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India’s 2035 Climate and Energy Targets: Overview

In 2024, India announced its commitment to reduce the emission intensity of its GDP by 47% from 2005 levels by 2035 and to achieve 60% of its electricity capacity from non-fossil fuel sources by the same year (Indian Express, 2024). These targets align with India’s obligations under the Paris Agreement (2015) and reflect a strategic integration of climate action with energy security and economic growth objectives. The Ministry of New and Renewable Energy (MNRE) and Central Electricity Authority (CEA) are key agencies tasked with policy formulation and implementation.

UPSC Relevance

  • GS Paper 3: Environment (Climate Change, Renewable Energy), Economy (Energy Sector, Investment)
  • GS Paper 2: International Relations (Paris Agreement, Global Climate Governance)
  • Essay: Sustainable Development, India’s Energy Transition

India’s climate and energy targets derive constitutional and legal authority primarily from Article 253, empowering Parliament to enact laws for implementing international treaties such as the Paris Agreement. The Environment (Protection) Act, 1986 (Section 3) allows the Central Government to take necessary measures for environmental protection, underpinning regulatory actions. The Energy Conservation Act, 2001 (Section 14) mandates energy efficiency standards like the Energy Conservation Building Code, complementing emission reduction efforts.

The Electricity Act, 2003 (Sections 61 and 86) empowers the Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs) to set tariffs and promote renewable energy integration. The National Action Plan on Climate Change (NAPCC), 2008 laid the foundation for India’s renewable energy and energy efficiency missions, which continue to evolve in line with these new targets.

Economic Dimensions of India’s Renewable Energy Expansion

India’s renewable energy sector attracted approximately USD 20 billion in investments in 2023 (MNRE report, 2024), reflecting strong investor confidence. The renewable capacity has grown at a compound annual growth rate (CAGR) of around 12% over the last five years (CEA report, 2023), reaching 175 GW as of March 2024 (CEA, 2024). Solar capacity alone stands at 65 GW, making India the fourth largest globally (MNRE, 2024).

  • Achieving 60% non-fossil electricity capacity by 2035 could reduce fossil fuel import bills by USD 15-20 billion annually (NITI Aayog, 2023).
  • The transition is expected to generate over 3 million clean energy jobs by 2030 (IRENA, 2023).
  • Government allocated INR 35,000 crore in the 2024 budget for clean energy infrastructure.
  • Solar tariffs have fallen by 85% since 2010, improving cost competitiveness (SECI data).

Institutional Architecture for Implementation

The MNRE leads policy formulation and implementation of renewable energy programs. The CEA plans and monitors electricity capacity and demand projections. NITI Aayog functions as the strategic think tank coordinating sustainable development policies. The Solar Energy Corporation of India (SECI) executes large-scale solar projects, while the Bureau of Energy Efficiency (BEE) promotes energy efficiency standards and labeling.

The Ministry of Environment, Forest and Climate Change (MoEFCC) oversees environmental regulations and ensures compliance with climate commitments. Coordination among these institutions is critical to meet the ambitious emission intensity and renewable capacity targets.

Data Snapshot: India’s Energy Transition Metrics

IndicatorValue (2024)Source
Emission Intensity Reduction Target47% reduction by 2035 (from 2005 baseline)Indian Express, 2024
Non-Fossil Electricity Capacity Target60% by 2035Indian Express, 2024
Installed Renewable Capacity175 GWCEA Report, 2024
Installed Solar Capacity65 GW (4th largest globally)MNRE, 2024
Coal-Based Electricity Generation Share~70%CEA, 2023
Non-Fossil Energy Capacity Target for 2030500 GWMNRE, 2023

Comparative Analysis: India vs China on Renewable Energy Targets

AspectIndiaChina
Non-Fossil Electricity Capacity Target60% by 203580% by 2030
Renewable Capacity Target500 GW by 20301,200 GW by 2030
ApproachGradual, emphasizes decentralized renewables and energy efficiencyRapid scale-up, faces grid integration and coal dependency challenges
ChallengesGrid infrastructure modernization, energy storage capacityCoal dependency, grid stability issues

Critical Gaps in India’s Energy Transition Strategy

India’s policy framework underestimates the scale of grid modernization and energy storage infrastructure needed to manage renewable intermittency. Without adequate investment in smart grids, transmission upgrades, and storage technologies, achieving 60% non-fossil electricity capacity by 2035 may face operational bottlenecks. Furthermore, policy coordination across Centre and States remains uneven, affecting renewable energy project execution and tariff rationalization.

Significance and Way Forward

  • Robust grid infrastructure modernization and energy storage deployment must be prioritized to handle renewable variability.
  • Strengthening institutional coordination between MNRE, CEA, SECI, and State agencies will accelerate target achievement.
  • Enhancing policy incentives for decentralized renewable energy and energy efficiency can reduce dependence on coal.
  • Leveraging international finance and technology partnerships will support clean energy investments and innovation.
  • Continuous monitoring and transparent reporting of emission intensity and capacity targets will ensure accountability.
📝 Prelims Practice
Consider the following statements about India’s emission intensity reduction target:
  1. The target aims for a 47% reduction in absolute greenhouse gas emissions by 2035 compared to 2005.
  2. The target is measured as emission intensity per unit of GDP.
  3. The target is aligned with India’s commitments under the Paris Agreement.

Which of the above statements is/are correct?

  • a1 and 2 only
  • b2 and 3 only
  • c1 and 3 only
  • d1, 2 and 3
Answer: (b)
Statement 1 is incorrect because the target is for emission intensity (emissions per GDP unit), not absolute emissions. Statements 2 and 3 are correct as the target measures emission intensity and aligns with the Paris Agreement.
📝 Prelims Practice
Consider the following statements about the Electricity Act, 2003 in the context of renewable energy promotion:
  1. Section 61 empowers regulatory commissions to determine tariffs for electricity including renewables.
  2. Section 86 mandates promotion of cogeneration and renewable energy sources.
  3. The Act prohibits private sector participation in renewable energy generation.

Which of the above statements is/are correct?

  • a1 and 2 only
  • b2 and 3 only
  • c1 and 3 only
  • d1, 2 and 3
Answer: (a)
Statement 3 is incorrect as the Act allows private sector participation. Sections 61 and 86 support tariff determination and promotion of renewables.
✍ Mains Practice Question
Critically analyse India’s targets of reducing emission intensity by 47% and achieving 60% electricity capacity from non-fossil sources by 2035. Discuss the institutional and infrastructural challenges in meeting these targets and suggest measures to address them.
250 Words15 Marks
What is the difference between emission intensity reduction and absolute emission reduction?

Emission intensity reduction refers to lowering emissions per unit of GDP, allowing emissions to grow if GDP grows faster. Absolute emission reduction means total emissions decrease regardless of economic growth. India targets a 47% emission intensity reduction by 2035 relative to 2005 levels.

Which legal provisions empower India to implement its international climate commitments?

Article 253 of the Constitution allows Parliament to enact laws for implementing international treaties. The Environment (Protection) Act, 1986 and Energy Conservation Act, 2001 provide regulatory powers to enforce environmental and energy efficiency measures aligned with climate commitments.

What role does the Electricity Act, 2003 play in promoting renewable energy?

Sections 61 and 86 of the Electricity Act empower regulatory commissions to set tariffs and mandate promotion of renewable energy sources, facilitating integration of renewables into the electricity grid and incentivizing investment.

How significant is India’s renewable energy capacity as of 2024?

India’s renewable energy capacity reached 175 GW by March 2024, with solar capacity at 65 GW, ranking fourth globally. This growth supports India’s target of 60% non-fossil electricity capacity by 2035.

What are the main challenges in achieving India’s 60% non-fossil electricity capacity target?

Key challenges include inadequate grid infrastructure modernization, insufficient energy storage capacity to manage renewable intermittency, and uneven policy coordination between central and state agencies.

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