India's Journey to Net Zero: Challenges and Opportunities

Over the last four decades, India has undergone a remarkable transformation. Rapid industrialization has created immense wealth and significantly improved the quality of life for millions. Yet, this progress has come with a heavy environmental cost- widespread air pollution, large-scale environmental degradation, and a sharp rise in greenhouse gas (GHG) emissions.


In 1990, India emitted just over 1 billion tonnes of CO2 equivalents (CO2e) including carbon dioxide and other GHGs like methane and nitrous oxide. By 2020, this figure had tripled to more than 3 billion tonnes, making up approximately 7% of global GHG emissions. If left unchecked, India’s share of global emissions is projected to exceed 10% by 2030.

The need to act on climate change is clear. India must now choose a sustainable path that balances its development goals with the urgent need to tackle climate change.

Understanding India’s Emissions: Sectoral Insights India’s rising GHG emissions are driven by five key sectors:

1. The power sector: lighting up India, at a cost

The power sector alone contributes 36% of India’s total GHG emissions, primarily due to coal, a highly polluting energy source. India consumes nearly a billion tonnes of coal annually, accounting for 15% of global coal consumption.


However, there is progress. As part of its Paris Agreement commitments, India aims to meet 50% of its electricity needs through renewable sources by 2030, up from 20%. Solar energy, in particular, has witnessed rapid growth, with capacity increasing by 40% in 2022 alone.

India must accelerate renewable energy adoption while phasing out its reliance on coal to decarbonize.


2. Transport: driving off a carbon cliff

Vehicle ownership in India has grown from 5 million in 1981 to over 300 million in 2021, making the transport sector a significant contributor to GHG emissions. Air travel has also surged, with aviation emissions rising by 64% between 2012 and 2019.

India launched the FAME (Faster Adoption and Manufacturing of Hybrid and EV) scheme to address this, promoting electric vehicles (EVs) and indigenous battery production. With an investment of ₹10,000 crore in its second phase, this initiative focuses on subsidies for EV purchases and expanding charging infrastructure.

The next decade will be critical in determining how effectively India can transition to cleaner transportation systems.


3. Manufacturing: creation meets carbon

India’s journey of industrial growth has fueled its economic rise, but it’s a path that has deeply impacted our environment. GHG emissions from manufacturing tripled between 1990 and 2020, with the cement and steel sectors being major contributors.


Demand for these materials is expected to triple by 2050, posing a significant challenge to India’s decarbonization efforts. Innovations in green technologies, initiatives like the PAT (Perform, Achieve & Trade) scheme, and global collaborations like the Industrial Deep Decarbonisation Initiative, are crucial to transforming these sectors.

4. Construction: foundations to climate fault lines

India’s urbanization boom has made construction one of the most energy-intensive sectors, accounting for 25% of total energy use. With over half of India’s urban infrastructure for 2030 yet to be built, the sector presents both a challenge and an opportunity.


Energy-efficient designs, sustainable materials, and smart construction practices can play a pivotal role in reducing emissions. Building-related emissions could increase sevenfold by 2050 if these measures are not implemented.

5. Agriculture: feeding nations, fostering emissions

Agriculture accounts for 20% of India’s GHG emissions, driven by methane from livestock and rice cultivation, and heavy fertilizer use. As India continues to feed its growing population of 1.4 billion, emissions from this sector are expected to rise.

Solutions such as agroforestry, sustainable livestock management, and advanced agricultural technologies can help reduce emissions while ensuring food security.

A Path Forward: Decarbonising India

The sectoral narratives above clarify that India has some major challenges associated with decarbonizing its economy. However, they also provide some insight into the specific levers that need to be engaged to commit to a more sustainable future. The past few decades have been characterized by a meteoric rise in India’s GHG emissions. Furthermore, recent evidence over the past few years suggests a growing interest among public and private sector stakeholders in prioritizing sustainable economic growth.

For instance, the government has recently pledged to reduce the carbon intensity of the Indian economy by 45% (relative to 2005 levels) by 2030 and to achieve an economy-wide net-zero objective by 2070. While these pledges don’t go far enough towards effectively tackling all the risks of climate change, they have set the stage for concrete regulatory action in this space.

For instance, in response to recent regulatory requirements (such as the Business Responsibility and Sustainability Reporting requirements), several large enterprises are starting to actively decarbonise their operations, to future-proof their business models. As these decisions compound over the coming years, the hope is that they move the needle on decarbonizing the Indian economy in time to prevent catastrophic levels of global warming.


Decarbonising India’s economy is vital, but must align with its developmental goals. Decision-makers must balance industrial growth with sustainable practices, focusing on long-term value over short-term gains.

“Progress without sustainability is temporary. True development ensures harmony between humanity and nature.”

About the author: Ram is a people person and a diligent self-starter, always eager to learn and grow. He’s constantly on the lookout for opportunities to develop and relishes challenges. He firmly believes that amidst all accomplishments, it’s essential to find ways to give back to society and the community.


The References for the article :

The power sector:


https://stanleycenter.org/climatechange/SarangShidore-IndiaPowerSector.pdf

Transport sector:  

https://www.dataforindia.com/vehicle-ownership-in-india/#:~:text=There%20are%20around%20260%20million,the%20highest%20in%20the%20world.

Manufacturing Sector :

https://www.arfjournals.com/image/catalog/Journals%20Papers/Anthropo/2024/No%201%20(2024)/5_Saloni%20Sisodiya.pdf#:~:text=The%20cement%20industry%20is%20a%20major%20contributor,like%20limestone%2C%20chalk%2C%20shale%2C%20clay%2C%20and%20sand.

https://iap.unido.org/articles/steel-and-cement-can-drive-decade-action-climate-change-how

Construction Sector : 

https://niua.in/c-cube/blog/content/energy-climate-concerns-india%E2%80%99s-buildings-sector

https://www.climate-transparency.org/wp-content/uploads/2020/11/India-CT-2020-WEB.pdf

Agriculture Sector: 

https://research.wri.org/wrr-food/course/reduce-greenhouse-gas-emissions-agricultural-production-synthesis

https://www.hindustantimes.com/india-news/india-aims-for-better-practices-to-cut-agri-emissions-experts-call-for-clear-goals-101637068230083.html

https://www.climate-transparency.org/wp-content/uploads/2020/11/India-CT-2020-WEB.pdf

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