Economic growth fueled by the extensive utilization of natural resources and usage of fossil fuels has inflicted severe damage on the environment and resulted in climatic changes, weather extremes, increased temperatures etc. Economies all over the world are facing a trade-off between achieving high economic growth and mitigating climate change. As economic prosperity and development will always come at the cost of rapid consumption of resources from the environment, the role of technology and the adoption of innovation systems that helps countries to achieve high growth in a sustainable manner are becoming extremely important. While the developed economies have responded to this challenge by adopting a low carbon growth path, the developing economies due to their lack of resources, capital and infrastructure still lag behind. In particular, India is facing the twin challenge of accomplishing high economic growth in order to provide employment to its young and aspiring population while coping up with climate change and energy security. Due to its fossil fuel based energy system it is currently the fourth largest emitter of greenhouse gases after economies like China, United States and the European Union. Currently both public and private players in the India are playing their role in helping India achieve a sustainable growth by investing in research and development, supporting start-up ecosystem, focusing on renewable sources of energy and adopting clean technology. Section I provides an introduction to the paper. Section II discusses the global picture of energy consumption and carbon emissions. Section III stresses on the importance of technology and innovation systems to mitigate the problems of climate change. Section IV discusses the case of India, with emphasis on its energy consumption patterns and the various strategies it has adopted in order to ensure energy security. Section V analyzes the energy ecosystems and the corresponding sectoral innovation system. Section VI concludes the paper and draws three major policy implications. Firstly, given the heavy reliance of India on its conventional sources of energy enhancing the efficiency of this sector is of utmost importance. Second the existence of huge externalities and the presence of market failures in the energy sector must be recognized and woven into the design of India’s future energy policy. Also the country needs to formulate strategic plans for its renewable energy sector. Lastly, it suggests that the key to achieving success in India’s strategic energy action plan lies in designing an effective implementation strategy.