Decarbonisation of Indian Railways
The Indian Railways is undergoing a significant transformation to achieve net-zero carbon emissions by 2030, four decades ahead of the national target. This shift is a part of India's broader sustainable development agenda.
Key Developments
- Successful trial of India's first hydrogen-powered coach at the Integral Coach Factory in July 2025.
- Electrification of close to 45,000 kilometers of the broad gauge network over the past decade, resulting in over 98% electrification.
- Integration of renewable energy with 553 MW of solar, 103 MW of wind, and 100 MW of hybrid capacity, totaling 756 MW.
- Over 2,000 stations and service buildings powered by solar energy and several railway buildings achieving the “Shunya” net-zero label.
- “Hydrogen for Heritage” initiative aims to deploy 35 hydrogen-powered train units.
Parallel Measures
- Increasing freight modal share from road to rail to 45% by 2030.
- Introduction of biofuel blends and the development of green buildings.
- Operationalisation of Dedicated Freight Corridors expected to avert 457 million tonnes of CO2 over 30 years.
Green Finance Architecture
- Government-issued sovereign green bonds worth ₹58,000 crore since FY2023, with the transport sector as a key beneficiary.
- ₹42,000 crore allocated for electric locomotives and metro and suburban rail expansions.
- The Indian Railway Finance Corporation (IRFC) has played a pivotal role in mobilizing climate-aligned capital, including a ₹7,500 crore loan to NTPC Green Energy.
- World Bank’s $245 million loan in June 2022 for the Rail Logistics Project to enhance freight infrastructure.
Challenges and Recommendations
- Decarbonizing electricity used for railway electrification by procuring renewable energy through long-term contracts.
- Developing railway stations into multi-modal green hubs with electric buses, bicycle-sharing, and pedestrian-friendly infrastructure.
- Innovation in rolling stock, including hydrogen fuel cell trains for non-electrified lines and AI-driven energy optimization.
- Encouraging behavioral change through green certification and public awareness campaigns.
Conclusion
Achieving the net-zero target by 2030 could prevent over 60 million tonnes of annual CO2 emissions, equivalent to removing 13 million cars from the road. Electrification and energy efficiency measures are projected to save over ₹1 lakh crore in fuel costs by the end of the decade. The challenge lies in mobilizing and managing capital effectively.
Author: Ishaan Sharma, IRAS officer, recipient of the Chevening Scholarship from the Government of UK, 2023.