Adapt, don't import: How to combat climate change effects

Economic Survey warns against too much dependence on imports to achieve ambitious energy targets

- Rituraj Baruah & Puja Das

The Economic Survey has suggested a pivot towards climate adaptation or adjusting to the impact of climate change, while calling for building a local supply chain and reducing reliance on imports for energy transition.

As India, the seventh most vulnerable country to climate change, has set ambitious energy-transition and net zero goals, the Economic Survey for FY25 flagged the risk of high import dependence to achieve these targets.

"Energy transition plans must be mindful of geopolitical vulnerabilities and avoid deepening India's dependence on external sources for critical imports. Strategic thinking is warranted," wrote V. Anantha Nageswaran, the chief economic adviser to the Government of India, in the preface to the survey.

Calling for climate adaptation, the survey highlighted the high cost of mitigation efforts as renewable energy projects require components and minerals which are largely not available in the domestic market, causing import dependence.

Climate adaptation refers to taking actions to adjust to the current and future effects of climate change, while mitigation focuses on reducing greenhouse gas emissions to limit the severity of climate change.

The emphasis on adaptation comes when the U.S. pulled itself out of the Paris Agreement after President Donald Trump took office.

Nageswaran said that energy transition required critical minerals for components such as solar modules and batteries.

While India is not a major producer of these minerals, the supply chain is dominated by China.

To be sure, the government has already announced plans to boost critical mineral mining in India.

Earlier this year, the Union cabinet approved the ₹34,300 crore for National Critical Minerals Mission.