India's climate commitments: Panchamrit, NDCs and net zero by 2070

India's climate targets are the starting point for almost every transition risk question about an Indian company. A cement maker's carbon cost, a power producer's coal plant life, a bank's lending to thermal projects: all of these depend on how fast India decides to decarbonise.

India's approach has three features worth understanding:

• Intensity, not absolute caps. India's main emissions target is about emissions per unit of GDP, not a fixed limit on total emissions. India argues that as a developing country with low per-person emissions, its total emissions must be allowed to grow for some time.
• Capacity targets. Many targets are about installed clean power capacity, which is easier to measure and track than total emissions.
• A long net zero date. India's net zero target year is 2070, later than many developed countries.

For analysts, the key point is that India has been meeting its capacity targets early. That suggests policy support for renewables is strong and likely to continue, while coal remains the backbone of actual electricity generation for now.

The Panchamrit (COP26, Glasgow, 2021)

At COP26, India announced five goals, often called the Panchamrit ("five nectar elements"):

1. 500 GW of non-fossil electricity capacity by 2030
2. Meeting 50% of energy needs from renewable energy by 2030 (formalised in the 2022 NDC as 50% of installed electric power capacity from non-fossil sources)
3. Reducing projected carbon emissions by one billion tonnes by 2030
4. Reducing the emissions intensity of GDP by 45% by 2030, from 2005 levels
5. Net zero emissions by 2070

India's NDCs over time

India submitted its new NDC for 2031 to 2035 to the UN on 24 April 2026.

Progress so far

• India met its first emissions intensity target early: the government reports a 36% cut between 2005 and 2020.
• India reached 50% non-fossil installed capacity in June 2025, five years ahead of its 2030 target. As of 30 June 2025, total installed capacity was 484.82 GW, of which 242.78 GW came from non-fossil sources (renewables, large hydro and nuclear).
• By 31 December 2025, the non-fossil share had risen to 51.93% of 513.73 GW.

Capacity is not generation

Installed capacity is not the same as electricity actually produced. Solar and wind plants produce power only part of the day, while coal plants can run most of the time. So even with half of capacity from non-fossil sources, most electricity generated in India still comes from coal. This is why transition risk for coal power is real but gradual.

From national targets to company rules

• Carbon Credit Trading Scheme (CCTS): emission intensity targets for energy-intensive industries
• Renewable purchase obligations: require power buyers to source a share from renewables
• National Green Hydrogen Mission: support for green hydrogen production and use
• BRSR and BRSR Core: disclosure of emissions and energy data by listed companies
• RBI climate finance Directions: rules for green deposits and green lending by banks and NBFCs, alongside a draft framework for climate risk disclosure