Recently, at COP29, the annual United Nations Climate Change Conference, India stood at a crossroads in its sustainability journey. This year’s summit was not just another stage for reaffirming climate pledges.
For India, it marked an opportunity to harness the synergies between energy diplomacy, climate finance, and sustainable development as part of its ambitious “Viksit Bharat” vision.
While balancing developmental imperatives and environmental responsibilities, India’s approach at COP29 served as a roadmap for integrating global climate targets with national progress, linking closely with the Sustainable Development Goals (SDGs) and India’s pledge to reach net-zero emissions by 2070.
India’s Climate Commitments and Energy Diplomacy: A Track Record of Leadership
Since the Paris Agreement in 2015, India has been a formidable player in global climate negotiations, advocating for the Global South. India’s commitment to reduce its emissions intensity by 45% by 2030 (compared to 2005 levels) and achieving 50% of installed electric power from non-fossil sources by 2030 underscored its early ambitions.
To date, India has achieved 40% non-fossil fuel capacity in its electricity grid, primarily due to an unprecedented expansion of solar and wind energy, meeting this target seven years ahead of schedule.
The global community has taken note, seeing India not just as a contributor to emissions but as a potential leader in climate action. India’s progress extends beyond renewable capacity, as seen in its establishment of the International Solar Alliance and the National Hydrogen Mission, reinforcing its status as a proactive player in energy diplomacy.
These initiatives underscore India’s strategy of influencing global clean energy policies while simultaneously securing energy for domestic needs.
Climate Finance: A Critical Catalyst for India’s Low-Carbon Economy
To transition to a low-carbon economy, India requires a significant infusion of capital to scale renewable projects, accelerate hydrogen innovation, and upgrade its climate-resilient infrastructure.
Developing financing mechanisms for these endeavors is not only crucial for India’s climate goals but also integral to its economic ambitions, which include generating sustainable livelihoods and transitioning millions of workers from fossil-dependent industries. India will likely press for clearer definitions of climate finance to prevent developed nations from counting commercial loans as climate contributions, a tactic that has diluted past commitments.
India’s participation in Article 6 mechanisms, would enable India to trade carbon credits and secure financing for emission reduction initiatives. The operationalization of Article 6 is pivotal, as it provides India with pathways to leverage its low-carbon technology and renewable infrastructure to generate carbon credits, a powerful tool for attracting foreign investment while maintaining development momentum.
Energy Security and Sustainable Development Goals (SDGs): The India Perspective
With an economy projected to double by 2030 and a population of 1.4 billion, India’s energy demand is on a steep upward trajectory.
Balancing this demand with emissions reduction commitments requires a holistic approach that aligns with the Sustainable Development Goals (SDGs), particularly those on affordable energy (SDG 7), sustainable cities (SDG 11), and climate action (SDG 13). In line with SDG 7, India’s energy transition needs to be inclusive, addressing regional disparities in energy access and enhancing grid resilience.
Today, coal remains a mainstay in India’s energy mix while simultaneously generating employment and supporting regional economies in coal-dependent states like Jharkhand, Odisha, and Chhattisgarh.
Accelerating the transition to clean energy without compromising economic stability requires India to advocate for a “just transition” framework—one that emphasizes re-skilling programs, social safety nets, and financial assistance for coal-dependent communities.
Scaling Green Technology for a Resilient Viksit Bharat
India’s National Green Hydrogen Mission exemplifies its forward-thinking approach to embracing cutting-edge green technology.
As a clean energy carrier, green hydrogen has the potential to decarbonize hard-to-abate sectors such as transportation, shipping, and heavy industry. However, scaling this technology to a level that meaningfully contributes to India’s decarbonization efforts will require international collaboration on both technology and finance.
India’s focus is likely to center on securing technology transfers and partnerships to bolster its hydrogen economy. Developed countries with advanced hydrogen infrastructure could be key partners in supporting India’s hydrogen ambitions, providing both the expertise and the infrastructure needed for rapid scaling.
By positioning itself as a leader in hydrogen development, India can further its Viksit Bharat vision through cleaner industrial growth, new jobs in emerging green sectors, and reductions in imported fossil fuels, strengthening its energy security and lowering its carbon footprint.
Adaptation and Resilience: Protecting India’s Vulnerable Communities
While much attention is on mitigation, adaptation is equally critical for India, a country highly vulnerable to climate impacts. India’s geographical diversity exposes it to a wide array of climate-related risks, including severe flooding, droughts, and rising sea levels.
These climate extremes threaten the livelihoods of millions of Indians, particularly in the agricultural sector.
Investing in climate-resilient infrastructure, early warning systems, and adaptive agricultural practices are imperative for safeguarding India’s progress toward SDGs related to poverty alleviation (SDG 1) and zero hunger (SDG 2).
India could reinforce its call for enhanced adaptation finance, which has historically been sidelined in favor of mitigation. This shift is crucial as adaptation finance not only helps reduce climate vulnerability but also fosters resilient communities, especially in marginalized and disaster-prone regions.
India as a Voice for the Global South: Advocating for Climate Justice
India has consistently championed the principle of “common but differentiated responsibilities” (CBDR), underscoring the need for equitable action that takes historical emissions into account.
With developed countries contributing the majority of emissions historically, India asserts that they bear a greater responsibility in providing climate finance and technology support to developing nations.
During its G20 presidency, India stressed the importance of climate equity and urged developed countries to prioritize emissions reductions and fulfill their financial commitments. This stance will likely manifest in India’s support for the “Loss and Damage” mechanism, which aims to compensate countries facing severe climate impacts.
This mechanism, critical for climate justice, aligns with India’s advocacy for a balanced approach that considers both emissions reductions and adaptation.
A Pragmatic Roadmap
India’s approach will likely centre on key priorities: advocating for climate finance beyond the $100 billion target to meet developing nations’ needs, promoting a just energy transition with phased coal reduction and support for coal-dependent regions, advancing hydrogen ambitions through green technology partnerships, and calling for increased adaptation finance to strengthen resilience and accelerate progress toward the SDGs.
Conclusion: India at the Helm of Global Climate Action
Through strategic energy diplomacy, climate finance advocacy, and technological innovation, India has the potential to carve out a leadership role in the global climate arena, championing the cause of developing nations while advancing its Viksit Bharat vision.
India’s voice, rooted in principles of equity and resilience, can inspire a balanced global approach, proving that development and decarbonization are not mutually exclusive but essential, complementary pathways toward a sustainable future.
(Milind Deore is Secretary at Bureau of Energy Efficiency, Ministry of Power | Pradeep Singhvi is Executive Director, Energy and Climate Practice at Grant Thornton Bharat LLP | Views are personal)
