Political Economy of Net Zero: India

India aims for net-zero emissions by 2070, with interim 2030 goals including 500 GW of non-fossil fuel capacity and 50% energy requirements from renewables. The transition faces significant hurdles, including a heavy reliance on coal (84% of power generation) and high import dependency for crude oil and solar components. Financial requirements are immense, estimated between USD 5.7 trillion by 2050 and USD 10.1 trillion by 2070. The report emphasizes the need for a 'just transition' to protect the livelihoods of approximately 13 million people dependent on coal mining and to address regional economic imbalances. Opportunities for acceleration include the green hydrogen policy, expansion of offshore wind, and the development of domestic energy storage manufacturing to reduce reliance on China.

• India has committed to achieving net-zero emissions by 2070, with specific 2030 targets to reduce carbon intensity by 45% over 2005 levels, reach 500 GW of non-fossil fuel energy capacity, and source 50% of energy from renewables.
• The power sector is the primary source of emissions, accounting for 51.7% of the total, and remains heavily dependent on coal, which provided 85% of total generation in 2021-2022.
• India faces significant energy security risks due to high import dependency, importing 85% of its crude oil and over 80% of its solar energy production components, primarily from China.
• The financial scale of the transition is massive, with estimates for net-zero by 2070 reaching USD 10.1 trillion, of which the power sector requires USD 8.4 trillion.
• A just transition is critical as the shift away from fossil fuels could impact the livelihoods of over 13 million people directly and indirectly dependent on coal mining.
• India is pursuing strategic technological developments, including a green hydrogen policy aiming for 5 million tonnes of production by 2030 and a target to reduce production costs to below $2 per KG.
• Grid infrastructure remains a weakness, with transmission and distribution losses at 20%, significantly higher than the global average of 6-8%.

APA

Rashmi, R. R., Chaudhury, S., & Sharma, K. (n.d.). Political Economy of Net Zero: India. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2023/01/Systemic-Net-Zero-Transitions-in-India.pdf

Chicago

Rashmi, R R, Saswata Chaudhury, and Kartikey Sharma. Political Economy of Net Zero: India. Climate Strategies, n.d. https://climatestrategies.org/wp-content/uploads/2023/01/Systemic-Net-Zero-Transitions-in-India.pdf.

Wikipedia

{{cite report |last1=Rashmi |first1=R R |last2=Chaudhury |first2=Saswata |last3=Sharma |first3=Kartikey |title=Political Economy of Net Zero: India |publisher=Climate Strategies |url=https://climatestrategies.org/wp-content/uploads/2023/01/Systemic-Net-Zero-Transitions-in-India.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rashmindpolitical, author = {Rashmi, R R and Chaudhury, Saswata and Sharma, Kartikey}, title = {{Political Economy of Net Zero: India}}, institution = {Climate Strategies}, url = {https://climatestrategies.org/wp-content/uploads/2023/01/Systemic-Net-Zero-Transitions-in-India.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }