India has made notable progress in reducing its carbon intensity, highlighting the success of its renewable energy policies and sustainable development agenda. Between FY14 and FY24, the country achieved a 7% reduction in the carbon intensity of grid electricity, marking a significant step in its transition towards a cleaner energy future. This progress comes as the nation balances the twin challenges of meeting the growing energy needs of a rising population while also adhering to its international climate commitments.

Carbon Intensity Reduction Explained

Carbon intensity refers to the amount of carbon dioxide emitted per unit of electricity generated. In India’s case, the average carbon emission intensity declined from 0.78 kg/KWh in FY15 to 0.72 kg/KWh in FY24, according to data shared by Union Minister of State for Power and New & Renewable Energy, Mr. Shripad Yesso Naik, in Parliament. This downward trend is largely attributed to the increased share of renewable energy in the electricity mix and the adoption of efficient energy technologies.

While coal-fired power plants continue to dominate India’s electricity generation, the country has successfully lowered the carbon impact of each unit of power consumed. This improvement is seen as a critical step towards India’s long-term net-zero emissions goal for 2070.

Achieving Renewable Energy Targets Ahead of Time

One of the most remarkable milestones in India’s energy journey was its achievement of a 50% share of installed power capacity from non-fossil fuel sources by July 2025, a full five years ahead of the 2030 deadline set in the updated Nationally Determined Contributions (NDCs) to the UNFCCC.

This success was made possible due to:

• Massive renewable capacity addition in solar, wind, hydro, and bio-energy.

• Policy reforms such as Renewable Purchase Obligations (RPOs) and Renewable Consumption Obligations (RCOs).

• Incentives for private investment, including allowing 100% foreign direct investment (FDI) in renewable energy projects.

• Government schemes such as PM-KUSUM, which supports farmers with solar pumps, and PM Surya Ghar Muft Bijli Yojana, which encourages rooftop solar adoption.

The Dual Challenge: Growth and Sustainability

India faces a dual challenge: on one hand, ensuring energy security, affordability, and accessibility to its population, and on the other hand, moving steadily towards climate-friendly energy pathways. Coal remains an important contributor to base-load power supply due to its reliability and cost advantages. However, the government has placed a strong emphasis on decarbonising the electricity sector, which accounts for a major share of India’s total emissions.

By making gradual shifts towards clean energy and improving efficiency in existing coal plants, India aims to strike a balance between growth and sustainability.

Global and Domestic Significance

The reduction in carbon intensity has important implications:

• Global Climate Leadership: India is among the few large developing economies to have achieved such targets ahead of schedule.

• Economic Competitiveness: Lowering the carbon footprint of industries reduces the risk of trade barriers like the EU’s Carbon Border Adjustment Mechanism (CBAM).

• Energy Independence: Investments in renewable energy reduce dependency on imported fossil fuels, strengthening national energy security.

• Job Creation: The renewable sector has generated thousands of jobs across solar, wind, and biomass energy projects.

Looking Ahead

Despite the progress, challenges remain. Integration of large-scale renewable energy into the grid requires:

• Investment in energy storage solutions such as batteries and pumped hydro.

• Expansion of transmission networks to carry renewable energy from resource-rich regions to high-demand states.

• Flexible grid management to deal with variability in solar and wind power.

India’s roadmap to 2070 net zero will involve not just electricity but also decarbonisation in other sectors such as transport, heavy industry, and agriculture. However, the energy sector’s transformation will remain the cornerstone of India’s climate commitments.

Conclusion

India’s 7% reduction in carbon intensity between FY14 and FY24, coupled with the early achievement of its renewable capacity milestone, underscores the country’s seriousness about sustainable growth. By leveraging clean technologies, robust policy support, and global partnerships, India is steadily progressing towards a low-carbon economy.

While coal will continue to play a role in the short to medium term, the long-term trajectory is clear—a steady transition towards a clean, resilient, and sustainable power sector that will help the country meet its development goals while also fulfilling its climate responsibilities.

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