Decarbonisation and Net-Zero Commitments

Many industries will speed up their efforts toward achieving net-zero emissions. The crucial keys to capture are adopting renewable energy, energy efficiency technology, and carbon capture. Some of the policy tools in the government domain that would accelerate this shift would include the Indian government’s program of increasing non-fossil fuel-based electricity capacity up to 500 GW by 2030, the Market Transformation for Energy Efficiency (MTEE), the Energy Efficiency Financing Platform (EEFP), and the Star Labelling Program. Another emission-reduction push will be created with the launch of the Indian Carbon Market in 2025-26. More organisations, particularly in manufacturing, aviation, and shipping, would strive to set ambitious goals to reduce carbon.

Circular Economy Expansion

The concept of a circular economy will become mainstream, where resources are reused, recycled, and kept in use for as long as possible. Governments drive this through programs like the Swachh Bharat Mission, which drastically improved waste management, or Extended Producer Responsibility (EPR) regulations to ensure proper recycling and reuse. Central Pollution Control Board (CPCB) has set specific targets for plastic waste recycling in 2025-26; 10% of Category I Rigid Plastic Packaging and 70% for Category II. Also, the Paramparagat Krishi Vikas Yojana (PKVY)scheme promotes organic farming to support sustainability. Companies will increasingly focus on designing products for longevity and recyclability, reducing waste, and creating closed-loop systems to minimise environmental impact.

Sustainable Food Systems

The food industry will address its environmental impact by increasing the dominance of plant-based, lab-grown, and alternative proteins. This includes reducing the carbon footprint of food production, sourcing more sustainably, and encouraging regenerative agriculture practices. Policy measures like organic farming under PKVY support sustainable agriculture practices.

Sustainable Finance and ESG

Environmental, Social, and Governance (ESG) investing will increase as more financial institutions and investors focus on sustainability. India’s mandatory ESG disclosures, sector-specific standards, and BRSR expansion to unlisted firms will drive corporate accountability. Green finance initiatives, like the carbon markets, ESG-tech, and digital ESG data infrastructure, will enhance transparency and accountability in corporate sustainability efforts.

Green Technologies

Innovations in green technologies, such as advanced solar and wind energy solutions, electric vehicles, and green hydrogen production, will reshape industries. Governments are heavily investing in these areas, with policies like the Production-Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage, the National Electric Mobility Mission Plan (NEMMP), and the National Green Hydrogen Mission (NGHM) accelerating the adoption of clean technologies.

Waste Reduction and Responsible Consumption

As consumer awareness of waste grows, the trend towards reducing waste, especially single-use plastics, will continue. Businesses will offer sustainable packaging, promote reusability, and create product take-back programs. This aligns with government-led initiatives under the Swachh Bharat Mission, EPR regulations, and recycling targets set by the CPCB.

Biodiversity and Ecosystem Restoration

The growing focus on biodiversity conservation will drive efforts to protect ecosystems and wildlife. Initiatives like reforestation, ocean clean-up, and sustainable land use are expected to expand in 2025. Policies promoting integrated water resource management, rainwater harvesting, and sustainable agriculture will further aid ecosystem restoration.

Regulations and Policy Changes

Governments are implementing stricter environmental regulations. Key policy measures include carbon pricing, green tax incentives, waste management laws, and the National Clean Air Programme (NCAP), which targets a 40% reduction in PM10 levels by 2025-26. Policies like the National River Conservation Plan and Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) also address water conservation and quality issues. These measures will push businesses to adopt greener practices and align with long-term sustainability goals.

These trends, coupled with robust government policies, reflect the growing urgency in climate change, environmental degradation, and resource management. Both businesses and governments are intensifying their efforts, creating a synergistic push toward achieving long-term sustainability.