Material Insights · Understanding the Material World

Small-molecule APIs: Emissions

Why coal-fired steam makes Indian APIs carbon heavy

What this tab covers The greenhouse-gas footprint per tonne, split by lifecycle phase (feedstock, production, movement, use, end of life), the global total, other environmental impacts, levers and low-carbon routes, India's position, and where the investment opportunity lies.

Per kg of API, cradle-to-gate. Intensity: Kekessie et al. 2024 (ACS GCI) PMI; derived (indicative). Global total: Belkhir and Elmeligi, J. Cleaner Production (2019).

Share of footprint by lifecycle phase

Feedstock 50% Production / process 45% Movement 5%

Footprint by lifecycle phase

PhaseIntensityShareMain sources of emissionsNotesSource
Feedstocksolvents, reagents and KSMs50%virgin solvent make-up, fossil aromaticssolvents are typically the majority of PMI (indicative)ACS GCI (indicative)
Production / processsteam and electricity for reaction, distillation and drying45%coal-heavy grids and coal boilers in India and Chinasteam dominated process energy for paracetamol in India (Vivar et al. 2025)Vivar et al. 2025; indicative
Movementsea freight small; air freight for high-value APIs5%air freightindicativeindicative
Usenot applicable for combustion; APIs pass through patients–excretion to wastewaterpharmaceutical residues and antimicrobial resistance are the main use-phase impactsqualitative
End of lifeincineration of spent solvents and unused medicines–solvent incineration emits fossil CO2solvent waste incineration is counted here when not in processqualitative

Other environmental impacts

Effluent from API clusters (Patancheru-Pashamylaram in Telangana, Ankleshwar and Vapi in Gujarat) has carried high antibiotic concentrations, a driver of antimicrobial resistance. Chlorinated solvents and high-COD effluent are the main local issues.

Levers to cut emissions

  • Solvent recovery and substitution (DCM, DMF, NMP to greener solvents)
  • Route redesign with biocatalysis and flow to cut PMI
  • Renewable power and electric or biomass steam in API clusters
  • Zero liquid discharge and AMR-safe effluent standards

India

India's API clusters run largely on coal-fired captive steam and the state grid; a paracetamol case study found India's process energy footprint above France's because of grid and steam (Vivar et al. 2025).

Emission figures are indicative global averages from the life-cycle studies named; actual footprints vary widely by site, energy mix and method.

Low-carbon routes

RouteIntensityCost premiumStatusSource
Biocatalytic and continuous-flow routesPMI cuts of half or more in award cases (indicative)often cost-saving after developmentused by originators and leading CDMOs; few Indian generic producers at scaleACS GCI Pharmaceutical Roundtable (indicative)
For a climate investor The opportunity is in process technology and utilities for API clusters: solvent recovery, green steam, effluent treatment that meets antibiotic discharge limits, and flow chemistry platforms. PLI plants and the three bulk drug parks need common utilities, which could be built low-carbon from the start. It only pays if Indian KSM plants stay viable against Chinese pricing, which so far needs MIPs and duties.