India's new NDCs must take private sector along

Hindustan Times

2 days ago

As governments around the world update their Nationally Determined Contributions (NDCs) on climate action, there is a significant opportunity for the India's government and its private sector to raise ambition and accelerate implementation together. From the National Action Plan on Climate Change (NAPCC) in 2008 to the NDC in 2015 and its update in 2022, India has steadily signalled its commitment to play a leading role in addressing the climate crisis. Its 2035 NDC goals, expected to be announced in the run-up to COP30 in Brazil, can signal a new approach — one that places businesses and the private sector at the centre of India's climate journey. In several cases, government signals enabled private sector investment and progress (Bloomberg)
India's first NDC in 2015 formalised its climate goals in the global arena, with a commitment to reduce emissions intensity by 33–35% by 2030 and achieve 40% of power capacity from non-fossil sources. The subsequent NDC (2022) raised the pledge to reduce emissions intensity by 45% and create 50% cumulative generation capacity from renewables. India also declared a net zero target year of 2070.
India's official climate strategy was strengthened by a similar movement in the private sector when over 125 Indian companies adopted Science-Based Targets. Many voluntarily set net zero targets ahead of the national 2070 deadline, backed by internal carbon pricing, green finance mechanisms, and renewable energy efforts.
In this context, 2025 offers India a historic opportunity to craft a 2035 roadmap that signals higher ambition based on a strategy that integrates the government's vision with that of the private sector in the areas of energy transition across sectors as well as adaptation and creation of climate-resilient infrastructure.
In a 2025 survey of Indian business leaders, 99% supported a transition from fossil fuels to renewable energy, with 84% calling for this shift within the next decade. India's green transition efforts are thus increasingly shaped by an 'ambition loop' where early business action strengthens regulatory confidence, which then catalyses further private sector ambition. This has already made Indian solar and electric vehicles (EVs) globally competitive.
In several cases, government signals — such as reverse auctions in solar, the National Hydrogen Mission, the Perform, Achieve and Trade scheme — enabled private sector investment and progress. Zomato, for instance, accelerated the electrification of its delivery fleet, while Wipro and Infosys lead global net-zero alliances, actions centred not only on compliance but also on competitiveness and future-proofing.
Similarly, regulatory signals such as climate disclosure frameworks from RBI and the Business Responsibility and Sebi's Sustainability Reporting Framework of have helped change corporate behaviour. Businesses have welcomed efforts by the government to develop a National Adaptation Plan to outline national priorities across regions and sectors, and identify necessary support for effective implementation.
India's next NDC offers a critical opportunity to raise its climate ambition by integrating stronger implementation mechanisms, recognising progress in the private sector and exploring deeper partnerships. India's climate ambition must not come at the cost of development — it must drive it. Clean energy will help deliver energy security, lower the import bill (5% of the GDP), and create up to 35 million green jobs by 2047. Climate action is smart economics.
Moreover, India's forests, wetlands, and agro ecosystems are critical buffers against climate shocks, offering both carbon sinks and climate resilience. India's next NDC should also recognise the role of Natural Climate Solutions (NCS), encourage corporate investment in forest restoration and biodiversity, and align adaptation priorities with business resilience strategies.
Financing this transformation will require unprecedented mobilisation of both domestic and international capital. As per preliminary government estimates, achieving India's current NDC targets will require ₹ 162.5 trillion ($2.5 trillion) by 2030 — equivalent to ₹ 11 trillion ($170 billion) annually. Notably, climate finance in India has largely been domestically driven, with approximately 83% of flows originating from domestic sources. Bridging the gap — particularly for adaptation and nature-based solutions — requires a mix of accelerated domestic investments and significantly enhanced international support, making a strong case for an investment-ready NDC that includes quantified financing strategies and sectoral targets to help de-risk investments and catalyse both public and private finance at scale.
India's G20 momentum, and the upcoming BRICS and COP30 platforms offer an opportunity to anchor climate ambition within broader national goals, including achieving Viksit Bharat by 2047, energy independence, and industrial competitiveness. Indian business has shown their willingness. Now we need bold government leadership to unlock its full potential.
Andrew Prag is managing director (Policy), We Mean Business Coalition (WMBC), and RR Rashmi is distinguished fellow, The Energy and Resources Institute (TERI). The views expressed are personal.