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Ambuja Cements

Ambuja Cements Limited, the top cement and building materials company in India announced joining the Alliance for Industry Decarbonization (AFID). Ambuja’s membership marks a historic moment as it becomes the world’s first cement manufacturer to join AFID, setting a milestone in decarbonization for the cement industry.

Adani’s Acquisition and Significance of Joining the AFID

In September 2022, Adani Group completed the acquisition of Ambuja Cements Ltd and ACC Ltd. Thus, Ambuja Cements is now part of the growing Adani Portfolio. With its subsidiaries, ACC Limited and Sanghi Industries Limited, Ambuja Cements aims to help the Adani Group reach a cement production capacity of 140 MTPA by 2028.

Joining AFID is a significant milestone for the cement behemoth. Simply put, this global initiative aims to accelerate the transition to net zero as it aligns with the Paris Agreement. The AFID focuses on reducing emissions in industrial sectors and boosts the net-zero goals of the hard-to-abate industries. It brings together public and private organizations from energy-intensive industries to work toward a greener future. It serves as a platform for industry dialogue, fostering cooperation among private and public stakeholders in energy-intensive sectors.

By collaborating with other members, Ambuja aims to develop robust decarbonization strategies that align with national commitments. Notably, The International Renewable Energy Agency (IRENA) coordinates the alliance’s activities, ensuring a unified approach to achieving net-zero goals across industries.

Furthermore, the cement giant earned an A- ‘Leadership Score’ from CDP for its climate action. The company was also named one of ‘India’s Most Trusted Cement Brands’ by TRA Research in 2024 and listed among the ‘Iconic Brands of India’ by The Economic Times.

Currently, it has 18 integrated plants and 19 grinding units. Its highly advanced port infrastructure ensures timely, cost-effective bulk cement shipments, giving the company a competitive edge in the market.

Now, the big question is how Ambuja Cements plans to decarbonize its cement manufacturing process and achieve its Net Zero goals. What are its strategies and investments in renewable energy? Let’s explore.

Ambuja Cements: Leading the Way to Net Zero by 2050

Mr. Karan Adani, Non-Executive Director, Ambuja Cements.

“This marks another significant step for Ambuja in its sustainability journey. We are already amongst the lowest emission-intensity cement producers globally and are undertaking several strategic initiatives to further reduce our GHG emission footprint. Being a member of the Alliance for Industry Decarbonization would allow us to leverage the experiences of global cross-sector industry peers, and in turn, share our approach to decarbonization.”

Emission Reduction Target

Ambuja Cements, India’s second-largest cement producer with a capacity of 78.9 million tons per annum, has set a bold goal to achieve net zero emissions by 2050. Its targets are validated by the Science Based Targets initiative (SBTi). The company is committed to reducing greenhouse gas (GHG) emissions and is recognized as one of the lowest-emission cement producers globally.

  • This year the company utilized over 8.6 million tonnes of waste-derived resources. It boldly highlighted being 11 X water-positive and 8 X plastic-negative.

Ambuja Cements

Source: Ambuja Cements

Scope 1 and Scope 2 Emissions

The sustainability report explains how the company is combating its Scope 1 and Scope 2 emissions by 21% per ton of cementitious material by 2030. Notably, these efforts align with the Global Cement and Concrete Association’s roadmap for achieving Net Zero by 2050. The company has also conducted a climate risk assessment to ensure business resilience. They integrate recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD).

Ambuja cements emissionsSource: Ambuja Cements

The company has established an Internal Carbon Pricing (ICP) mechanism which is an integral part of its emission management strategy. This tool helps the company make informed decisions to reduce carbon emissions and fund low-carbon projects.

Mega Investment Plan in Renewable Energy

A key strategy to decarbonize the cement industry is the use of renewable energy. Ambuja Cements focuses on cutting energy consumption by harnessing solar and wind power, along with utilizing waste heat recovery systems (WHRS). At present, it has installed 76 MW of WHRS.

The press release reveals Ambuja Cements’ significant investment plan of approximately $1.2 billion (₹10,000 crore) in renewable energy projects. The company is targeting a total capacity of 1 gigawatt (GW) and an additional 376 megawatts (MW) from Waste Heat Recovery Systems (WHRS). This initiative will ensure that 60% of its expanded capacity will be powered by renewable energy by 2028.

Ambuja Cements RENEWABLE ENERGYSource: Ambuja Cements

Thus, all these efforts will significantly reduce the company’s carbon footprint and gain economic benefits through reduced energy costs and improved operational efficiency.

From this data, we can understand Ambuja Cements’ commitment to decarbonizing the cement industry through renewable energy and sustainable practices. With a clear vision to reduce carbon emissions and achieve its net zero targets, the company is leading the way towards a greener future.

The post Ambuja Cements Makes History: First to Join the Alliance for Industry Decarbonization (AFID) appeared first on Carbon Credits.

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Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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