| Prelims: (Paris Agreement + CA) Mains: (GS 1 – Society; GS 2 – Governance & Economy; GS 3 – Environment & Technology) |
Why in News ?
India is finalising its next set of Nationally Determined Contributions (NDCs) for 2035 under the Paris Agreement. As the country is on track to achieve its 2030 commitments, policymakers are now designing an expanded, economy-wide energy transition strategy aligned with India’s Net-Zero 2070 target. Experts propose a seven-pillar agenda to guide India’s NDC submission for 2035.
What’s in Today’s Article ?
- India’s Updated Climate Commitments
- Seven-Pillar Energy Transition Strategy
- Institutional & Financing Needs
- Way Forward
India’s Seven-Pillar Energy Transition Strategy for 2035
1. Higher Emissions Intensity Reduction Target
- India will comfortably meet its 2030 target of reducing emission intensity by 45% (over 2005 levels).
- Proposed 2035 target: 65% reduction.
- With GDP expected to grow at 7.6%, absolute emissions may still rise but are expected to peak around 2035, improving India’s global climate credibility.
- Declaring a peaking year would counter narratives that India is among the top global emitters.
2. Scaling Up Non-Fossil Power Capacity
- India has already achieved its 2030 target of 50% installed non-fossil capacity.
- Proposed 2035 target: 80% non-fossil capacity.
- Total power capacity will rise to 1,600 GW by 2035, of which:
- Solar + wind = ~1,200 GW
- Renewable share in generation = 50% (up from 13.5% today)
- India’s energy storage capacity must increase from <1 GW today to ~170 GW by 2035.
- Requires large-scale expansion of transmission infrastructure and interstate grid capacity.
3. Phasing Down Unabated Coal
- No new unabated coal plants post-2030.
- Coal capacity:
- Present: 255 GW
- Peak (2030): 293 GW
- Decline to 230 GW by 2040
- Coal usage may continue in 2070 only with cost-competitive carbon capture (CCS).
- Coal states (Jharkhand, Odisha, Chhattisgarh) must prepare for:
- Workforce transition
- Diversification
- Social protection
4. Accelerated Electrification of Transport
Railways
- Infrastructure is 99% electrified, but less than 90% of actual movement uses electric traction.
- Goal: Almost 100% electric operations by 2035 and eliminate diesel locomotives.
Urban Mobility
- 50% of all city buses electric by 2035.
- 100% e-three-wheelers within next few years.
- EV sales targets likely for 2-wheelers, 4-wheelers, and commercial vehicles.
5. Implementing the Carbon Credit Trading Scheme (CCTS)
- CCTS becomes operational in April 2026.
- Initially, targets will be lenient, tightening gradually to reach net-zero pathways.
- Over time, CCTS may expand to sectors currently excluded, such as power generation.
- A stable carbon market will be key for emissions reduction and attracting green investment.
6. Managing Variability Through Electricity Market Reforms
With renewable penetration rising, India must address:
- Intraday and seasonal variability
- Grid balancing
- Energy storage needs
Required Reforms:
- Dynamic, exchange-based power pricing
- Time-of-day (ToD) tariffs for consumers
- Reduced dependence on long-term PPAs
- Large-scale deployment of battery and pumped-storage systems
Public acceptance of new tariff systems will be a major challenge.
7. Financing the Transition
- Required investment: USD 62 billion annually (2026–2035) → 0.84% of GDP.
- 80% domestic + 20% international finance (multilateral banks, blended finance, green bonds).
- India needs predictable policy pathways (Viksit Bharat vision) to draw foreign investment.
Institutional Strengthening
- India needs an integrated, economy-wide transition plan aligned across Centre, states, and private sector.
- Strong case for reviving the Prime Minister’s Council on Climate Change to:
- Coordinate policy
- Review progress
- Oversee just transition in coal states
- Integrate new technologies
Way Forward
- Secure concessional climate finance.
- Submit NDCs based on this seven-pillar framework with conditionalities linked to global climate finance commitments.
- Balance coal phase-down with renewable growth.
- Expand domestic manufacturing of batteries, solar modules, EVs.
- Enhance grid stability and market reforms.
- Prepare coal-dependent regions for a just transition.
- Build national skills for emerging green sectors.
FAQs
1. What are India’s Nationally Determined Contributions (NDCs) ?
NDCs are country-specific climate action plans under the Paris Agreement outlining emission reduction targets, adaptation actions, and energy transition goals.
2. Why is India preparing new NDCs for 2035 ?
Countries must update NDCs every five years. India’s current NDC is valid till 2030, and the new submission will outline climate commitments for 2035.
3. Will India declare an emissions peaking year ?
The proposed framework suggests 2035 as the likely peaking year, improving global credibility.
4. Will India stop using coal ?
Coal will not be eliminated soon but will be phased down, with no new unabated plants after 2030. Some coal may remain beyond 2040 with CCS technology.
5. How will electric mobility expand by 2035 ?
Through 100% e-three-wheelers, 50% e-buses, full railway electrification, and targeted EV sales for all vehicle categories.
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