India: 2026 Emissions Forecast

India’s total GHG emissions are projected to rise modestly by 1-1.5% in 2026, reaching approximately 3.25-3.27 billion tonnes CO₂e from 2025 levels, driven by continued economic growth but moderated by aggressive renewable energy expansion and efficiency gains.

Total Emissions Projection

India’s fossil fuel CO₂ emissions grew by just 1.4% in 2025 to 3.22 billion tonnes, a slowdown from 4% in 2024, credits to renewables surpassing 50% of installed capacity (267 GW non-fossil by end-2025), and reduced coal reliance. Including all GHGs and LULUCF sinks (which offset ~22%), net emissions remain lower, but absolute levels will edge up in 2026 amid GDP growth of ~6-7%. Expect similar deceleration to 1-1.5% growth, as solar/wind additions exceed 50 GW annually and policies like viability gap funding for battery storage curb fossil demand.

Sectoral Breakdown

Major sectors show varied trends, with energy dominating emissions at ~76% but slowing the fastest due to clean energy shifts.

Sector 2025 Est. Share (%) Projected 2026 Change Key Drivers
Energy (power, coal) 75-76  +0.5% Renewables at 267 GW (+23% YoY), coal share down to ~64%; 44.5 GW RE added in 2025 
Transport 8-13  +2-3% EV push and low-carbon policies, but rising vehicle demand offsets gains 
Agriculture 14  Stable (+0-1%) Methane from livestock/crops steady; minor efficiency from better monsoons ​
Industry (IPPU: cement, steel, textiles) 13-24 (mining/metals 13%, cement 7%)​ +1.5-2% GHG intensity targets for aluminium/cement; textiles minor (~1-2% via energy use), circular policies emerging 
Waste 2.5 +1% Marginal rise with urbanization

LULUCF sinks grow ~7-12% annually, absorbing ~22% of emissions.

Reasons for Estimates

Projections draw on Global Carbon Project data showing a 2025 slowdown due to renewables (50%+ capacity) and monsoons curbing power demand, extrapolated to 2026 using MNRE trends (RE >250 GW by 2027). Energy efficiency (PAT scheme) and sectoral targets (e.g., MoEFCC for cement/aluminium) limit industry rises; agriculture is stable per BUR-4. No major 2026 policy reversals anticipated, though coal inertia persists.

Alignment with Paris Goals

India’s NDC targets a 45% reduction in emissions intensity by 2030 (from 2005) and 500 GW of non-fossil capacity; on track to exceed the intensity goal (already ~36% down) with current trajectory. A 1-1.5% absolute rise supports this, as GDP growth outpaces emissions, but challenges net-zero by 2070 given coal dominance (~70% power mix). No 50% absolute reduction pledged by 2030/2035 (inconsistent with NDC); 2026 trends aid peaking pre-2030 if RE hits 60% share, enabling LT-LEDS transitions.

This Post was submitted by Climate Scorecard India Country Manager, Ankita Padelkar.

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