Sanctions & climate action crossroads: India must embrace energy sovereignty with justice at its heart

The proposed 500 per cent tariff on goods from countries that continue purchasing Russian oil has emerged as both a political threat and an ethical test.

Introduced in the United States Senate by Senator Lindsey Graham, the bill targets major importers of Russian crude, including India and China. It proposes punitive economic measures, arguing that such nations fund Putin’s war effort and must face consequences.

While the legislation includes waiver provisions, its passage would deliver a profound blow to India’s export sectors, risking significant damage to bilateral trade with the United States.

This is not merely a diplomatic skirmish over fuel. It presents India with an opportunity to recalibrate its energy strategy in line with its climate ambitions. The current crisis underscores how economic policy, geopolitical alliances and environmental stewardship are now deeply interwoven.

Oil dependence & the case for change

India’s energy shift toward Russian oil has been dramatic. Before the Ukraine conflict, Russian oil constituted less than one per cent of India’s total crude imports. By 2024, it accounted for over 40 per cent. According to ship-tracking data from Kpler, as of May 2024, India imported close to 1.96 million barrels per day of Russian crude, capitalising on discounted prices amid Western sanctions. This dependence, however, makes India vulnerable to global sanctions, shipping risks and moral scrutiny.

Meanwhile, renewable energy in India is gaining unprecedented momentum. Solar power tariffs have dropped by over 60 per cent over the past decade, from Rs 6.17 to just Rs 2.15 per kilowatt-hour, according to the Union Ministry of New and Renewable Energy.

India has built over 175 gigawatts (GW) of renewable energy capacity, including 71 GW of solar and 46 GW of wind as of April 2024. The government aims for 500 GW of non-fossil capacity by 2030. Renewables are now cheaper, cleaner, and geopolitically safer than fossil fuels.

This divergence in costs and consequences between fossil fuels and renewables must be recognised as a historic inflection point. While oil exposes India to diplomatic retaliation, trade disruptions and accusations of undermining global peace, renewables promise energy security rooted in autonomy and abundance. Investing in indigenous green infrastructure not only supports climate goals but shields India from foreign dependencies.

The ongoing volatility in the Red Sea and the rising cost of maritime insurance underscore how geopolitics can upend even the most well-priced fossil fuel deals.

Renewables, once intermittent and costly, are now reliable, decentralised and increasingly integrated into national grids. The argument is no longer about feasibility, but it is about resolve.

Imperatives in a sanctioned world: Bridging the local and the Global

India must see the tariff threat not simply as coercion, but as a strategic nudge toward sovereignty in energy production. By expanding renewables, India not only reduces emissions but also insulates itself from future geopolitical shocks. The diversification of its energy basket is essential. Green hydrogen, battery storage systems and grid modernisation must become focal points of policy and investment.

This transition must also be deliberately inclusive. As India phases out old diesel vehicles, particularly in urban centers, it must not punish low-income families or informal sector workers. A robust compensation mechanism — from vehicle buyback schemes to public transport subsidies — must ensure that environmental reforms do not translate into economic exclusion.

Furthermore, India's commitment to decarbonisation can be leveraged diplomatically. Framing its renewable pivot as a contribution to global climate justice enhances India’s stature in forums like the Conference of Parties to the United Nations Framework Convention on Climate Change and the G20 meetings. It positions the country as a responsible actor committed to both energy equity and environmental integrity.

This shift must also harmonise domestic innovation with foreign trade policy. Delhi’s anti-pollution reforms are a case study in how subnational initiatives can inspire national reform. The government must integrate such city-led efforts into a broader clean energy strategy that encompasses state governments, industry and civil society.

This includes investing in green manufacturing — solar modules, battery cells, wind turbine components — to reduce dependence on Chinese imports and create domestic jobs. It also means expanding the rooftop solar market, incentivising residential and small and medium enterprise participation, and improving transmission infrastructure to ensure grid reliability.

Policy coherence is crucial. Renewable energy goals must be backed by tax incentives, regulatory reforms and dedicated climate finance. An integrated Union Ministry of Energy Transition, drawing upon urban policy, rural electrification and international diplomacy, could streamline and accelerate India’s energy shift.

Path ahead: Justice, not just transition

The real test of India’s energy transition lies in justice. Energy poverty still affects millions, and access to clean, affordable power remains uneven. Rural women still rely on firewood. Farmers face erratic irrigation access. Urban air is toxic. India’s pivot must prioritise those historically excluded from energy abundance.

That means scaling solar microgrids, subsidising clean cookstoves and electrifying rural transport networks. It means democratising energy by turning consumers into producers — through rooftop solar, community-owned wind farms and peer-to-peer energy trading.

India’s climate and energy transition must also reckon with global asymmetries in historical emissions and access to technology. While developed nations push for decarbonisation, their own consumption patterns and export-led fossil fuel investments often contradict these goals. India, which has among the lowest per capita carbon emissions among major economies, cannot be expected to decarbonise at the cost of development. Yet, it shouldn’t replicate the West’s carbon-intensive pathways either. 

Justice lies in innovation, in leapfrogging to clean technologies without deepening dependence, in mobilising international climate finance without political compromise, and in creating a decentralised energy future, where every village, not just every capital, is empowered. India’s transition must be owned by its people, guided by equity and backed by global solidarity, not punitive tariffs. The world’s largest democracy deserves not just policy space, but partnership in building a sustainable planet.

Amal Chandra is an author, policy analyst and columnist. Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth.