Climate change: India’s climate action strategy in 2025 finds itself at a defining juncture. The global imperative for decarbonisation is growing stronger, but the social and economic fabric of India—still marked by vast inequality and energy poverty—makes the path far from straightforward. The concept of a “just transition,” once peripheral to climate discourse, is now central to India’s low-carbon ambitions.
It demands that decarbonisation is not only rapid but equitable—ensuring reskilling, income security, and regional development, particularly in states dependent on fossil fuels. This is not merely a welfare concern but a structural requirement to prevent social disruption and economic regression as India retools for a green economy.
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Recasting India’s global role
Emerging markets now account for nearly 60% of the global $1.6 trillion pipeline of clean industrial projects, with India as a key player. This shift reflects both demographic weight and strategic ambition. Yet, financial gaps, regulatory uncertainty, and fragmented infrastructure hamper delivery.
India has responded by deepening bilateral climate agreements, championing South-South collaboration, and using forums such as the International Solar Alliance to push for greater technology transfer and finance flows. The challenge now is to translate this diplomatic capital into on-the-ground transformation—through clear institutional pathways and bankable, inclusive projects.
Coal and the cost of transition
Coal still generates nearly 70% of India’s electricity, with states like Jharkhand, Odisha, and Chhattisgarh deeply dependent on coal-linked revenues and employment. Yet, signs of a pivot are emerging. India now ranks fourth globally in repurposing retired coal assets for clean energy, and Jharkhand has taken the lead by setting up a state-level task force on just transition.
But isolated initiatives are not enough. A credible exit from coal will require coordinated investment in education, healthcare, and infrastructure—particularly in affected districts—to cushion the economic blow and avoid deepening regional imbalances.
The jobs challenge in renewables
India’s clean energy expansion has been rapid: solar capacity has exceeded 110 GW, while wind installations crossed 50 GW in early 2025, positioning India as the world’s fourth-largest wind energy producer. Government forecasts suggest that up to 35 million green jobs could emerge by 2047. But enthusiasm masks a structural fault line—an acute mismatch between available jobs and existing skills.
While pilot schemes such as women-led solar technician programmes in rural areas show promise, they remain the exception. A large-scale, multi-stakeholder effort—bringing together vocational education, industry alignment, and better labour protections—is now essential to build a workforce ready for the energy transition.
Climate change: Mobilising climate finance
India’s 2070 net-zero target carries a steep price tag—estimated between $10 and $19 trillion. Domestic institutions have made some headway. The Reserve Bank of India and SEBI are advancing green financing frameworks, and sovereign green bond issuances are gaining traction. But the numbers still fall short.
In 2025, the developed world continues to under-deliver on the $100 billion annual climate finance promise made under the Paris Agreement. India is now exploring alternative models—climate-resilient bonds, blended finance platforms, and sovereign-guaranteed loans to crowd in private capital and reduce risk for long-gestation projects.
Steel, growth, and green technology
India’s steel capacity is poised to exceed 330 million tonnes by 2030, reflecting the country’s infrastructure drive. But most planned investments still rely on coal-intensive processes. Experts now warn that unless India diversifies into cleaner production methods—such as hydrogen-based direct reduced iron, electric arc furnaces, and carbon capture technologies—the sector will lock in emissions for decades.
Strategic public-private partnerships and incentives for retrofitting existing plants with green technologies could help shift the trajectory. A clear industrial decarbonisation roadmap must follow.
Gender equity and social inclusion
Women make up less than 11% of the renewable energy workforce in India, with even lower numbers in engineering and technical roles. Initiatives supporting women entrepreneurs in solar microgrids and clean cooking solutions offer a way forward, but they require substantial scaling.
A just transition must address longstanding gender and caste-based exclusions in land rights, access to credit, and technical training. Without this, India risks reproducing existing inequalities in a new green economy.
Public perception and political momentum
Recent surveys indicate waning public concern on climate issues—only 64% of respondents in 2025 identified climate change as a major issue, down from 78% in 2022. Still, there is widespread belief that renewable energy can improve air quality and employment prospects. This creates a narrow but valuable window for public engagement. Civic education campaigns, school curricula integration, and empowered local governments will be critical to building long-term political support for climate reforms.
India’s climate and development pathways in 2025 are marked by contradiction. Renewables are scaling up and institutional frameworks are evolving, yet fossil fuels remain dominant and vulnerable communities risk being sidelined.
The promise of a just transition lies in resolving this contradiction. That means more than job creation or emissions reduction—it means embedding justice into every layer of policy: labour, finance, energy, and education. Only then can India lead not just as a participant in the global climate order, but as a model of inclusive and sustainable transformation.
Dr Sutandra Singha is an independent researcher based in New Delhi.