India’s strides in renewable energy have been remarkable, particularly in solar power. The past year saw large-scale solar projects come online alongside the launch of the Rooftop Solar Scheme, which promotes smaller, decentralized solar installations.

India has dropped from seventh to 10th place in the latest Climate Change Performance Index (CCPI) for 2025, unveiled in Baku on Friday. Despite this decline, India has retained its spot among the top 10 high-performing countries for the sixth consecutive year.

This achievement underscores India’s growing role in renewable energy and efforts toward energy efficiency, even as challenges remain in reducing reliance on coal and expanding climate policy initiatives.

The report published by Germanwatch, NewClimate Institute, and Climate Action Network says that renewable energy is making rapid progress in almost every high-emitting country.

However, it says, too many countries are still clinging to prolonging the fossil fuels business model, especially for gas.

Strong Showing in Key Metrics

India’s performance across various categories of the CCPI highlights its strengths and areas for improvement:

1. Greenhouse Gas (GHG) Emissions: India received a high ranking due to its relatively low per capita emissions compared to other major economies.
2. Energy Use: India’s low energy consumption per capita earned another high score.
3. Climate Policy: India achieved a medium ranking, reflecting its steady, albeit cautious, approach to climate-related regulations and international commitments.
4. Renewable Energy: Despite significant advancements, India’s reliance on coal lowered its rating in this category.

Renewable Energy Progress

India’s strides in renewable energy have been remarkable, particularly in solar power. The past year saw large-scale solar projects come online alongside the launch of the Rooftop Solar Scheme, which promotes smaller, decentralized solar installations. Despite these advances, experts call for more extensive support for off-grid solar systems, especially in rural areas where energy access remains limited.

India’s focus on renewable energy aligns with its aspirations to become a global leader in green technologies. Significant progress has also been made in energy efficiency and the deployment of electric vehicles, particularly in the two-wheeler segment. These initiatives highlight India’s commitment to transitioning to a cleaner energy future.

Challenges Persist in Coal Dependence

One of the most pressing challenges for India is its ongoing dependence on coal. As one of the top 10 countries with the largest coal reserves, India has continued to expand its coal production. Experts warn that the pace of coal phase-out is insufficient to meet international climate targets. This heavy reliance poses a significant obstacle to achieving India’s long-term sustainability goals and aligning with the Paris Agreement.

Policy Recommendations

To sustain its position as a climate leader and address existing gaps, experts recommend that India:

• Revise its Nationally Determined Contributions (NDCs): India should adopt more ambitious absolute emissions reduction targets and include additional sectors like transportation, housing, and water management in its climate strategy.
• Accelerate the Energy Transition: A faster shift from fossil fuels to renewables is essential, alongside ensuring a just transition for workers and communities reliant on the coal sector.
• Strengthen Domestic Policies: Enhanced energy efficiency standards and broader regulatory coverage across industries could significantly reduce emissions.

National Context and Future Outlook

India’s climate strategy is closely tied to its economic growth objectives. Prime Minister Narendra Modi, recently re-elected for a third term, has emphasized growth-oriented policies that cater to the country’s burgeoning energy demands. While this approach prioritizes development, it often limits the focus on de-carbonization and equitable energy distribution.

Despite these constraints, India remains on track to meet its current NDCs. However, experts caution that these targets need to be revisited to ensure India contributes effectively to global climate goals.

India’s 10th-place ranking in the 2025 CCPI reflects its potential and ongoing commitment to climate action. By addressing its coal dependency, revising its NDCs, and expanding renewable energy adoption, India can solidify its role as a global climate leader. The challenge lies in balancing its developmental aspirations with the urgent need for a sustainable future.

Global Implications

Jan Burck of Germanwatch says that “large parts of the world have recognised that renewables are a cost-effective and safe choice for the energy supply. Renewables are in the fast lane, especially in the electricity sector. In addition, there is an increasing electrification of the mobility, residential and industrial sectors. The trend towards electrification is continuing, while new storage technologies are developing at the same time. Nevertheless, there is still massive resistance from the fossil fuel lobby. Countries should not fall deeper into the fossil trap.”

Prof. Niklas Höhne of the NewClimate Institute adds: “The world is at a turning point. Peak of global emissions is closely in sight. Now it is crucial that we start a rapid decline. Cutting emissions drastically is the only measure that can prevent further dangerous consequences of climate change. Time is running and we urgently need an emission turnaround.”

UK and India, the only two G20 countries are among the high performers in the CCPI. Fourteen G20 countries receive an overall low or very low. The G20 is particularly responsible for drastically cutting emissions, as its members account for more than 75 per cent of the world’s greenhouse gas emissions. Russia, Saudi Arabia and South Korea (63th) are still the G20’s worst-performing countries and receive an overall very low.

India’s performance in the CCPI showcases the duality of its climate journey: remarkable achievements in renewables juxtaposed with persistent challenges in fossil fuel dependency. As the world’s most populous nation, India’s actions are critical to global efforts to combat climate change. Strengthening its climate commitments could inspire similar transitions in other developing countries.

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