transformer, and electronics/cables.
Figure 70: Composition of a conventional onshore 3 MW wind turbine

Image: Modied BMU / Bernd Mller 2013.
Source: PE NWE, 2011.
29 Tis is due to the fact that China nearly tripled its per capita CO
2
emissions between 1990 and 2010, Indian emission rates are
expected to show a similar trend. In 2010, China emitted 6.18 tonnes, South Korea 11.78 tonnes and India 1.64 tonnes CO
2

per capita, UN, 2013.
Figure 70 demonstrates the material composition of a conventional onshore wind turbine without the foundation,
which consists mainly of concrete. Te main components next to concrete are steel, plastics, ceramic/glass, and copper.
Large amounts of copper are used in the generator of the wind turbine and in all the internal and external cables. Also,
cobalt is widely used in alloys and magnets, to increase the heat resistance of the materials. Hence, it is commonly used
in the electricity generating sector [Reller, 2012]. Te economic signicance of these raw materials has been described
in chapter E. Tey also contribute to high emissions during the production phase and to general high-resource
consumption. Tere is a need for an in-depth analysis on whether the use of large volumes of such resource-intensive
raw materials is justied from the point of view of resource eciency.
Using renewable resources for energy generation generally contributes to resource eciency since they are abundant
and their availability is not restricted as in the case of fossil fuels. Hence, a diversication of energy-generation
sources is highly recommended, and is already the focus of many energy policies around the world. Besides the use of
renewable energy itself, several measures can be taken to further enhance resource eciency.
Te renewable energy sector is closely related to the development and use of high-end technology, which holds a huge
potential for developing eciency options. Usually, sophisticated materials are used in the manufacturing process of
RE technology. Tese materials are often expensive and cause extensive environmental damage, since they require a
dierentiated production process. Savings of certain materials via smart design or substitution can save costs and reduce
environmental burdens.
Focusing on Green Technology in the energy sector is an ambiguous but promising option for an emerging economy
like India. Both experience and advanced technology are available, hence developing countries do not have to
follow the emission-intense path taken by the industrialized countries in the twentieth century. Taking advantage of
Green Technology during the period of economic growth seems to be the best option considering resource availability
and environmental concerns. As discussed previously, certain materials used in this sector are critical to meeting Indias
resource demand. An ecient use of these materials should be supported because high-tech sectors such as renewable
energy are particularly vulnerable to shortcomings in supply, and this factor is clearly a disadvantage when dealing with
international competition.
G.3.7.1 Wind energy as the focus of resource effciency
As already discussed in chapter G.3.1, Indian electricity demand is going to rise sharply in the next decade. Wind
energy could contribute a certain share to meeting this additional demand since it is already well established in
India. Onshore wind potential is largely untapped, and oshore wind potential has yet to be explored. C-WET,
the ocial research institution run by the Ministry of New and Renewable Energy (MNRE), estimated an
onshore potential of about 103 GW at a hub-height of 80 metres. However, other studies
30
have concluded that
the potential is far higher. For instance, the Berkeley Lab estimates a potential of 2006 GW at a hub-height of 80
metres (no farmland included) [Phadke et al., 2012]. Figure 71 shows the development of installed capacity and
electricity generation of wind turbines in India until 2011. Due to the uctuating development of the Indian wind
energy market (which is based largely on a policy scenario), it is not easy to project the future amount of wind-
based electrical energy. Two dierent scenarios are outlined. Te RPO
31
target scenario assumes that non-solar RPO
targets are mostly met by wind energy. Furthermore, the moderate and advanced wind energy scenarios published
by GWEC are plotted to gain a better understanding of the data. Since the study focuses on resource eciency in
the wind energy sector, a detailed projection of future wind energy is not the aim. Rather, this approach is intended
to point out the saving potentials in the sector for India.
30 [Phadke et al., 2012]; [Lu et al., 2009]; [Hossain et al., 2011]
31 Renewable Purchase Obligation (RPO): It refers to the obligation imposed by the law on the obligating entities (distribution licensees,
captive users, and open access consumers) to purchase electricity from renewable energy sources. Te RPO policy, devised under the
National Action Plan on Climate Change (NAPCC), targeted to produce 5% green electricity in 2009, 7% in 2012 and 15% by 2020
[Government of India, 2008].
Figure 71: Development of wind-based electricity generation in India under different assumptions
Source: MNRE, 2012b (19972011); TERI, 2013; GWEC, 2009.
According to the future energy demand predicted by the Central Electricity Authority of India, there will be an
additional demand of about 2,500 TWh by 2030.
32
Since the main source of electricity generation is coal, it can
be assumed that the future demand will be met mainly by coal. If the RPO target scenario is assumed, about
500 TWh could be provided by wind energy (see Figure 72). Te saving potential of CO
2
equivalents emissions
between the two assumptions is about 630 million tonnes. If the total additional demand is generated by wind
energy, the emissions would drop by 99% in comparison to coal.
32 Te electricity demand in 2012 was about a thousand TWh. In 2030 the electricity demand is expected to be over 3500 TWh.
Figure 72: Indias future additional electricity demand until 2030
Source: CEA, 2012c; TERI 2013.
Besides the savings of CO
2
emissions, which reduces the potential for global warming, wind energy also contributes
to the saving of other resources such as water, land, and raw materials. Nevertheless, it should be recognized that a
broad implementation of wind-energy technology is accompanied by an increase in the demand for high-tech materials
such as copper, cobalt, and rare earths. Figure 73 depicts the sharp increase in the demand for steel and copper for the
production of wind turbines if the RPO targets are met. Terefore, the saving potentials of these technologies need to
be considered to evaluate if the overall balance is still resource ecient.
Figure 73: Annual demand for steel and copper for wind turbines*
* Every installed MW corresponds to the material composition of a Vestas V112.
Database: TERI 2013; PE NWE, 2011; UN Comtrade, 2012.
Given the fact that an increase in electricity demand is inevitable, it is clear that the choice of the power source
contributes to resource eciency. In the case of wind turbines, besides the high demand for input materials, an even
higher potential of resource savings could be reached compared to coal-based power plants. Table 10 summarizes the
saving potential of dierent resources between coal-red and wind-based power, with the reference value of one GWh.
Table 10: Estimated consumption of resources by coal-fred and wind power-based plant
Generation of 1 GWh
Coal red power plant 1 256 000 l 65 m 700 t
Wind turbine 500 l 0.005 m 0.003 t
* Water: Cooling water is excluded.
** Raw materials: Included are all direct and indirect raw materials used during the life cycle.
Source: IFEU 2013.
Figure 74 demonstrates the cumulative savings of primary raw materials if wind energy were to contribute as well to
additional energy generation. Te two graphs represent two scenarios. In the coal-based scenario, the total additional
demand will be met by coal-based power plants. In the RPO target scenario, a certain share of the additional energy
demand will be met by wind energy, and the rest by coal-based power plants. Te RPO target scenario could save up to
350 million tonnes of primary raw materials by 2030.
Figure 74: Cumulative savings of primary raw materials through wind energy
Source: TERI 2013; IFEU 2013.
G.3.7.2 Further potential of enhancing resource effciency
Besides the fact that wind energy in general contributes to resource eciency compared to fossil fuel-based energy
generation, further enhancements could be achieved by adopting ecological design options. Te wind turbine itself
deploys high-tech mechanisms, and companies are already trying to reduce material input in order to decrease costs.
Hence, research and development in this sector is highly dynamic. One example of resource-ecient design is the
choice of tower material for a wind turbine. Figure 75 presents some tower options for wind turbines. Today, the
most commonly used tower material is steel. Te wooden tower is an interesting concept proposed by a small start-up
enterprise in Germany, which is not in series production yet [TimberTower GmbH, 2012].
Figure 75: Different tower options for a wind turbine

Source: juwi AG, BMU / Bernd Mller, BMU / Christoph Edelho, TimberTower GmbH, Hannover.
Figure 76 compares steel and wooden towers for the environmental indicators, GWP and primary raw material
demand. Te wooden tower mainly substitutes steel components. Tis concept saves steel as a direct material as well as
indirect materials as Figure 76 indicates (34% in total). Te overall GWP balance is also better for the wooden concept
(22%). Tis example demonstrates the further possibilities of enhancements in resource eciency. Inarguably, the
choice of material depends on many factors, and manufacturers are not always free to choose. Furthermore, the use of
wood is a disputed issue in India, and enhanced frame conditions are needed to make sustainable use of this natural
resource. Taking this into account, substitution of the tower material with wood is not the best choice for India at
present. Nevertheless, it should be stated that innovative ideas may further enhance resource eciency in this eld.
Figure 76: Environmental comparison of two tower concepts
Source: IFEU 2013.
Another important issue in this eld is the choice of the magnet and the drive system. A commonly cited example is
the controversy over direct-drive magnets, which need a large amount of the rare earth neodymium. On the one hand,
these magnets are more ecient than conventional electromagnets and save a large amount of other materials since
a gearbox is not needed. Te higher level of eciency results in a higher rate of electricity production. On the other
hand, a critical raw material with high environmental burdens, namely neodymium, is required in the manufacturing
process of these magnets. At this point, more in-depth analysis is needed to evaluate the trade-os between the
advantages and disadvantages from a resource-eciency perspective.
G.4 Conclusions from the case studies
Te aim of the case studies was to draw attention to the potential for resource eciency in dierent sectors of the
economy. Of course, the case studies are not comprehensive analyses of all the resource-eciency options available
in the dierent sectors. Rather, they highlight certain areas with considerable potential and sensitize the public and
policy makers to the issue of resource eciency. Te conclusions emerging from the case studies are summarized in the
following paragraphs.
Te automotive sector is already undergoing highly dynamic development in India. Vehicles provide access to mobility
and therefore satisfy a basic social need. Te automotive industry is witnessing high growth rates in all segments of
vehicles, particularly cars and two-wheelers. Since vehicles are highly material-intensive products, it makes perfect sense
to consider eciency potential in this sector because the impact will be signicant.
Usually, when the automotive sector is analysed in terms of environmental impact and eciency, the focus of the
discussion is on CO
2
and other vehicular emissions. In terms of global warming, this is a very important discussion.
Te focus on resource eciency calls for a dierent emphasis, but nevertheless leads in the same direction. Tis study
focused on dierent vehicle options and on their raw material-saving potentials. A car was assumed in dierent sizes
and compared to other mobility options such as two-wheelers and modes of public transport.
From an eciency perspective, a small car saves over its entire life cycle up to 25% of primary raw materials compared
to a compact car. Considering the recent trend of SUV sales worldwide, it is estimated that a city car can save up to
40%. Te study also analysed a lightweight and recycling option. In this case, lightweight means the substitution of
certain steel components with aluminium. Tis substitution could save primary raw materials in the long term, but
other evaluation categories, such as energy demand and annual land use, show minimal or no advantages. Te reuse
of vehicle materials has a very high savings potential if recycling loops could be further closed in future. A comparison
between private mobility options and public transport indicates that public mobility is less resource consuming, which
supports the messages or ndings emerging from other discussions (e.g. global warming, urban air quality) about the
need for promoting public transportation instead of private mobility.
Te housing sector plays a crucial role in the economic development of any country and in its material consumption.
In India, the future demand for additional housing for the rapidly growing middle class, and also for a vast population
of the poor, is immense.
Te building sector is usually analysed with regard to energy consumption and saving. In contrast, this case study
focused on material-saving potentials and chose two examples for analysis, rst, the potential savings of a selected raw
material, that is, limestone, based on the choice of the cement used; and the potential overall raw material savings
based on the choice of material for the walls of the building. Both examples demonstrated huge amounts of potential
material saving without limiting functionality or compromising on the building standards. Both examples demonstrate
the potential of primary raw material savings in India, thus emphasizing the relevance of material eciency in the
housing sector in the country.
Te case of cement has shown that the choice of the type of cement could mitigate signicantly the pressure on the
crucial raw material, limestone, which is still available abundantly in India, but where scarcity and thus additional
pressure on sensible environmental zones is foreseeable. Te case of dierent wall material options has shown how the
chosen materials determine resource requirements throughout the life span of the building.
Emerging countries like India are facing a sharply rising energy demand. It is crucial for any country to meet its energy
needs in order to achieve economic development and to ensure social well-being. For this reason, it is one of the
main tasks of the government to ensure reliable and safe energy supply for the future. Electricity generation requires
many raw materials to meet the demand. Eciency options in this sector could contribute to high savings in terms of
primary raw materials. Te most promising path is the expansion of renewable energy. Te case study focuses on wind
energy since its importance has already been acknowledged in India.
Wind turbines only need the materials necessary for setting up the plant and the related infrastructure during
the construction phase. During the operational phase, turbines use only wind resources to generate electricity. In
comparison to fossil fuel-based power plants, turbines do not require fossil fuels such as coal, oil, and gas. Tis makes
wind energy highly resource ecient during the operational phase. Te material consumption per installed unit of
power during the construction phase is considerably high, since materials such as copper, cobalt, and other critical
metals are needed. Nevertheless, the net savings are far higher because the electricity generated by wind turbines
consumes less than 1% of primary raw materials compared to electricity generated by coal-red power plants. Tis fact
turns the overall balance in favour of wind energy, which supports the conclusions and ndings emerging from other
discussions about the importance of reducing CO
2
emissions and of mitigating energy dependencies.
Te technology of wind turbines could be further optimized to save building materials or to substitute economically
and environmentally critical materials. Since steel is the main component of the tower in a wind turbine, the design
and substitution aspects could open up further saving potentials. Another technological enhancement is the use of
permanent-drive magnet-based generators in the wind turbine. Tis would, on the one hand, save materials and
enhance the eciency of electricity generation. On the other hand, it would increase the demand for critical materials
like neodymium.
Te case studies in this scoping study do not claim to be comprehensive. Hence, it is advisable to go into further detail
and analyse additional options for raw material savings in dierent sectors in India. In the housing sector, this will
include further crucial input materials such as sand, gravel, clay, and metals. It will also involve the analysis of further
material options not only for the walls of buildings but also for other parts like roofs and oors. In the automotive
sector, other car and mobility concepts could be analysed in more detail. In the case of renewable energy, the focus
could be broadened to include other renewable sources such as small hydro plants, biomass, and solar energy. At this
point, social, environmental, and other issues have to be considered as well, and they should broadly support each
other rather than compete.
Te Asia Pacic region will continue with its current pace of economic growth. It will expand its manufacturing
capacity; will build more infrastructure, buildings, and transport systems; and will enable increased household
consumption through higher incomes. Such developments often have social impacts that can undermine development
gains, if any, if they are not undertaken in a way that respects peoples social, environmental, and economic needs. Tis
could eventually lead to social and political instability and to conicts over resources. Te Indian economy grew rapidly
between 1995 and 2005, and there is huge potential for further growth in material use, as the country continues to
urbanize and industrialize, and as its vast population earns higher incomes and increasingly adopts higher-consumption
lifestyles. Hence, any policy that seeks to improve resource eciency needs to focus on a number of urgent issues that
are relevant for the future sustainability of Asia, and of India, respectively. UNEP [2011a] listed the following benets
of enhanced resource eciency:
Help avoid social conicts over resources
Tackle climate change, air pollution, and waste disposal problems
Preserve natural capital and local environmental quality
Improve economic competitiveness and protability
Create new business and innovation opportunities
Oer social benets and improve living standards
Ensure energy security and supply security of strategic materials
National and international organizations, and the policies and measures they adopt, will be helpful in overcoming
barriers and in stimulating market development in favour of developing less resource-intense products and systems
[Bleischwitz, 2012; EIO, 2011]. Hybrid forms of governance such as agencies with partners from the private
sector and publicprivate alliances can certainly help in promoting best practices, disseminating knowledge, and
improving qualication and training. Without an explicit international dimension, resource-eciency strategies will
face an uphill struggle against existing distortions and unfair competition. As for market-based environmentally
oriented responses, the strategy of resource eciency is high on the European policy agenda.
33
It is well rooted in
Japan, China, and elsewhere, although it is almost invisible in the USA. Tis is evident from the fact that the EU
has a roughly 30% better performance in terms of resource productivity than the USA. It is certainly too early to
assess the strengths and weaknesses of this approach or to estimate how stringent eorts could lower the demand
for natural resources on a global scale. With regard to governance, however, one can conclude that business and
related stakeholders can play a major role. But information decits and internalization strategies should also be
addressed. Tus, it is up to each country to gure out how a successful resource strategy can be pursued, one that
seizes the opportunities for achieving resource eciency while also investing in future needs and infrastructures.
Several national and international approaches and initiatives, starting with those adopted in India, are discussed in
the following paragraphs.
33 www.eco-innovation.eu; http://ec.europa.eu/environment/enveco/resource_eciency/ (last accessed 09/20/2013).
H. Resource effciency in
the context of Asia
Resource effciency in the context of Asia 89
H.1 India
Although the Indian government does not have a consolidated approach at the apex level to promote resource
eciency, it has adopted various policy initiatives to promote the sustainable use of resources. Some of the policy
initiatives in key sectors are described below:
Waste management
o Hazardous Wastes (Management & Handling) Rules (introduced in 1989 and revised in 2003: promotes the
proper collection, reception, treatment, storage, and disposal of waste
o Solid Waste (Management & Handling) Rules 2000: promotes the collection, segregation, storage,
transportation, processing, and disposal of municipal solid waste
o Batteries (Management & Handling) Rules 2001: lays down the responsibilities of manufacturers, importers,
assemblers, re-conditioners, dealers, and recyclers of batteries
o E-waste (Management & Handling) Rules 2011: lays down the responsibilities of producers, collection centres,
consumers, dismantlers, and recyclers
Transport industry
o In regard to fuel eciency standards for the automotive sector, the Bureau of Energy Eciency (BEE) has
introduced new fuel eciency standards designed to force auto companies to decrease fuel consumption
(distance covered for every litre of fuel). Te standard called the Corporate Average Fuel Economy (CAF) has
given auto manufacturers until 2015 to improve the fuel eciency of cars by about 18%, up from the average
of 14.1 km/litre of petrol to 17.3. Under this standard, cars will be assigned labels ranging from one-star labels
to ve-star labels depending on their fuel eciency.
o Te Directorate General of Civil Aviation (DGCA) has established an aviation climate change task force to
assess carbon emissions, to monitor data collection from airports, and to chart out measures to deal with climate
change.
o Indian Railways is developing fuel-ecient diesel locomotives that could lower fuel consumption by up to 20%.
It is the single largest consumer of diesel in the country, and has to pay market-linked prices for diesel. Hence,
this state-owned transport system is also moving towards a massive programme for the electrication of its
network.
Infrastructure sector
o Te brick industry in India has taken several initiatives to reduce its energy consumption.
o Te Government of India has adopted the GRIHA ratings (developed by TERI) to assess energy consumption
and to determine how green buildings are.
o Te Energy Conservation Building Code (ECBC) was launched by the Ministry of Power, Government of
India, in May 2007, as a rst step towards promoting energy eciency in the building sector.
H.2 Resource-effeciency policies around the world
Tere are multiple arguments the importance of increased resource eciency and its benets in the future.
Consequently, governments around the globe have set their focus on increasing resource eciency. Such approaches
may be used as (best practice) examples for identifying and implementing similar strategies in India. Table 11 presents
a selection of such strategies. In this chapter, we provide a brief overview of dierent strategies in Europe and Asia
(appearing in bold in Table 11).
Table 11: Selected resource-effciency strategies around the globe
European level International level National level
Europe 2020 / Flagship Initiative-
Resource Ecient Europe
OECD Green Growth Strategy Resource Eciency Programme
(ProgRess), DE
Tematic Strategy on the Sustainable
Use of Natural Resources
UNEP Green Economy Initiative Natural Resource Strategy, FI
Raw Materials Initiative UNIDO Green Industry
Initiative
Waste & Resources Action
Programme (WRAP), UK
Flagship-Innovation Union National Programme on Natural
Resources, NL
Beyond GDP Initiative Resource Eciency Action Plan
(REAP), AT
EU Sustainable Dev. Strategy Commission on the Measurement
of Economic Performance and
Social Progress, FR
Japans resource agenda
Korea
Taiwan
H.3 Europe 2020 strategy
Europe 2020 is the EUs growth strategy for the current decade. Te European Commission describes the aim of its
2020 Strategy as follows:
In a changing world, we want the EU to become a smart, sustainable and inclusive economy. Tese
three mutually reinforcing priorities should help the EU and the Member States deliver high levels of
employment, productivity and social cohesion.
Concretely, the Union has set ve ambitious objectives on employment, innovation, education,
social inclusion and climate/energy to be reached by 2020. Each Member State has adopted its
own national targets in each of these areas. Concrete actions at EU and national levels underpin the
strategy.
More specically, the three dimensions of growth encompass the following aspects:
Smart growth
Knowledge- and innovation-based economy achieved through more eective investments in education, research,
and innovation
Sustainable growth
Resource-ecient, green, and competitive growth due to a decisive move towards a low-carbon economy
Inclusive growth
High-employment economy delivering social and territorial cohesion, with a strong emphasis on job creation
and poverty reduction
In order to reach these goals, seven Flagship Initiatives have been formulated. Te fourth Flagship Initiative addressed
resource eciency (Resource-ecient Europe) and was adopted in 2011. For its implementation, the Directorate
General for Environment (DG ENV) published in 2011 a detailed Roadmap for a Resource-ecient Europe, which
is supposed to guide the continent [] towards sustainable growth and a shift towards a resource-ecient, low-carbon
economy [European Commission, 2011].
Under the slogan Doing more with less, the milestones of the Roadmap are:
Adoption of a vision for 2050 and setting of milestones by 2020.
Identication of actions by the European Commission as well as by the EU-27 member states.
Implementation of four lines of action:
Transforming the economy
Addressing the need for natural capital
Tackling the key sectors
Dealing with governance and monitoring
For evaluating the progress in the implementation of the Roadmap, a set of indicators has been suggested. Resource
productivity
34
is supposed to be the headline indicator. Additionally, a dashboard of indicators should cover the four
main categories of resource use to avoid trade-os when focusing only on one of the categories: non-/renewable
materials, land, water, and carbon.
Currently, extensive measures are being taken to develop and apply the best-suited indicators for the measurement of
the use of the dierent resource categories. Te aim is to take a consumption-based approach, and to cover also the
resources that are necessary outside the borders of the EU to produce the goods and services required within European
borders.
H.4 UNIDO: Green Industry Initiative
Te aim of UNIDOs Green Industry Initiative is to achieve sustainable industrial development in the context of new
global sustainable development challenges. Te initiative builds on two main principles:
Green Industry: is aimed at protecting communities, vital ecosystems, and the global climate from escalating
environmental risks and from the emerging threat of scarce natural resources. Hence, economies should focus on
making green public investments and on implementing public policy initiatives that encourage environmentally
responsible private investments.
Green Industry Initiative: seeks to place sustainable industrial development in the context of global sustainable
development challenges and to contribute to the transition towards a Green Economy. It creates awareness,
increases knowledge, and enhances capacities. UNIDO aims at working with governments to support industrial
institutions and to provide assistance to enterprises in the greening of industry.
UNIDO identies the following areas of work (as examples):
Resource-ecient and cleaner production (RECP):
Application of preventive management strategies that increase productive use of natural resources using cleaner
production methods.
Energy eciency in industry:
Continually improving energy performance and productivity, and reducing environmental and climate change
impact.
34 GDP is divided by the domestic material consumption (DMC). Further explanation in chapter D and Annex I.
Cleaner production (CP):
Production eciency, environmental management, human development
Corporate social responsibility and responsible production
Environmentally sound management of chemicals and (hazardous) waste, and the substitution and/or minimization
of the use of hazardous substances.
UNIDO recognizes that intensied national and international eorts are needed to eectively respond to the scale and scope
of the interrelated and increasingly urgent global challenges. [...] Green Industry plays a key role in the progress towards a
Green Economy in which industries are not only part of [the] solution to the global economic, environmental and social
challenges, but [also] a driving force. Te aim is to follow these principles throughout the collaborations of UNIDO in
order to achieve green economies in Asia.
H.5 Germanys Raw Materials Strategy
Te aim of Germanys Raw Materials Strategy launched by the Federal Ministry of Economics and Technology, which
was published in 2010 [German Federal Ministry of Economics and Technology, 2010], is safeguarding a sustainable
supply of non-energy mineral resources for Germany. To reach this goal, the following main actions are foreseen:
Integrating Germanys national policy on raw materials with the Raw Material Initiative adopted by the European
Commission
Reducing trade barriers and distortions of competition
Helping German commerce to diversify its sources of raw materials
Helping commerce to develop synergies between sustainable economic activity and enhanced materials eciency
Developing technologies and instruments to improve the conditions for recycling
Establishing bilateral partnerships with selected countries pertaining to raw materials
Conducting research on substitution and materials in order to open up new options
Focusing on research programmes relating to raw materials
Creating transparency and good governance in raw materials extraction
Supporting the private sector through the instruments of raw materials policy, support for research, and joint
international raw material initiatives, while taking into account the objectives of foreign, economic, and
development policy.
H.6 Germanys Resource Effciency Programme (ProgRess)
In 2012, Germanys government announced the programme for the sustainable use and protection of the countrys
natural resources [Bundesregierung, 2012], which takes a further step towards the goal of resource eciency in
Germany. Te German Resource Eciency Programme is aimed at structuring the extraction and use of natural
resources in a sustainable way, as well as reducing associated environmental pollution as far as possible. By these means,
the responsibility to future generations shall be assumed, and a prerequisite for securing a high quality of life for the
long term shall be set down.
Te following four guiding principles have been formulated to achieve this aim; they are elaborated on in the rst part
of the document:
GP 1: Joining ecological necessities with economic opportunities, innovation support, and social responsibility
GP 2: Viewing global responsibility as a key focus of our national resource policy
GP 3: Gradually making economic and production practices in Germany less dependent on primary resources, and
developing and expanding closed-cycle management
GP 4: Securing long-term sustainable resource use for societys quality growth
Te second part of the programme contains specic measures based on an analysis of the entire value chain. Five
strategic approaches are considered:
Securing a sustainable raw material supply
Increasing resource eciency in production
Making consumption more resource-ecient
Enhancing resource-ecient closed-cycle management
Using overarching instruments
Overall, 20 strategic approaches are identied and underpinned by appropriate supporting measures. Particular
importance is given to market incentives, information, expert advice, education, research, and innovation, and to
strengthening voluntary measures and initiatives by industry and society. Every four years, a report on the development
of resource eciency in Germany will be published by the German government. Further progress will be assessed, and
the Resource Eciency Programme updated if needed. Figure 77 illustrates the dierent categories of natural resources
and the stages at which ProgRess is meant to get into action.
Figure 77: Natural resources defned by ProgRess
Source: Bundesregierung, 2012, modied.
H.7 Japans resource agenda
Japans resource agenda is largely inuenced by the aim of reaching a 3R society referring to reduce, reuse, and
recycle, particularly in the context of production and consumption. Te main political milestones [Bahn-Walkowiak,
B., Bleischwitz, 2008] on the path to reaching this goal have been the following:
Vision of a Recycling-Oriented Society (1999)
Fundamental Law for Establishing a Sound Material-Cycle Society (2000)
Fundamental Plan for Establishing a Sound Material-Cycle Society (2003)
Declaration of Commitment to [the] Development of an Eco-Oriented Nation (2003)
Vision for a Virtuous Circle of Environment and Economy in Japan 2025 (2004)
Cabinet Decision: Becoming a Leading Environmental Nation in the 21st century: Japans Strategy for a Sustainable
Society (2007)
Figure 78: Japans political strategies for achieving a sound material cycle society
Source: Hotta, 2012.
Te above-mentioned policies imply implementation through concrete measures. Hotta [2013] identies the following
approaches as essential for achieving the 3R society:
Sound Material Cycle Society (waste and resource eciency), Low Carbon Society (climate and energy
eciency) and Society in Harmony with Nature (biodiversity and country landscape)
Regional resource circulation: Environmentally sound resource circulation at appropriate geographic and
economic scales
Expansion of Indicators: Quantitative targets and additional indicators
International Sound Material Cycle Society: International collaboration with East and Southeast Asia (Regional 3R
Forum in Asia), Contribution to international research on resource eciency / productivity (in collaboration with
OECD, UNEP)
As a consequence, the second plan (20082013) for establishing a sound material cycle society sets targets and
indicators to monitor the progress of Japans Policy for Sound Material Cycle Society, including those related to
resource eciency. Further, the relevant stakeholders and their roles are identied. While reviews and evaluations are
carried out on an annual basis, the plan is to be revised every ve years.
H.8 Koreas resource approach
Korea is a resource-constrained country with close trade relations with Japan and China from which it imports rened
materials and alloys as well as recycled materials, and to which it exports waste for recycling. Korea, being aware of this
situation (high levels of dependency on material imports from neighbouring countries), has adopted a material strategy
that focuses on promoting recycling, and through this means, achieving self-suciency in critical metals [source here
and in the following: DEFRA, 2012].
Te following goals have been set by the government for the year 2018:
to increase self-suciency in materials from 12% to 80%
to increase their technical performance level from 60% to 95%
to increase the number of specialized companies founded from 25 to 100
Eleven elements (In, Li, Ga, REEs, PGMs, Si, Mg, Ti, W, Ni, Zr) were identied as being strategically important for
the Korean economy. Four main strategies have been designed to secure the supplies of these elements:
Securing foreign/overseas natural resources
Gather information and dispatch teams for exploration
Form strategic alliances with other countries (such as the KoreaChina Material Industry Committee)
Invest in overseas mines and modify regulations to encourage investments in foreign developments
Securing domestic natural resources (stockpiles)
Stockpile 21 elements to cover 60 days of domestic demand [APS/MRS, 2011]
Focusing on R&D for materialization (reduction/substitution)
Focus on 40 technologies that use the 11 elements identied as being strategically important for the countrys
economy
Resource extraction (refning and smelting)
Materialization (processing and treatment)
Alternative resources (recycling) and substitution
Reduction
Invest $300 million over 10 years in these technologies
Build and enhance collaboration between producers and consumers; establish new capital-intensive R&D
projects and industries
Building circulation technology and infrastructure (recycle/reuse)
Focus on scrap and on recycling at end-of-life of products
Enhance collection and increase awareness of the recycling potential of consumer products through an urban
mining strategy
Provide funds and tax incentives to selected industries until they are well established
Invest in workforce education by establishing international collaborations and by providing funding for
graduate studies in critical-metal technologies
H.9 Taiwan
Te Zero Waste Programme was launched by TEPA (Taiwanese Environmental Protection Administration) in 2002,
and is aimed at responding to the issues of global resource and energy depletion and at promoting more sustainable
material use through the implementation of a more cyclic approach to waste management. [source: here and in the
following paragraphs: DEFRA, 2012]
Taiwans Industrial Waste Control Centre is quantifying and tracking industrial waste ows. One of these waste groups
consists of technological metals and materials that are included among the resources of concern. Further, Taiwan
implements and promotes so-called Environmental Science and Technology Parks, which are aimed at raising awareness
of resource use, recycling, and recovery.
In the eld of electronic waste, Taiwan is engaged in the UKAsia Pacic Electronic Waste Management GPF Project
for 2011/2012, which aims to bring together experts on, and key stakeholders in, electronic waste, as well as those
engaged in furthering the wider sustainable material management agenda.
Just recently, in 2012, the new Ministry of Environment and Resources (MOER) was established. Its responsibilities
include environmental protection and mineral management. Resource eciency and security issues are expected to be
the key concerns of the new ministry.
H.10 9. Further initiatives
In addition to national initiatives, a variety of other initiatives aim to increase resource eciency during the life-cycle
of a product. As explained in chapter F on the life-cycle approach, at the beginning of any supply chain, the ensuring
of increased transparency in payments in the extractive industries is an important step towards ensuring properly
functioning markets and good governance. Combating corruption in mining countries through the transparent
disclosure of payments strengthens democratic institutions and increases participation by stakeholders. Additionally,
fair contracts can stabilize the income of producer countries. With rising revenues from resource extraction thanks to
increasing prices, it is by no means unrealistic to assume that a robust extractive industry and sucient investment in
sustainable development can oer promising economic prospects for the 100 or so resource-rich developing countries
and their 3.5 billion people.
35
Te Extractive Industries Transparency Initiative (EITI) is a coalition of governments, companies, civil society
groups, investors, and international organizations. Its global standard requires the disclosure of corporate payments to
governments and the related government revenues. A country report is then produced, which undergoes independent
verication. As of June 2013, 23 countries are EITI-compliant, including Azerbaijan, Ghana, Iraq, Nigeria, and
Norway. Te reported payments total around $1 trillion. Te implementation of related initiatives and rules is
underway in the USA, the EU, the OECD, and is being promoted by the IMF, the World Bank, and a number of
NGOs.
35 E.g. in the case of Ghana, an increased transparency for mining revenues has lead to an increase by factor four for the state from
2010 to 2011 which clearly demonstrates potential achievements if all partners agree.
Findings and Conclusion 97
Te aim of this study is to understand the scope of current and future raw material consumption in India. Further,
it illustrates the impacts of such consumption on sustainable development and inclusive growth in India. Te study
concludes that resource eciency can be an eective means of reducing environmental burdens and simultaneously
of strengthening Indias economy by contributing to the decoupling of resource consumption and economic growth.
It illustratively highlights resource-ecient measures in three strategic sectors: automotive, construction, and
renewable energy.
1. Over the last two decades, India has witnessed strong economic growth, mirrored in a gradual shift from
agricultural to industrial and service sector production, a rising middle class, increasing urbanization, and
large-scale infrastructure development, which have contributed to eradicating poverty. Tis rapid economic
growth has been achieved through the extensive consumption of resources, particularly biotic and abiotic raw
materials like minerals, metals, fossil fuels, and biomass. Te trends will continue in the future, and thus
decoupling of resource consumption and economic growth is required.
2. On a global scale, Indias material consumption per capita is relatively low, with 4.2 tonnes in 2009,
compared to the average material consumption per capita of 15.7 tonnes in OECD countries. Te projections
of material consumption in absolute numbers, however, present a dierent picture, that of India currently being
the third largest consumer of materials worldwide, with 4.83 billion tonnes in 2009.
3. Given a medium-growth scenario, it is estimated that Indias material consumption will triple through 2030.
In light of greater global competition for resources, supply vulnerabilities, and rising commodity prices,
India will have to nd ways to meet this signicant growth in demand.
4. Te analysis of key trends and supply security challenges for selected materials (chromite, molybdenum ore,
limestone, copper, cobalt ores) used as inputs in the three sectors assessed indicates that techno-economic
constraints, lack of exploration even on a limited basis, and severe environmental impacts mostly
constrain availability from domestic raw materials, and lead to greater import dependence.
5. In order to reduce Indias exposure to import dependencies, to strengthen Indias economy, and to reduce Indias
environmental and climate burden, the study builds the case for resource eciency. Resource eciency
comprises all kinds of activities that are aimed at improving the inputoutput relation of material and
energy-consuming or energy-transforming processes, while contributing to the mitigation of impacts on the
environment caused by these processes.
6. Raw material productivity in India has improved signicantly over the last three decades. On a global
scale, however, Indian material productivity in the manufacturing sub-sectors (NIC/NACE) (such as food
products, coke and rened petroleum products, and chemical products) [see Figure 24] and the currently
deployed technologies leave room for improvements in resource eciency and overall decoupling. Taking
into account the fact that the share of material and energy cost of these sub-sectors is 71%, the implementation
of resource-ecient measures will be accompanied by immediate cost reductions and will thus improve the
competitiveness of Indian industry.
I. Findings and Conclusion
7. Te study examines selective resource-ecient measures along the life-cycles in the sectors assessed and
illustrates their resource-saving potentials.
Automotive / mobility sector: Currently, India is the fth largest auto producer worldwide. Continuing the
strong growth of the industry in the past, automotive demand is expected to grow at an average annual rate
of 12% until 2025. Te number of registered cars in India is estimated to reach 100,000,000 by 2029, along
with a corresponding growing material demand for car production, such as steel, aluminium, copper, lead,
zinc, chromium, and nickel. Consequently, the annual steel demand for cars will account for 10% of total steel
production in India by 2025. Energy use and supply during the usage phase of a compact car constitute the
largest amount of extracted primary materials during the entire life cycle of the car. Tus, fuel eciency,
which is closely linked to the weight and design of a car, is the predominant factor in eorts aimed at saving
raw materials. Te study identies resource-ecient measures that hold signicant material-saving potentials:
lightweight compact cars save up to 10% of accumulated raw material demand
full steel recycling reduces primary material demand by 23%, especially chromite and molybdenum ores
public transport has a material eciency that is ve times higher than that of a conventional car, as it has
higher occupation rates. Tus, a countrys transport modal split determines the material demand.
Housing/construction sector: Indias construction sector has been growing at an average annual growth rate
of 10% over the past 12 years, and is predicted to continue growing rapidly over the next several years. Based
on the prospects of housing demand, Indias housing stock is estimated to increase from 330 million housing
units in 2011 to 770 million housing units in 2030. Te construction and the operational phases of a
building have signicant raw material footprints, including the consumption of minerals (sand, gravel), cement,
steel, bricks, aggregates, and energy use depending on the size and design of a housing unit. For instance, the
study highlights that Indias proven limestone reserves will only last until 2028 taking into account future
prospects for cement demand. Te study identies resource-ecient measures that hold signicant material-
saving potentials:
the type of cement used, resource-ecient methods of cement production, and ecient usage of cement
reduces limestone demand
the choice of building materials determines the material demand during the life cycle of a building. For
instance, primary raw material savings of more than 40%, especially in the construction and operational
phases, can be achieved by deploying alternative wall materials (such as a combination of aerated concrete
and strawtec walls and burnt brick-insulation) per unit housing space per person per year
to meet Indias housing demand by 2030, the resource-ecient option assessed can save up to 50 billion
tonnes of required raw materials compared to the material demand for constructing existing basic buildings,
under the assumption that living space remains the same, otherwise the savings would be even higher
Wind energy/renewable energy sector: India is the third largest energy consumer worldwide. Te renewable
energy potential (from dierent renewable energy sources) in India is estimated to be 2,45,880 MW. Te
market for renewable energy is growing at an average annual rate of 15%. Wind energy, which forms the
majority of Indias renewable energy supply, requires certain key metals such as copper, cobalt, and rare earths.
Te study concludes that despite the high demand for the input materials needed, the potential resource
savings using wind energy over coal-based power plants are still much higher. Further, if the Renewable
Purchase Obligation (RPO) targets are met by the Indian energy market, up to 350 million tonnes of primary
raw materials could be saved by 2030. Te design of a wind turbine with respect to the tower, magnet, and
drive system holds potential for raw material savings if smart and ecient design options are adapted.

Outlook and Recommendations 99
Te preparation of the study also involved widespread stakeholder consultations and presentations of the initial ndings
at a high-level event in May 2013. Tese consultations revealed an overwhelming consensus on the need for launching
a resource initiative for India focusing on further action research, demonstration activities, and appropriate institutional
mechanisms aimed at enhancing resource eciency. Te consultations also revealed the widespread interest in the
subject and emphasized the need for proper communication and facilitation eorts to foster resource eciency in
India. Based on the above ndings, the following recommendations are made:
1. Resource eciency should be adopted as an organizing principle of the Indian economy to support
sustainable and inclusive growth in the country. Tus, a coherent and integrated policy framework that rewards
and incentivizes resource-ecient eorts and closed-looped management principles must be adopted. Te
cross-cutting nature of resource eciency calls for multi-stakeholder involvement to harmonize the interests and
constraints of the dierent groups involved.
2. In order to deal with resource-eciency challenges and explore related options that India will face in the
years ahead, more comprehensive qualitative and quantitative data are needed on the basis of which future
scenarios and trends can be predicted. It is recommended that a national data hub on mineral resources be
set up to complement the database on mineral resources proposed by the Planning Commission and that
the existing Mineral Year Book, published annually by the Indian Bureau of Mines, should be expanded and
improved.
3. Indias manufacturing and construction sectors must continuously innovate technologically to remain
competitive in a global economy. Tis drive to remain competitive must go hand in hand with eorts aimed
at achieving resource eciency. Tis will not only help to reduce physical material consumption and therefore
costs, but will also act as a trigger for stimulating innovation as well as R&D eorts. Collaboration eorts by
the Government of India (the Ministry of Environment, the Ministry of Industry, and the Ministry of Science
and Technology, among others), research institutes, and the private sector should be promoted.
4. Te pricing of resources must reect the true and fair marginal social cost, keeping in mind that on
occasions environmental and social imperatives might work against each other. Te ongoing eorts to promote
environmental and scal reforms, aimed at aligning the economic and environmental drivers for arriving at the
fair and true marginal social cost, must be strengthened.
5. Te formation of an institutionalized national resource panel and of multi-stakeholder forums on sustainable
resource management could act as nuclei or hubs for promoting resource eciency in India beyond individual
sectors or regional interests. Tus, Indias role on the international stage would be strengthened and India
could become one of the leading players (e.g. the EU, Germany, and Korea) to embrace and incorporate
resource eciency as a means of achieving sustainable development.
J. Outlook and
Recommendations
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Image Sources
Figure 70: BMU / Bernd Mller
Figure 75: juwi AG
BMU / Bernd Mller
BMU / Christoph Edelho
TimberTower GmbH, Hannover
Box selected building materials (p. 72): Monika Dittrich 2013, IFEU 2013;
In the past 20 years, several methods have been developed for quantifying the use of materials by modern societies.
Material Flow Accounting and Analysis (MFA) is one of the key methods, and internationally recognized as an
important tool, for evaluating resource-use policies. Te principal concept underlying MFA is a simple model of the
interrelation between the economy and the environment, in which the economy is seen as an embedded subsystem of
the environment. Like living beings, this subsystem is dependent on a constant throughput of materials and energy.
Raw materials, water, and air are extracted from the natural system as inputs, transformed into products, and nally
re-transferred to the natural system as outputs (waste and emissions). To highlight the similarity to natural metabolic
processes, the terms industrial metabolism and societal metabolism have been introduced.
According to the laws of thermodynamics, total inputs must by denition equal total outputs plus net accumulation
of materials in the system. Tis principle of material balance holds true for the economy as a whole as well as for
any subsystem (an economic sector, a company, a household). It thus follows that the increasing problems associated
with waste generation and emissions are directly related to the scale of material input. In the past 15 years, a number
of academic and statistical institutions have been working towards the standardization of an accounting method for
material ows. Tese eorts resulted in the publication of the rst methodological guidebook for economy-wide MFA
by the European Statistical Oce (Eurostat) in 2001, and the publication of updated versions in 2007 and 2011, in
which Eurostat closely collaborated with the OECD.
Depending on the question asked, one can assess material inputs in order to illustrate or determine what amounts
of natural resources a city or a country consumes and where these resources originate. Te focus can also be placed
on waste and emissions which are returned to the natural system. A complete MFA comprises both material inputs
extracted from nature and disposed materials returned to nature. In its methodological guidelines, Eurostat advises
distinguishing between various types of material ows according to the following scheme:
Direct versus indirect:
Direct ows refer to the actual weight of the products and thus do not take into account the life-cycle dimension of
production chains. Indirect ows, however, indicate all the materials that are required for manufacturing (upstream
material requirements), and comprise both used and unused materials.
Used upstream material requirements of traded products should be expressed in so-called Raw Material Equivalents
(RMEs), which express the amounts of used primary extracted materials required along the entire production chain of
an imported or exported product.
Used versus unused:
Te category of used materials is dened as the amount of extracted resources that enters the economic system for
further processing or for direct consumption. All used materials are transformed within the economic system. Unused
extraction refers to materials that never enter the economic system and comprise overburden and parting materials
from mining, by-catch from shing, wood and agricultural harvesting losses, as well as excavated soil and dredged
materials from construction activities.
Annex I
Annex I 111
Domestic versus Rest of the World:
Tis category refers to the origin and/or destination of material ows. For the categories of unused and indirect
material ows, the terms ecological rucksacks and hidden ows are also used.
Key Indicators:
A large number of resource-use indicators can be derived from economy-wide material ow accounts. Tese indicators
can be grouped into (a) input; (b) output; (c) consumption; and (d) trade indicators. Te main input and consumption
indicators, which are most frequently applied in MFA studies at the national level, are illustrated in the following
gure.
Source: SERI, 2013.
Main input indicators:
Direct Material Input (DMI) comprises all materials with economic value that are used directly in production
and consumption activities. DMI equals the sum of domestic extraction and imports.
Raw Material Input (RMI) adds the used part of the Raw Material Equivalents (RMEs) of imports to DMI.
Total Material Requirement (TMR) includes, in addition to RMI, unused domestic extraction and the unused
RMEs of imports. TMR is thus the most comprehensive material input indicator, comprising all input ows.
Main consumption indicators:
Domestic Material Consumption (DMC) measures the total quantity of materials used within an economic
system, excluding indirect ows. Tus, DMC is the closest equivalent to aggregate income in the conventional
System of National Accounts. DMC is calculated by subtracting exports from DMI.
Raw Material Consumption (RMC) deducts the exports plus the used RMEs of exports from RMI.
Total Material Consumption (TMC) includes, in addition to RMC, the unused parts of RMEs associated with
imports and exports. TMC equals TMR minus exports and their RMEs.
Other MFA indicators include the following:
Domestic Processed Output (DPO) equals the ow outputs to nature, and comprises all outows of used
materials from both domestic and foreign origins. DPO includes emissions into air and water, wastes deposited
in landlls, and dissipative ows.
Total Domestic Output (TDO) represents the environmental burden of material use, that is, the total quantity
of material outputs into the environment caused by economic activity. TDO equals DPO plus unused domestic
extraction.
Net Additions to Stock (NAS) reect the physical growth of the economy, that is, the net expansion of the
stock of materials in buildings, infrastructures, and durable goods. NAS may be calculated indirectly as the
balancing item between the ow of materials entering the economy minus the materials leaving it, taking into
account the appropriate items for balancing. NAS may also be calculated directly as gross additions to material
stocks, minus removals (such as construction and demolition wastes and disposed durable goods, excluding
recycled materials).
Physical Trade Balance (PTB) expresses whether the resource imports exceed the resource exports of a country
or a world region, and thus illustrates the extent to which DMC is based on domestic resource extraction or on
imports. A PTB can either be compiled for direct material ows (physical imports minus physical exports) or
additionally can include indirect ows associated with imports and exports.
For further reading
European Environment Information and Observation Network: http://scp.eionet.europa.eu/themes/mfa
M. Fischer-Kowalski, F. Krausmann, S. Giljum, S. Lutter, A. Mayer, S. Bringezu, Y. Moriguchi, H. Schtz,
H. Schandl, and H. Weisz, 2011. Methodology and Indicators of Economy-wide Material Flow
Accounting State of the Art and Reliability across Sources. Journal of Industrial Ecology, 15 (6), 855-876.
http://onlinelibrary.wiley.com/doi/10.1111/j.1530-9290.2011.00366.x/pdf
OECD: http://www.oecd.org/env/indicators-modelling-outlooks/
oecdworkonmaterialowsandresourceproductivity.htm
SERI: www.materialows.net

Annex II 113
Methodology of GTAPMRIO
Multi-regional input-output (MRIO) analysis is carried out to calculate the direct and indirect materials embodied
in the nal demand of products. MRIO analysis is a methodology that assesses the national and international
environmental consequences of a countrys consumption of goods and services. It combines economic data (i.e. data
on the sectoral structure of economies linked via international trade data) with physical data (e.g. data on the materials
used for the production of dierent commodities in dierent parts of the world). Te model captures the upstream
impacts on global material use induced by a countrys consumption. Tis means that the amount of materials used for
the production of dierent goods is allocated to the country where the products are nally consumed. In this way, the
extent to which a countrys standard of living is dependent on foreign resources can be assessed. It can also be analysed
whether a reduction in domestic material use is merely a consequence of outsourcing production processes to other
countries.
Data sources
SERIs global MRIO includes all trade relations between the countries and regions in the model, and is extended on
the basis of resource extraction data in tonnes. For constructing MRIO-based environmental accounting models, global
harmonized sets of inputoutput (IO) tables and bilateral trade data are required. Tese data were taken from the
Global Trade Analysis Project (GTAP v5 and v8, see Narayanan et al. 2012), a data set covering 57 economic sectors
for 2007 and covering 129 countries and world regions, including all European Union (EU-27) Member States, the
OECD countries, the major emerging economies, and a signicant number of developing countries in Asia, Africa,
and Latin America. In GTAP, all countries not represented by a country model are grouped in regions (e.g. Rest of East
Asia, Rest of South-East Asia).
Tis monetary model is then extended on the basis of material extraction data that are obtained from the SERI Global
Material Flow Database (SERI 2011). Te extraction data are dierentiated into 18 material categories: (1) paddy rice;
(2) wheat; (3) other cereal grains; (4) vegetables, fruit, nuts; (5) oil seeds; (6) sugar cane, sugar beet; (7) plant-based
bres; (8) other crops; (9) grazing; (10) forestry; (11) shing; (12) coal; (13) oil; (14) gas; (15) industrial minerals; (16)
iron ores; (17) non-ferrous ores; and (18) construction minerals.
Allocation
Extracted material needs to be allocated to the economic sectors that make direct use of it. Most material extraction
categories are assigned to the corresponding economic sectors (see Table x). Category (9), grazing, is split up and
allocated to sectors 9, Cattle, and 11, Raw Milk, in relation to their economic output. Te material categories (15)
to (17) all metals and industrial minerals are allocated to the non-energy mining sector. Extraction of construction
minerals (18) is split up between sector 18, Other Mining, and sector 46, Construction, which also extracts on its
own, at equal shares (50%).
Annex II
Table x. Allocation of material categories to the sectors of the GTAPMRIO model
Material category Sector Share
(1) Paddy rice (1) Paddy Rice 100%
(2) Wheat (2) Wheat 100%
(3) Other cereal grains (3) Other Grains 100%
(4) Vegetables, fruit, nuts (4) Veg. & Fruit 100%
(5) Oil seeds (5) Oil Seeds 100%
(6) Sugar cane, sugar beet (6) Cane & Beet 100%
(7) Plant-based bres (7) Plant Fibres 100%
(8) Other crops (8) Other Crops 100%
(9) Grazing
(9) Cattle
corresponding to the economic
output of the two sectors
(11) Raw Milk
(10) Forestry (13) Forestry 100%
(11) Fishing (14) Fishing 100%
(15) Coal (15) Coal 100%
(16) Oil (16) Oil 100%
(17) Gas (17) Gas 100%
(15) Industrial minerals
(18) Other Mining 100% (16) Iron ores
(17) Non-ferrous ores
(18) Construction minerals (18) Other Mining 50%
(46) Construction 50%
Model uncertainties
While being able to fully cover the direct and indirect production requirements for an innite number of upstream
production stages, environmentally extended IO analysis suers from uncertainties arising from the following sources:
(1) reporting and sampling errors of basic data; both the main data sources, GTAP and SERI Global Material Flow
Database [SERI 2011], are subject to uncertainties; (2) the proportionality assumption the assumption that monetary
and physical ows originating from a sector are always in exactly the same proportion; and (3) the aggregation of IO
data over dierent products (homogeneity assumption) pricematerial use ratios across dierent materials supplied by
one sector are assumed to be equal, while they may vary substantially.
However, it was shown that the overall uncertainties of IO-based assessments are usually lower than the truncation
errors in extensive process analyses up to the third order [Lenzen 2001].
Annex III 115
A life cycle assessment (LCA) is a methodology that seeks to identify the environmental impacts related to a product,
service, or system from a holistic standpoint that includes all known potential environmental impacts, and that follows
the product, service or system from cradle to grave. Te life cycle includes all known processes in the stages of the
extraction of raw materials and their production, use, and disposal.
An LCA study consists of four phases, as shown in
Figure 79. Te main purposes of the goal and scope
denition are to clarify the purpose of the study, to
show what it can and cannot be used for, to present the
product system studied, and to indicate its boundaries
or limits. In the inventory analysis, data on the inputs
and outputs of the processes included in the system are
collected or calculated. On the basis of this inventory, the
potential environmental impacts are assessed, and nally
the results are interpreted. Carrying out an LCA is by
denition an iterative process, as illustrated by the arrows
in Figure 79.
In 1997, an international standard on LCA was
introduced. ISO 14040 presented the general framework
of LCA, and was followed by ISO 14041 to ISO
14043, describing the requirements for goal and scope,
inventory, and impact assessment. In 2006, a thorough
revision of the standards resulted in a revised 14040
standard and in a new 14044 standard replacing
1404114043.
Te LCA methodology allows for the evaluation of dierent environmental impact categories. Tis study focuses in
particular on the impact categories summarized in Table 12.
Table 12: Selection of impact categories used in the study
Impact category Unit
Global warming potential CO
2
equivalents
Cumulative raw material demand unit of weight
Cumulative energy demand in joules
Fresh water in litres
Land use m per year
Annex III
Figure 79: Phases of an LCA (ISO, 2006)
To generate the results for the impact categories, the LCA software Umberto 5.6 was used. Te programme allows
the modelling of material and energy ows of certain products, services, and complex systems. At every stage along the
modelled life-cycle, the user can integrate data on certain inputs and outputs of the system. Figure 80 demonstrates
the logic of the programme. Every square reects a certain process within the life-cycle where the associated input and
output data can be integrated. Te input data for the dierent processes were either researched, calculated, or taken
from the Ecoinvent database v 2.2.
Figure 80: Example of a modelled life cycle in Umberto (Indian apartment)
For further reading
LCA methodology:
Wenzel, H. / Hauschild, M. / Alting, L. (1997): Environmental assessment of products.
Volume 1: Methodology, tools, and case studies in product development. Chapmann & Hall.
Guine, J.B (Ed.) (2002): Handbook on Life Cycle Assessment. Operational Guide to the ISO Standards.
Kluwer, Dordrecht.
Umberto: http://www.umberto.de/en/
ecoinvent: http://www.ecoinvent.org/
References 117
Figures
Figure 1: Concept of resource eciency as adopted and used in this study 5
Figure 2: Growth of Indias population (actual and projected) compared to China and Europe 6
Figure 3: Growth of GDP in India 7
Figure 4: Global share of middle class consumption 8
Figure 5: Selected Indian cities by population 9
Figure 6: Ecological footprint and biological capacities of China, India, and Germany from 1961 to 2009 11
Figure 7: Resource-saving opportunities by 2030 13
Figure 8: Per capita consumption of materials in India, 19802009 16
Figure 9: Absolute consumption of materials in India, 19802009 17
Figure 10: Typical material consumption pattern during a development process and country-specic examples 18
Figure 11: Consumption of various resources (million tonnes) between 2006 and 2011 19
Figure 12: Indias past material demand and future projections until 2050 21
Figure 13: Future material consumption by material categories in scenario continuing current dynamic 21
Figure 14: Global resource use by world regions in the past three decades and future prospects 22
Figure 15: Resources, reserves, and production of selected industrial minerals 23
Figure 16: Forest areas versus mineral resources 24
Figure 17: Import dependencies in the case of selected raw materials 26
Figure 18: Improvements in resource productivity* in India, China, and Germany,
as well as the global average between 1980 and 2008 28
Figure 19: Material input in India by sectors, 2007 29
Figure 20: Material productivity in India by sectors, 1997 and 2007 29
Figure 21: Resource-eciency potentials in Indias manufacturing sub-sectors 30
Figure 22: Scheme for evaluation of critical metals 33
Figure 23: Production and consumption of chromite (19982009) 34
Figure 24: Imports and exports of chromite (19982009) 35
Figure 25: Resources, reserves, and production of chromite 35
Figure 26: Mining of chromite versus forests 36
Figure 27: Production and consumption of limestone (19982009) 38
Figure 28: Trade in limestone (19982010) 38
Figure 29: Limestone reserves (in thousand tonnes) and forest areas 39
Figure 30: Production and consumption of copper ore (19982009) 40
Figure 31: Trade in copper ore and concentrates (19982009) 41
Figure 32: Resources, reserves, and estimated copper content 41
Figure 33: Trade in cobalt ores and concentrates (20002010) 43
Figure 34: Life cycle of a car 46
Figure 35: Car ownership: Growth potential and saturation level (2010) 48
Figure 36: Raw material requirement of the Indian automotive sector (1997 and 2007) 49
Figure 37: Average distribution of certain metals in a compact car except steel 50
Figure 38: Growth in total number of registered cars in India* 52
Figure 39: Projected annual demand for steel and chromium 52
Figure 40: Primary raw material demand for dierent car options 53
Figure 41: Saving potential of a lightweight compact car in dierent resource categories* 53
Figure 42: Future raw material demand for dierent car options 54
Figure 43: Material-reduction potential in primary raw material demand by steel recycling 54
Figure 44: Primary raw material consumption by dierent occupation rates 55
Figure 45: Development of absolute and per capita mobility* in India 56
Figure 46: Consumption of primary raw materials by dierent modes of transport 57
Figure 47: Consumption of fresh water by dierent modes of transport 57
Figure 48: Future demand for primary raw materials divided by modal split 58
Figure 49: Mineral consumption per capita during the build-up and maintenance of infrastructure in
selected countries, 2008 60
Figure 50: Consumption of minerals in India, China, and South Korea between 1980 and 2009 60
Figure 51: Share of buildings in resource use and pollution 62
Figure 52: Composition of construction and demolition waste 62
Figure 53: Raw materials in the construction sector by main aggregates 63
Figure 54: Building cost components (in %): 63
Figure 55: Increasing import dependencies in the construction sector, 1997 and 2007 64
Figure 56: Existing housing stock and housing units to be built according to NRDC-ASCI until 2030 65
Figure 57: Predominant materials used for construction of roofs (above) and walls (below) 65
References 119
Figure 58: Overview of GRIHA criteria 68
Figure 59: Projected growth of cement production in India 69
Figure 60: Projected demand for limestone in India, yearly (left) and cumulated (right) 70
Figure 61: Demand for limestone depending on type of cement 71
Figure 62: Primary raw material demand for a unit housing space per person and year
by the dierent options of building materials and potential savings 73
Figure 63: Overall primary raw material demand of the building options per person and year 74
Figure 64: Primary energy demand of the dierent options 74
Figure 65: Raw material demand and potential savings for buildings in 2030 by the dierent options 75
Figure 66: Electricity consumption per capita in selected countries (2010) 76
Figure 67: Indian electricity mix by installed capacity and energy generation 77
Figure 68: Development of electricity generation in India (TWh) 79
Figure 69: Renewable energy investment in billion USD 79
Figure 70: Composition of a conventional onshore 3 MW wind turbine 80
Figure 71: Development of wind-based electricity generation in India under dierent assumptions 82
Figure 72: Indias future additional electricity demand until 2030 83
Figure 73: Annual demand for steel and copper for wind turbines* 83
Figure 74: Cumulative savings of primary raw materials through wind energy 84
Figure 75: Dierent tower options for a wind turbine 85
Figure 76: Environmental comparison of two tower concepts 85
Figure 77: Natural resources dened by ProgRess 93
Figure 78: Japans political strategies for achieving a sound material cycle society 94
Figure 79: Phases of an LCA (ISO, 2006) 115
Figure 80: Example of a modelled life cycle in Umberto (Indian apartment) 116

Tables
Table 1: Main assumptions of the three scenarios 20
Table 2: Mineral production, waste generation, and land aected in 200506 25
Table 3: Extrapolation of additional incremental resource savings for selected sub-sectors in India 31
Table 4: Indian automobile production in 1,000s 48
Table 5: Expected Vehicle Production in India (1,000 units) 50
Table 6: Dierent car types 53
Table 7: Dierent options of motorized mobility 56
Table 8: Material composition of buildings analysed by Ramesh et al. 2012 and 2013 66
Table 9: Quantitative and qualitative drivers of demand 78
Table 10: Estimated consumption of resources by coal-red and wind power-based plant 84
Table 11: Selected resource-eciency strategies around the globe 90
Table 12: Selection of impact categories used in the study 115

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Dimensions, Challenges and Possible Solutions

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