As Earth Day 2025 highlights the urgency of transitioning to clean energy, India finds itself at a pivotal moment, where the economic, health, and environmental benefits of renewables align with national interests

As the world gears up to mark the 55th Earth Day on 22 April, the focus this year shifts to a critical theme- ‘Our Power, Our Planet’, urging a global transition to renewable energy. The occasion comes at a time when the planet is grappling with escalating climate challenges, many of which are rooted in unchecked carbon emissions.

A report by the Organisation for Economic Co-operation and Development (OECD) and United Nations Development Programme (UNDP) has found that setting ambitious targets to reduce greenhouse gas emissions could result in a 0.23 per cent increase in global gross domestic product (GDP) by 2040.

The report added that advanced economies could see a 60 per cent increase in GDP per capita, while lower-income countries may experience a 124 per cent rise. Immediate investments in emission reductions could lift 175 million people out of poverty by the end of this decade.

Traditional Energy And Its Impact
According to the United Nations Climate Action, the world remains heavily reliant on fossil fuels, which account for 80 per cent of global energy and are responsible for nearly 90 per cent of carbon pollution blanketing the Earth. The planet has already experienced a 1.1 degree Celsius rise in surface temperatures, and under current national plans, it could warm by as much as 2.5°C by the end of the century.

The UN warns of a domino effect from rising temperatures, potentially displacing more than 21 million people annually and contributing to the loss of 13 million lives. “It is time to stop burning our planet, and start investing in the abundant renewable energy all around us,” said António Guterres, United Nations Secretary General.

As per the International Energy Agency (IEA), global renewable electricity generation is projected to surpass 17,000 terawatt-hour (TWh) by 2030, marking an increase of almost 90 per cent from 2023 levels. Solar and wind power alone will provide 30 per cent of global electricity, overtaking hydropower. By the end of the decade, solar photovoltaic (PV) will become the world’s largest source of renewable electricity.

Not-for-profit organisation EarthDay.org also highlighted the global momentum towards renewable energy. In 2023, the United States recorded its highest-ever solar power output, with Texas, California, and Florida at the forefront. Uruguay now sources 98 per cent of its electricity from renewables, Denmark generates over half its power from wind, and India has set an ambitious target of meeting 50 per cent of its energy needs from renewables by 2030.

Notably, several reports have suggested that falling clean energy costs are pivotal. Between 2010 and 2020, solar module prices fell by 93 per cent, making solar power the cheapest electricity source in many regions.

Clean Energy: A Health And Equity Imperative
The World Economic Forum’s global risks report 2025 offers a stark warning. It ranks state-based armed conflict as the top global risk, closely followed by extreme weather events. Climate-related disasters—floods, wildfires, hurricanes—are becoming increasingly severe, largely due to continued fossil fuel use.

However, renewable energy has the potential to reverse this trajectory. According to the United Nations Climate Action, renewables can lift 3.8 billion people out of energy poverty, thereby boosting access to education, healthcare, and economic opportunities.

The transition to clean energy is not merely about protecting the environment; it represents a health and humanitarian revolution. Cleaner air helps prevent respiratory and cardiovascular diseases, including asthma, stroke, and heart disease. Reducing air and water pollution improves maternal and reproductive health, advancing equity and well-being across communities.

India’s Traditional Energy Costs
While fossil fuels have historically powered India’s growth, their hidden costs are profound. A 2020 report by Greenpeace Southeast Asia and the Centre for Research on Energy and Clean Air estimated that air pollution from fossil fuels costs India around USD 150 billion annually, equivalent to 5.4 per cent of its GDP. These costs include healthcare expenses, lost productivity, and premature deaths.

A 2021 study by Dalberg Advisors further revealed that air pollution costs Indian businesses approximately USD 95 billion per year, or about 3 per cent of the country’s GDP, through reduced productivity, absenteeism, and other operational setbacks. Adding to the challenge, India’s fossil fuel subsidies soared to a nine-year high of Rs 3.2 lakh crore (about USD 39.3 billion) in the 2022–23 fiscal year, five times more than subsidies for clean energy. India also imports 85 per cent of its crude oil and 50 per cent of its natural gas, leaving the nation vulnerable to global price fluctuations and supply disruptions.

A transition to domestic renewable energy sources would not only enhance energy security but also ease the financial burden of fossil fuel reliance.

Necessity Of Clean Energy Transition For India
According to a joint study by the Council on Energy, Environment and Water (CEEW), Natural Resources Defense Council (NRDC), and Skill Council for Green Jobs (SCGJ) published in January 2022, India’s renewable energy sector could employ around one million people by 2030—a tenfold increase from current levels.

Decentralised solar and wind systems can deliver reliable electricity to remote regions, bridging the energy access divide and enhancing education, healthcare, and economic development. With India’s urban population growing rapidly, the expansion of electric vehicles and the development of smart grid infrastructure are critical to building clean, efficient, and resilient cities while curbing oil dependence.

Meanwhile, with falling clean energy costs, rising fossil fuel subsidies, and mounting climate risks, the case for a swift and equitable energy transition has never been stronger. From reducing pollution-related economic losses to generating millions of green jobs, India’s clean energy shift is not just an environmental imperative, it is a strategic necessity for sustainable growth and national resilience.