Synopsis : India’s renewable energy leadership says domestic industries are adopting multiple decarbonisation pathways to align with Europe’s carbon tax rules while strengthening clean energy adoption. Despite the US exit from the International Solar Alliance, India remains confident about the alliance’s global expansion and solar growth.
Indian industry is actively exploring diverse strategies to comply with the European Union’s carbon taxation norms, according to Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE). Speaking in an interview, Sarangi highlighted that decarbonisation is not only essential for accessing European markets but also critical for India’s long-term sustainability goals.
With the rapid expansion of data centres, power demand is expected to rise sharply in the coming years. The Central Electricity Authority estimates that data centres alone could require nearly 12 GW of power by 2030. While there is currently no mandate for data centres to operate solely on renewable energy, many operators prefer a mix of conventional and renewable sources initially, gradually shifting towards greener power due to cost efficiency and decarbonisation benefits.
International Solar Alliance Remains Strong
Sarangi dismissed concerns around the future of the International Solar Alliance (ISA) following the US decision to withdraw. He said the alliance’s focus on high-sunshine regions such as the Middle East and Africa ensures its long-term relevance. India and like-minded nations are committed to expanding solar deployment in regions where renewable penetration remains low, particularly across Africa.
Critical Minerals and Manufacturing Security
On the issue of critical minerals, Sarangi clarified that renewable energy manufacturing is not overly dependent on scarce materials used in advanced technologies. Key inputs like crystalline polysilicon are available globally, even if at slightly higher costs, reducing the risk of supply bottlenecks affecting domestic manufacturing growth.
Decarbonisation Pathways Across Industries
India’s industries are adopting multiple decarbonisation models depending on sector requirements. Steelmakers are experimenting with electric arc furnaces and green hydrogen to lower emissions. Companies like JSW are investing in hydrogen production capacity to directly integrate clean fuel into steel manufacturing processes.
Similarly, aluminium producers are increasing their dependence on renewable electricity to reduce carbon intensity, while cement manufacturers are exploring alternative fuels and energy-efficient technologies. These initiatives also align with India’s expanding Emission Trading System (ETS) framework, which now includes additional sectors.
Sarangi stressed that decarbonisation is inevitable for hard-to-abate industries, especially as global carbon regulations tighten. The shift towards cleaner production methods not only improves export competitiveness but also strengthens India’s environmental commitments and energy security.
Disclaimer : This article is for informational purposes only and should not be considered financial, investment, or policy advice. Views are based on publicly available statements and interviews.
