Assessing enhanced NDC and climate compatible development pathways for India

Abstract

India has indicated a strong commitment towards mitigating climate change not only through its Nationally Determined Contribution (NDC) but also reiterating on raising its climate ambitions and committing towards Net Zero (NZ) in Glasgow. This study couples the bottom-up technology-rich energy system model with a macroeconomic computable general equilibrium model to assess the socio-technical, financial and macro-economic implications of India's energy sector transformation away from coal. In order to move towards its NZ target by 2070, India will need to restructure its coal-based power and industry sector. This study provides insights on the challenges (stranded assets, loss of revenue) as well as the opportunities from energy sector restructuring (job creation, energy import reduction, improvement of local environment and human health).