India’s climate diplomacy has evolved into a cornerstone of its foreign policy, reflecting the nation’s growing influence in global environmental governance. As the world grapples with an intensifying climate crisis, India stands at a pivotal juncture, balancing its rapid economic ascent with the imperative to mitigate emissions and foster sustainable development. This dual challenge has propelled India into the spotlight as a key actor in shaping climate solutions that are equitable, inclusive, and scalable.
India’s climate commitments are among the most robust globally, anchored in its Nationally Determined Contributions (NDCs) under the Paris Agreement. The country’s pledge to achieve net zero emissions by 2070, announced by Prime Minister Narendra Modi at COP26, underscores its long-term vision for decarbonisation. This ambition is not merely aspirational; it is embedded in a broader framework of domestic and international policy initiatives that seek to align growth with sustainability. Central to India’s stance in climate negotiations is its unwavering support for the principle of common but differentiated responsibilities, which recognises the historical inequities in emissions and the developmental needs of the Global South. India’s approach challenges the traditional COP-centric mitigation regime and calls for a more nuanced, multilateral engagement that respects the diversity of national circumstances.
India’s climate diplomacy is also deeply intertwined with its economic strategy. On one hand, the country is opening its borders to sustainable technology transfers, aiming to attract foreign direct investment (FDI) into its burgeoning green economy. On the other, it remains critical of Western and European trade policies that impose environmental standards in ways that disadvantage developing nations. This tension is evident in India’s opposition to the European Union’s Carbon Border Adjustment Mechanism (CBAM), which it views as a protectionist measure disguised as climate action. India’s advocacy for fair and inclusive climate finance was prominently showcased during its G20 presidency, where it pushed for coordinated solutions to global challenges, including debt resolution and equitable access to green funding.
The International Solar Alliance (ISA), launched by India and France in 2015, exemplifies India’s commitment to promoting solar energy as a low-cost, sustainable solution to energy poverty and climate change. Through this platform, India plays a pivotal role in mobilising financial and technological resources from the Global North to meet the pressing energy needs of the Global South.
India and the European Union have sought to deepen their collaboration through the India-EU Clean Energy and Climate Partnership (2025–28), focusing on green hydrogen, offshore wind, smart grids, and energy efficiency. This partnership exemplifies India’s commitment to regional connectivity and market integration in pursuit of shared sustainability goals.
More importantly, India has consistently positioned itself as a bridge between the Global North and South in global climate negotiations. It champions the cause of climate justice, advocating for equitable access to climate finance and technology transfer for developing nations.
At COP29 in Baku (2024), India, along with other developing countries, made a strong push to prioritise Article 9.1 of the Paris Agreement on the formal agenda. This critical article enshrines the legal obligation of developed countries to provide financial support to developing nations for both mitigation and adaptation efforts.
During the formal consultations, India described Article 9.1 not merely as a moral responsibility, but as the “cornerstone of climate equity.” It cautioned against strategic attempts to dilute or deflect from this obligation, asserting that such moves would only undermine global climate action. India emphasised that indirect or loosely defined mechanisms cannot substitute for firm financial commitments from developed nations.
Expressing concern over an apparent erosion of multilateralism in climate governance, India argued that honouring Article 9.1 is essential to restoring credibility, balance, and trust in the global climate regime.
India also voiced strong criticism of the New Collective Quantified Goal (NCQG) on climate finance announced at COP29, deeming it “grossly inadequate,” “incomplete,” and an “eyewash,” according to sources. The Indian delegation flagged emerging narratives that shift disproportionate burdens onto developing countries, disregarding their domestic development priorities and structural challenges. India firmly reiterated that additional climate finance must not come at the cost of national development goals.
For now, though, the geopolitical landscape has complicated climate diplomacy. The Russia-Ukraine war disrupted energy supplies across Europe, leading to a surge in fossil fuel dependency and a diversion of resources from climate initiatives to defence spending. The U.S. withdrawal from the Paris Agreement under President Donald Trump and the subsequent policy reversals have also created ripples, undermining global momentum on climate action.
Domestically, India’s climate policy is shaped by its developmental trajectory. Since 2000, the country’s GDP has grown at an average of 7%, far outpacing the United States and the European Union. This growth, while essential for poverty alleviation and prosperity, has led to rising greenhouse gas emissions and increased pressure on food systems and health infrastructure. To reconcile these competing demands, India is investing in climate technology as a catalyst for transformation. However, R&D spending remains low, just 0.7% of GDP compared to 1.6% in industrialised nations, with only 40% coming from the private sector. This gap highlights the need to energise India’s climate tech ecosystem, which is uniquely positioned to deliver scalable, middle-of-the-pyramid innovations.
The market for environmental technology in India is valued at approximately $23 billion, with a projected growth rate of 7.5% between 2023 and 2028. India ranks sixth globally in niche environmental tech solutions, particularly in air pollution control, solid waste recycling, and wastewater management. These innovations are not solely reliant on imports; they are driven by a blend of “Make in India” and “Make for India” strategies that reflect the country’s commitment to self-reliance and contextual relevance. With over 600 startups addressing challenges from renewable energy to carbon capture, India’s climate tech sector is vibrant and expanding. Yet, it remains underfunded, receiving less than 10% of global climate tech investments. To meet its sustainability targets by 2030, India requires over $1 trillion in investments, presenting both a challenge and an opportunity for economic and environmental transformation.
India’s leadership in sustainable development is reflected in its tangible achievements—from the sale of 1.5 million electric vehicles in 2023–24, primarily scooters and three-wheelers, to breakthroughs in green cement and energy-efficient lighting. These milestones underscore the growing strength of India’s climate tech ecosystem. The country’s LiFE (Lifestyle for Environment) initiative, rooted in traditional conservation values, reinforces a holistic approach to climate action by promoting sustainable living and opposing unilateral trade measures that disadvantage developing nations.
India’s climate diplomacy has gained further momentum through its deepening partnership with Japan. The two nations recently signed a Memorandum of Cooperation on the Joint Credit Mechanism (JCM) under Article 6.2 of the Paris Agreement, enabling collaborative carbon trading and green investments. This framework supports joint emission reduction projects and the exchange of carbon credits, accelerating their transition to low-carbon economies.
This climate pact is embedded within a broader strategic alliance, marked by long-term agreements worth ¥10 trillion (approximately ₹6 trillion) across key sectors including AI, defence, semiconductors, and rare earths—aimed at bolstering economic security and technological resilience.
The timing is pivotal. With the United States imposing a 50% export tariff on Indian goods and remaining outside the Paris Agreement framework, India’s collaboration with Japan offers a stable, forward-looking alternative to advance its manufacturing ambitions, green innovation, and energy transition.
Despite longstanding tensions with China, climate change remains a domain where cooperation is not only possible but increasingly necessary. India recognises the strategic value of working with China on shared environmental goals, even as broader geopolitical issues persist. This pragmatic approach reflects India’s maturity in navigating complex international dynamics while staying focused on the urgent task of combating climate change. China’s decision to ease rare earth exports to India marks a pivotal shift, potentially revitalising India’s energy transition. By securing access to these strategic resources, India is better positioned to advance its renewable energy ambitions and reinforce its role as a global climate leader.
India is increasingly asserting itself as a rule-shaper in global climate negotiations, championing climate equity and advocating for frameworks that uplift developing nations. Yet, despite its ambitious renewable energy goals, the domestic energy landscape remains heavily reliant on fossil fuels. While solar and wind costs have dropped significantly, India’s renewable tariffs still exceed global benchmarks—solar energy, for instance, is nearly twice as expensive as in Saudi Arabia. Moreover, storage-integrated renewables, crucial for meeting peak demand, remain commercially unviable in the Indian context.
India possesses significant renewable energy capacity, yet the institutional frameworks, grid infrastructure, and incentive structures required to efficiently absorb and distribute this energy remain underdeveloped. Bridging this gap is crucial to achieving not just energy security, but also sustainable growth aligned with climate goals.
By 2030, India will require an estimated ₹30–₹32 lakh crore in investments to meet its renewable energy ambitions. While decarbonisation has been strongly embedded in national policy, evident through its NDCs, Net Zero pledge at COP26, EV policies, and institutions like the Bureau of Energy Efficiency, several challenges remain. The inherent variability of renewable energy sources limits their reliability in fully meeting India’s growing power demands. Moreover, the global concentration of renewable technologies and raw materials poses potential energy security risks amid geopolitical uncertainties.
To mitigate these risks, green hydrogen and cross-border electricity trade (CBET) offer promising solutions. Although green hydrogen remains nascent, CBET is already operational with neighbouring countries like Bangladesh, Bhutan, and Nepal. However, unlocking its full potential will require substantial infrastructure investment and harmonised cross-border regulations.
Despite prevailing challenges, short or medium-term geopolitical disruptions are unlikely to derail the momentum of India’s energy transition. The country remains committed to charting its own decarbonisation trajectory, one that reflects its strategic priorities, developmental needs, and long-term climate vision.
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