Decarbonization shapes a net zero economy. Know how!

Decarbonization can be achieved through a combination of changes in how we produce and use energy. At a high level, achieving decarbonization involves these fundamental steps - 

Shifting to clean energy

Replace carbon-intensive fossil fuels with renewable energy sources such as solar, wind, hydro, and biomass. This transition in the power sector is critical since energy production is the largest source of emissions (about 75% of India’s GHG emissions come from the energy sector). For example, expanding solar farms and wind parks across India reduces the need for coal-fired electricity.

Improving energy efficiency

Use energy smarter and waste less. This includes upgrading energy-efficient appliances and industrial equipment, better insulation in buildings, and optimizing processes in factories. Using less energy to achieve the same output directly cuts emissions. Energy efficiency is often the quickest, most cost-effective decarbonization measure.

Electrifying transportation and industry

Move towards electricity-based technologies (and ensure the electricity is clean). For instance, replacing petrol/diesel vehicles with electric vehicles (EVs) helps decarbonize transport. Similarly, using electric induction furnaces in industry instead of coal-fired boilers can cut emissions - provided the electricity comes from renewable sources. Industrial decarbonization also involves adopting innovative low-carbon processes for cement, steel, chemicals, and other heavy industries.

Innovating and adopting low-carbon technologies

Some emissions are hard to eliminate with current methods (like emissions from cement production or aviation). In such cases, innovation is key. This includes developing low-carbon hydrogen as a fuel for industry and transport, using carbon capture and storage (CCS) to trap CO₂ from factories or power plants, and embracing circular economy practices (like recycling and bio-based materials). Emerging solutions like green hydrogen (made from renewable energy) can directly replace fossil fuels in certain applications and significantly reduce carbon output.

Carbon sinks and offsets

In addition to reducing emissions, achieving full decarbonization may require removing CO₂ from the atmosphere. Protecting and expanding forests, which act as carbon sinks, is one natural way (India’s forests already absorb about 522 million tonnes of CO₂ annually, offsetting 22% of emissions). Other approaches include technological carbon removal. While the priority is always to cut emissions at the source, any unavoidable emissions can eventually be balanced by carbon offset projects or direct air capture technologies.

Decarbonization is gradual, requiring policy, industry, and consumer action to expand renewables, efficiency, electrification, and capture while sustaining India’s growth.

Achieving deep decarbonization calls for multiple strategies across different sectors. Here are some key strategies with examples of decarbonization in action - 

Transition to renewable energy

Accelerating renewable power is central to decarbonization, and India is moving fast. The Bhadla Solar Park in Rajasthan produces over 2.2 GW of solar power, helping replace coal-based electricity. National renewable capacity reached 209 GW by end of 2024 across solar, wind, hydro and more, a 15.8 percent jump from 2023. This rapid growth is lowering the grid’s carbon intensity. By 2030, India targets 500 GW of non-fossil capacity, a step that would dramatically decarbonize the energy sector.

Enhance energy efficiency

Using energy more efficiently reduces emissions and saves costs. A good example is India’s UJALA scheme. The distributed hundreds of millions of LED bulbs nationwide, reducing electricity use and avoiding an estimated 40 million tonnes of CO₂ each year by replacing inefficient bulbs. In industry, the Perform, Achieve and Trade program set efficiency targets for steel, cement, fertilizers and other heavy sectors, delivering energy savings equal to 31 million tonnes of CO₂ avoided in one cycle. Upgrading machinery, improving insulation, and recovering waste heat further contributes to decarbonization.

Electric mobility revolution

Decarbonizing transport is vital because oil-based vehicle fuels drive CO₂ and urban air pollution. India’s strategy backs electric mobility and cleaner fuels. Under FAME II, support now totals 14,028 electric buses and 24.79 lakh electric two-wheelers. Delhi and Mumbai are rapidly expanding e-bus fleets, lowering diesel use. Indian Railways’ network is over 99% electrified, nearing its full-electrification goal. The Delhi Metro runs mainly on electricity and sources a portion from solar via Rewa, offering a practical model for low-carbon urban transit.

Green hydrogen and low-carbon fuels

Low-carbon hydrogen is a game changer for heavy industry and long-distance transport such as shipping and aviation. Green hydrogen, made via renewable-powered electrolysis, can replace coal and gas in steelmaking, refineries and fertilizer production. India’s National Green Hydrogen Mission, launched in 2023, targets 5 million tonnes a year by 2030. This pathway can decarbonize steel by using hydrogen instead of coke in blast furnaces and can fuel future hydrogen cell vehicles. SATAT converts agricultural waste to biogas for vehicle fuel, cutting crop-burning, and diesel emissions.

Afforestation and carbon sinks

Expanding forests and ecosystems helps absorb CO₂. India’s efforts include large-scale tree planting and mangrove restoration. Forest and tree cover have inched up, supported by the Green India Mission and the National Afforestation Programme, which enhance carbon sinks. A flagship example is MISHTI (Mangrove Initiative for Shoreline Habitats & Tangible Incomes), which plans restoration of 540 km² of mangroves across coastal states. These nature-based solutions sequester carbon and deliver co-benefits such as biodiversity gains and climate resilience.

Industrial innovation (Industrial decarbonization)

Some industries are highly carbon intensive, including cement, steel, and chemicals. Decarbonization options include new processes such as electric arc furnaces, clinker substitution, carbon capture and utilization, and switching to lower carbon materials. For example, Dalmia Cement has used biomass and industrial wastes as kiln fuels, cutting CO₂. Steel can shift to green hydrogen-based direct reduction instead of coke. The Government of India is funding pilot projects in low-carbon steel and cement.

Integrated renewables, efficiency, electrification, green fuels, and carbon sinks let India decarbonize rapidly while meeting growth, jobs, and resilience goals.

Decarbonization works best with science-based targets and a clear, practical roadmap. Here’s how - 

Measure the baseline

Start by quantifying your carbon footprint. For organizations, calculate greenhouse gas emissions across Scope 1, 2, and 3 covering direct operations, purchased energy, and the supply chain. For India overall, rely on comprehensive national emissions inventories to set the baseline; for example, national emissions were about 2.6 billion tonnes CO₂e in 2019 excluding forestry. Accurate, consistent measurement underpins credible targets, interim milestones, practical planning, and transparent reporting.

Set clear, science-based targets 

With a clear baseline, set goals that align with climate science and map a path to net zero. Specify your net zero year and define interim milestones to stay on course. India, for example, has a national goal of net-zero by 2070 and a commitment to reduce the emissions intensity of its GDP by 45% by 2030 (from 2005 levels). Companies can align with the Science Based Targets initiative, which provides 1.5°C criteria and net zero guidance. Include near-term checkpoints, for example a 30 percent reduction by 2025 and 50 percent by 2030, to track progress.

Develop a roadmap and action plan

Once targets are set, create a decarbonization roadmap that explains how to get there. Outline measures such as switching to renewable power, improving efficiency, redesigning products, and investing in low carbon R&D. For businesses, this includes capex like installing rooftop solar, procuring renewables through PPAs, and adopting electric fleets, plus operational changes like optimizing logistics. Nationally, India’s Long-Term Low-Emission Development Strategy submitted to the UNFCCC sets sector pathways to a 2070 net zero goal across electricity, transport, buildings, industry, and forests.

Assign responsibilities and integrate into strategy 

Companies should embed decarbonization in corporate strategy, assign ownership to energy managers, supply chain heads and teams, and track emissions of KPIs with rigor like financial metrics. Nationally, designated bodies such as the Ministry of Power and the Ministry of New and Renewable Energy drive elements of India’s climate plan. A multi-stakeholder approach involving government, private sector, and civil society ensures that decarbonization goals are not isolated from targets but part of the broader development agenda.

Monitor, report, and revise

Transparency and accountability are crucial. Track emissions regularly and report publicly. Nationally, India files Biennial Update Reports and National Communications with updated inventories. Companies must disclose, under BRSR, emissions data. This monitoring shows whether plans are on track and where to course correctly. Keep the framework flexible so new technologies and rising ambition can be incorporated as they become feasible.

By following this kind of framework, businesses can create a “decarbonization roadmap” that aligns with global best practices and India’s climate goals. 

Starting to cut your company’s carbon emissions brings many practical benefits. Making your business greener is also a smart move. Some of the key benefits are - 

Cost savings and efficiency

Cutting emissions often means cutting waste and improving efficiency. Optimizing energy use or switching to cheaper renewable power saves utility costs. Installing energy efficient equipment or LED lighting lowers electricity bills; LEDs use about 75 percent less energy than old bulbs. Over time, solar on-site provides stable, low-cost power. Many firms report operational savings, with over half cutting emissions 10–40 percent with net cost savings.

Risk reduction and resilience

Decarbonizing helps companies manage risks. Reliance on fossil fuels exposes firms to volatile oil and coal prices and possible carbon taxes or penalties. Moving to clean energy and processing hedges against future carbon price shocks and supports early compliance. Carbon pricing already covers about 28 percent of global emissions, raising policy exposure. Climate change itself disrupts supply chains through extreme weather. Investors, insurers and financiers now assess climate risk, and decarbonizing can lower insurance costs or improve loan terms.

Competitive advantage and brand value

In today’s market, consumers, investors, and partners increasingly favor sustainable businesses. Companies with clear decarbonization commitments and green products attract eco-conscious customers and stand out from competitors. Starting early lets firms' phase in energy efficiency and new technologies, spread investments, and stay ahead of regulation. Deloitte reports 85 percent of CxOs increased sustainability investment, with revenue the most cited benefit. Using 100 percent renewable energy and offering low carbon products builds brand and loyalty, as multinationals ask suppliers to decarbonize.

Innovation and new opportunities

Focusing on decarbonization accelerates innovation. Companies redesign products and services to sustainable, unlocking new revenue. An automaker investing in EV technology can capture the expanding EV market. A chemical firm that pioneers a low carbon process can patent it or gain an edge. Decarbonization steers R&D toward battery technology, green hydrogen, and advanced materials, keeping firms at the frontier. Early adopters become providers of green solutions, turning decarbonization into opportunity.

Investor and stakeholder trust

Investors increasingly use ESG criteria to assess companies. A credible decarbonization plan signals future proofing and lowers perceived risk. Many large asset managers and banks have pledged to back net zero aligned firms. Talent, especially younger employees, prefers environmentally responsible employers. Decarbonization therefore helps attract investment and talent, two pillars of long-term success. Clear sustainability actions also maintain goodwill with regulators and the public, reducing reputational risk over time.

As the economy shifts, businesses that align with the low-carbon transition early will reap the most benefits, from financial gains to goodwill and resilience.

Decarbonization in India is not a side project; it is how we keep growth and livability on the same track. The path is already visible: more renewable power on the grid, cleaner transport in cities, smarter factories through industrial decarbonization, and early bets on low-carbon hydrogen. Policy is the engine; business is the gearbox, and citizens are the fuel. The prize is a sustainable energy future with healthier air, resilient jobs, and lower risk. What matters now is commitment and focus. Measure your footprint, set science-based targets, shift spending to efficiency and energy decarbonization, and share results. Start small, scale fast, and keep going.