Green Building Materials: Improving India’s Construction Emissions

Green building materials (GBMs), those engineered for low emissions across their lifecycle, are gaining traction globally. Globally, cement and steel, the cornerstones of construction, each emit over 2.3 to 2.6 billion tonnes of CO₂ annually. Together they account for roughly one-fifth of the world’s building-sector emissions. Per United Nations estimates, by 2050 over 80% of the world’s population will live in cities, doubling demand for these materials. This trend makes GBMs essential.

In India, construction is booming; over 35 billion square feet of new built space is expected by 2050 which is double of 2025’s stock, according to the GBM Market Study Report 2025. Yet buildings already contribute to about 25% of India’s total emissions, with cement and steel making up approximately 8% and 12%, respectively. Brick kilns add another 65 million tonnes of CO₂ per year (2.5% of national emissions). At the same time, India generates an estimated 150 to 500 million tonnes of construction and demolition (C&D) waste annually, and less than 1% of it is recycled. These pressures on climate, health and resources underscore the urgency of sustainable materials.

Market momentum

India’s GBM market is projected to expand at a compound annual growth rate (CAGR) of 10% to 12%, reaching Rs. 6,15,090 to Rs. 7,02,960 crore (US$ 70-80 billion) by 2030 as per the GBM Market Study Report 2025. This surge follows two tracks: established manufacturers are greening their value chains (for example, low-carbon cement or recycled glass), while startups drive disruptive innovations (for example, geopolymer concrete, waste-based pavers, 3D-printed construction and agro-fibre panels). Major corporates are setting bold targets – Ambuja Cement plans to source 60% of its power from renewable energy by 2030, and UltraTech Cement now applies a carbon price of Rs. 882.54 (US$ 10) per tonne CO₂ in its investment decisions. Even globally, pioneers are emerging, for example, Sweden’s H2 Green Steel aims to supply 2.5 million tonnes per year of hydrogen-produced “green steel” by 2030, signalling the direction of future demand.

Innovation ecosystem

At the same time, the domestic startup ecosystem is rich with practical innovations. For instance, Hyderabad’s GreenJams produces “Agrocrete” blocks, the world’s first carbon-negative verified building material made from crop residues and industrial by-products. Agrocrete can halve construction costs and improve thermal insulation by 350%. In Assam, Zerund turns plastic waste into lightweight bricks for housing; it has been integrated into Pradhan Mantri Awas Yojana (Urban) (PMAY - U) projects in the Northeast, showing GBMs can meet mass-housing quality requirements. Bengaluru’s Biomart manufactures “plastic bricks” from recycled plastic, diverting waste from landfills. Other innovators include startups making cow-dung insulating boards, microbially self-healing mortar and agro-waste panels, such as Strawcture Eco’s wheat- and rice-straw panels with high insulation. These examples demonstrate how the GBM ecosystem is spawning products that cut emissions and often costs, while addressing local needs.

Global perspective

Global developments are adding momentum, as international investors are backing clean construction. In 2023, over Rs. 71,175 crore (US$ 8.1 billion) (14% of total climate-tech funding) went to startups tackling industrial and building emissions (PwC 2024). New materials are proving their worth; for example, Saint- Gobain’s ORAÉ® glass (environmental product declaration (EPD)-verified) cuts facade glass CO₂ footprints by 42%. India’s market is set to benefit from such trends, given its scale and policy push. As one analysis concludes, green construction is becoming “a standard rather than an exception” in India (Ajmera Group 2023).

Economic advantages

Industry analysis shows GBMs bring a triple win for India; they can sharply lower construction emissions, stimulate domestic manufacturing and create green jobs. In low-income housing especially, thermally efficient GBMs can make homes 4 to 6°C cooler in summer, improving comfort and health for vulnerable families. For developers and investors, green projects pay dividends, too. As Ajmera Group notes, green-certified buildings “attract environmentally conscious investors and enhance market value.” Owners gain lower utility bills and higher resale values from better energy and water efficiency. In short, GBMs align cost savings with sustainability.

Policy initiatives

Despite the challenges, India is moving. For example, housing demand drives policy action. The country’s urban affordable housing deficit is over 11.2 million units. Under the PMAY-U, 1.18 crore homes have been sanctioned, of which 93 lakh are completed or near-complete as of March 2024, as noted in the GBM Market Study Report 2025. Crucially, PMAY-U now mandates low-carbon materials in these homes, such as fly-ash bricks and autoclaved aerated concrete. As a result, an estimated nine million tonnes of CO₂ have been avoided by the end of 2024.

Such measures signal government intent. The National Building Code (NBC) has been updated to make the inclusion of sustainable materials compulsory in design; major green ratings have started unlocking financial incentives. For instance, certified green projects can get up to a 25% capital subsidy; state governments such as Andhra Pradesh, Tamil Nadu and Telangana provide 5 to 20% property-tax rebates for buildings using recycled materials. Regulators are also acting. New Securities and Exchange Board of India (SEBI) rules require developers to report the sustainability performance of vendors, and green bond pilots by Reserve Bank of India (RBI) provide interest-rate concessions for innovations such as geopolymer concrete or carbon-negative tiles.

Conclusion

The GBM market, in short, stands at an inflection point. Strong policies, such as PMAY - U, green codes and incentives, demonstrate convergence with fast-growing demand and a vibrant innovation ecosystem. If this momentum sustains, India can make its construction boom sustainable and prominent worldwide. As Ajmera Group notes, “With sustained innovation and commitment, the Indian real estate sector is poised to become a world leader in sustainable development.” This will allow India to meet its housing needs, advance climate goals and build a healthier future for all, by integrating green material use at scale.

FAQs

What are GBMs?

GBMs are eco-friendly materials that reduce carbon emissions and resource use throughout a building’s lifecycle.

How large is India’s GBM market?

The GBM market in India is projected to reach Rs. 6,15,090 to Rs. 7,02,960 crore (US$ 70-80 billion) by 2030.

Which government schemes promote GBMs?

Schemes such as PMAY-U and NBC promote low-carbon materials and green construction.

Which Indian startups are innovating in GBMs?

Startups such as GreenJams, Zerund and Strawcture Eco make materials from waste and agro- residues, cutting costs and emissions.

What is the outlook for GBMs in India?

With strong policy support and rising green demand, India’s GBM sector is set to become a global hub for sustainable construction.