A New Era for Energy in India

India is at the forefront of a sustainable revolution, aligning its economic ambitions with clean energy, climate science, and policy-driven industrial transformation. The vision of Viksit Bharat (Developed India) serves as the north star, guiding the nation toward energy security, industrial innovation, and environmental responsibility.

In 2024, global investment in clean energy reached approximately $2 trillion, nearly double the $1 trillion allocated to fossil fuels. India has positioned itself as a key player in this transition, with investments in solar photovoltaic (PV) technology surpassing $500 billion in 2024—outpacing the combined investments in all other electricity generation technologies (IEA, 2024).

This remarkable growth is driven by strong government policies, industry-academia partnerships, and the convergence of climate science with industrial innovation. The challenge ahead is to balance development with decarbonization, ensuring that economic progress aligns with sustainability goals.

Setting the context : Fossil Fuel Investment vs. Subsidies: Understanding the Shift

Defining the Terms

Fossil Fuel Investment:

• Capital expenditures (capex) directed towards fossil fuel infrastructure, including oil and gas exploration, coal mines, refineries, and power plants.
• Funded primarily by private companies, institutional investors, and national energy firms.

Fossil Fuel Subsidies:

• Government financial support (direct or indirect) aimed at reducing fossil fuel production or consumption costs.
• Includes tax breaks, price controls, and direct funding to fossil fuel companies or consumers.

Global Energy Investment Trends (2018–2023)

The global energy landscape is undergoing a seismic shift, with clean energy investment surging past fossil fuel investment over the past five years.

🔹 In 2018, the world invested $1.1 trillion each in clean energy and fossil fuels—a level playing field.
🔹 By 2023, clean energy investment had skyrocketed to $1.7 trillion, outpacing fossil fuel investments ($1 trillion) by a wide margin.
🔹 Fossil fuel investment has stagnated, staying around $1 trillion since 2020, while clean energy has grown by 55% over the same period.

However, a contradiction persists—fossil fuel subsidies have increased, reaching $700 billion in 2023, up from $400 billion in 2018. Governments continue to support fossil fuels, despite the undeniable momentum toward renewables.

What This Means:

✔️ Capital is flowing into clean energy at unprecedented rates, signaling a long-term global transition.
✔️ Fossil fuel dependency is still supported by subsidies, slowing down the shift toward sustainable energy.
✔️ Redirecting fossil fuel subsidies into renewables could further accelerate the transition, making clean energy more accessible and cost-effective.

‍References:

• Clean Energy Investment: IEA World Energy Investment 2023, BloombergNEF Energy Transition Investment Trends 2023.
• Fossil Fuel Investment: IEA World Energy Investment 2023, BP Statistical Review of World Energy 2023.
• Fossil Fuel Subsidies: IMF Fossil Fuel Subsidies Report 2023, OECD Inventory of Fossil Fuel Subsidies 2023.

India’s Energy Investment Landscape: The Road to Viksit Bharat

India’s energy transition reflects its commitment to sustainable economic growth:

• Renewable Energy Investments: In 2023, India allocated approximately $68 billion to clean energy initiatives, marking a 40% increase from the 2016-2020 average (IEA, 2024).
• Fossil Fuel Investments: Despite the global move towards renewables, fossil fuel investments in India grew by 6%, reaching $33 billion in 2023.
• Fossil Fuel Subsidies: India provided subsidies amounting to INR 3.2 lakh crore ($39 billion) in 2023, covering fossil fuels and renewable energy (IISD, 2024).

Government Policies Driving Clean Energy & Air Pollution Mitigation

Key Initiatives:

1. National Electric Vehicle (EV) Policy
   • Target: 25% of all new vehicle registrations to be electric by 2024.
   • Incentives: INR 30,000 to INR 1.5 lakh per vehicle (Government of Delhi, 2023).
2. National Hydrogen Mission
   • Goal: 5 million metric tons of green hydrogen production by 2030 (MNRE, 2023).
3. Coal Plant Decommissioning
   • Target: 50 GW of coal-based power closure by 2030.
4. Afforestation & Carbon Sequestration
   • Expansion: Increase forest cover to 33% of India’s land area.
   • Investment: $6 billion allocated under CAMPA for afforestation projects.
5. Electrification of Railways
   • Net-zero emissions by 2030, with 100% railway electrification.
6. Industry-Academia Collaboration
   • National Centres for Climate Science and Renewable Energy Research are enabling innovation-driven industrial partnerships.

Establishing Forest Corridors: A Climate & Biodiversity Imperative

• Protecting Biodiversity: Green corridors ensure wildlife movement and habitat conservation.
• Carbon Sequestration: India’s Mid-Himalayan Watershed Development Project will sequester 828,016 tonnes of CO₂ over 20 years.
• Afforestation Drive: 220 million trees were planted in Uttar Pradesh in a single day in 2019, demonstrating India’s commitment to climate action.

Aligning Policy & Consumer Action for Long-Term Impact

Government Strategy

✔ Regulating Fuel Subsidies: Redirecting fossil fuel subsidies toward renewables.
✔ Investing in Infrastructure: Strengthening grid capacity and battery storage.
✔ Promoting Clean Transport: Expanding metro networks & EV incentives.

Consumer Adoption

✔ Shifting to EVs: Increased demand drives economies of scale.
✔ Using Public Transport: Metro & bus ridership reduces emissions.
✔ Rooftop Solar: Expanding solar systems for residential & commercial buildings.

Viksit Bharat Leading Global Sustainability

Viksit Bharat is not just a vision; it is an actionable blueprint for economic growth, climate resilience, and clean energy leadership. India’s investments in solar energy, electric mobility, green hydrogen, and carbon capture position it as a model for sustainable development.

With industry-academia partnerships, policy reforms, and climate science integration, India is leading the global sustainability movement—and showing the world that economic progress and environmental responsibility can go hand in hand.

References

1. International Energy Agency (IEA) – World Energy Investment 2024
2. BloombergNEF – Energy Transition Investment Trends 2024
3. International Monetary Fund (IMF) – Fossil Fuel Subsidies Report 2023
4. Ministry of Power, India – Energy Reports 2024
5. Delhi Pollution Control Committee (DPCC) – Air Quality Reports 2023
6. MNRE (Ministry of New and Renewable Energy, India) – National Hydrogen Mission 2023
7. Indian Railways Electrification Program – Indian Railways Annual Report 2024

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