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India may increase energy efficiency target for COP30

24 Sep 2025 GS 3 Environment
India may increase energy efficiency target for COP30 Click to view full image

Context:

India will submit its updated Nationally Determined Contributions (NDCs) around the commencement of the UN Climate Change Conference COP30 in Brazil on November 10, likely with an increased target for energy efficiency improvement.

The NDCs are renewable-energy adoption goals set by a country as part of being a signatory to the Paris Agreement – under which countries must regulate their fossil fuel consumption to keep the globe from heating 2 degrees Celsius , and as far as possible, 1.5 degrees Celsius above that in pre-industrial times.

As part of this, countries are required to update their NDCs every five years. India last updated its NDCs in 2022, when it committed to :

1.Reduce the emissions intensity of its GDP by 45% of 2005 levels by 2030.

  • This means less carbon per unit of GDP, not total emissions reduction.

2.Source half of its electric power capacity from non-fossil fuel sources by 2030.

  • Already achieved this by June 2023.

3. Create a carbon sink of at least two billion tonnes by 2030

Emissions intensity of the GDP refers to the amount of carbon emitted per unit of GDP and does not mean a reduction in net emissions. As of December 2023, India reported to the United Nations climate-governing body that the emissions intensity of its GDP had been reduced by 33% between 2005 and 2019.

Global context

  • Even if all countries meet their promises, the Earth may still warm by ~3°C by 2100 (Paris Agreement goal is 1.5–2°C).

  • Brazil (COP30 host) wants to review why countries are struggling to meet targets.

  • EU is debating a 2035 target (66–72% reduction vs 1990).

  • Australia updated its NDC (62–70% cut by 2035).

  • US left the Paris Agreement.

  • China’s position unclear.

India’s new initiatives

  • Joint Crediting Mechanism (JCM) with Japan: both countries co-invest in clean energy projects and share carbon credits. Talks ongoing with others.

  • India Carbon Market (by 2026): 13 major sectors will have mandatory emission targets. Companies doing better can sell “emission reduction certificates.”

Carbon Credit :

  • One carbon credit = permission to release 1 tonne of carbon dioxide (CO₂) into the air.

  • If you avoid or remove 1 tonne of CO₂ (like planting trees or making solar power), you earn 1 credit.

  • These credits can be bought and sold like money.

Why it matters

  • Companies that pollute too much can buy credits to make up for it.

  • Green projects (wind, solar, forest) earn money by selling credits.

  • It encourages the world to pollute less and invest in clean energy.



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