Introduction

Nations across the world have committed to the Paris Agreement on Climate Change and the Sustainable Development Goals (SDGs), which implies the urgency of protecting the human society, economy, and environment from the negative consequences of rapid industrialization and urbanization. The global commitments guide the domestic policies, which further influence every organization. The recently concluded Conference of the Parties (COP) 26, where world leaders gathered to deliberate on mechanisms to prevent the impending climate catastrophe, emphasized the urgent need to deliver action on the Paris Agreement and make net zero commitments a norm. In this context, India has taken the lead, with Prime Minister Narendra Modi setting five ‘Amrit Tatva’ (Nectar Elements) on non-fossil energy capacity, emission reduction, carbon intensity, and a net zero target year.

India faces numerous development challenges, such as one-fifth of the population still living below the poverty line and a significant share of the population not having access to safe drinking water, clean cooking fuel, and all-weather roads. Owing to the limited financial and natural resources, pursuing twin goals related to socio-economic development such as poverty and climate change such as adaptation and emission mitigation requires strategic planning. The trade-offs and synergies involved in the process need to be identified for framing suitable policies. Policymakers need to make investments prudently that help meet the goals of high economic growth and decarbonization simultaneously. For example, a coal phase-out is required to reduce national emissions; however, this transition can have possible repercussions on entrenched businesses such as job losses or financial and socio-economic risks. Governments, companies, and society need to work together to surmount this dilemma.