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Beyond Targets: Rethinking Sectoral Pathways in India’s Climate Strategy

by Shreya Gupta - 12 May, 2026, 12:00 43 Views 0 Comment

India’s recently updated Nationally Determined Contribution (NDC), submitted to the UNFCCC in April 2026, should be interpreted as a continuation of a carefully sequenced climate strategy developed over more than a decade in line with the global climate strategy. It commits to reducing the emissions intensity of GDP by 47% from 2005 levels by 2035, raising non-fossil sources to about 60% of installed electricity capacity, and creating an additional 3.5–4.0 billion tonnes of CO₂-equivalent carbon sink through forests and tree cover by 2035.

These targets build on already early progress—India had 52.57% non-fossil installed power capacity by February 2026, cut emissions intensity 36% between 2005 and 2020, and created 2.29 billion tonnes of additional carbon sink between 2005 and 2021. Despite hosting nearly 17% of the world’s population, India accounts for less than 4% of cumulative global CO₂ emissions since 1850, with per-capita emissions significantly lower than the global average, while committing to net-zero by 2070. These outcomes reflect a policy approach in which commitments follow demonstrated implementation capacity.

These include renewable expansion under the National Solar Mission, strengthening transmission infrastructure across states through the Green Energy Corridor programme, storage deployment and planned nuclear scaling. Modelling under Scenarios Towards Viksit Bharat and Net Zero by NITI Aayog identifies electricity decarbonisation as the most powerful lever for economy-wide mitigation. Other policy instruments to meet the emission intensity reduction goals include the Carbon Credit Trading Scheme, expansion of electric mobility through PM E-DRIVE, production-linked incentives for batteries and solar manufacturing, biofuel blending targets, PM Gati Shakti mission, Dedicated Freight Corridors, and National Green Hydrogen Mission targeting 5 million tonnes annually by 2030. Moreover, the forest-sink target builds on the Green India Mission, Compensatory Afforestation Fund Management and Planning Authority (CAMPA) funded afforestation, agroforestry expansion and restoration tracked through India State of Forest Reports. Together with Mission LiFE and Long-Term Low-Emission Development Strategy (LT-LEDS), these instruments, India has continued to communicate that India’s climate commitments extend existing implementation pathways rather than relying on headline targets that risk outpacing institutional readiness.

These emission intensity targets allow mitigation alongside increasing energy demand, infrastructure expansion and urbanisation in a country where per capita CO2 emissions remain below the global average- with a clear signal: India’s NDC is designed around national realities and not imported climate templates.

By contrast, sectors like transport and industry present more complex institutional and technological challenges. Decarbonisation in steel, cement and fertilisers depends on emerging technologies such as green hydrogen and carbon capture, whose costs remain higher than conventional alternatives—for example, as estimated in a recent study, the levelized cost of green hydrogen is USD 4.45/Kg, nearly twice that of hydrogen produced from coal and about four times that of hydrogen produced from natural gas—and requires major investments in low-carbon electricity, hydrogen production and transport networks, and infrastructure.

In several cases, including hydrogen-based steelmaking, competitiveness is not expected before the mid-2030s. Transport emissions are also projected to rise with urbanisation and logistics expansion, with passenger demand estimated to increase from 7,303 to 26,983 billion passenger-km and freight movement from 2,682 to 20,644 billion tonne-km between 2019–20 and 2050–51, while sectoral GHG emissions could increase more than sixfold over the same period, according to TERI’s Roadmap for India’s Energy Transition in the Transport Sector.

There is also a deeper geopolitical dimension to India’s calibrated approach. Persistent shortfalls in climate finance and technology transfer commitments reinforce concerns that mitigation pathways in industry, transport and energy storage remain capital-intensive without predictable international support. At the same time, India’s engagement with evolving UNFCCC transparency requirements reflects a careful balance between multilateral obligations and domestic priorities. Reporting burdens can divert institutional capacity away from implementation.

Recent geopolitical tensions across several regions have further complicated the policy environment for energy transitions. Disruptions in energy markets, trade routes and technology supply chains show that clean-energy deployment depends not only on domestic policy ambition but also on secure access to critical minerals, manufacturing inputs and advanced technologies. Global supply chains for minerals used in solar modules, batteries, electric vehicles and hydrogen technologies remain geographically and politically concentrated, creating risks of price volatility and supply disruption.

The more immediate requirement may therefore be sectoral priorities embedded in coordinated policy frameworks rather than sectoral emission caps. This is particularly critical for the transport sector. Indian transport sector involves multiple ministries and regulatory jurisdictions, requiring strong coordination to support a unified mitigation framework.

Responsibilities are divided among the Ministry of Road Transport and Highways and the Bureau of Energy Efficiency under the Ministry of Power (vehicle standards and fuel-efficiency regulation), the Ministry of Petroleum and Natural Gas (fuel supply and blending), the Ministry of Railways (modal electrification), the Ministry of Housing and Urban Affairs (public transport systems), the Ministry of Heavy Industries (electric mobility incentives), and the Ministry of New and Renewable Energy (green hydrogen deployment), the Ministry of Civil Aviation (sustainable aviation fuels and airport electrification), & the Ministry of Ports, Shipping and Waterways (green shipping corridors and port electrification).

What we need is a unified mission. The 2008 National Action Plan on Climate Change included transport under the National Mission on Sustainable Habitat; however, with multi-fold growth expected in both passenger & freight mobility, it is crucial that we have a dedicated mission—a National Mission on Sustainable Transport. Earlier, the National Transport Development Policy Committee (NTDPC) highlighted the importance of stronger institutional alignment in transport planning & policy. Recent national sectoral emissions modelling by NITI Aayog provides a timely opportunity to build greater consensus and a shared vision going forward.

In this context, the latest NDC should be seen as a bridge from commitments to coordinated implementation across sectors aligned with India’s development priorities.

The views expressed are personal and do not reflect those of the author’s organisation.

Shreya Gupta
Author is a Research Associate, The Energy and Resources Institute (TERI)
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