India May Raise Energy Efficiency Target at COP30

India will submit its updated Nationally Determined Contributions (NDCs) at COP30 (Belém, Brazil, November 2025).

About Nationally Determined Contributions (NDCs)

• Definition: NDCs are country-level pledges made under the Paris Agreement (2015) to reduce greenhouse gas emissions and regulate fossil fuel consumption in order to limit global warming to well below 2°C, and preferably to 1.5°C, above pre-industrial levels.
• Update Rule: Countries are required to update their NDCs every five years.

India and NDC

• India’s Commitment: As a signatory to the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, India submitted its First NDC in 2015 and Updated NDC in 2022.
• Panchamrit: At COP26 (Glasgow, UK), India announced five key elements, Panchamrit, to intensify its climate action. These form the basis of India’s updated NDC .
  • 500 GW non-fossil energy capacity by 2030
  • 50% of total energy requirements from renewables by 2030
  • 45% reduction in emissions intensity of GDP by 2030 (from 2005 levels)
  • 1 billion tonnes reduction in total projected carbon emissions by 2030
  • Net-zero carbon emissions by 2070
    • India’s NDC does not bind it to any sector specific mitigation obligation or action.
• India’s Last Update (2022):
  • To reduce the emissions intensity of Gross Domestic Product (GDP) by 45% of 2005 levels by 2030.
  • To source 50% of cumulative electric power capacity from non-fossil fuel sources by 2030.
  • To create a carbon sink of 2–3 billion tonnes of carbon dioxide equivalent through afforestation and reforestation by 2030.
• Progress So Far:
• • Between 2005 and 2019, India reduced the emissions intensity of GDP by 33%.
  • As of June 2025, India reported that 50% of its cumulative electric power capacity was already sourced from non-fossil fuel sources, achieving this target five years ahead of schedule.

India’s Expected NDC 3.0 (for 2035)

• The third NDC update (NDC 3.0) is expected to include commitments up to the year 2035.
• Likely features include:
• • Greater emphasis on energy efficiency, including more stringent standards in industry, transport, appliances, and buildings.
  • Expansion of the Perform, Achieve and Trade (PAT) scheme, which encourages industries to adopt energy-efficient practices.
  • Operationalisation of the India Carbon Market by 2026, which will assign mandatory emission-intensity targets to 13 sectors and allow trading of emission reduction certificates.
  • Integration of Mission LiFE (Lifestyle for Environment) to encourage sustainable consumption and demand-side reductions.

Global Context

• European Union (EU): Proposed a 66–72% emission reduction by 2035 compared to 1990 levels, though the decision has been delayed due to opposition from France and Germany.
• Australia: Announced it will aim for a 62–70% reduction in emissions by 2035 compared to 2005 levels.
• United States of America: Its trajectory remains uncertain due to its earlier withdrawal from the Paris Agreement.
• China: Has not yet announced its 2035 commitments.
  • Despite these pledges, the United Nations estimates that even if all current NDCs are fully achieved, the world is still on course for approximately 3°C of warming by 2100.
• Finance and Bilateral Mechanisms: India has signed a Joint Crediting Mechanism (JCM) with Japan to facilitate bilateral clean energy projects and share carbon credits.
  • Similar agreements are under discussion with other countries.
  • Challenges persist as developed nations withhold adequate climate finance, while developing countries like India remain dependent on fossil fuels for growth.

Significance of Raising Energy Efficiency Target

• Cost-Effective Emission Reduction: Energy efficiency measures are often less expensive than expanding renewable energy capacity.
• Energy Security: Greater efficiency reduces India’s dependence on fossil fuel imports.
• Economic Co-Benefits: Energy efficiency lowers electricity bills, supports competitiveness of micro, small and medium enterprises (MSMEs), and improves affordability for households.
• Climate Diplomacy: Raising the target would strengthen India’s leadership position in international climate negotiations at COP30.