India's Renewable Energy Strides Meet Growing Carbon Challenges

India's Renewable Energy Strides Meet Growing Carbon Challenges India is making progress toward its decarbonization goals, with a commitment to achieving net-zero emissions by 2070, according to Moody's rating report. The nation has set interim targets for 2030, acknowledging some achievements in reducing greenhouse gas emissions. However, the rapid growth of India's economy and population is intensifying energy demand and presents significant challenges in the transition to low-carbon energy.John Wang, Vice President and Senior Analyst at Moody's Ratings, highlighted the difficulty India faces as its share of global greenhouse gas emissions increased from 6.7% in 2019 to 7.5% in 2022. Despite efforts, India's fast-growing economy remains a leading driver of increased emissions. Projected economic growth rates of 7.2% in 2024 and 6.6% in 2025 suggest an even greater surge in energy consumption ahead.India still relies heavily on coal, which contributes to 74.7% of its power generation for the fiscal year 2023-24, presenting a hurdle to decarbonization efforts. While the country is on course to meet its 2030 goal of over half of its power capacity from non-fossil fuel resources, a substantial investment of USD 190 billion to USD 215 billion will be required over the next seven years. The transition also poses risks to social and economic sectors, particularly in agriculture, demanding careful management to prevent increased inequality.

India is making progress toward its decarbonization goals, with a commitment to achieving net-zero emissions by 2070, according to Moody's rating report. The nation has set interim targets for 2030, acknowledging some achievements in reducing greenhouse gas emissions. However, the rapid growth of India's economy and population is intensifying energy demand and presents significant challenges in the transition to low-carbon energy.

John Wang, Vice President and Senior Analyst at Moody's Ratings, highlighted the difficulty India faces as its share of global greenhouse gas emissions increased from 6.7% in 2019 to 7.5% in 2022.

Despite efforts, India's fast-growing economy remains a leading driver of increased emissions. Projected economic growth rates of 7.2% in 2024 and 6.

6% in 2025 suggest an even greater surge in energy consumption ahead. India still relies heavily on coal, which contributes to 74.7% of its power generation for the fiscal year 2023-24, presenting a hurdle to decarbonization efforts.

While the country is on course to meet its 2030 goal of over half of its power capacity from non-fossil fuel resources, a substantial investment of USD 190 billion to USD 215 billion will be required over the next seven years. The transition also poses risks to social and economic sectors, particularly in agriculture, demanding careful management to prevent increased inequality. (With inputs from agencies.

).