India's proactive approach to climate change underscores its dedication to sustainable growth and global environmental leadership. While contributing only 4% to historical global emissions, India has made bold climate commitments under the Paris Agreement, such as reducing emissions intensity by 45% by 2030 and achieving net-zero emissions by 2070.
India’s active participation in COP29 reflects its dual role as a developing economy and a leader in climate action. Representative Image- FP
As global attention shifts toward actionable decarbonisation efforts, India’s initiatives in renewable energy, hydrogen technology, and afforestation stand as key milestones. With increasing private sector participation, COP29 highlights India’s efforts to balance economic growth with sustainability, offering innovative solutions to global climate challenges.
Industry leaders stress the importance of collaboration, consistent policies, and innovation to achieve these objectives.
Sambitosh Mohapatra, Partner and Leader - ESG, Climate and Energy at PwC India, noted that the approval of the methodological principles for the Paris Agreement Crediting Mechanism is a key enabler in creating a global platform for trading carbon offsets that are real, transparent, conservative, and credible.
“This upholds the core carbon principles of setting an ambitious baseline, considers the feasibility of best available technologies (BATs) in a given economy, urges alignment with country-specific NDCs, and re-emphasises the need for demonstration of additionality. It will build trust amongst the larger stakeholder groups around the quality of the carbon credits in the global market,” he said.
The experience of Indian industries under the Clean Development Mechanism (CDM) regime will instill confidence in investing in advanced technologies for more profound decarbonisation initiatives.
India’s current climate policies are projected to cut carbon dioxide emissions by approximately four billion tonnes between 2020 and 2030, along with reducing coal-based power generation by 24%, as outlined in a recent report.
The report highlights that, in the power sector, renewable energy policies are expected to drive a 24% reduction in coal-based electricity generation by 2030, compared to a scenario without such policies.
Discussing India’s role in global climate change mitigation, Vishnu Sudarsan, Partner at JSA Advocates & Solicitors, emphasized that under its Nationally Determined Contributions (NDCs) to the Paris Agreement, India plans to reduce its emissions intensity by 45% from 2005 levels by 2030, while ensuring that 50% of its total installed electric power capacity comes from non-fossil fuel sources by the same year.
India is also launching extensive afforestation projects to establish a carbon sink of 2.5 to 3 billion tonnes of CO₂ equivalent through forest and tree cover by 2030. Despite historically contributing only around 4% of global emissions, India is demonstrating its leadership in the transition to a sustainable future with ambitious policies such as the National Hydrogen Mission and state-level climate action plans.
“As of 2024, Indian private companies are actively engaging in various initiatives to combat global warming, reflecting a significant shift towards sustainability and climate resilience. Approximately 90% of corporate leaders in India now view sustainability as a key driver for competitive advantage, with many committing to ambitious climate goals. For instance, the Mahindra Group has pledged to achieve net-zero emissions and is investing heavily in electric vehicles, renewable energy, and green buildings, contributing to a projected economic impact of over $15 trillion from India’s transition to a net-zero economy,” said Sudarsan.
The government has allocated $2.2 billion for the development of green hydrogen capacity and 125 GW of renewable energy. Additionally, private sector investments have exceeded $200 billion in support of these initiatives, according to Sudarsan. He further noted that the rise of over 90,000 startups, particularly in climate tech, highlights the private sector’s pivotal role in driving innovation and sustainability in agriculture, energy, and transportation. These collective efforts underscore the strong commitment of Indian private companies to combat climate change and support the nation’s ambitious climate targets under the Panchamrit framework.
Sameer Jain, Managing Director of Primus Partners, emphasized the Indian government’s leadership in climate action, stating that India has long been an advocate for climate justice, grounded in the principle of common but differentiated responsibilities, and is ranked among the top 10 countries taking climate action seriously.
To continue this momentum, Jain argued that India must establish a stable and long-term policy framework to foster confident investments in sustainable practices. He also recommended increasing government investment in R&D for green technologies, offering economic incentives such as tax breaks, subsidies, and grants to support the early adoption of green technologies, and developing a robust green infrastructure network, including smart grids. Furthermore, he highlighted the need for consumer awareness to drive demand and the decentralization of climate action goals. Jain added that India must build capacity for accessing domestic finance, reducing dependence on developed nations for green funding.
He also pointed out that several states, including Rajasthan, Assam, Meghalaya, and Bihar, have introduced green budgets, signaling positive local-level action.
Industries' Contribution to Climate Action
India requires over 70 billion USD for its Climate Action efforts, but currently, only 20-25% of this amount is being provided, primarily through government funding. The remaining funds need to be sourced from the private sector. However, for many in the private sector, climate action is viewed as a distinct investment or part of Corporate Social Responsibility (CSR), rather than being integrated into broader capital investment plans.
The climate transition presents the private sector with opportunities to drive commercial and technological advancements across various sectors, including smart and decentralized grids, energy-efficient green buildings, infrastructure, mobility, energy generation, and agriculture.
Ankit Sharma, CEO & Co-Founder of Vidyuta, emphasized that climate change is one of the most urgent challenges of our time, and India’s role in addressing it is increasingly vital.
“India’s shift from fossil fuels to electric vehicles represents a transformative step in combating climate change. With the domestic electric vehicle market projected to grow at a compound annual growth rate (CAGR) of 49% between 2022 and 2030, reaching annual sales of 10 million units by 2030, the demand for sustainable battery materials has never been greater,” he said
Maninder Singh Nayyar, CEO and Founder of CEF Group, emphasized that tackling this crisis demands a collaborative effort between both the public and private sectors. He stated that companies have a responsibility to foster innovation and implement sustainable practices that can significantly reduce emissions.
Suyash Gupta, Director General of the Indian Auto LPG Coalition, remarked, "Climate change calls for collective action, and as a fast-growing nation, we must embrace sustainable practices and work to reduce our carbon footprint."
“Auto LPG is a viable alternative fuel that emits significantly lower levels of pollutants compared to conventional fuels, making it a cleaner and more environmentally friendly option. By promoting the adoption of Auto LPG, we can help reduce vehicular emissions and improve air quality, contributing to a healthier planet, he added.
Akshit Bansal, Founder and CEO of Statiq, emphasized the need for collaboration between the public and private sectors to tackle climate-related challenges.
“Private companies have a unique opportunity and responsibility to drive innovation and implement sustainable practices that can significantly reduce greenhouse gas emissions,” he said.
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