Understanding Climate Governance in India

The relationship between good governance and climate change policies in India has evolved to be dynamic and pivotal. As the country grapples with the dual paradigm of economic competition with other nations, along with the requisite balance of environmental sustainability, there are a few essentials that the nation needs to take care of.

Good governance is the efficient, transparent, and accountable management of public resources and policies to give the best experience to the citizens while protecting the environment they inhabit. Climate governance specifically amalgamates the institutional frameworks, processes, and policies through which the essential decisions related to climate are made.

Quite naturally, India’s response to the climate change phenomenon is highly dependent on its governance structure. It also highlights the necessity of cautiousness that the policy makers in India need to maintain while simultaneously balancing the nation’s economic growth.

India’s Climatic Commitments and its evolving policy making:

With a growing population of 1.46 billion people and trends like urbanization, industrialization India’s energy demand has witnessed a rapid spike. At the same time, India has also committed to a range of targets along with the goal of 500 GW of non-fossil capacity by 2030. These commitments have manifested in the form of initiatives like Panchamrit (five nectar) targets put forward at the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). This also includes the goal of achieving net-zero emissions by 2070, a deadline which is 20 years later than many developed nations, but highlights India's focus towards sustainable development strategies.

Now, these targets are not just deadlines but showcase India's arrival at the stage of the world’s fight against climate change, happening all over the world. It places India alongside other emerging economies like Brazil, South Africa, and China in the difficult situation of balancing economic development and environmental sustainability. However, coal continues to represent around 55% of India’s energy mix, which leads policymakers to take substantial decisions for achieving the energy transition in the coming decades.

But, at the same time India’s policy framework for handling climate change is anchored in a series of futuristic and comprehensive strategies and policies. The National Action Plan on Climate Change (NAPCC) serves as the cornerstone of these developments, guiding sector- specific policies and targets that promote renewable energy, energy efficiency, and ecological sustainability. This is supplemented by low per capita emissions with rising installations of solar and wind energy, along with policies like the National Green Hydrogen Mission. In fact, as of October 2024, India’s renewable energy generation has surpassed 200 GW, accounting for 46.3 percent of its total energy generation capacity, and is on track to achieve and potentially exceed its 2030 targets.

The Private Sector & its contributions:

Now, one of the primary sectors which can carve out the way for India’s governance trajectory for green transition is the private sector. Several major industrial names are leading this transformation, making huge investments in green energy based technologies.

Tata Power, a major electric power distribution company, has recently announced that it will be investing Rs. 1.2 lakh crores in Rajasthan’s renewables, while it also plans to set up an electric vehicle manufacturing unit in its Sanand plant. Reliance, which operates one of the world’s biggest refining complexes, has plans to invest Rs 75,000 crores in building a new energy ecosystem in India. Renewable landscape includes diverse players across segments, and Adani Green Energy remains a major renewable energy developer. Additionally, Mahindra and JSW remain major players in India’s plan of expansion in renewable energy and are investing a lot.  A few home-grown brands, such as Vida (Hero Moto Corp) has also entered the renewable energy sector with innovative concepts like battery subscription plans.

Meanwhile….

The Reserve Bank of India had estimated in 2023 that India needed 2.5% of its GDP by 2030 to meet its green financing needs. This accounts for hundreds of billions of dollars in investment needs, creating a huge financial burden. Along with this, India still relies on grid connectivity for its energy needs, which continues to pose a challenge in managing intermittent renewable energy sources while maintaining a stable power supply. Additionally, the distribution companies (DISCOMS) suffer from huge transmission and distribution costs, which contribute to financial losses, creating a cycle of over-dependence on cheaper coal power that undermines the green transition efforts.

This is supplemented by the fact that climate action is rarely seen to be featured in any political campaign or manifesto, and is often neglected against any other socio-political issue. This is evident by the sheer state of affairs observed in the state or general elections where agendas are dominated by immediate issues like unemployment, inflation, or cash transfers. This disconnect between the urgency of the climatic issues and their political importance creates a broader challenge for India’s response to climate change.

India faces multiple interconnected challenges that can be addressed by the just transition approach of India’s governance. This approach includes protecting the marginalised strata of society who continue to bear the disproportionate cost of climate changes while also protecting their cultural and community rights. The concept of just transition should be followed by the government, wherein they should ensure that alongside other commitments communities that depend on traditional sources like coal and biomass should have alternatives during this transition period.

Conclusion: The Way Forward:

The interconnectedness of governance and climate change is complex but essential for achieving the Sustainable Development Goal 2030. A robust governance framework and its institutional measures are needed for India’s green transition and to coordinate the multistakeholder efforts. Alignment of government policies with public aspirations and private capabilities is a must for ensuring the transition benefits all sections of society. This will require a streamlined set of efforts from the government, citizens, academia, private players, and foreign investors.

The mission for carbon neutrality till 2070 highlights not just an environmental imperative but also a governance obstacle that will test India’s ability to balance growth in an emerging economy and sustainable development. On its path ahead, India needs to put itself as a global leader and also ensure that it makes its governance structure in a way that can deliver on ambitious promises without compromising the welfare of its people. The ultimate act of crafting governance frameworks that work in tandem with climate issues will eventually decide India’s fate in achieving its climate goals.