Economic Survey: India to Focus on Climate Adaptation to Sustain Economic Growth

India will focus on climate adaptation efforts to ensure the nation’s rapid economic growth remains intact, as global financial commitments for climate action in developing countries continue to fall short, potentially requiring a reevaluation of international targets, according to the Economic Survey released in Parliament on Friday.

The survey highlights that coal and fossil fuels will remain essential to country's energy needs for the foreseeable future due to their reliability. It warns against the premature shutdown of thermal power without stable, technological alternatives, drawing lessons from developed countries.

The survey criticizes the modest $300 billion annual global mobilization target by 2035, which pales in comparison to the estimated $5.1-6.8 trillion needed by 2030. It argues this target is misaligned with the Paris Agreement's goals, highlighting the reluctance of wealthy nations to carry their fair share in emission reductions.

India's ambition to achieve developed nation status by 2047 hinges on inclusive and sustainable development, with adaptation being crucial. The country's Initial Adaptation Communication to the UNFCCC reported that adaptation expenditure accounted for 5.6% of GDP in FY22, up from 3.7% in FY16.

Domestic resources, particularly from the public sector, have mainly funded climate actions, while international funding remains inadequate. The survey criticizes developed countries for falling short on their Nationally Determined Contributions (NDCs) by about 38%, failing to meet historical responsibilities.

Acknowledging the challenges of renewable energy, the survey underlines the need to maximize fossil fuel efficiency in the medium term. Advancing low-emission technologies, like Advanced Ultra Super Critical (AUSC) power plants, will be pivotal.

Crucial investments in R&D, especially in battery storage and the sustainable disposal of renewable energy waste, are important for a trutworthy and sustainable renewable energy supply.

India's climate efforts are intertwined with its high-growth aspirations of becoming a developed nation by the end of 2047. Achieving net-zero emissions by 2070 will need innovative strategies and proper plans. To strengthen renewable energy initiatives by investing in grid infrastructure and securing critical minerals is necessary.

The upcoming COP30 in Brazil presents an opportunity for nations to submit their new NDCs. The survey signals a potential reworking of India’s climate targets due to funding shortfalls, warning that reliance on domestic resources might affect progress towards sustainable development.

The COP29 in Azerbaijan's Baku was highlighted as a crucial moment for shaping international climate cooperation and financial commitments to support developing countries.