To scale up our climate ambition, a seven-point plan, Pg12

Key Highlights:

• India aims to reduce its emissions intensity of GDP by 65% by 2035 compared to 2005 levels.
• The target is to achieve 80% non-fossil fuel-based power generation capacity by 2035, requiring a total generation capacity of 1,600 GW.
• India plans to phase down unabated coal-based generation, ensuring no new plants are commissioned post-2030.
• The Carbon Credit Trading Scheme (CCTS) will become operational in April 2026 and will be reviewed after two years.
• Approximately $62 billion in annual investment is needed during 2026-2035 for renewable energy expansion, with 20% expected from international sources.

Detailed Insights:

• India's commitment to decarbonization includes setting a target for peaking emissions around 2035, enhancing its credibility in global climate action.
• Achieving 80% non-fossil fuel capacity by 2035 requires significant expansion in solar and wind energy, targeting around 1,200 GW, and energy storage capacity to 170 GW.
• Phasing down coal-based generation involves managing the transition in coal-producing states through retraining programs and economic diversification.
• Electrification of the transport sector includes achieving near-100% electric traction in railways by 2035 and aiming for 50% electric buses in city fleets.
• Reforming electricity pricing with time-of-day tariffs is essential to manage the variability from renewable sources, requiring public acceptance and support.
• Securing $12.5 billion annually from international sources for renewable energy investments can be facilitated through expanded lending from Multilateral Development Banks (MDBs).
• Reviving the Prime Minister’s Council on Climate Change is proposed to coordinate and implement the national action plan, ensuring effective stakeholder collaboration.

Key Concepts Involved:

• Nationally Determined Contributions (NDCs): Commitments by countries under the Paris Agreement to reduce greenhouse gas emissions.
• Emissions Intensity of GDP: The amount of emissions produced per unit of gross domestic product, reflecting the carbon efficiency of economic activity.
• Carbon Credit Trading Scheme (CCTS): A market-based mechanism to incentivize emission reductions by allowing trading of carbon credits.