India’s Coal Phase-Out: A Critical Step for Climate Leadership

India, the world’s third-largest emitter, faces a daunting challenge in achieving its net-zero ambitions by mid-century. A recent report by BloombergNEF (BNEF) underscores the urgency of this task, highlighting the need for a drastic reduction in emissions from the country’s high-polluting power industry by 2026. However, the government’s continued reliance on coal, a major contributor to greenhouse gas emissions, presents a significant obstacle to this goal.

To achieve net zero by 2050, India requires a massive investment of $12.4 trillion in clean energy infrastructure, electric vehicles, and emerging technologies like carbon capture and green hydrogen. This substantial outlay is essential to decarbonise the economy and align with the Paris Agreement’s target of limiting global warming to well below 2 degrees Celsius.

Despite India’s efforts to expand renewable energy sources, its heavy reliance on coal remains a persistent challenge. The country’s growing population and energy demands have necessitated the construction of new coal-fired power plants, delaying the phase-out of older, more polluting facilities. While the government has cited energy security as a primary concern, transitioning away from coal is crucial to meeting India’s international climate commitments.

New Delhi has announced a fresh pipeline of coal power projects and pushed old polluting facilities to defer phase-outs until 2030, citing the fuel’s importance for energy security, at least until clean solutions become affordable for round-the-clock supply.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.