Geopolitical shocks are reshaping the case for sustainability, pushing governments and companies to prioritize energy security and resilience alongside climate goals. Industry leaders and economists said successive crises—from the Russia-Ukraine war to the recent tensions in West Asia—have strengthened the case for renewable energy while underscoring that fossil fuels will remain integral to India's energy mix for years.

Speaking at the Mint Sustainability Impact Summit 2026, held on Wednesday, executives from the energy, logistics and manufacturing sectors said investment decisions are increasingly being driven by economics and energy security rather than environmental commitments alone. Reducing dependence on imported fuels, strengthening supply chains and improving competitiveness are becoming as important as cutting emissions.

The Russia-Ukraine war upended oil and gas supplies, while tensions in West Asia and concerns over the Strait of Hormuz have again highlighted vulnerabilities in global crude trade. India, which imports more than 85% of its crude oil requirement, remains particularly exposed to such shocks.

Security vs sustainability

"Sustainability as a word has shifted towards the concept of having a reliable and resilient energy supply," said Suhas Donthi, chief executive, Emmvee Photovoltaic, adding that India is increasingly viewing renewable energy through the lens of energy security rather than climate commitments alone.

He said the country's long-term objective is to reduce dependence on imported fuels by expanding domestic renewable energy capacity. “Renewables are becoming an answer to energy security. Sustainability remains a factor, but resilience has become equally important.”

Gaura Sen Gupta, chief economist at IDFC First Bank, said recent geopolitical crises have highlighted the importance of diversification rather than forcing a choice between fossil fuels and renewables. “Countries will have to focus on both fossil fuels as well as renewables because the risks are immediate while sustainability remains a long-term journey.”

As India's economy expands, energy demand is expected to rise sharply, making an immediate shift away from conventional fuels difficult, the panellists said.

Coal continues to dominate India's electricity mix, accounting for nearly 68% of total electricity generation. Renewable sources such as solar, wind and biomass contribute about 17%, while the share rises to around 26% when large hydro is included.

Gupta noted that although India is the world's third-largest energy consumer after the US and China, its per-capita energy consumption remains relatively low.

“As India urbanizes and incomes rise, energy requirements will continue to grow. That means both fossil fuels and renewable sources will be required simultaneously,” Gupta said, adding that the rapid expansion of artificial intelligence (AI) and data centres would further accelerate electricity demand.

Economics takes centre stage

Gurpratap Boparai, chief executive-manufacturing, Suzlon Energy, said that while technology and policy remain important, economics ultimately drives sustainability.

Akanksha Sharma, vice president, sustainability, subcontinent, Central Asia, Levant & Egypt, DP World, said sustainability is no longer viewed merely as a compliance requirement or corporate social responsibility initiative. “The conversations are shifting. Sustainability is becoming a competitive advantage,” she said.

According to Sharma, companies are commercializing sustainability through low-carbon logistics solutions, carbon insetting programmes, emission-tracking services, reverse logistics, biofuel-based transport, fleet electrification and shipment-wise emission certificates, integrating sustainability into core business offerings rather than standalone environmental, social and governance (ESG) programmes.

“Business growth and sustainability are no longer either-or options. They are becoming integrated into core commercial strategies,” Sharma added.

Boparai said Suzlon has largely avoided major operational disruptions by diversifying sourcing across multiple geographies instead of relying on a single country. “There have been some disruptions and slightly higher costs, but our supply chain has remained resilient because we have consciously limited dependence on any one geography.”

Even so, panellists said that recent conflicts have increased raw material costs across industries, reinforcing the need to balance cost optimization with supply-chain resilience.

The infrastructure challenge

While renewable energy is becoming cost-competitive, industry leaders said inadequate infrastructure remains a major constraint.

Several renewable energy projects are ready for commissioning but cannot fully utilize their capacity because of limited transmission networks and grid infrastructure.

"The grid has become a major issue," Boparai said, noting that renewable generation often peaks when electricity demand is relatively low.

Battery storage is expected to play a critical role in addressing that mismatch. With storage costs falling sharply over the past two years and expected to decline further, experts said renewable energy will increasingly compete with fossil fuels across more applications.

As per BloombergNEF Levelized Cost of Electricity 2026 press note released in February, the global benchmark cost for a four-hour battery project fell 27% year-on-year to $78 per megawatt-hour (MWh) in 2025, a record low since BNEF began tracking costs in 2009.

Donthi said critical infrastructure such as data centres will rely on multiple grid connections, substations and battery storage to ensure reliability, with renewable energy supplying a growing share of electricity while fossil-fuel-based backup remains available when needed.

AI is emerging as a major driver of electricity demand. While Gupta said AI and data centres would require substantial additional generating capacity, Boparai said a growing number of data-centre operators are seeking renewable power backed by battery storage as sustainability becomes a differentiator for customers and investors.

The panel said India's energy transition is unlikely to involve replacing fossil fuels with renewables in the near term. Instead, both are expected to expand in parallel as energy demand grows, with the balance gradually shifting as renewable technologies become cheaper, storage improves and investment increasingly follows commercial rather than purely environmental logic.