India Records Rare Power Sector Emissions Drop, Driven by Clean Energy

India’s power sector has achieved a rare milestone, slashing carbon dioxide emissions by 1% year-on-year in the first half of 2025, marking only the second decline in nearly five decades, according to a new report. This significant drop, driven by record-breaking clean energy additions and lower electricity demand, signals a potential turning point in India’s fight against climate change.

The findings, detailed in an analysis by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief, highlight the impact of robust clean energy growth and favorable weather conditions. The Helsinki-based think tank attributed 65% of the reduction in fossil fuel generation to slower demand growth, 20% to accelerated clean energy expansion, and 15% to a surge in hydropower output.

India’s clean energy sector saw an unprecedented boom, adding 25.1 gigawatts (GW) of non-fossil capacity from January to June—a 69% increase over the previous record. This new capacity can generate nearly 50 terawatt hours (TWh) of electricity annually, significantly reducing reliance on fossil fuels. Meanwhile, unusually mild weather, including 42% above-normal rainfall between March and May, curbed air conditioning use, further lowering electricity demand. Hydropower output also spiked, contributing to the emissions decline.

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According to CREA’s analysis, based on official data from India’s ministries and government institutes, fossil fuel generation dropped by 29 TWh, even as total power generation rose by 9 TWh. The report also noted a stall in oil demand growth, which further slowed emissions. However, emissions from steel and cement production rose sharply due to increased government infrastructure spending, offsetting some of the gains.

Looking ahead, CREA suggests that India’s power sector emissions could peak before 2030 if clean energy growth continues at this pace and electricity demand remains within projections. The power sector, which has historically driven half of India’s emissions growth, is at a critical juncture. India aims to add 500 GW of clean energy by 2030, a target that could reshape its environmental footprint and position it as a global leader in sustainable energy.

This rare emissions drop underscores the transformative potential of clean energy and strategic climate policies, offering hope that India can achieve its ambitious environmental goals while meeting growing energy needs.

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