India is frequently characterized in Western climate discourse as a laggard due to its reliance on coal and rising emissions, a perspective that often overlooks the country's rapid expansion of clean energy. Although thermal power currently accounts for approximately 70 percent of India’s electricity, the nation is actively building one of the world's largest clean-energy systems while simultaneously pursuing industrial growth for 1.4 billion people.
The country’s commitment to non-fossil fuel sources has been demonstrated by its ability to hit ambitious targets ahead of schedule. At the 2015 Paris climate conference, India pledged that 40 percent of its installed capacity would come from non-fossil sources by 2030; it achieved this milestone in November 2021. Following an increased target of 50 percent, India crossed that threshold in June 2025, five years earlier than planned.
Despite these achievements, a significant disparity exists between total capacity and actual power generation. While non-fossil sources now represent over half of installed capacity, they contribute less than one-third of the electricity consumed. This gap is exacerbated by the timing of demand, which often peaks in the evening when solar output is unavailable. Consequently, coal remains the primary source of reliable energy until storage and transmission infrastructure can be fully developed.
Economic development, urbanization, and the prevalence of heatwaves continue to drive electricity demand upward, meaning total emissions are rising even as the power mix becomes cleaner. You have reached the limit of 2 free articles this month. Furthermore, heavy industries like steel and aluminum face significant decarbonization challenges. Indian exporters are navigating new carbon border regulations in international markets, with the Global Trade Research Initiative estimating that steel and aluminum exporters may need to reduce prices by 15 to 22 percent to remain competitive in Europe.
Financial constraints remain a major hurdle, particularly regarding the immense investment required for grid and storage infrastructure. At COP29, India expressed opposition to a new $300 billion annual climate finance goal, arguing it fell far short of the $1.3 trillion requested by developing nations. Nevertheless, India has implemented a national carbon market as of January 2025 to incentivize emission reductions, and the growth of fossil fuel emissions is projected to have slowed significantly in 2025.
Observers note that energy transitions are inherently non-linear, as evidenced by European nations returning to coal during the 2022 energy crisis to ensure security. India faces similar trade-offs but at a lower income level. With an average per capita emission rate of approximately 2.2 tonnes of carbon dioxide annually—less than half the global average—and a historical contribution of under 4 percent of cumulative CO2 emissions, India’s climate performance should be evaluated based on its direction of travel and commitment to moving away from coal rather than its current energy mix alone. Future analysis of India’s climate role should account for both its achievements and the constraints shaping its choices.
Across Western climate commentary, India is frequently portrayed as a coal-dependent laggard whose rising emissions threaten to offset progress elsewhere. This framing obscures a more complex reality: While coal continues to dominate India’s power supply, the country is also building clean energy at one of the fastest rates in the world. Understanding this contradiction requires reassessing how climate progress is conventionally measured.
The concerns behind India’s continued use of coal are real. India recorded the world’s largest absolute rise in emissions in 2024, and thermal power still generates around 70 percent of its electricity. Yet these figures describe where India stands today, not where it is heading.
