PTI
New Delhi
India’s carbon dioxide emissions grew in 2025 at the slowest rate in more than two decades, according to an analysis by the Centre for Research on Energy and Clean Air (CREA).
The analysis also pointed out that emissions in the power sector fell by 3.8% as record clean-energy growth combined with weak electricity demand. Also, consumption of imported coal at power plants fell by 20% in 2025.
“India’s carbon dioxide (CO2) emissions grew by 0.5% in the second half of 2025 and by just 0.7% in the year as a whole, the slowest rate in more than two decades.”
“This is a sharp slowdown from the growth of 4-11% in the preceding four years and marks the lowest rate of increase since 2001, excluding the impact of Covid in 2020,” said the analysis on India’s CO2 emissions from fossil fuels and cement, based on official data for fuel use, industrial production and power output.
“This is the second in a new series of half-yearly analysis on India’s CO2 emissions from fossil fuels and cement, based on official data for fuel use, industrial production and power output,” it added.
According to Lauri Myllyvirta, lead analyst at CREA, the analysis shows that India’s power sector is poised for a potential inflection point, where clean-energy additions can meet or exceed the growth in electricity demand.
If clean energy matches expectations, allowing this inflection point to take place, then coal-fired power output and the associated CO2 emissions would see sustained falls.
“In addition, oil demand is falling in the petrochemical industry and is expected to slow down in the steel and cement sectors. Despite these trends, which could signal a lasting slowdown in emissions, India is planning major expansions in its capacity for coal power, petrochemicals and coal-based steel.”
“The path of India’s CO2 emissions over the coming years depends on how it resolves these apparent contradictions regarding its future demand for fossil fuels,” it said.
The report noted that while India’s carbon emissions have been growing rapidly for decades, with annual increases averaging 4.9% per year since 1990 and 4-11% during 2021-24, the 0.7% rise in 2025 was the slowest since 2001, excluding the impact of COVID in 2020.
The fall in power-sector emissions is particularly notable, given it was the largest driver of emissions increases in 2021-2023, responsible for half of the total growth.
Across the sectors, the reductions and weak growth in fossil-fuel consumption eased India’s vulnerability to the recent price and supply disruptions taking place in the wake of the attacks on Iran by the US and Israel, as well as Iran’s subsequent retaliation.
