India is the world’s most populous country and one of the fastest-growing major economies, with the third-highest greenhouse-gas emissions globally. As energy demand soars, the country faces a defining challenge: how to sustain rapid growth while reducing emissions. Its dilemma centres not on coal versus renewables but on how quickly it can produce stable, affordable, clean power without derailing development. India is tailoring international climate frameworks to domestic priorities—focusing on energy security, social equity, and long-term growth.

Why India’s Path Matters

India’s climate policy rests on a fundamental premise: decarbonization must proceed through economic growth, not at its expense. As the world’s fifth-largest economy and the third-largest emitter, the country occupies a unique position in the global climate landscape. Its per-capita emissions, however, remain among the lowest in the G20. This duality defines India’s policy space: any credible climate pathway must align with rapid urbanization, energy security, and rising living standards.

The International Energy Agency (IEA) projects that India will be the main driver of global energy demand growth in the coming decades. Meeting that demand will require expanding electricity generation, grid infrastructure, and storage at an extraordinary speed. Today, coal still accounts for about three-quarters of electricity generation, even as the country has become one of the world’s fastest-growing markets for renewables. Policymaking reflects this tension: short-term reliability is ensured through existing fossil infrastructure, while the long-term strategy centres on renewables, grid resilience, and strategic international partnerships.

India’s Climate Commitments

Before the 2015 Paris Agreement, India—like other developing countries—had no quantified emission-reduction obligations under the Kyoto Protocol. Its negotiating stance was grounded in the principles of equity and historical responsibility—codified as Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).

Since Paris, however, each Party must prepare, communicate, and maintain a nationally determined contribution (NDC) to help keep global warming well below 2°C, ideally 1.5°C. India submitted its first NDC in 2015 and updated it in 2022, committing to reduce the emissions intensity of GDP by 45 per cent from 2005 levels by 2030 and to reach 50 per cent of installed power capacity from non-fossil sources by the same year.

At COP26 in Glasgow, Prime Minister Narendra Modi announced that India would achieve net-zero emissions by 2070. To support this long-term goal, he outlined the Panchamrit—five key targets to be met by 2030. These include: achieving 500 GW of non-fossil energy capacity, meeting 50 per cent of energy requirements from renewables, reducing projected CO₂ emissions by 1 billion tonnes, lowering the carbon intensity of the Indian economy by 45 per cent, and achieving net zero by 2070. In 2022 (COP27), India submitted its Long-Term Low-Emission Development Strategy (LT-LEDS), outlining sector-by-sector pathways for low-carbon development. However, implementation hinges on finance: India needs an estimated USD 10 trillion by 2070 to meet its goals. Current investment flows cover only about one-quarter of this requirement, making international finance and technology transfer critical to success.

Diplomacy and Decarbonization

India co-leads global platforms that mobilize capital, diffuse technology, and strengthen resilience across the Global South. The International Solar Alliance (ISA), launched in 2015 with France, aims to attract USD 1 trillion in solar investments by 2030.

At COP26, India and the United Kingdom jointly launched the Green Grids Initiative — One Sun, One World, One Grid (GGI—OSOWOG) in partnership with the ISA and the World Bank Group. The initiative envisions a global renewable electricity grid, beginning in the Middle East, South Asia, and Southeast Asia, and expanding to Africa and beyond.

India also founded the Coalition for Disaster Resilient Infrastructure (CDRI) in 2019, a multi-stakeholder partnership that advances common standards, risk-informed planning, and financing for resilient infrastructure. Together, these platforms boost India’s soft power, expand its access to international finance, and align climate ambition with strategic autonomy.

Cultural Dimensions of the Green Transition

India’s green transition is not just a technical challenge—it is also a cultural narrative. In Indian philosophy, both the human body and the planet are composed of the five elements: earth, water, fire, air, and space (ether). Environmental stewardship is, therefore, not merely a policy choice but an ethical and spiritual duty.

‘Environmental stewardship is, therefore, not merely a policy choice but an ethical and spiritual duty’

This worldview underpins the Mission LiFE (Lifestyle for Environment) initiative, launched by Prime Minister Modi at COP26 and integrated into India’s climate pledges. It directly challenges throwaway culture by promoting circular, plant-based lifestyles, from water conservation and passive cooling to waste minimization. The government often credits such norms for India’s relatively low per-capita emissions and seeks to turn that heritage into public policy. The aim is to mobilize one billion people worldwide by 2028 to adopt sustainable habits. However, meaningful behavioural change requires significant investment in energy efficiency, public transport, waste systems, and smart infrastructure: LiFE is not a substitute for policy—it is a social lever that complements structural reforms.

Building the Foundations of a Low-Carbon Future

The results of India’s climate strategy are tangible: in July 2025, India reached its target of 50 per cent installed power capacity from non-fossil sources—five years ahead of schedule. According to the 2024 Renewable Capacity Statistics released by the International Renewable Energy Agency (IRENA), India ranks fourth globally in total installed renewable-energy capacity. In August 2025, the country’s solar-module-manufacturing capacity exceeded 100 GW, driven by targeted industrial incentives. Yet coal remains the dominant source of electricity, accounting for about 74 per cent of total generation.

Given India’s projected electricity-demand growth of over 6 per cent annually, the challenge is not only adding green capacity but also integrating it reliably into the grid. Without accelerated investment in storage, flexibility, and grids, renewables are unlikely to surpass one-third of generation by 2030, keeping emissions off a 1.5°C-consistent pathway.

The Challenge of a Just Transition

India’s green transition is not only an energy story—it is a social and fiscal balancing act. In the coal belt of the eastern and central states, at least 120 districts are systematically tied to fossil-fuel value chains—from mines and power plants to steel, cement, fertilizer, and brick kilns—supporting around 20 million livelihoods, with informal employment in the sector often exceeding 80 per cent of the workforce.

Many districts depend on fossil royalties and taxes to fund essential public services. With about 13 per cent of the coal fleet already over 30 years old—and many units likely to retire by 2030—a premature phaseout risks economic dislocation and social instability. This adds urgency to planning for economic diversification, retraining programmes, and revenue replacement strategies. In its 2023 G20 presidency, India emphasized that a ‘just, affordable and inclusive energy transition’ is a precondition for ‘secure, sustainable, equitable, and inclusive growth.’

India’s Green Gamble

India’s green transition will succeed only if environmental goals stay on a socially and fiscally sustainable path. The strategy is explicit: decarbonization through development—sequencing reliability with clean build-out—so that energy sovereignty and supply security are preserved while the social dimensions of change are addressed. Rather than a rushed fossil phaseout, policy prioritizes a gradual, region-sensitive transformation of the energy system.

Rising clean power—underpinned by domestic manufacturing of solar modules, batteries, and green hydrogen—offers a strategic payoff: reduced fossil-import dependence while meeting surging demand. The aim is broader than emissions cuts alone: a restructuring capable of managing social vulnerabilities, fiscal risks, and the full complexity of a just transition.

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