As a renewable energy leader, India must balance its ambitions with addressing climate inequality and increasing adaptation funding
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As COP29 concluded in Baku, the global climate community once again faced the reality of unmet expectations. The US$300 billion pledge by 2035 was widely criticised as insufficient, particularly by India, which described the agreement as an “optical illusion”. This sentiment underscores India’s dual role: While the nation stands as a global leader in renewable energy and climate diplomacy, it also grapples with systemic challenges that hinder equitable climate action. India’s assertive stance reflects its ambition to position itself as both a torchbearer for the Global South and a pragmatic voice advocating for balanced solutions.
India’s assertive stance reflects its ambition to position itself as both a torchbearer for the Global South and a pragmatic voice advocating for balanced solutions.
India’s renewable energy achievements are undeniably remarkable. Over the past decade, the country has expanded its renewable energy capacity by 165 percent, reaching 203.18 GW (gigawatts) by October 2024. However, these accomplishments come with significant challenges, such as the high cost of technology, difficulties in land acquisition, and the need for robust grid infrastructure. Addressing these barriers is crucial to maintaining momentum and ensuring that renewable energy projects are both economically viable and socially inclusive.
The solar sector exemplifies India’s progress and hurdles. Under the ambitious “Panchamrit” goals from COP26, solar capacity rose by 27.9 percent in a single year, from 72.02 GW in 2023 to 92.12 GW in 2024. Despite this growth, India’s vast solar potential of 748 GWp (gigawatt peak) remains largely untapped due to policy inconsistencies and storage inefficiencies. Similarly, wind energy, which reached 47.72 GW in 2024, faces issues like site-specific limitations owing to geographical limitations and environmental concerns. While large hydro and nuclear energy continue to diversify India’s energy mix, their social and ecological impacts necessitate a careful, balanced approach.
The transition to a low-carbon economy demands greater investments in research, innovation and skill development to overcome technological and financial bottlenecks, as highlighted in India’s efforts towards a green hydrogen future.
On the global stage, India’s achievements in renewable energy have earned it recognition as a climate leader, ranking fourth in renewable energy capacity, fourth in wind power, and fifth in solar power. Yet, India’s leadership comes with responsibilities. Rapid renewable energy deployment has occasionally led to biodiversity loss and community displacement, emphasising the need for policies that prioritise both environmental conservation and social equity. Moreover, the transition to a low-carbon economy demands greater investments in research, innovation and skill development to overcome technological and financial bottlenecks, as highlighted in India’s efforts towards a green hydrogen future.
India’s advocacy for the Global South remains a cornerstone of its climate diplomacy. At COP29, the nation championed fair climate finance, calling for substantial support being given to developing countries and emphasising the removal of barriers like Intellectual Property Rights (IPR) on green technologies.
However, while India has been a strong voice on mitigation finance and energy transition investments, it has been less vocal on adaptation finance. Adaptation finance, which supports climate-vulnerable nations in building resilience against extreme weather, rising sea levels and agricultural disruptions, remains under-funded globally.
the International Finance Corporation notes that only 10 percent of allocated climate funds in India are dedicated to adaptation efforts, underscoring the need for a more balanced approach.
Strengthening its engagement in this area would reinforce its leadership in the Global South and enhance its credibility in shaping a truly inclusive global climate agenda. A report by the Climate Policy Initiative highlights that the primary focus of climate finance in India is on mitigation, with adaptation gaining slow traction. Additionally, the International Finance Corporation notes that only 10 percent of allocated climate funds in India are dedicated to adaptation efforts, underscoring the need for a more balanced approach.
Addressing this imbalance by strengthening engagement in adaptation finance would reinforce India's leadership in the Global South and enhance its credibility in shaping a truly inclusive climate agenda.
Moreover, this advocacy must translate into actionable frameworks, which ensure that climate finance is accessible, transparent, and effective. India’s criticism of unilateral trade measures that shift costs to developing nations highlights the broader challenge of navigating geopolitical tensions while advancing a cooperative climate agenda.
Strategic alliances bolster India’s role as a unifying force for the Global South. Initiatives like the Leadership Group for Industry Transition (LeadIT), co-chaired by India and Sweden, aim to decarbonise heavy industries through collaborative efforts. Similarly, the Coalition for Disaster Resilient Infrastructure (CDRI) focuses on integrating climate resilience into national adaptation strategies. At COP29, CDRI’s "Infrastructure for Resilient Island States" initiative provided US$8 million to support 12 projects across 17 Small Island Developing States. While these initiatives underscore India’s commitment to global collaboration, scaling them to address the magnitude of climate challenges remains imperative.
The implementation of just transition policies that ensure alternative livelihoods and skill development for affected workers is paramount.
However, India’s dual identity as both a climate leader and a developing nation presents unique challenges. Domestically, the transition to green energy must address socio-economic disparities, especially in regions heavily reliant on fossil fuel industries. The implementation of just transition policies that ensure alternative livelihoods and skill development for affected workers is paramount. Globally, India must navigate tensions between ambitious climate goals and equitable resource distribution, especially considering the divergent priorities between developed and developing nations.
India’s proactive stance at COP29 highlights both its strengths and limitations. The country’s ability to lead by example, through its renewable energy successes and strategic partnerships, is undeniable. However, the path to a just and sustainable future requires more than ambitious goals and impressive statistics. It demands a critical evaluation of existing policies, greater inclusivity in decision-making, and a commitment to addressing socio-economic disparities within and beyond national borders. While India has effectively championed mitigation finance, a stronger push for adaptation finance could enhance its credibility as a comprehensive climate leader, particularly for the most vulnerable nations.
As the climate crisis escalates, India’s leadership will be tested by its capacity to balance growth with equity, ambition with pragmatism, and domestic priorities with global responsibilities. By embracing these challenges, India can transform its climate vision from an aspirational narrative into a tangible reality, setting a precedent for the Global South and the world at large. In this transformative journey, COP29 serves not as a conclusion but as a pivotal chapter in the quest for a truly equitable and sustainable global climate framework.
Manish Vaid is a Junior Fellow at the Observer Research Foundation
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Manish Vaid is a Junior Fellow at ORF. His research focuses on energy issues, geopolitics, crossborder energy and regional trade (including FTAs), climate change, migration, ...
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