New Delhi, April 22 -- India's climate trajectory, on this Earth Day, reveals an increasingly uncomfortable truth-its twin identities as a vocal global advocate for sustainability and one of the world's largest coal consumers continue to collide. Even as the government reiterates its commitment to achieving net-zero carbon emissions by 2070 and installing 500 GW of non-fossil energy capacity by 2030, domestic coal production and usage are hitting record highs. In 2024, coal-fired power plants accounted for over 70% of India's electricity generation, and the government has approved new coal mine auctions and thermal power expansions to meet the energy demand surge. This aggressive return to coal comes at a time when India has also been hailed internationally for its leadership in climate diplomacy through initiatives like the International Solar Alliance and the LiFE (Lifestyle for Environment) mission. The paradox is hard to miss-while India seeks to transition to a clean energy future, the road it continues to walk on is paved with coal. What explains this dissonance, and can it be reconciled without compromising either development goals or environmental obligations?
The reasons are deeply structural and politically complex. India's developmental priorities demand affordable, accessible, and uninterrupted energy, particularly for its rapidly urbanising population, growing manufacturing sector, and expanding digital infrastructure. Renewable energy, while expanding, still cannot guarantee consistent baseload power due to its intermittency and the lack of adequate energy storage solutions. Batteries and storage technologies remain prohibitively expensive, and large-scale deployment is still years away from being economically viable. Coal, meanwhile, is abundantly available domestically, supports millions of jobs, and provides energy security in a volatile global energy market. Many Indian states-especially in central and eastern India-depend heavily on coal royalties for revenue and employment. For instance, states like Chhattisgarh and Jharkhand cannot simply turn away from coal without facing large-scale economic and social distress. Moreover, many public and private banks continue to extend financing to thermal power projects due to their perceived reliability and established regulatory frameworks. Compounding this is the chronic underperformance of power distribution companies (discoms), which struggle to integrate and pay for renewable energy due to financial stress and legacy inefficiencies. In essence, coal remains the backbone of a power ecosystem built for resilience over reform. Yet, as the climate crisis intensifies, the cost of this dependence is becoming unsustainable. India has experienced back-to-back years of extreme heatwaves, erratic monsoon patterns, and devastating floods, all of which have disproportionate impacts on its poorest citizens-those least responsible for emissions. In states like Punjab, Haryana, and Assam, climate-linked disruptions are no longer hypothetical warnings but lived realities. The pressure to decarbonize is real, but so is the need for a "just transition"-one that neither imposes unbearable burdens on the poor nor sacrifices the environment at the altar of energy security. India's current approach appears caught in a loop-talking green internationally while burning black domestically. What is required now is not just balancing rhetoric and reality, but a bold structural shift. This includes accelerating investments in grid modernization, decentralised solar and wind energy systems, indigenous battery technology development, and state-level climate action plans that prioritise workers' retraining and alternative livelihoods in coal-dependent regions. It also means actively holding developed nations accountable for climate finance pledges. Despite repeated promises, India receives a fraction of the $100 billion annual fund committed under the Paris Agreement, hindering its ability to fund large-scale clean transitions without sacrificing growth.
As the country reflects on its Earth Day commitments, it must acknowledge that the true test of its climate leadership lies not in summits or speeches, but in how it solves this coal dilemma at home. A future built on green energy is not just a climate imperative-it is also an economic opportunity. From green hydrogen to EV manufacturing, clean technology could offer India its next industrial leap, if backed by policy clarity, long-term financing, and public-private partnerships. But the credibility of India's climate commitments hinges on visible and measurable actions-retiring outdated coal plants, creating legally binding emission caps, mandating state-level renewable targets, and making climate adaptation part of mainstream governance. Otherwise, the current dual-track approach will only deepen the contradiction. India's energy story doesn't need to be written in black or white-it can be one of thoughtful transition. But for that to happen, the country must move beyond managing the contradiction and start resolving it, with clarity of purpose and consistency of policy. On Earth Day 2025, the time for symbolic pledges is over; what India needs now is a roadmap that is both green and grounded in reality.
Published by HT Digital Content Services with permission from Millennium Post.