New Delhi: India’s carbon dioxide emissions from the power sector dropped 1% year-on-year in the first half of 2025, marking only the second decline in nearly five decades, according to a report by the Centre for Research on Energy and Clean Air (CREA) for Carbon Brief.
The decline was driven by record additions of clean-energy capacity, unusually mild weather that reduced electricity demand, and a surge in hydropower output.
India added 25.1 GW of non-fossil capacity between January and June — a 69% jump from the previous record — enough to generate nearly 50 terawatt-hours (TWh) annually, CREA said. Despite a 9 TWh increase in overall power generation, fossil-fuel generation fell by 29 TWh.
The think tank attributed 65% of the decline in fossil generation to slower demand growth, 20% to faster clean-energy expansion, and 15% to higher hydropower output.
Lower-than-usual temperatures and 42% above-normal rainfall between March and May significantly reduced air-conditioning use, further easing demand.
Oil demand growth also stalled during the period, contributing to the overall emissions slowdown. However, emissions from steel and cement production rose sharply on the back of higher government infrastructure spending.
CREA noted that if clean-energy growth continues at the current pace and demand remains within projections, India’s power-sector emissions could peak before 2030 a significant milestone as the sector historically accounts for nearly half of India’s emissions growth.
India aims to install 500 GW of clean energy capacity by 2030 as part of its climate commitments.
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