Publication Type: Issue Briefs

What Does Net-Zero Mean? Defining Goals Aligned With National Contexts

Introduction

Net-zero emissions targets have emerged as a central pillar of global climate ambition. As of June 2025 (following the US’s second withdrawal from the Paris Agreement), 142 countries have announced—or are considering—net-zero targets. Together, they account for nearly 76% of global greenhouse gas (GHG) emissions and 84% of the world’s population. However, these targets vary in scopes and timelines, reflecting differences in historical responsibility, development needs, domestic capabilities, political realities, and economic structures. Developed economies like the European Union and Japan target reaching net-zero by 2050, while China aims to reach it by 2060. India has committed to achieving net-zero emissions by 2070. 

As India gradually pivots towards a net-zero pathway, it is crucial to establish a clear, shared understanding among national and sub-national governments, policymakers, regulators, industries, and civil society of what ‘net-zero’ truly means in the domestic context. Without this coherence, strategies risk being fragmented or misaligned across levels of governance and sectors of the economy. 

This issue brief outlines key considerations that can help shape a comprehensive definition of net-zero emissions for India, not by prescribing implementation strategies, but by deconstructing net-zero targets by their constituent elements necessary for clarity, comparability, and accountability. The brief discusses these elements across four aspects: [1] Targets reflect “what” the entity aims to achieve and whether interim milestones are included. [2] Scope defines “what all is covered”. To put into perspective, two entities may share the same headline target but differ significantly in coverage. [3] Sinks and Offsets clarify how residual emissions will be addressed, and what forms of carbon removals are deemed acceptable, credible, and verifiable. [4] Governance encompasses institutional arrangements for reporting, monitoring, and review. Ensuring that those responsible for delivering on targets are held to account through appropriate mechanisms, incentives, and oversight structures.

Taken together, these dimensions form the building blocks of a robust net-zero definition. The brief’s objective is to support India in deciding the design of the end-goal itself, rather than outlining the path to reach it.

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The Indian Carbon Market: Institutional, Regulatory, and Market Considerations

Introduction

India is at a critical juncture in its climate policy journey. In the near-term, it aims to reduce the emissions intensity of its GDP by 45% below 2005 levels by 2030. Its longer-term goal is to reach net-zero emissions by 2070. Meeting these targets will require a combination of policy interventions, technological advancements, regulatory mechanisms, and financial support.

As part of this broader transition, India is developing a national carbon market under the Energy Conservation (Amendment) Act 2022 (See Fig. 1 for a timeline of developments around the CCTS). The Carbon Credit and Trading Scheme (CCTS), notified by the Ministry of Power (MoP) in June 2023, lays the foundation for a carbon market that seeks to balance economic growth with climate goals.

Fig. 1: Key Milestones in India’s Carbon Market Development

The effectiveness of the CCTS will depend on several interlinked factors- clear governance structures, credible price signals, transparent processes, institutional capacity, and harmonisation with existing domestic programs and global frameworks. Recognising the complexity of these issues, Prayas Energy Group (PEG) and Sustainable Futures Collaborative (SFC) convened a closed-door roundtable under the Chatham House rules on March 20, 2025 in New Delhi, which brought together participants from across policy think tanks, regulatory consultancies, industry, industry associations, and civil society organisations. It served as a platform to exchange diverse perspectives on the institutional, regulatory, and market-related elements of the CCTS. This brief reflects the key insights that emerged from the discussion, highlighting seven broad yet interlinked issues central to the design and operationalisation of the CCTS. 

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Ratcheting Ambition in Climate Finance: Key Challenges and Goals for COP29

Introduction

The 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC), scheduled to be held in Baku, Azerbaijan, in November 2024, presents another pivotal moment in global climate action. A key area of focus at COP29 will be the decision on a New Collective Quantified Goal (NCQG) for climate finance, which is meant to replace the 2009 pledge by developed countries to provide $100 billion annually to developing countries by 2020.

Seen as a key symbol of trust, transparency, and cooperation between developed and developing countries, the NCQG is a crucial lever for strengthening the shared responsibility and mutual commitment essential for tackling the climate crisis.

This issue brief provides an overview of key issues to watch in NCQG discussions, exploring the role and relevance of the NCQG, strategies for its effective implementation, and implications of the outcome for broader climate diplomacy. The brief is based on insights shared during SFC’s recent webinar, “Climate Finance at COP 29: What New, Collective, Quantified Ambition?”, held on October 28, 2024, which aimed to summarise and contextualise the current state of play in climate finance negotiations as COP29 approaches.

The speakers for this webinar were Joe Thwaites, Senior Advocate at the Natural Resources Defense Council (NRDC); Jonathan Beynon, Senior Policy Associate at the Center for Global Development (CGD); and Avantika Goswami, Programme Manager at the Centre for Science and Environment (CSE). The session was moderated by Aman Srivastava, Fellow and Coordinator, Climate Policy, at the Sustainable Futures Collaborative (SFC).

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