Nagavarshini M
India contributes approximately 7% of global greenhouse gas emissions while housing 17% of the world’s population. It faces the dual challenge of sustaining robust economic growth while dramatically reducing its carbon footprint. India’s decarbonization policy framework represents one of the most ambitious climate commitments by any developing nation, yet it also embodies the complex tensions between development imperatives and environmental governance.
The Climate Imperative and India’s Response
India’s commitment to achieving net-zero emissions by 2070, announced at COP26 at Glasgow, marked a watershed moment in global climate diplomacy. This pledge, coupled with the ambitious target of installing 500 GW of renewable energy capacity by 2030, signals a fundamental shift in the country’s energy trajectory.
The concept of “just transition” has emerged as central to India’s decarbonization strategy. Unlike developed nations that industrialized using fossil fuels and now transition to cleaner alternatives, India must simultaneously achieve energy security, economic development, and environmental sustainability. This triple challenge requires policy interventions that are both transformative and equitable.
Renewable Energy: The Solar Revolution and Beyond
India’s renewable energy sector has witnessed unprecedented growth, with solar power leading the charge. According to the Ministry of New and Renewable Energy, India’s solar capacity has grown from a modest 2.6 GW in 2014 to over 105.65 GW by 2025, making it the third-largest solar market globally. The National Solar Mission’s target of 100 GW by 2022 was achieved ahead of schedule, demonstrating the sector’s momentum.
The success of solar energy in India can be attributed to several factors: dramatic cost reductions (solar tariffs have fallen by over 80% since 2010), supportive policy frameworks including the Solar Park Scheme and rooftop solar programs, and innovative financing mechanisms. The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, which promotes solar pumps and grid-connected solar power plants for farmers, exemplifies how renewable energy can address multiple development challenges simultaneously.
Wind energy, India’s second-largest renewable source, has also shown remarkable progress with over 50.04 GW of cumulative installed capacity. Bioenergy installations reached a total capacity of 11.58 GW and small hydro power projects achieved 5.10 GW.
The Coal Conundrum: Balancing Energy Security and Climate Goals
Despite remarkable progress in renewables, coal continues to dominate India’s energy mix, accounting for approximately 70% of electricity generation. The challenge lies not merely in replacing coal with renewables but in managing the socio-economic implications of this transition. Coal mining and thermal power generation directly employ over 4 million people, with millions more dependent on related industries.
The concept of “just transition” becomes particularly relevant here. Recent policy interventions have focused on repurposing coal mining areas for renewable energy projects. The Coal Ministry’s initiative to convert abandoned coal mines into solar parks represents an innovative approach to land use optimization while providing alternative livelihoods for affected communities.
However, the transition must be gradual and carefully managed. India’s energy demand is projected to double by 2040, and ensuring grid stability while increasing renewable penetration requires significant investments in storage technologies and grid modernization.
Industrial Decarbonization: Beyond the Power Sector
India’s industrial sector, contributing approximately 30% of the country’s emissions, presents unique decarbonization challenges. Steel, cement, aluminium, and chemicals industries are not only energy-intensive but also process-emission intensive, making their decarbonization particularly complex.
The steel sector, responsible for about 12% of India’s carbon dioxide emissions, is pursuing multiple pathways including hydrogen-based steel production, carbon capture and storage, and improved energy efficiency.
The cement industry is exploring alternative fuels, carbon capture technologies, and novel cement chemistries. The development of green hydrogen as an industrial fuel presents promising opportunities, though cost competitiveness remains a challenge.
Transportation: Electrification and Modal Shift
India’s transport sector, accounting for approximately 18% of energy consumption, is undergoing a gradual but significant transformation. The National Electric Mobility Mission Plan aims to achieve 30% electric vehicle penetration by 2030, supported by the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme.
Electric two-wheelers have shown remarkable adoption rates, while electric buses are being deployed in major cities under various state and central government initiatives. However, the transition faces challenges including charging infrastructure development, battery manufacturing capacity, and consumer affordability.
The Indian Railways’ electrification program has achieved remarkable success, with 100%
electrification of broad-gauge routes completed in 2023. This achievement eliminates approximately 2.8 million tonnes of carbon dioxide emissions annually while reducing operational costs.
Indian government has also initiated five pilot projects for using Hydrogen as a fuel in buses and trucks. These pilot projects are likely to be commissioned in the next 18-24 months and are expected to meet India’s goal of becoming Aatmanirbhar (self-reliant) through clean energy transition.
Policy Architecture: Frameworks for Transformation
India’s decarbonization policy landscape is characterized by a multi-layered approach encompassing national missions, state-level initiatives, and sector-specific interventions. The National Action Plan on Climate Change (NAPCC) provides the overarching framework, while missions like the National Solar Mission and Enhanced Energy Efficiency drive sector-specific transformations.
The National Green Hydrogen Mission represents India’s strategic vision for becoming a global hub for green hydrogen production and export. With allocated funding of ₹19,744 crores up to FY 2029-30, the mission aims to develop 5 MMT of green hydrogen production capacity by 2030.
Carbon pricing mechanisms are gradually being introduced through the Perform, Achieve and Trade (PAT) scheme for energy-intensive industries. The scheme has achieved significant energy savings while creating a market for energy efficiency certificates.
Social Dimensions: Ensuring Inclusive Growth
The concept of just transition extends beyond environmental considerations to encompass social equity and inclusive development. Rural electrification through renewable energy has transformed lives in remote areas, while solar-powered irrigation has enhanced agricultural productivity and farmer incomes.
Women’s participation in the renewable energy sector has increased significantly, with initiatives like the Solar Mamas program training rural women as solar engineers. However, ensuring gender-inclusive policies and addressing potential job displacements in fossil fuel industries remain ongoing challenges.
The skilling and reskilling of workers transitioning from fossil fuel industries require comprehensive programs. The Coal Ministry’s initiatives to retrain coal mine workers for renewable energy projects represent positive steps, though the scale of intervention needs significant expansion.
Technological Innovation: The Role of Indigenous Solutions
India’s decarbonization success will largely depend on developing and deploying indigenous technologies adapted to local conditions. The Make in India initiative has facilitated domestic manufacturing of solar panels, wind turbines, and electric vehicles, reducing import dependence and creating employment opportunities.
Research and development in emerging technologies like green hydrogen, advanced battery systems, and carbon capture are receiving increased attention. The establishment of the National Institutes of Solar Energy and the National Institute of Wind Energy demonstrates institutional commitment to technology development.
Challenges and Roadblocks
Despite significant progress, India’s decarbonization journey faces several challenges. Land acquisition for renewable energy projects remains problematic, particularly in densely populated areas. Grid integration challenges increase with higher renewable penetration, requiring substantial investments in transmission infrastructure and energy storage.
Financial constraints continue to limit the pace of transition, particularly for energy-intensive industries facing competitiveness pressures. The lack of adequate skilled workforce in emerging sectors and regional disparities in development add complexity to policy implementation.
International trade considerations, including carbon border adjustments being developed by the European Union, present additional challenges for Indian exporters. Developing domestic standards and certification systems while maintaining export competitiveness requires careful policy calibration.
The Path Forward: Strategic Priorities
India’s decarbonization strategy must prioritize several key areas for accelerated progress. First, enhancing grid flexibility through storage technologies and demand response systems is crucial for managing higher renewable penetration. The National Energy Storage Mission’s focus on battery manufacturing and deployment represents a positive step.
Second, developing green hydrogen ecosystems requires coordinated efforts across production, distribution, and utilization. Strategic partnerships with countries like Germany and Japan are facilitating technology transfer and investment flows.
Third, circular economy principles must be integrated into industrial policies to maximize resource efficiency and minimize waste. The Extended Producer Responsibility framework for electronic waste and plastic packaging demonstrates regulatory progress in this direction.
Fourth, nature-based solutions including reforestation, wetland restoration, and sustainable agriculture practices must complement technological interventions. The Green India Mission’s target of increasing forest and tree cover to 33% of the geographical area aligns with these objectives.
Conclusion: Toward a Sustainable and Equitable Future
India’s decarbonization journey represents one of the most complex and consequential transitions in human history. The nation’s ability to achieve rapid economic growth while dramatically reducing emissions will significantly influence global climate outcomes and serve as a model for other developing countries.
The success of this transition depends not merely on technological innovation or policy frameworks but on creating inclusive pathways that address the needs and aspirations of all citizens. The concept of just transition must evolve beyond rhetoric to encompass concrete measures that ensure no community is left behind.
As India navigates this challenging yet promising path, the lessons learned and innovations developed will contribute to global knowledge on sustainable development. The next decade will be crucial in determining whether India can successfully demonstrate that rapid decarbonization and equitable development are not just compatible but mutually reinforcing.
The stakes could not be higher, but India’s remarkable progress thus far provides reasons for cautious optimism. With continued policy support, technological innovation, and social inclusion, India can emerge as a global leader in demonstrating how large developing economies can achieve prosperity while safeguarding the planet for future generations.
References:
- Ministry of New and Renewable Energy (MNRE), Government of India – Solar Energy Overview https://mnre.gov.in/en/solar-overview/
- International Energy Agency (IEA) – India Energy Outlook 2021
https://www.iea.org/reports/india-energy-outlook-2021 - NITI Aayog – Pathways to Sustainable Development: India’s Decarbonization Strategy
https://www.niti.gov.in/ - Ministry of Power, Government of India – National Electricity Policy
https://powermin.gov.in/en/content/national-electricity-policy - Climate Policy Initiative – Landscape of Green Finance in India https://www.climatepolicyinitiative.org/
About the contributor: Nagavarshini M holds a Bachelor’s degree in Energy and Environmental Engineering from the Agricultural Engineering College and Research Institute, Tamil Nadu Agricultural University, Coimbatore. She is a fellow of EPAYF 2.0 – Environment Policy and Action Youth Fellowship, Cohort 2.0.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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Acknowledgement: This article was posted by Khushboo Dandona, a research intern at IMPRI.
