Bharat’s net zero vision and ESG trajectory post-COP26

India's progress towards sustainable development is now well underway, with several important milestones achieved since the announcement of the Panchamrit commitments at COP26 in Glasgow. The "Panchamrit" commitments were ambitious commitments for India: achieving net-zero by 2070, 500 GW of installed capacity of non-fossil fuel sources by 2030, 50% of electricity from renewable energy sources, reducing expected total carbon levels by 1 billion tonnes, and a 45% reduction of emissions intensity from 2005 levels. Collectively, these measures demonstrate India's commitment to balancing economic growth with environmental sustainability.

Progress in renewable energy

India's renewable energy sector has seen extraordinary expansion. As of April 2025, the government reports that India has over 223 GW of installed renewable energy capacity, with solar accounting for roughly 108 GW and wind power approximately 51 GW. It marks India's significant journey towards cleaner energy sources.

Despite this progress, challenges remain.. In 2024, while renewables comprised 45% of installed capacity, they constituted only 24% of generation. India is now working on addressing those gaps, especially grid infrastructure and energy storage capacity. And the National Electricity Plan projects that India's energy storage needs will grow to 411.4 GWh by 2031-32.

COP29: Reinforcing commitments

At COP29 in Baku, India reiterated its climate commitments and pushed strongly for fair climate finance. India stressed that developed countries should provide financial resources and technology transfers to developing countries. India's active participation in a number of side events also demonstrated its domestic framing and leadership in climate action.  

India's position at COP29 appears to reflect an increasing confidence in its climate approach, blending ambition with grounded reality of development. The government's messaging reflected a fragile balance between assertive international diplomacy and on-the-ground results, showing the country’s intention of being not just a leader in climate ambition, but implementation as well. 

Equally striking was the note of collaborative tone. India was especially clear that climate transition cannot be done in isolation. Transition is about partnerships, technology transfers, and creating new financing mechanisms that can allow all countries, especially in the developing Global South, the ability to take autonomous actions without sacrificing their development.

Emission intensity and carbon markets

India has significantly reduced its emission intensity and achieved a decrease of 36% between 2005 and 2020, exceeding the initial target of 20-25%. The Energy Conservation (Amendment) Act 2022 and the Carbon Credit Trading Scheme, introduced in 2023, have established a strong foundation featuring a carbon market. More than 100 million tonnes of emissions were saved through programs like "Perform Achieve and Trade" (PAT) covering all industrial sectors.

In addition to the policies and mechanisms, there is also a cultural transition occurring. Many industries are beginning to take sustainability seriously as a business principle, rather than a requirement of compliance. This cultural shift is crucial for fostering innovation and establishing sustainability as a shared responsibility rather than merely regulatory compliance. This shift is essential for stimulating innovation and developing sustainability that is perceived as a collective responsibility rather than that of the industry, as required or imposed externally.

ESG reporting and corporate responsibility

Following the introduction of Business Responsibility and Sustainability Reporting (BRSR), the Securities and Exchange Board of India (SEBI) mandated compliance for 1,000 listed firms. SEBI continues to refine ESG disclosure processes to balance transparency requirements with practical implementation considerations. Upon the introduction of Business Responsibility and Sustainability Reporting (BRSR), the Securities and Exchange Board of India (SEBI) mandated 1,000 listed firms in India to comply. Why was BRSR mandatory for listed firms? SEBI has noted the concern, and it is reviewing the ESG disclosure processes with a view to maintaining reasonable transparency and reasonable practical consideration. The end goal is to ensure effective and meaningful sustainability reporting across the corporate sector.

More importantly, there is an increasing level of awareness for businesses in India that ESG is not just a box-ticking exercise; they realise that this is a shift in how they think about long-term value creation and that purpose should go alongside profit. Businesses that have adopted this mindset are finding new ways to engage customers, increase resilience, and support meaningful societal aims.

State-level initiatives: Gujarat leading the way

Gujarat has become a leader in renewable energy and has the highest installed capacity in India at 35,163.06 MW (as on April 2025). The state has a diversified energy mix that has its largest contributions from solar and wind. Gujarat has set up battery energy storage systems to attempt to provide industries continuous, clean power supply, which further illustrates its commitment towards sustainability and the sustainable development agenda.

Path forward: Strategies for achieving net zero

India is emerging as a hub for climate-tech innovation. India is also steadily becoming a fertile field for climate-tech entrepreneurs. A new wave of startups is emerging with innovative solutions in carbon capture, renewable energy storage, an electric mobility transition, upcycled waste, and climate intelligence. These innovations are addressing technology gaps while creating scalable solutions with global export potential. These are starting to close technology gaps in India and showcase promising, scalable, and exportable models of innovation to the world. From AI-powered emissions tracking to low-cost solar, there is an opportunity for India to become a global beachhead for climate solutions for emerging markets. With the right investments, regulatory frameworks, and support infrastructure, this ecosystem can flourish and allow India to export sustainable technologies while realising its own net-zero objectives.

The journey towards net-zero will be characterised by significant progress on some fronts and setbacks on others. Continuing investment in renewable energy production, permanent or fixed infrastructure development, and adaptable regulation will be vital. It is therefore critically important that a cooperative relationship exists between governments, industry, and civil society to facilitate a sustainable and just transition to a new energy system.

Key strategies include:

●  Strengthen Grid Infrastructure: Augment transmission and distribution systems to incorporate higher renewable energy inputs.

●  Invest in Energy Storage: Create large-scale storage capabilities to offset the intermittency of renewable energy sources.

●  Promoting Green Hydrogen: Promote the National Green Hydrogen Mission to make India a global producer and exporter of green hydrogen.

●  Strengthen ESG frameworks: Ensure strong and transparent ESG reporting, enhancing sustainable investment and corporate responsibility.

●  Emphasise Innovation: Establish an ecosystem for research and development around clean technologies that build a strong economy and environment alike.

A collaborative endeavour

India's desire for net-zero emissions by 2070 is demonstrated in its policy commitments, new infrastructure, and international actions. While there remain challenges, India's willingness to work in the collective to deal with its awareness, resources, and political context as a major player in the climate crisis is a notable position. By successfully integrating economic development with climate policy, India can establish a replicable model for sustainable development globally.

 Authored by Rajesh Patel, CEO, Snowkap