Chile’s lesson for India’s coal conundrum

Context

• India dropped 13 places to Rank 23 in CCPI 2025 (Climate Change Performance Index).
• Rank fell due to slow coal phase-down.

Summary

1. India’s Core Challenge: Coal Dependence

• Renewables rising, but coal = ¾ of electricity generation.
• Imbalance hurts climate performance.

2. Chile’s Transition Lessons

• Chile cut coal share 43.6% → 17.5% (2016–24).
• Tools used: carbon pricing, emission norms, renewable auctions, early grid planning.
• Target: phase out coal by 2040.

3. India’s Transition Harder

• Coal-dependent regions (Jharkhand, Chhattisgarh, Odisha, WB).
• Abrupt cuts cause socio-economic distress.

4. Benefits of Coal Exit

• Reduced climate risks (3–10% projected GDP loss by 2100).
• Cuts air pollution deaths.
• Improves energy security.

5. What India Must Do

• Time-bound coal exit roadmap.
• Retire old plants, stop new coal approvals.
• Expand renewables + storage.
• Reform pricing & subsidies.

6. Financing + Just Transition

• Blended finance model + “Green Energy Transition India Fund”.
• Reskilling + economic diversification of coal regions.

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Chile’s lesson for India’s coal conundrum

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