India’s immediate climate goals are tied to its long-term target of achieving net-zero emissions by 2070. In the short term, India aims to achieve 50% of its installed power generation capacity from non-fossil fuel sources by 2030 and reduce its emissions intensity below 45% by 2030 from 2005 levels. To advance these objectives, the government has launched several key initiatives focusing on promoting renewable energy, enhancing energy security, and reducing carbon emissions.
One such initiative is the National Green Hydrogen Mission (NGHM), launched by the government in January 2023. The NGHM aims to make India a global hub for the production, use, and export of green hydrogen and its derivatives (which are produced through electrolysis of water using renewable electricity), with an outlay of INR197 billion (USD2.2 billion). The mission aims to facilitate the production of five million metric tonnes per annum (MMTPA) of green hydrogen by 2030, at an estimated investment of over INR8 trillion (USD90.5 billion).
Currently, India imports over 40% of its primary energy requirements, valued at approximately INR7.9 trillion (USD90 billion) annually. As a clean, sustainable, versatile fuel and a chemical feedstock, green hydrogen has the potential to decarbonise hard-to-abate industries and drive new sustainable applications in sectors such as fertiliser manufacturing, shipping, and aviation. The NGHM is also a strategic lever for energy security, with an estimated potential to reduce fossil fuel imports by INR1 trillion (USD11.27 billion) by 2030. However, green hydrogen production will require a continuous supply of clean power, and producing 5MMTPA of green hydrogen will necessitate the installation of approximately 125GW of additional renewable power capacity by 2030.
