India’s Climate Transition Must Balance Growth And Emissions, Says Study

WASHINGTON, DC – India’s climate transition must balance cutting emissions with economic growth, according to new research by the Observer Research Foundation, which calls for a rethink of global climate strategies that focus too narrowly on decarbonization.

In a paper by ORF President Samir Saran and former NITI Aayog CEO Amitabh Kant, the authors propose a ‘Green Development Compact’ that links capital, technology, and corporate capacity from the Global North with the scale, speed, and renewable energy potential of the Global South.

The study says the United States and the European Union have moved away from market driven climate action toward state backed green industrial policies, driven by concerns over competitiveness, economic security, and technology leadership. In this shift, the Global South is often seen mainly as a consumer market or a supplier of inputs, an approach the authors argue is politically unsustainable for developing countries and ineffective for achieving a large scale global energy transition.

To create a more balanced framework, the paper suggests measures such as long term offtake guarantees, shared innovation platforms, and financial tools to reduce investment risks in developing economies.

The research notes that both the U.S. and EU are now investing heavily in green industries at home, effectively moving beyond the Paris Agreement’s original framework. The transition to energy efficient production, it argues, will be the defining economic transformation of this century, shaped by national interests.

While the U.S. is focused on maintaining industrial dominance and attracting investment, Europe faces pressures around jobs, fuel security, and limited control over private companies. For countries like India, the authors stress, the climate transition must also deliver development, not just lower emissions.

The paper concludes that developing economies are ready to be equal partners in the global energy transition and urges Western nations to move beyond outdated models. It argues that while the Global North needs scale, the Global South needs access to capital and technology, and future climate frameworks must reflect this mutual dependence. (IANS)