India’s Most Significant Climate Policies in 2023

Increasing Renewable Energy Capacity and Production Linked Incentive (PLI) Scheme on High-Efficiency Solar PV Modules Boosts Climate Mitigation Potential

India is the third largest carbon emitter globally, albeit with a lower per capita contribution. The country is also one of the largest and fastest growing economies, scaling up its industrial activities, primarily driven by fossil fuel (coal, oil, and gas) – a significant source of carbon emissions. Simultaneously, the country has also been stepping up measures to lower its emissions by initiating several schemes, programs, and policies, deploying its eight core climate missions, one of them being solar missions targeting installed renewable/clean energy capacity of 500 GW by 2030.

India’s commitment to UNFCCC during COPs has been focused on its pledge to cut carbon emissions by 50 percent by 2030, deploy an installed capacity of 500 GW in renewables, and reach net neutrality by 2070 or earlier. India is following ‘a long-term, low-carbon strategy’ to reach these goals, balancing its economic growth with ecological protection.

2023 in India was a year of numerous climate action measures aimed at cutting carbon emissions by scaling up renewable energy sources, including strengthening energy efficiency, electric vehicle expansion, and behavioral change measures. Collaboration of the government with businesses and community organizations, in particular, has seen a massive ramp-up in outreach with large businesses bringing in large financial capital and setting up large renewable projects. It is estimated that within 3 to 5 years, India will potentially surpass the world’s largest renewable energy-producing countries by a wide margin.

In 2023, India jumped to the rank of the 4th country globally for renewable energy. India’s installed solar energy capacity has increased more than 30 times in the last nine years. Currently, it stands at 180 GW (wind power: 45 GW, solar power: 72 GW, bio-mass/ co-generation: 4 GW,  small hydropower: 5 GW, energy waste: 1 GW, and large hydropower: 47 GW) as of November 2023.

Central Electricity Authority (CEA), a government agency, data shows that non-fossil fuel-based power – including hydro, nuclear, and renewable energy – accounted for 25.3 percent of India’s total power generation during the fiscal year ending March 2023, up from 24.6 percent three years earlier. (

In order to further strengthen its installed capacities of renewable energy portfolio, the Indian government has since allowed 100 percent foreign direct investment (FDI) under automatic route for generation and distribution projects under the Electricity Act. Further, the Ministry of New and Renewable Energy has begun implementing the  Production Linked Incentive (PLI) Scheme aimed at achieving the manufacturing capacity of the giga-watt (GW) scale in high-efficiency solar PV modules. Renewable energy prices have dropped almost by 90 percent over a decade, expanding the usage of renewable energy by the poor and lower middle class.


This Post was submitted by Climate Scorecard India Country Manager Pooran Chandra Pandey.


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