India records sharpest emissions drop among major economies in 2025: Report

India recorded the largest decline in emissions among major economies in 2025, driven by a fall in power sector emissions even as electricity demand and economic activity continued to expand, according to a report released on Monday by Uniqus, a global sustainability and climate consulting firm.

Citing data from Climate TRACE, the Sustainability & Climate Pulse report said India’s power sector emissions declined 2.6 per cent in 2025, marking a key milestone in the country’s energy transition.

The report noted that the emissions drop reflects the growing impact of large-scale renewable energy deployment and indicates early signs of India beginning to decouple economic growth from emissions, particularly in electricity generation.The report highlighted that India’s performance is being supported by a broader structural shift towards clean power and electrification, including the rapid adoption of electric mobility in the two-wheeler and three-wheeler segments, which dominate India’s transport market.

EV-led oil displacement strengthens energy security

Uniqus said EV adoption is also beginning to translate into energy security gains by reducing oil demand and lowering exposure to volatile global crude prices. Globally, EVs avoided the use of approximately 2.3 million barrels of oil per day in 2025, with projections indicating this could rise to over 5.25 million barrels per day by 2030, as EV adoption increasingly becomes cost-driven.The report further projected that electricity will become the dominant energy carrier in India, increasing from around 21 per cent of final energy consumption in 2025 to nearly 60 per cent by 2070. At the same time, non-fossil sources are expected to contribute 80–85 per cent of power generation by 2070.

Green finance gains momentum

It added that energy efficiency and circular economy practices could reduce India’s overall energy demand by about 20 per cent by 2070, despite higher consumption driven by economic expansion.The report also pointed to growing momentum in India’s green finance ecosystem. It cited increased investor interest in green and infrastructure bonds, including a ₹10,000 crore green infrastructure bond issuance, which saw strong demand and competitive pricing.A major structural shift is also underway with India set to operationalise its Carbon Credit Trading Scheme (CCTS) in the coming months. The report said the mechanism will introduce compliance and voluntary carbon markets, initially targeting energy-intensive sectors, enabling carbon pricing to be embedded into corporate decision-making and accelerating decarbonisation.Uniqus said India’s transition is now entering a more market-driven and execution-focused phase, where renewable expansion, electrification and financial innovation are working together to reshape the country’s long-term growth trajectory.