First Principles IASlearning from first principles

India's climate action

Syllabus
Conservation, environmental pollution and degradation, environmental impact assessment
As of
October 2026
  • National Action Plan on Climate Change
  • State Action Plans on Climate Change
  • nationally determined contribution
  • emissions intensity
  • non fossil capacity
  • carbon sink
  • Panchamrit
  • net zero 2070
  • long term low emission development strategy
  • Mission LiFE
  • Carbon Credit Trading Scheme
  • Green Credit Programme
  • just transition

The first principle

India has to cut the growth of its emissions while it is still growing, building and lifting people out of poverty, so it cannot promise an early cap on total emissions as the industrialised countries can. Its targets are therefore written as emissions per unit of output and as shares of clean power, which let the economy expand while each rupee of output becomes cleaner. The second idea is equity: India has emitted a small share of the carbon dioxide now in the air and its people emit far less than the world average, so it pairs its pledges with a demand for finance and technology from those who emitted first.

The core

The National Action Plan on Climate Change, 2008

  • One plan, many ministries. The National Action Plan on Climate Change (NAPCC), released in June 2008 by the Prime Minister's Council on Climate Change, set out eight national missions, each run by a ministry, chosen because they serve development and climate goals together, which the plan calls co benefits.
  • Missions with numbers. The National Solar Mission began with 20 gigawatts (GW) of grid solar by 2022, raised in 2015 to 100 GW; the Mission for Enhanced Energy Efficiency created the Perform, Achieve and Trade (PAT) scheme for energy intensive industry; the National Water Mission aims at a 20 per cent gain in water use efficiency; and the Green India Mission aims to increase forest and tree cover on 5 million hectares and improve its quality on another 5 million.
  • States carry it down. All States and most Union Territories have prepared a State Action Plan on Climate Change (SAPCC) that applies the national missions to its own risks, such as glaciers for Himachal Pradesh or the coast for Odisha, and States are revising these plans in line with the updated nationally determined contribution (NDC).
Table of the eight national missions of the National Action Plan on Climate Change with ministry and aimNAPCC: the eight missions of 2008MissionMinistryMain aimSolarNew andRenewableEnergy20 GW by 2022,raised to 100GWEnhanced EnergyEfficiencyPower (BEE)PAT scheme forheavy industrySustainableHabitatHousing andUrban Affairsefficientbuildings,transport,wasteWaterJal Shakti20% gain inwater useefficiencySustaining theHimalayanEcosystemScience andTechnologyglaciers,mountaincommunitiesGreen IndiaEnvironmentforest cover on5 m ha, qualityon 5 m haSustainableAgricultureAgricultureclimateresilientfarmingStrategicKnowledgeScience andTechnologyresearch andclimate dataGold: the two missions behind the NDC targets forclean capacity and emissions intensity.
Figure: The eight national missions of 2008, the ministry that runs each and its main aim.

What India has promised

  • The first NDC, 2015. India pledged to cut the emissions intensity of its gross domestic product (GDP) by 33 to 35 per cent from 2005 levels by 2030, to reach about 40 per cent of installed power capacity from non fossil sources by 2030 with international support, and to create an additional carbon sink of 2.5 to 3 billion tonnes of carbon dioxide equivalent through forest and tree cover.
  • Panchamrit and net zero. At Glasgow in November 2021 the Prime Minister announced five commitments, the Panchamrit: 500 GW of non fossil capacity by 2030, half of energy needs from renewables by 2030, one billion tonnes less carbon dioxide than projected by 2030, emissions intensity down 45 per cent by 2030, and net zero by 2070. Net zero means that emissions left over are balanced by removals, not that emissions stop.
  • The updated NDC, August 2022. India raised the intensity target to 45 per cent and the non fossil capacity share to about 50 per cent by 2030, kept the sink target, and added a mass movement for sustainable lifestyles, Lifestyle for Environment (LiFE). Only these quantified parts of the Panchamrit entered the NDC.
  • The NDC for 2031 to 2035. Approved by the Union Cabinet in March 2026, it pledges to cut emissions intensity by 47 per cent from 2005 levels by 2035, to reach 60 per cent of installed power capacity from non fossil sources by 2035, and to create a carbon sink of 3.5 to 4 billion tonnes of carbon dioxide equivalent by 2035, along with five qualitative goals.
  • The long term strategy. India's Long Term Low Emission Development Strategy, submitted at the twenty seventh Conference of the Parties (COP27) in November 2022, describes how 2070 can be reached through clean electricity, green hydrogen, efficiency, sustainable cities and forests, and states that the path depends on finance and technology from abroad.
Bar charts of India's emissions intensity reduction achieved against targets, and non fossil capacity share achieved against targetsProgress against the NDCEmissions intensity cut from 2005 (%)Achieved by 202036%Target for 203045%Target for 203547%Non fossil share of capacity (%)Passed, June 202550%Target for 203050%Target for 203560%Gold: achieved. Sources: Fourth Biennial UpdateReport, 2024; MNRE, 2025; PMIndia, Cabinetdecision on NDC 2031-2035, March 2026.
Figure: India's progress on emissions intensity and on non fossil power capacity, against its 2030 and 2035 targets. Source: Fourth Biennial Update Report, 2024; MNRE, 2025; PMIndia, March 2026.

Dimensions

  • Equity. India's Fourth Biennial Update Report put national emissions in 2020 at 2,959 million tonnes of carbon dioxide equivalent, about 2 tonnes a person, well below the world average, and its share of cumulative emissions since 1850 is small; this is the basis for net zero in 2070 rather than 2050.
  • Economic and energy security. Coal still generates most of India's electricity and India imports most of its oil, so clean power is also an energy security policy; at the same time cheap coal keeps power affordable, which is why the transition is gradual.
  • Social and just transition. Coal mining and power support whole districts in Jharkhand, Chhattisgarh and Odisha, so closing mines without new jobs and revenue for those States would be unjust, and India argues for a transition that protects workers.
  • Federal. Electricity distribution, land, forests and urban planning sit largely with States, so most of the work of the NDC is done by State utilities, State forest departments and city governments.
  • International. Border carbon taxes such as the European Union's Carbon Border Adjustment Mechanism tax the carbon in Indian steel and aluminium, so a credible domestic carbon price also protects exports.
Timeline of India's climate policy from 2008 to the net zero goal of 2070India's climate policy over time2008NAPCCeight national missions2015First NDC33 to 35% intensity cut; 40% nonfossil capacity2021Panchamrit at Glasgowfive goals, including net zero by 20702022Updated NDC; LiFE; long term strategyEnergy Conservation (Amendment) Act2023CCTS and Green Credit RulesNational Green Hydrogen Mission2025Emission intensity target rulesfirst CCTS targets; green creditrevision2026NDC for 2031 to 203547% intensity cut; 60% non fossilcapacity2070Net zeroemissions balanced by removals
Figure: India's climate policy from the action plan of 2008 to the NDC of 2026 and the net zero goal of 2070.

In practice

Mission LiFE

  • Behaviour as policy. LiFE, proposed by the Prime Minister at Glasgow, was launched as Mission LiFE in October 2022 at Ekta Nagar, Gujarat, with the United Nations Secretary General, to turn individuals into pro planet people through simple actions such as saving energy and water and cutting waste. India's resolution on sustainable lifestyles was adopted by the United Nations Environment Assembly in 2024, and the G20 under India's presidency in 2023 adopted High Level Principles on Lifestyles for Sustainable Development.

The Carbon Credit Trading Scheme

  • The law. The Energy Conservation (Amendment) Act, 2022 let the Centre set up a carbon market, and the Carbon Credit Trading Scheme (CCTS) was notified in June 2023, with an offset mechanism added in December 2023. The Bureau of Energy Efficiency (BEE) administers it, the Grid Controller of India keeps the registry, the Central Electricity Regulatory Commission regulates trading, and a National Steering Committee for the Indian Carbon Market oversees it.
  • How it works. Under the compliance mechanism, obligated units get a target for greenhouse gas emissions intensity, the emissions per tonne of product; a unit that beats its target earns carbon credit certificates, each worth one tonne of carbon dioxide equivalent, and a unit that misses must buy them. Under the offset mechanism, any registered project that cuts or removes emissions can earn certificates by an approved methodology.
  • Where it stands. The Greenhouse Gases Emission Intensity Target Rules, 2025 set intensity targets in October 2025 for about 280 units in aluminium, cement, chlor alkali and pulp and paper, and other energy intensive sectors such as petroleum refining, petrochemicals and textiles are being brought in. The first compliance year is 2025-26, and power plants are outside the scheme for now.
  • Trading abroad. In 2023 the environment ministry listed 13 activities, such as green hydrogen and carbon capture, whose credits may be transferred abroad under Article 6.2 of the Paris Agreement, and India signed a memorandum of cooperation with Japan on a Joint Crediting Mechanism in August 2025.

The Green Credit Programme

  • A credit for ecological work. The Green Credit Rules, notified in October 2023 under the Environment (Protection) Act, 1986, reward voluntary actions in eight areas, including tree plantation, water management, sustainable agriculture, waste management, mangrove conservation and sustainable buildings, with the Indian Council of Forestry Research and Education (ICFRE) as administrator.
  • The 2025 revision. After criticism of dense planting on degraded forest land, the tree plantation methodology was revised in August 2025: land must reach at least 40 per cent canopy density after five years, one credit is issued for each surviving tree, and the credits can be used to meet compensatory afforestation or corporate social responsibility obligations.
Flowchart of the Carbon Credit Trading Scheme compliance cycleCCTS: how the compliance cycle worksTargets notifiedemissions per tonne of product for eachobligated unit (Target Rules, 2025)Unit operates for the yearfirst compliance year 2025-26Emissions verifiedby accredited verifiers; BEE assessesCertificates issued or owedbeat the target: earn credits; miss it: buycreditsTrade on power exchangesregulated by CERC; registry kept by GridController of IndiaOne certificate = one tonne of CO₂ equivalent.Offset projects outside the compliance list canalso earn certificates.
Figure: The compliance cycle of the Carbon Credit Trading Scheme, from targets to verified emissions, certificates and trading.

Issues and way forward

  • Targets that are met early. India met its 2015 targets for intensity and clean capacity years ahead of time, which shows delivery but also that the targets were cautious; tighter targets backed by finance would test the economy less than critics fear, since solar is now among the cheapest sources of power.
  • Capacity is not generation. Solar and wind run for fewer hours than coal, so a 50 per cent share of capacity gives a smaller share of electricity; storage, grid upgrades and flexible coal plants are needed so that clean capacity actually displaces coal.
  • A narrow carbon market. With power outside and targets set to keep the price low, the CCTS will work first as an accounting system; extending it to the largest emitters and tightening targets over time would give it a real price.
  • Green credits and forests. Plantation credits risk rewarding monocultures over natural forest and grasslands, so independent verification and a focus on ecological restoration rather than tree counts are needed.
  • States lack money. SAPCCs are mostly lists without budgets, so linking them to the Finance Commission, State budgets and green bonds would turn plans into projects.

Common confusions

  • Emissions intensity and absolute emissions. Intensity is emissions per unit of GDP and can fall while total emissions rise; India's NDC targets intensity, not totals.
  • Installed capacity and generation. The 50 and 60 per cent targets are shares of installed capacity in gigawatts, not of electricity produced in units.
  • Carbon credit and green credit. A carbon credit under the CCTS is one tonne of carbon dioxide equivalent, verified and tradable; a green credit rewards an ecological action, such as restoring degraded land.
  • Panchamrit and NDC. The Panchamrit was a political announcement of five goals; only the intensity and non fossil capacity targets became legally communicated NDC targets.
  • PAT and CCTS. PAT traded energy saving certificates measured in energy saved; the CCTS trades carbon credit certificates measured in emissions, and it builds on PAT's industries and institutions.

For the exam

  • Keyword bank: NAPCC, national missions, SAPCC, emissions intensity of GDP, non fossil installed capacity, additional carbon sink, Panchamrit, net zero 2070, long term low emission development strategy, Mission LiFE, Carbon Credit Trading Scheme, compliance and offset mechanisms, Green Credit Programme, just transition, climate justice.
  • Previous year questions: Practise the previous year questions on this topic →
  • Use in an answer:
    • Introduction with data: India cut the emissions intensity of its GDP by 36 per cent between 2005 and 2020, and non fossil sources passed half of installed power capacity in June 2025, five years ahead of its 2030 target.
    • Introduction with a law or report: The Energy Conservation (Amendment) Act, 2022 gave India a legal basis for a domestic carbon market, and the Carbon Credit Trading Scheme now sets emissions intensity targets for energy intensive industrial units.
    • Conclusion: India's climate policy reconciles growth with responsibility by cutting intensity now and absolute emissions later, and it will hold only if finance, technology and a just transition for coal regions come with it.
    • Conclusion: From the NAPCC to the CCTS and Mission LiFE, India is building the institutions of a low carbon economy; the next test is to move the largest emitters, above all power, into that frame.