As India revises its climate pledge, coal remains central to its energy mix. Discover how policy, technology, and global partnerships can steer India toward a sustainable, net-zero future.
India stands at a critical crossroads in its climate journey. As the world’s third-largest emitter of greenhouse gases and one of the fastest-growing economies, the country faces the challenge of reconciling its developmental needs with its international climate commitments. With a renewed climate pledge on the horizon, how India manages its dependence on coal will be a defining factor in its path to net-zero emissions by 2070.
Coal remains the backbone of India’s energy system, accounting for nearly 70 percent of electricity generation. However, the nation’s increasing focus on renewable energy, green hydrogen, and cleaner technologies signals a gradual but determined shift. The real question is whether this transition can happen fast enough to meet both economic and environmental goals.
The Coal Conundrum in India’s Energy Mix
India’s development ambitions demand a reliable and affordable energy supply. Coal, abundant and domestically available, offers a degree of energy security that renewables have yet to fully match. According to the Ministry of Coal, demand for coal is projected to rise until the mid-2030s, primarily driven by the power sector and industrial uses such as steel and cement production.
However, this reliance comes at a cost. The coal industry is one of the largest contributors to carbon emissions, local air pollution, and environmental degradation. A report from the International Energy Agency (IEA) notes that India’s coal consumption grew by 8 percent in 2023, even as renewable capacity expanded. This growth underlines the complexity of balancing developmental needs with environmental obligations.
India’s Climate Commitments and Updated Pledges
At the 2021 United Nations Climate Change Conference (COP26), India announced an ambitious five-point plan, including achieving net-zero emissions by 2070 and reducing the carbon intensity of its economy by 45 percent by 2030. The government has since ramped up efforts to accelerate renewable energy deployment, targeting 500 GW of non-fossil-based capacity by 2030.
The upcoming Nationally Determined Contribution (NDC) update is expected to refine these targets, outlining interim milestones and mechanisms for climate finance, carbon markets, and adaptation strategies. According to the Ministry of Environment, Forest and Climate Change, the updated pledge will emphasize local-level climate resilience while advancing clean energy investment.
Renewable Energy Growth and Investment Trends
India’s renewable energy sector has made remarkable strides. Solar and wind energy capacity combined have surpassed 180 GW as of 2024, positioning India among the top five countries globally for renewable growth. Major policy initiatives such as the Production Linked Incentive (PLI) scheme and reforms in grid infrastructure are driving private and foreign investment into the sector.
Green hydrogen is emerging as another pillar of India’s energy diversification. The National Green Hydrogen Mission aims to produce 5 million tonnes per annum of green hydrogen by 2030, promoting decarbonization in hard-to-abate industries. Yet, scaling up renewables and hydrogen production requires robust financing mechanisms, skilled manpower, and a reliable storage and transmission network.
Global Context and the Role of International Cooperation
India’s energy transition cannot occur in isolation. Access to affordable finance and advanced technologies remains essential for scaling clean energy while managing coal dependency. Partnerships such as the International Solar Alliance (ISA) and bilateral agreements with the European Union and Japan are expanding avenues for knowledge exchange and green investment.
Climate finance will play a decisive role. Experts suggest India will need an estimated USD 10 trillion to achieve net zero by 2070. International institutions such as the World Bank and the Green Climate Fund could help bridge financing gaps by enabling low-cost loans and technical assistance.
Challenges in Phasing Down Coal
Transitioning away from coal presents unique challenges. In addition to energy security concerns, millions of livelihoods depend on coal mining and related supply chains. States such as Jharkhand, Odisha, and Chhattisgarh are particularly reliant on royalty revenues from coal production. Without adequate planning, a rapid phase-down could cause economic disruptions and social inequality.
Critically, India faces the dual challenge of improving energy access for its population while also embracing low-carbon pathways. Phasing out inefficient coal plants, investing in carbon capture utilization and storage (CCUS), and promoting just transition frameworks can mitigate these challenges.
Policy Pathways for a Sustainable Transition
India’s policy direction emphasizes pragmatism over haste. Instead of abrupt coal elimination, the government is focusing on energy diversification and efficiency improvements. Among key policy shifts:
1. Upgrading existing coal plants to reduce emissions intensity.
2. Expanding renewable energy storage through lithium-ion and pumped hydro technologies.
3. Encouraging public-private partnerships for green projects.
4. Launching just transition programs for coal-dependent communities.
These measures could ensure a balanced approach—maintaining economic stability while gradually reducing carbon intensity across sectors.
The Road Ahead: Balancing Growth and Sustainability
India’s journey to net zero will be defined by how effectively it manages the trade-offs between energy security, economic development, and environmental responsibility. With clear policy direction, continuous technological innovation, and sustained international cooperation, India can reshape its energy landscape without compromising its growth trajectory.
The next decade is decisive. By prioritizing renewable integration, reforming energy markets, and fostering inclusive development, India can lead the developing world in crafting a just and achievable climate transition.