Indian Prime Minister Narendra Modi’s recent address to the Group of 20 (G20) summit emphasized the importance of clean energy cooperation, signaling India’s commitment towards a greener future. Despite making significant strides in renewable energy, India’s heavy reliance on coal continues to pose a challenge. As the world’s most populous country, India faces unique obstacles and responsibilities in transitioning to a sustainable power system.
Over the past decade, India has achieved a remarkable feat in solar energy, installing an impressive 71 gigawatts of solar capacity. This growth, from virtually negligible levels, includes a record deployment of utility-scale capacity last year. However, coal remains the source of approximately 70% of the country’s electricity generation, underscoring the complexity of India’s ambitions for the New Delhi summit.
At the G20 summit, member nations are expected to pledge efforts to triple their renewable energy capacity by 2030—a significant breakthrough in climate diplomacy. This agreement also acknowledges the continued use of fossil fuels when accompanied by emissions abatement technology, a crucial caveat to secure support from nations like Russia and Saudi Arabia.
This compromise reflects India’s concerns about the feasibility of completely phasing out coal. The country carefully weighs the risks associated with abandoning a cheap and readily available fuel source, particularly given the paramount importance of energy security and cost concerns. Shiloh Fetzek, an associate fellow with the International Institute for Strategic Studies and a climate and security expert, believes that this missed opportunity could have collectively signaled commitment and momentum ahead of the COP28 climate talks.
While progress has been made on classifying green hydrogen, other crucial issues—such as biofuels, clean energy access, and collaboration on critical minerals—are yet to be resolved. As the G20 nations collectively account for 85% of the global GDP and contribute to 80% of global emissions from the power sector, the urgency to address these issues cannot be overstated.
India’s leadership is particularly vital in middle-income nations, which often look to the country for guidance. These nations face similar challenges, with younger coal-fired power plants and inadequate infrastructure to support clean energy alternatives. Both India and China previously blocked efforts to phase out coal during the 2021 UN climate talks, highlighting the significance of such decisions on the global stage.
Despite the absence of China’s leader Xi Jinping at the G20 summit, Modi had an opportunity to make the green agenda a centerpiece of the talks, inspired by Indonesia’s lead last year. President Joko Widodo signed a comprehensive climate finance deal to facilitate a shift away from fossil fuels. However, India’s reliance on coal remains deeply rooted, driven by its role as a significant employer and its crucial contribution to electricity supply and heavy industry.
Modi’s approach at the G20 summit is to navigate around the fossil fuel issue and focus on renewable solutions such as the development of green hydrogen. This approach is seen as crucial in decarbonizing challenging sectors such as steelmaking and cement production.
Nonetheless, some experts express concern that by missing this opportunity to promote greener policies, India may have undermined its credibility as a leader in the energy transition and climate diplomacy. Every climate-related decision carries immense weight, especially with emerging scientific evidence demanding urgent action.
India’s green pitch at the G20 summit unveils the country’s complex balancing act between its renewable energy ambitions and the practical challenges posed by its reliance on coal. As India continues its journey toward a sustainable future, finding the right path forward will require navigating these complexities while delivering on both domestic needs and international climate goals.
Market Capital Research 