The Climate-Development Dilemma

As one of the fastest-growing major economies, India faces the dual challenge of ensuring rapid economic growth while mitigating the risks of climate change. With rising energy demands and developmental needs, the country’s climate policy has evolved to balance sustainability with inclusivity. India’s proactive stance in international climate negotiations and its domestic green transition efforts reflect this delicate equilibrium between growth and environmental responsibility.

Global Context: Paris Agreement, Glasgow, and COP Summits

India is a signatory to the Paris Agreement (2015), which aims to limit global temperature rise to well below 2°C, preferably to 1.5°C above pre-industrial levels. The Glasgow Climate Pact (COP26, 2021) reaffirmed global commitments toward net-zero targets and emphasized finance and technology transfer to developing nations. At COP28 (Dubai, 2023), India emphasized the principle of “common but differentiated responsibilities” (CBDR) — asserting that developed countries must take the lead in emissions reduction while supporting developing nations through finance and clean technologies.

India’s climate diplomacy has thus combined moral leadership with pragmatic development considerations, seeking fairness in burden-sharing while committing to domestic reforms.

India’s NDC Targets and Long-Term Goals

Under its Updated Nationally Determined Contributions (NDCs), India has committed to:

• Reduce the emissions intensity of GDP by 45% from 2005 levels by 2030.
• Achieve 50% of its cumulative electric power capacity from non-fossil fuel-based sources by 2030.
• Create an additional carbon sink of 2.5–3 billion tonnes of CO₂ through afforestation.

Further, Prime Minister Narendra Modi’s Panchamrit announced at COP26 includes a net-zero target by 2070, marking a long-term transformation agenda. These commitments signal India’s intent to align its developmental path with climate resilience.

Challenges: Energy Demand, Fossil Fuel Dependence, Land-Use Change

Despite progress, India faces structural constraints. Rapid urbanization and industrialization have driven a surge in energy demand, still largely met by coal, which powers around 70% of electricity generation. Transitioning from fossil fuels without disrupting growth poses a serious challenge.

Moreover, land-use changes, deforestation, and agriculture-related emissions add to environmental pressures. Balancing food security, livelihoods, and ecological protection remains complex. The financial gap for climate action, estimated at over USD 10 trillion by 2070, further complicates implementation.

Policy Tools and Innovations: Green Hydrogen, Carbon Pricing, Renewables

India has adopted a multi-pronged strategy to achieve low-carbon growth. The National Green Hydrogen Mission aims to make India a global hub for green hydrogen production and exports. Initiatives like FAME-II (electric mobility), Perform, Achieve, and Trade (PAT) schemes, and carbon markets encourage efficiency and innovation.

On the energy front, India has emerged as the world’s third-largest renewable energy producer, with an installed capacity exceeding 190 GW (as of 2025). The International Solar Alliance (ISA), co-founded by India, reflects its leadership in promoting solar energy globally.

Role of States, Local Bodies, and Private Sector

Climate action in India is increasingly decentralized. States like Gujarat, Tamil Nadu, and Rajasthan have pioneered renewable energy deployment, while urban local bodies are integrating climate resilience into planning.

The private sector plays a pivotal role through ESG (Environmental, Social, and Governance) investments, green bonds, and CSR-driven sustainability initiatives. Startups are innovating in waste management, EV infrastructure, and carbon capture technologies, creating an ecosystem for green growth.

Way Forward: Financing, Technology Transfer, and Adaptation

To meet its ambitious goals, India needs affordable climate finance, estimated at $170 billion annually till 2030. Enhanced technology transfer, particularly in battery storage, carbon capture, and green hydrogen, will be critical.

Adaptation strategies — such as resilient agriculture, water conservation, and coastal protection — must complement mitigation. International cooperation under the G20 and COP frameworks can help mobilize global finance and build shared technological capacity.

Ultimately, India’s success will depend on mainstreaming climate action into economic planning, ensuring that sustainability becomes an enabler, not an obstacle, to growth.

Conclusion

India’s climate journey represents a nuanced balance between its developmental aspirations and environmental imperatives. By embracing innovation, decentralized governance, and global cooperation, India is demonstrating that economic progress and ecological sustainability can coexist — provided the world acts collectively and equitably.