IndiaPosted at: Nov 5 2026 4:40PM

Vibha Sharma
New Delhi, Nov 5 (UNI) Ahead of the 31st Conference of the Parties (COP31) to the United Nations Framework Convention on Climate Change (UNFCCC), there is good news for India which has reported a significant climate milestone, with greenhouse gas emissions declining even as its economy continues to grow strongly.
According to the second edition of Allianz Research's Green Transition Tracker 2026—"The clean-Tech turning point and why emissions could soon follow"—India's greenhouse gas emissions fell by 0.2% in 2025 marking the first decline outside an economic contraction in 25 years.
The good part is that the decline came along with economic growth of approximately 7.6%.
India climbed five places to 45th in the Progress Score ranking, improving its score by 4.5 points, compared with the global average improvement of 2 points. It ranked ahead of Argentina (46th), South Korea (49th) and Thailand (50th), stated the report, attributing India's progress to cleaner electricity.
The share of low-carbon sources in power generation increased from 22.4% to 26.6%, the largest annual rise since at least 1985, while coal-fired generation declined by 2.9%. Some of the improvement was also weather-related, with milder temperatures and stronger monsoon rains contributing to lower emissions. The report also cautioned that growing electricity demand and grid constraints could challenge the sustainability of India's green transition.
"India has reached an important milestone: emissions are falling even as the economy continues to grow strongly. While favourable weather played a role, the rapid expansion of clean power is an encouraging sign of a more fundamental shift. The challenge now is to sustain this momentum as electricity demand rises, turning a historic one-year achievement into a lasting trend," said Katharina Utermoehl, Head of Thematic and Policy Research at Allianz Research.
Amid the ongoing geopolitical challenges, it seems 2026 could bring the first fall in fossil CO₂ emissions despite robust global economic growth. However, the overall global outlook remains challenging despite progress.
Of the 65 economies assessed, accounting for 81% of global greenhouse gas emissions, 56 moved closer to their net-zero benchmarks.
"The Hormuz oil shock has acted like a carbon price of more than EUR200/t on diesel, speeding up the switch to electric cars," it says
But at the current pace, the world is projected to reach net-zero only by 2064, around 14 years behind schedule. The report warns that the 1.5°C warming target under the 2015 Paris Agreement is increasingly out of reach, even as the gap between climate ambitions and actual progress narrows.
"Almost every country is moving in the right direction. The problem is the speed. Given the current trajectory, net zero will only be reached in 2064—14 years behind schedule," said Patrick Hoffmann, ESG Economist at Allianz Research, adding that "climate-policy gap was widening, with leading countries pulling further ahead while laggards struggled to keep pace."
The report assesses 65 economies, accounting for approximately 81% of global greenhouse gas emissions, and examines their progress towards net-zero benchmarks.
COP31 will take place in Antalya, Türkiye, from November 9 to 20.UNI VS AAB