Content

1. To scale up our climate ambition, a seven-point plan
2. A missing link in India’s mineral mission

To scale up our climate ambition, a seven-point plan

Why is this in News?

• India must submit new NDCs (Nationally Determined Contributions) under the Paris Agreement for the period up to 2035.
• The authors propose a seven-point plan to enhance India’s climate ambition while staying aligned with economic-growth priorities.
• The article argues that credible climate ambition is essential for:
  • financing from MDBs and global markets
  • lowering long-term energy & transport costs
  • meeting India’s net-zero trajectory (2070)

Relevance

GS-II (Polity & Governance)

• Climate governance mechanisms
• India’s NDC formulation process
• Centre–state coordination in energy transition

GS-III (Environment & Economy)

• Climate change mitigation strategies
• Renewable energy transition, storage, grids
• Carbon markets, emissions trading

Practice Question

•   “India’s 2035 NDCs must integrate energy, industry, and finance to drive a credible low-carbon transition.” Analyse with reference to the seven-point plan discussed in recent debates.(250 Words)

What are NDCs?

• National climate targets submitted under the Paris Agreement every five years.
• Include:
  • Emissions reduction commitments
  • Renewable energy targets
  • Adaptation goals
  • Finance & technology needs
• India’s current key NDC features (2030):
  • Reduce emissions intensity of GDP by 45% from 2005 levels
  • 50% installed electricity capacity from non-fossil sources
  • Create 2.5–3 billion tonnes carbon sinks

Why New NDCs for 2035 Matter ?

• They determine India’s long-term energy structure for the next decade.
• Overlap with:
  • Net-zero planning
  • Infrastructure investment cycles
  • MDB financing requirements
  • Global carbon markets

The Seven-Point Plan

1. Higher Target for Reducing Emissions Intensity of GDP

• Current: 45% reduction vs 2005 by 2030
• Suggested for 2035: further 20% reduction, implying 65% reduction from 2005 levels over 2005–2035.
• Rationale:
  • Reflects economic maturation
  • Strengthens India’s climate credibility
  • Drives industrial decarbonisation

2. Higher Share of Non-Fossil Electricity

• Existing: 50% non-fossil installed capacity by 2030.
• Proposed (2035):
  • Non-fossil share in overall electricity generation to rise to 55%.
• Requires:
  • 1,600 GW total capacity by 2035
  • Renewables rising to ~1,200 GW
  • Faster energy storage deployment (~50–70 GW)

3. Explicit Target for Phasing Down Coal-Based Generation

• Extremely contentious internationally.
• Authors propose:
  • No new unabated coal after 2030
  • Coal-based capacity replaced gradually
  • Total coal output peaks by 2030, begins decline thereafter
• Motivation:
  • Avoid stranded assets
  • Align with India’s net-zero (2070)
  • Improve air quality & energy security

4. Transform the Transport Sector (EV Push + Rail Electrification)

• Railways: 100% electrified by 2033
• Road transport:
  • 50% EV for buses by 2030; 100% shortly after
  • Stronger EV penetration for 2W & 3W
  • Automobile industry to adjust sales targets
• This sector is India’s fastest-growing emitter → early action lowers long-term costs.

5. Operationalise the Carbon Credit Trading Scheme (CCTS) Effectively

• Starts April 2026.
• Must:
  • Expand beyond current limited sectors
  • Set strict emission limits
  • Avoid weak, voluntary systems
• Significance:
  • Creates large-scale market incentives
  • Enables international trading in future
  • Mobilises private finance

6. Strengthening Renewable Energy Integration

• Challenges:
  • Variability
  • Grid management
  • Storage costs
• Recommendations:
  • Support pumped storage + battery systems
  • Modernise grid infrastructure
  • Reform tariffs & contracts (time-of-day pricing, firming contracts)

7. Mobilising Finance at Scale

• Expansion of grid + storage + renewables needs USD 62 billion annually (2026–2047).
• Domestic banks alone cannot meet demand.
• Solutions:
  • Increased MDB borrowing
  • International climate finance
  • Private investments via blended finance
  • Policy consistency to reduce risk

India’s Structural Challenges Highlighted in the Article

• Coal dependence for baseload power
• State-level financial stress in DISCOMs
• Land & transmission constraints for RE expansion
• Slow EV adoption outside major cities
• Weak carbon market coverage initially

Strengths of the Proposed Approach

• Integrates energy, transport, finance, and climate policy into one coordinated pathway.
• Enables India to:
  • Retain high economic growth
  • Meet rising electricity demand
  • Reduce long-term fossil fuel import dependence
• Prepares India for:
  • Global carbon border taxes
  • Competitiveness in green industries

Critical Assessment

Positive

• Realistic balancing of climate ambition and economic growth.
• Recognises future geopolitical and trade pressures.
• Provides quantifiable sector-wise targets.

Concerns

• Coal phase-down politically and economically challenging.
• Transmission expansion may lag renewable targets.
• EV infrastructure requires massive urban reforms.
• Carbon market success depends heavily on strict enforcement, currently uncertain.

Conclusion

India must submit new NDCs for the 2035 period. The article proposes a seven-point plan to enhance climate ambition while sustaining growth. It recommends raising emissions-intensity reduction targets, increasing the non-fossil share of electricity to 55%, phasing down coal after 2030, accelerating EV and railway electrification, strengthening the new Carbon Credit Trading Scheme, enabling renewable integration through storage and grid upgrades, and mobilising large-scale finance including MDB support. 

A missing link in India’s mineral mission

 Why is this in News?

• The Union Cabinet has approved a ₹7,280 crore Rare-Earth Magnet Scheme aimed at building India’s domestic magnet manufacturing and processing ecosystem.
• Comes alongside:
  • the new G-20 Critical Minerals Framework, emphasising value addition, refining, and manufacturing,
  • China’s tightening export controls on rare earths, graphite, and battery technologies.
• India has reformed its mining laws but still lacks commercial-scale refining and midstream capacity.
• Article highlights: India must rapidly build processing & refining capability, not just mining.

Relevance

GS-III: Environment

• Recycling of fly ash, slag, red mud
• Sustainable mining & waste utilisation

GS-II: International Relations

• Mineral diplomacy
• G-20 critical minerals framework
• Geopolitics of supply chains

Practice Question

• “India’s critical minerals strategy will remain incomplete without mastering midstream processing and refining.” Examine.(250 Words)

What Are Critical Minerals?

• Minerals essential for clean energy, electronics, semiconductors, defence, space, and EV batteries.
• Examples: Lithium, cobalt, nickel, rare-earth elements, graphite, silicon, titanium, copper.
• Value chain:
  Exploration → Mining → Processing/Refining (midstream) → Component manufacturing → Final products.

Most value lies in the midstream.
Countries without refining capacity remain raw material exporters and lose control of strategic supply chains.

India’s Current Position — The Core Problem

• Mining sector reformed (MMDR Act amendments) → improved exploration & auctions.
• But processing capacity is extremely limited:
  • India imports almost all lithium, nickel, cobalt in refined form.
  • Even for minerals produced domestically (copper, graphite, silicon, tin, titanium, zirconium, rare earths), refining is small-scale or low-purity.
• China controls:
  • >90% global rare earth refining
  • 90% graphite refining
  • Significant share of battery cathode/anode processing
• With U.S.–China technology and mineral trade tensions rising, India’s supply chain vulnerability increases.

Why Processing (Midstream) Matters More than Mining ?

• For solar modules → need polysilicon & wafers
• For EVs → need battery-grade graphite, nickel sulphate, cobalt sulphate
• For wind turbines → need rare-earth magnets
• For chips → need high-purity silicon, gallium, germanium

Without processing, mining reforms don’t translate into industrial strength.

Government Measures So Far

A. Rare-Earth Magnet Scheme (₹7,280 crore)

• Boost domestic production of NdFeB magnets, used in EV motors, wind turbines, robotics, defence.

B. Critical Minerals Recycling Scheme (₹1,500 crore)

• Recover minerals from e-waste, spent batteries, fly ash, red mud.

C. Amendments to MMDR Act

• Exploration licences for strategic minerals
• National mineral auctions
• Mining-associated minerals category
• National Mineral Exchange (future)

But these measures strengthen mining, not refining.

India’s Exposure to Global Disruptions

• China’s recent steps:
  • Export controls on rare-earth tech, graphite, magnet technology.
  • Additional restrictions in recent weeks.
• Geopolitical triggers:
  • U.S.–China trade conflict → higher tariffs + export bans
• Without refining capability, India remains dependent and vulnerable.

Five Steps India Must Take 

Convert Centres of Excellence into Industrial Innovation Engines

• Use the nine Centres of Excellence under NCMM to develop:
  • Commercial-scale processing & refining technologies
  • High-purity compounds (battery-grade, magnet-grade)
  • Life-cycle & cost analysis for quick adoption
• Strong collaboration between IITs–NITs–CSIR–industry.

Unlock Secondary Resources for Domestic Recovery

• India generates:
  • 250 million tonnes of coal fly ash → contains rare earths
  • Red mud → gallium
  • Zinc residues → cobalt
  • Steel slag → vanadium
• CSIR & IIT pilots show technical viability.
• Need large-scale recovery in Critical Mineral Processing Parks.

Build a Skilled Workforce in Process Metallurgy

• Critical minerals require:
  • Hydrometallurgy
  • Solvent extraction
  • High-temperature refining
• Allocate NCMM’s ₹100 crore for:
  • Train-the-trainer programmes
  • Diploma-level curricula
  • CSIR lab-linked practical training
• Could create thousands of high-skilled jobs.

De-risk Industry Investment (Demand Assurance + Finance Tools)

• Use stockpiling not just for security but as a market-maker:
  • Government buys during downturns
  • Releases during demand spikes
• Model: US Department of Defense + MP Materials agreement.
• Mandate partial domestic sourcing for:
  • Defence
  • Pharmaceuticals
  • Electronics
• Encourage processors to meet international quality standards.

Align Mineral Diplomacy with Processing Capability

• India’s overseas acquisitions currently secure ore, not refined inputs.
• If India demonstrates high-purity refining, partnerships shift from:
  Buyer–seller → Joint processing & co-investment alliances
• Critical mineral parks can act as hubs for:
  • Foreign JV refineries
  • Technology transfer
  • Shared processing units

Strategic Implications

A. Economic

• Capture more value domestically → boost manufacturing & exports.
• Integrate into clean-energy, semiconductor, defence supply chains.

B. Geopolitical

• Reduce dependence on China
• Enhance bargaining power in G-20 and Indo-Pacific minerals platforms
• Become a partner in new global mineral alliances (QUAD, IPEF)

C. Industrial

• Strengthen EV, battery, solar, wind, electronics, telecom sectors.
• Support semiconductor grade material development.

Challenges Ahead

• High capital costs for refineries
• Environmental clearances for processing facilities
• Technology gaps (solvent extraction, pyro-metallurgy)
• Global competition from established Chinese, Korean, European processors
• Long gestation periods for refining plants

Conclusion

The Union Cabinet’s ₹7,280 crore rare-earth magnet scheme and new G-20 critical minerals framework highlight the urgency of building India’s refining capability, not just mining. India imports most battery-grade and semiconductor-grade materials despite mining some critical minerals.

China dominates global processing, creating supply-chain vulnerabilities amid intensifying U.S.–China trade frictions.

The article argues that India must focus on the midstream—processing and refining—through five steps: powering Centres of Excellence into innovation hubs; recovering minerals from secondary sources; skilling metallurgists; de-risking private investment via stockpiling and quality standards; and linking mineral diplomacy to processing capacity.

Processing is the missing link that will determine whether India remains a raw-ore supplier or becomes a resilient clean-industrial power.