In a rare and significant development, India’s power sector recorded a decline in carbon dioxide (CO₂) emissions during the first half of 2025, marking only the second such drop in almost five decades. According to a report released by the Centre for Research on Energy and Clean Air (CREA), emissions fell by around 1% year-on-year, even though overall electricity generation grew slightly.

The report attributes this decline to a combination of factors. Most importantly, clean energy capacity additions surged, with solar, wind, and hydro projects contributing more to the energy mix. Hydropower output increased notably due to favorable rainfall patterns, reducing the dependence on coal-fired power plants. Meanwhile, milder weather conditions lowered electricity demand for cooling, particularly in northern and western India, where summers tend to drive power consumption to peak levels.

Data showed that fossil-fuel-based generation dropped by 29 terawatt-hours (TWh) during the period, even as total power generation rose by about 9 TWh. This shift demonstrates how renewable energy growth is gradually displacing coal, India’s dominant but polluting energy source.

Experts suggest that if the current pace of clean energy expansion continues, India’s power-sector emissions could peak well before 2030, aligning with the country’s climate commitments. India has pledged to achieve net zero by 2070 and to increase the share of non-fossil fuel power capacity to 50% by 2030.

While the decline is modest, it is seen as a critical turning point. It signals that India’s energy transition—driven by government policies, falling renewable costs, and international climate commitments—is beginning to reshape the sector. Analysts caution, however, that sustaining this trend will require consistent investment in renewables, grid modernization, and energy efficiency.