Abstract Renewable energy has a critical role in limiting the greenhouse gas (GHG) emissions. This paper assesses the implication of aligning renewable energy deployment target with national emission reduction target for mitigation cost. The assessment methodology uses Asia-Pacific Integrated Assessment/computable general equilibrium (AIM/CGE) model to determine the mitigation cost in terms of GDP and welfare loss under alternative renewable targets in different climate-constrained scenarios. A range of country-specific emission constraints is taken to address the uncertainties related to global emission pathway and emission entitlement scheme. Comparative results show that China needs to increase its share of non-fossil fuel significantly in the primary energy mix to achieve the stringent emission reduction target compared to India. The mitigation cost in terms of economic and welfare loss can be reduced by increasing the penetration of the renewable energy to achieve the same emission reduction target. The modeling results show that coordinated national climate and renewable energy policies help to achieve the GHG emission reduction target in an efficient and cost-effective manner.