A surge in clean energy has kept carbon dioxide (CO2) emissions in check across India’s power sector, with no growth from the first half of 2024 to the same period in 2026.
Carbon dioxide emissions from India's power sector remained stable between the first half of 2024 and the first half of 2026, held in check by a surge in clean energy generation. This marks the first period in over 50 years where coal power registered no growth over a two-year timespan despite rising overall electricity demand. Concurrently, national consumption of both oil and gas declined for two consecutive years, softening the impact of the Hormuz crisis.
However, an analysis published by Carbon Brief indicates that India's total emissions rose 3.7% year-on-year during the first half of 2026, driven by increases in the steel, cement, and other industrial sectors. Power-sector emissions flatlined at 2024 levels, following a 2.2% drop in the first half of 2025 and a 2.3% increase during the first half of 2026. Clean energy sources accommodated the entire 7% expansion in electricity demand over the two-year window, adding 63 terawatt-hours, an amount equivalent to Switzerland's total consumption.
Solar installations expanded by 77 gigawatts over the two-year period, satisfying 60% of overall demand growth. Meanwhile, fossil-fuel generation stagnated, though developers added 8.5 gigawatts of new coal capacity, resulting in reduced operating hours and higher costs for electricity consumers. Emissions originating from oil and gas dropped 7% year-on-year, continuing a downward trajectory that began in 2025 despite greater demand for road transport fuels.
Emissions from steel and cement climbed 8% year-on-year, accounting for 23% of India's total carbon dioxide output in the first half of 2026. Maintaining the current pace of clean-energy growth will require upgrades to the electricity grid, rapid deployment of energy storage, and greater flexibility from coal-fired power plants. At the same time, the fossil-fuel industry continues to pursue major investments, including new coal power plants, coal-to-chemicals conversion projects, and expanded domestic coking coal production.
Originally reported by Carbon Brief on Sep 17, 2026.
