Industry experts warn that delayed action risks energy security and global competitiveness

India’s oil and gas sector must accelerate its green transition to balance energy security with sustainability as the country pushes towards its 2070 net-zero goal, industry leaders said on Friday. As of now, the installed non-fossil fuel capacity stands at 232 GW, accounting for approximately 49 per cent of the total 476 GW power capacity.

“With over 80 per cent of oil and 50 per cent of natural gas imported, the pressure to decarbonise while ensuring energy availability is immense,” said MK Biswas, Executive Director at Gail (India), speaking at PHDCCI’s event. He stressed that breakthroughs in carbon capture, utilisation and storage (CCUS) could alter India’s carbon intensity, but viability gap funding is needed to scale high-cost projects.
According to the Petroleum Planning and Analysis Cell (PPAC), India’s natural gas consumption rose 9.1 per cent in FY25, while LNG imports surged by 19.4 per cent. At the same time, the first CO₂ storage pilot in the Deccan Traps, led by IISER Bhopal and CSIR-NGRI, marked a milestone in testing carbon capture and storage potential for large-scale deployment.

Rahul Bali, General Manager of Carbon Management and Sustainability at ONGC, stated that the company aims to achieve net-zero emissions by 2038, ahead of the national deadline, with investments of nearly Rs 2 lakh crore earmarked for renewables, hydrogen, biogas, and offshore wind. “If you don’t have a seat at the table, you become part of the meal,” he said, showing the need for oil and gas firms to reinvent themselves as integrated energy companies.

Financing emerged as a key concern during the discussion:
Rita Roy Choudhury, Managing Partner & Chief Executive at ECube Investment Advisors, warned that global capital is moving rapidly away from fossil fuels. She pointed out that Indian firms’ clean energy spending is only 1 per cent of capex, compared to 3 to 5 per cent globally. “The transition has to be fair and inclusive. Companies must invest not just in decarbonisation but also in reskilling their workforce and ensuring social equity,” she said, cautioning against greenwashing without strong ESG metrics.

UN representative Sukhman Randhawa said India’s scale makes it pivotal to global climate goals, while Shreyansh Jain of Sperry Plast highlighted recycled plastics as a cost-effective, EPR-driven solution. Meanwhile, experts noted that fossil fuels will remain critical for now, but India’s oil and gas sector must leverage its financial strength to fund a just, technology-led and socially equitable transition.