India Drops 13 Places in Global Climate Change Performance Index Due to Lack of Coal Exit Strategy

The ratings identified India among the world's major producers of oil, gas, and coal.

Belem:

India has dropped 13 positions to 23rd place in the latest global climate change performance ranking, published by three organizations, primarily due to the absence of a deadline for coal usage phaseout.

The Climate Change Performance Index (CCPI) 2026, released jointly by Germanwatch, NewClimate Institute, and Climate Action Network at the UN COP30 Climate Summit on Tuesday, serves as an annual independent monitoring tool assessing climate mitigation efforts of 63 countries and the European Union.

According to the assessment, India ranks 23rd with a score of 61.31, falling 13 places from its previous position. The report also categorizes India among the largest global producers of oil, gas, and coal.

India's status has declined from a 'high performer' to a 'medium' performer in this year's CCPI because there is no established national coal exit timeline and new coal blocks continue to be auctioned.

The report emphasizes that key demands for climate action include a time-bound coal phase-down leading to an eventual phase-out, and redirecting fossil fuel subsidies toward decentralized community-owned renewable energy systems.

The document points out that no country secured the top three positions as "no country is doing enough to prevent dangerous climate change."

Denmark holds the fourth position with 80.52 points, followed by the UK with 70.8 and Morocco with 70.75. Saudi Arabia ranks at the bottom with 11.9 points, while Iran and the USA occupy 66th and 65th positions with 14.33 and 21.84 points respectively.

"India ranks 23rd and is among the medium-performing countries in this year's CCPI. The country earns a medium in GHG Emissions, Climate Policy, and Energy Use, and a low in Renewable Energy," states the report.

In a seemingly contradictory statement, the document notes that India demonstrates long-term climate action commitment through a formal strategy and ambitious renewable energy targets, alongside established efficiency programs like the Bureau of Energy Efficiency (BEE) appliance labeling since 2006 and the Perform, Achieve and Trade (PAT) mechanism for industry since 2012.

"The country has accelerated renewable energy deployment through auctions and fiscal tools, and the CCPI country experts note record auction participation and continuously falling tariffs.

"In 2025, India reported reaching 50 per cent of installed power capacity from non-fossil sources ahead of the 2030 Nationally Determined Contribution (NDC) target," the report adds.

Consequently, experts favorably mention India's work on green finance taxonomy and national carbon market framework development.

"At the same time, the national pathway is still anchored in coal. There is no national coal exit timeline and new coal blocks continue to be auctioned. Fossil subsidies and infrastructure lock-ins persist. The country is among the 10 countries with the largest developed coal reserves, and it currently plans to increase its production," states the CCPI 2026.

The report indicates that experts criticized the uneven and weak carbon price signals, noting that India's total solar rooftop capacity reached 20.8 GW as of September 2025, with nearly 9 GW added in the previous year, constituting approximately 17 percent of total solar installations.

"However, the experts criticise that large grid-scale renewable projects have triggered land conflicts, displacement, and water stress, reflecting top-down, non-inclusive siting. Several reported incidents involve human rights violations and ecosystem degradation," it states.

The document further notes that India's updated NDC commits to 50 percent non-fossil capacity by 2030 and a 45 percent emissions-intensity reduction compared to 2005, but experts observed that the 2070 net-zero goal does not align with 1.5 degree Celsius pathways.

They also highlighted the absence of interim milestones for 2035 and 2040, sectoral trajectories and state-level accountability, as well as limited non-inclusive consultation with civil society and affected communities.

"Internationally, India defends equity with Common But Differentiated Responsibilities (CBDR) and leads multilateral initiatives such as the International Solar Alliance (ISA), but the experts point out that domestic fossil fuel expansion undermines credibility," the report states.

The experts recommended implementing a time-bound coal phase-down leading to an eventual phase-out, including setting dates for no new coal and peak coal usage, and redirecting fossil subsidies toward decentralized community-owned renewable energy.

"They advise strengthening the social and environmental safeguards for renewable energy siting. They also mention the need for more coherent biomass accounting and constraining woody biomass by strict sustainability criteria. They advise establishing binding roadmaps for fossil phase-out in sectors such as transport, buildings and industrial with interim sectoral and state-level milestones for 2035 and 2040," CCPI 2026 states.

The report also emphasizes the importance of just transition processes co-designed with affected regions as a priority. The experts stressed the significance of expanding risk-buffer tools and prioritizing smallholders, women, and vulnerable communities regarding access to finance and resilience support.

The publishers noted that the CCPI 2026 follows the methodological framework introduced in 2017 covering all greenhouse gas (GHG) emissions, and evaluates 2030 targets and well-below-2 degree Celsius compatibility of countries' current levels and targets in the categories of 'GHG Emissions', 'Renewable Energies', and 'Energy Use'.