Article 1: India’s next investment cycle will shape its carbon future 

Why in news: The UNEP’s warning on rising global temperatures has renewed attention on India’s development choices and the need to reduce emissions while expanding buildings, electricity networks and industrial capacity.

Key Details

• India’s development opportunity: Much of India’s future infrastructure is yet to be built. By adopting low-carbon technologies and energy-efficient designs from the beginning, India can avoid locking itself into high-emission systems and costly future upgrades.
• Energy-efficient buildings: India has introduced the Energy Conservation Building Code (ECBC), 2017, and newer standards for commercial and residential buildings. However, uneven implementation remains a concern. States should integrate these standards into building approvals, occupancy certificates and electricity connections.
• Power transmission and storage: Rapid renewable energy expansion requires stronger transmission networks and energy storage. Delays in transmission infrastructure can leave renewable capacity underused. Generation, transmission and storage must therefore be planned together to ensure reliable electricity supply.
• Decarbonising steel and cement: Green steel and carbon capture technologies still face cost and technical challenges. Governments can use green public procurement to create demand for lower-emission materials through competitive tenders based on emissions intensity rather than prescribing specific technologies.
• Financing the transition: High borrowing costs can make clean infrastructure less competitive. Credit guarantees, concessional loans and payment-security mechanisms can reduce financing barriers. However, public support should be carefully targeted to avoid transferring excessive financial risks to taxpayers.

Climate Change and India’s Development Choices

• The UN Environment Programme (UNEP) has warned that the world could cross the 1.5°C global warming threshold within the next few years.
• India faces pressure to accelerate decarbonisation while meeting its growing infrastructure and development needs.
• According to NITI Aayog, around 86% of India’s building stock expected in 2070 is yet to be built.
• India’s floor space may increase from 18 billion square metres in 2020 to 42 billion by 2070.
• Steel capacity is targeted to reach 300 million tonnes by 2030–31, while cement output is projected to rise to 660 million tonnes by 2030.
• These projections offer India an opportunity to embed low-carbon technologies and energy efficiency into new infrastructure.

Energy-Efficient Buildings and Regulatory Challenges

• India can avoid the inefficient building designs and expensive retrofits faced by many developed economies.
• The Energy Conservation Building Code (ECBC) 2017 has been notified by 27 States but legally incorporated in only 21, according to the passage.
• The Bureau of Energy Efficiency has introduced the Energy Conservation and Sustainable Building Code (ECSBC) 2024 for commercial buildings and Eco-Niwas Samhita (ENS) 2024 for residential buildings.
• The main challenge is the implementation of existing standards, rather than the lack of technical knowledge.
• States should integrate energy-efficiency requirements into building permits, occupancy certificates and grid connections.
• Strong enforcement can reduce energy consumption and prevent long-term dependence on inefficient infrastructure.

Renewable Energy and Power Transmission

• India has rapidly expanded renewable energy generation, but transmission infrastructure has not kept pace.
• The International Energy Agency (IEA) estimates that transmission bottlenecks have held back around 60 GW of renewable capacity.
• India plans approximately 590 GW of generation additions between 2023 and 2032, increasing the need for reliable transmission networks.
• Electrification of transport, cooling and industry will increase electricity demand.
• Transmission and energy storage must be developed alongside new generation capacity to ensure reliable power supply.
• Advance planning can reduce bottlenecks and improve the utilisation of renewable energy.

Decarbonising Steel and Cement Industries

• Steel and cement are difficult to decarbonise because their production processes are energy-intensive and emissions-heavy.
• Hydrogen-based green steel is not yet commercially viable at scale in India, while large-scale carbon capture in cement remains a longer-term option.
• Mandating specific technologies too early could increase costs and create stranded assets.
• Public agencies, including Indian Railways and the National Highways Authority of India, can create demand for low-emission steel and cement through public procurement.
• Competitive bidding based on emissions-intensity thresholds can encourage innovation without prescribing a particular production technology.
• These thresholds can gradually become stricter and align with the Carbon Credit Trading Scheme (CCTS).

Green Finance and Way Forward

• The IEA estimates that India’s cost of capital for grid-scale renewable energy is around 80% higher than in advanced economies.
• High financing costs can make otherwise viable clean-energy projects less attractive.
• Payment-security mechanisms, partial credit guarantees and concessional loans can reduce financing and payment risks.
• Public finance should be used carefully, particularly for technologies that remain unproven, to avoid transferring excessive risk to taxpayers.
• India should adopt mature energy-efficient technologies immediately while retaining flexibility for emerging technologies.
• Coordinate investment in buildings, power grids, storage and low-carbon industrial materials.
• Embed low-carbon standards in long-term infrastructure planning to avoid costly retrofits and reduce future emissions.

Conclusion

India can align economic growth with climate goals by embedding energy efficiency and low-carbon technologies into new infrastructure. Stronger building standards, modern transmission networks and green public procurement can reduce future emissions. Financial support should encourage viable clean technologies while limiting public risk. Where technologies remain uncertain, flexible policies can prevent costly mistakes. Decisions taken today will shape India’s emissions, competitiveness and energy security for decades.

Descriptive question:

India’s future infrastructure expansion presents both a challenge and an opportunity for climate action. Examine how India can integrate decarbonisation into buildings, power systems and heavy industries while maintaining economic growth. (150 wnords, 10 marks)