Shubhashis Dey and Alexander Fisher

Abstract

India is poised to submit its third Nationally Determined Contribution (NDC 3.0) under the Paris Agreement, at a moment when the global climate and economic landscape is evolving rapidly. This policy brief outlines a forward-looking strategy that seeks to align India’s climate ambitions with its national imperatives for economic growth, poverty alleviation, and social inclusion, while simultaneously responding to the intensifying dynamics of global climate diplomacy and emerging trade-related pressures, providing possible entry points for the international community to engage with India on multiple fronts to adapt and transition in light of increasingly severe impact of climate change. We put this paper together as we believe that a coherent, whole-of-government approach that integrates governance reforms, finance mobilization, technology deployment, foreign direct investment strategies, and inclusive transition measures is essential to ensure that India’s low-carbon journey is not only credible and competitive, but also just, resilient, and accurate in speed while achieving the overall goal of carbon neutrality in time.


Key Findings paving the way to further engagement

  • Embedding Green Growth Across the Economy: India has achieved a 33% reduction in emissions intensity between 2005 and 2019 (Press Information Bureau, 2024, March 28). NDC 3.0 must capitalize on this momentum by fully integrating climate priorities into national development planning, sectoral strategies, and public investments by gradually decoupling emissions from economic activities.
  • Accelerating Sectoral Decarbonization: Fast-tracked action in energy (500 GW non-fossil), green hydrogen deployment, offshore wind development, battery storage expansion, modal shifts in transport, and climate-smart agriculture is vital. Updated sectoral targets must be clearly conditional on international finance and technology support.
  • Unlocking Transformative Technologies: Green hydrogen, offshore wind, and battery energy storage are essential to decarbonize hard-to-abate sectors and ensure energy resilience. Targeted public investment, early demonstration projects, and strong policy incentives will be key to commercializing these technologies at scale.
  • Closing the Climate Finance Gap: With annual climate financing needs of around USD 200 billion (Department of Economic Affairs, 2024), India must deepen domestic green finance architecture (green taxonomy, sovereign/municipal green bonds, blended finance models) and enhance international flows through robust regulatory frameworks and carbon markets.
  • Reorienting FDI Toward Low-Carbon Sectors: Strategic reforms are needed to attract FDI into clean technology sectors. Streamlined regulatory processes, project de-risking mechanisms, and investment promotion of green corridors and manufacturing hubs will be critical.
  • Strengthening Institutional and Subnational Governance: Revitalizing climate governance structures nationally and empowering states to implement ambitious climate strategies through upgraded SAPCCs and real-time monitoring platforms will be essential for effective NDC implementation.
  • Ensuring a Just and Inclusive Transition: A comprehensive Just Transition framework must prioritize coal-dependent regions, women, informal workers, and vulnerable communities to ensure that climate action promotes equity and resilience.
  • Leveraging Global Partnerships and Trade Diplomacy: India must deepen climate finance and technology partnerships through platforms like the International Solar Alliance (ISA), LeadIT, and Indo-Pacific alliances, while using its growing geopolitical influence to shape a fairer global climate finance architecture.

Introduction

Climate change presents profound systemic risks to India’s development trajectory. As estimated by Swiss Re (2021), the global economy could lose up to 18% of its total value by mid-century without decisive climate action, with South Asia among the most vulnerable regions. In recognition of these challenges, India updated its first NDC in 2022, committing to reduce emissions intensity by 45% from 2005 levels, achieve 50% non-fossil fuel installed electricity capacity by 2030, and took an outside NDC target of reaching net-zero emissions by 2070. Despite these efforts, the Global Stocktake at COP28 revealed a substantial emissions gap, requiring urgent scaling-up of ambition and implementation across all economies.

Domestically, there are signs of renewed political momentum. After nearly a decade, the Prime Minister’s Council on Climate Change reconvened on 25 April 2025 to take stock of India’s climate progress. According to sources, during the closed-door meeting the Council acknowledged notable achievements but also flagged persistent gaps and its deliberations emphasized the need to embed climate action within India’s broader Viksit Bharat@2047 vision for economic development, reflecting a whole-of-government commitment. Against this backdrop, India faces a strategic opportunity: demographic growth, infrastructure requirements exceeding USD 1.4 trillion by 2030, and global supply chain realignments offer a critical window to simultaneously mobilize green finance, commercialize transformative technologies, redirect foreign investment toward sustainable sectors, and ensure inclusive transition outcomes.

Background

India’s climate strategy is firmly grounded in the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC). Although India is the world’s third-largest emitter, its per capita emissions are just a third of the global average, highlighting the developmental imperatives that must guide its climate policy.

India’s initial NDC in 2015 reflected these imperatives, committing to a 33–35% reduction in emissions intensity from 2005 levels by 2030, achieving 40% non-fossil fuel-based electricity capacity, and enhancing carbon sinks. In 2022, India strengthened these commitments further, setting targets for a 45% reduction in emissions intensity, a 50% non-fossil electricity share, and promoting sustainable lifestyles through the Lifestyle for Environment (LiFE) movement.

In parallel, India has launched a series of sectoral initiatives to drive low-carbon growth. The 500 GW non-fossil electricity target, the National Green Hydrogen Mission aiming for 5 million tonnes of production by 2030, and the goal of achieving a 30% share for electric vehicles (EVs) in new sales by 2030 are key components. International initiatives such as the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), and Global Green Credit Programme further reflect India’s leadership in global climate action.

While India’s achievements are considerable, challenges remain. Renewable energy installations have grown significantly but remain below the pace required to meet 2030 targets. Coal still dominates the energy mix, accounting for around 73% of electricity generation. Adaptation programs continue to be underfunded. Climate finance mobilization meets only 25% to 30% of India’s estimated annual needs.

Institutional frameworks have evolved meaningfully. The operationalization of the Carbon Credit Trading Scheme (CCTS) with 2025 targets for sectors such as aluminium smelting, cement, chlor-alkali, and pulp and paper signals progress. Sovereign green bonds and municipal green bonds have begun to emerge, and the Securities and Exchange Board of India’s Business Responsibility and Sustainability Reporting (BRSR) framework now mandates top listed companies to disclose ESG performance. The Reserve Bank of India (RBI) has issued draft guidelines to integrate climate risk into financial governance.

However, structural constraints persist. Foreign direct investment into clean technology sectors remains sluggish, hampered by regulatory bottlenecks, land acquisition hurdles, and heightened global competition from other China+ Asian economies like Vietnam, Malaysia, Thailand and Indonesia. Meanwhile, technological innovation is advancing, with green hydrogen projects being commissioned, battery storage partnerships emerging, and green industrial clusters taking shape. States such as Tamil Nadu, Goa and Bihar are actively crafting net-zero roadmaps, while India’s potential bid for COP33 offers an opportunity to elevate its climate leadership globally.

Despite these positive developments, bridging systemic gaps in finance, subnational capacity, and technology commercialization remains crucial for India’s successful low-carbon transition.

I. Reviewing India’s NDC Progress and Emerging Gaps

India’s progress under its Nationally Determined Contributions (NDCs) has been significant but reveals emerging gaps that need urgent attention to align with the enhanced ambitions under NDC 3.0. According to India’s Third Biennial Update Report (BUR) to the UNFCCC, the country achieved a 33% reduction in emissions intensity between 2005 and 2019, demonstrating clear decoupling of economic growth from carbon emissions. Renewable energy deployment has been impressive, with installed capacity reaching 203 GW by October 2024 and non-fossil capacity, including nuclear energy, surpassing 211 GW (Press Information Bureau,2024, May 15). Additionally, India’s State of Forest Report 2021 highlighted an increase of 2,261 square kilometres in forest and tree cover, reinforcing the country’s focus on carbon sink enhancement (Press Information Bureau. (2023, January 12).

Despite these achievements, the expansion of renewable energy falls short of the trajectory required to meet the 2030 target of 500 GW non-fossil capacity. Critical challenges remain, including inadequate grid integration, limited energy storage capacity, and persistent coal subsidies that distort energy markets and slow down renewable energy penetration. The National Electricity Plan (2022–32) forecasts a need for 73.93GW/ 411.4 GWh (26.69GW/ 175.18 GWh from Pump Storage Plant and 47.24GW/ 236.22 GWh from Battery Energy Storage System) of energy storage capacity by 2032; however, as of December 2024, only 4.86 GW is developed, underscoring a significant gap that could undermine renewable energy expansion (Central Electricity Authority, 2025).

Energy efficiency programs, particularly the Perform, Achieve, and Trade (PAT) Scheme and the Standards and Labelling Programme, have delivered meaningful emissions reductions. Nevertheless, scaling energy efficiency efforts to small and medium-sized industries, the residential sector, and transport systems remains a persistent challenge.

Climate governance has witnessed a revival with the reconvening of the Prime Minister’s Council on Climate Change in April 2025. According to people familiar with the discussion of the closed-door Council meetings, the Council recognized India’s leadership in renewable energy and energy efficiency but also highlighted critical areas requiring accelerated action, including scaling low-carbon technologies, reforming financial instruments, strengthening state-level capacity, and improving project execution. The Council stressed that India’s NDC 3.0 should align the climate goals outlined in the various missions under the National Mission on Climate Change with the country’s development vision of Viksit Bharat@2047, ensuring that climate action supports job creation, boosts industrial competitiveness, and promotes inclusive economic growth.

Launched in 2008, the National Action Plan on Climate Change (NAPCC) marked a critical milestone in India’s climate governance, introducing eight national missions to mainstream climate goals into development planning. Notable successes include the National Solar Mission, which catalysed exponential growth in solar capacity, and the Perform, Achieve, and Trade (PAT) Scheme under the energy efficiency mission, which has delivered measurable emission reductions in key industrial sectors. Despite these gains, several missions—particularly those focused on water, health, agriculture, and ecosystems—have struggled with scaling, due to institutional fragmentation, limited financing, and weak monitoring systems. The shift in focus post-2014 toward renewable energy has yielded international recognition but has also eclipsed equally important adaptation-focused missions critical for building climate resilience.

State Action Plans on Climate Change (SAPCCs) have furthered decentralized implementation, yet require enhanced support and integration with national missions. To reinvigorate the NAPCC, there is a need to ensure balanced attention across all missions, increase funding, enhance state-level implementation capacity, and foster stronger alignment with state climate action plans (SAPCCs) — prioritizing adaptation, improving inter-agency coordination, increasing investments, and empowering states to tailor action to local vulnerabilities. A renewed, inclusive NMCC can serve as a pillar for India’s development vision under Viksit Bharat@2047.

At the state level, the updation and implementation of State Action Plans on Climate Change (SAPCCs) show mixed progress. While progressive states like Tamil Nadu and Bihar have adopted net-zero or low-carbon development strategies, many other states struggle with weak institutional capacities, inadequate funding, and poor integration of climate objectives into sectoral development policies.

Internationally, India continues to advocate for equity in climate negotiations, particularly calling for a new collective quantified goal on climate finance at COP29. With a potential bid to host COP33 in 2028, India has the opportunity to set the global climate agenda. However, it must navigate geopolitical uncertainties and entrenched fossil fuel interests that could impede global progress.

Overall, five major gaps stand out: a green finance shortfall exceeding USD 150 billion annually, an underdeveloped energy storage ecosystem, uneven state-level implementation, insufficient progress on adaptation and health linkages, and the absence of a comprehensive Just Transition framework for coal-dependent regions. Bridging these gaps will require integrated, systemic interventions across financial, technological, and governance domains.

II. Unlocking Transformative Technology Pathways

Technological innovation will be the linchpin of India’s transition to a low-carbon economy. Incremental improvements alone will not suffice to meet India’s long-term climate goals; what is required is a rapid scale-up and commercialization of transformative technologies capable of delivering structural decarbonization. In this context, three technologies—green hydrogen, offshore wind, and battery energy storage—emerge as critical pillars of India’s future energy and industrial systems.

Green hydrogen holds the promise of decarbonizing hard-to-abate sectors such as steel production, cement manufacturing, fertilizer production, and long-haul transport. It offers a versatile energy carrier that can replace fossil fuels where direct electrification is infeasible or uneconomic. India’s National Green Hydrogen Mission targets the production of 5 million metric tonnes of green hydrogen annually by 2030. However, current production costs, estimated between USD 4–6 per kilogram, remain significantly higher than fossil-fuel-based alternatives. Achieving cost competitiveness in the range of USD 1–2 per kilogram will require scaling domestic electrolyser manufacturing, securing a low-cost renewable energy supply, and investing in storage and distribution infrastructure. Establishing green hydrogen certification standards, setting mandatory blending targets in refining and fertilizer industries, and supporting early demonstration projects are critical next steps to unlock private sector participation.

Offshore wind represents an enormous untapped renewable energy resource for India, particularly along the Gujarat and Tamil Nadu coasts. Technical assessments suggest a potential exceeding 70 GW. Offshore wind offers the advantage of proximity to major industrial demand centres and can help diversify India’s renewable portfolio, enhancing grid stability and addressing regional resource imbalances. Yet, early projects face high costs, estimated at USD 0.10–0.12 per kilowatt-hour. Unlocking offshore wind’s potential will require coordinated government action, including the development of transparent auction frameworks, early-stage viability gap funding, strategic transmission planning, and a supportive regulatory environment that attracts international and domestic developers.

Battery energy storage systems (BESS) are indispensable for enabling the deeper penetration of variable renewable energy sources like solar and wind. Storage solutions are critical for addressing intermittency issues, managing peak demand, and enhancing grid resilience. Despite the urgent need, India currently has only 0.11GW of battery storage capacity under construction against the National Electricity Plan’s projected requirement of 47.24 GW by 2032 (Climate Policy Initiative, 2024). Accelerating storage deployment will require large-scale tenders, innovative financing mechanisms such as viability gap funding, and the development of domestic battery manufacturing and recycling ecosystems to ensure long-term resource security.

Fostering these transformative technology pathways will not only support India’s clean energy transition but also generate significant economic co-benefits, including job creation, enhanced energy security, and improved global competitiveness. Strategic investments, early-stage risk-sharing, and public-private partnerships will be critical to catalyzing large-scale deployment and delivering on the promises of NDC 3.0.

III. Mobilizing Climate Finance – Domestic and International Reforms

Mobilizing climate finance at scale is the cornerstone of India’s ability to meet its enhanced NDC targets and its broader ambition for a low-carbon, climate-resilient economy. Current estimates suggest that India requires approximately USD 200 billion annually to finance its low-carbon transition and adaptation efforts. However, the actual flow of public and private finance—both domestic and international—meets barely a quarter of this need, exposing a substantial gap that could threaten to derail progress toward India’s 2030 and 2070 goals (Council on Energy, Environment and Water, 2023).

Strengthening the domestic climate finance ecosystem has been a priority, with important strides made over the past few years. Sovereign green bond issuances, initiated in 2023, have raised significant capital for green infrastructure projects, signalling a strong government commitment. Some states, such as Gujarat, Maharashtra and Uttar Pradesh, have also begun experimenting with municipal green bond issuances, demonstrating the potential for municipal-level climate finance mobilization (CEEW-GFC-Muni-Green-Bonds, 2023). Public sector entities like Energy Efficiency Services Limited (EESL) have increasingly structured blended finance vehicles to de-risk private investments in sectors such as battery storage, electric mobility, and green hydrogen.

Despite these advances, India’s domestic financial architecture still requires significant reform to unlock the volume of capital needed for its climate ambitions. A critical ongoing initiative is the development of a national taxonomy for sustainable activities, led by the Department of Economic Affairs. Once finalized, a clear taxonomy will help standardize what qualifies as “green” investments, reduce the risk of greenwashing, channel public subsidies more effectively, and align Indian financial markets with global net-zero finance goals. Furthermore, the participation of large domestic institutional investors, such as insurance companies, pension funds, and sovereign wealth funds, remains limited. Regulatory changes that enable these entities to invest more freely in green infrastructure, backed by robust risk management frameworks, will be key to mobilizing the patient, long-term capital that green infrastructure demands.

Mainstreaming Environmental, Social, and Governance (ESG) principles across India’s banking and financial systems will also be critical. The Reserve Bank of India’s 2024 draft guidelines on the framework on Climate-related Financial Risks disclosure and integration mark an important step in this direction (Ministry of Environment, Forest and Climate Change, 2008). Embedding climate risk stress-testing into banking supervision and promoting climate-aligned lending practices will help enhance the resilience of the broader financial system.

International finance, however, remains an indispensable component of India’s climate finance strategy. India has consistently emphasized, including at COP29 in Baku, that developed countries must fulfil their longstanding commitment to mobilize USD 100 billion annually in climate finance and must agree on a new, more ambitious collective quantified goal that reflects the scale of investment required by developing economies. Beyond advocacy, India must position itself strategically to attract greater international capital flows. Strengthening policy certainty—particularly with respect to renewable energy tariffs, carbon market regulations, and green hydrogen standards—will be fundamental. Improving the ease of doing business for climate-aligned projects by simplifying approvals, expediting land acquisition, and providing clear environmental clearance procedures will further enhance India’s attractiveness.

De-risking early investments in emerging sectors through public guarantees, viability gap funding, and first-loss capital mechanisms will be critical for crowding in private investors. Strategic partnerships with development finance institutions (DFIs), multilateral development banks, and specialized green investment funds can play a transformative role in scaling international financing flows into India.

The establishment of the Indian Carbon Market (ICM) through the operationalization of the Carbon Credit Trading Scheme (CCTS) offers an important new avenue for climate finance mobilization (Ministry of Power, 2023). By building a robust market with strong Monitoring, Reporting, and Verification (MRV) systems, transparent pricing mechanisms, and internationally compatible baseline methodologies, India can create a dynamic carbon trading ecosystem that incentivizes private sector decarbonization while generating additional financial flows.

Strengthening corporate climate disclosures is equally essential. The Securities and Exchange Board of India (SEBI) has expanded its Business Responsibility and Sustainability Reporting (BRSR) framework to require the top 1,000 listed companies to disclose core ESG metrics, with new requirements around supply chain emissions and data assurance. Aligning India’s disclosure frameworks with global standards such as the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) guidelines will build investor confidence and help position India as a credible, transparent destination for global climate capital.

Together, domestic financial reforms, enhanced international engagement, a robust carbon market, and improved corporate governance standards will be crucial to bridge the substantial climate finance gap and deliver on India’s NDC 3.0 objectives.

IV. Reorienting Foreign Direct Investment Toward Low-Carbon Sectors

Foreign direct investment (FDI) has historically played a critical role in driving India’s economic growth, enabling technology transfer, and creating employment. However, since 2020, FDI inflows into critical real economy sectors—especially manufacturing, infrastructure, and telecommunications—have witnessed a marked slowdown. This emerging trend poses a serious risk to India’s efforts to mobilize the scale of capital necessary to drive its low-carbon transition. Key sectors essential to achieving NDC 3.0 targets—such as green hydrogen, battery storage, offshore wind, and sustainable urban infrastructure—remain significantly underfunded.

Several interlinked structural and external factors explain this moderation in FDI flows. Despite important liberalization measures and India’s improvement in ease-of-doing-business rankings, regulatory complexity, bureaucratic delays, and unpredictable policy shifts continue to deter foreign investors. The termination or renegotiation of numerous Bilateral Investment Treaties (BITs) after 2017 weakened legal protections for foreign investors, contributing to heightened perceptions of regulatory risk. High-profile legacy tax disputes involving multinational corporations, such as Vodafone and Cairn Energy, further accentuated these concerns. Infrastructure bottlenecks, particularly in logistics, energy supply, and urban amenities, constrain India’s ability to execute large-scale projects efficiently. Additionally, global competition for green industrial investment has intensified, with countries such as Vietnam, Indonesia, and Mexico aggressively positioning themselves as attractive destinations by offering streamlined regulations and generous incentives. Rising global interest rates and broader economic uncertainties have further tightened capital flows to emerging markets.

In this challenging context, reorienting FDI toward low-carbon sectors is not only desirable but imperative. Strategic efforts must be made to reduce regulatory complexity by creating single-window clearances for renewable energy, battery storage, offshore wind, and green hydrogen projects. Transparent, time-bound project approval processes—particularly in land acquisition, grid connectivity, and environmental clearances—must become standard practice. Establishing green industrial corridors equipped with renewable energy access, advanced logistics infrastructure, and integrated customs processes can serve as powerful magnets for FDI into critical manufacturing sectors such as electrolysers, offshore wind turbines, battery components, and electric vehicles.

De-risking early-stage investments through partial risk guarantees, viability gap funding, and blended finance models can significantly enhance India’s competitiveness for international investors. Maintaining policy stability, especially around renewable energy tariffs and carbon market frameworks, will be essential to building long-term investor confidence. Retroactive policy changes, such as those witnessed in earlier phases of India’s renewable energy program, must be avoided to protect India’s investment credibility.

At the external engagement level, embedding climate investment frameworks into bilateral trade agreements, leveraging Indo-Pacific and European Union partnerships, and securing co-financing from multilateral financial institutions will broaden India’s financing options. Expanding India’s green credentials through robust taxonomy development, operationalizing the Indian Carbon Market, and strengthening ESG disclosure norms will further enhance India’s profile as an investment-ready, green economy.

Sector-specific opportunities abound. Green hydrogen presents prospects for foreign investment across the value chain, from electrolyser manufacturing to hydrogen storage and transport infrastructure. Battery manufacturing and recycling offer critical growth sectors, particularly as India seeks to localize supply chains for energy storage solutions. Offshore wind development, with its vast technical potential, offers opportunities in turbine manufacturing, offshore construction expertise, and port logistics. Sustainable urban infrastructure, including green buildings, electric mobility systems, and climate-resilient urban services, will also require large-scale FDI inflows.

Strategically reorienting FDI toward these sectors can not only bridge India’s climate finance gap but also position the country as a global hub for clean technology manufacturing, innovation, and sustainable growth.

V. Toward an Integrated Policy Package for Delivering NDC 3.0

Achieving the ambition outlined in India’s NDC 3.0 will require more than isolated sectoral interventions; it demands a coherent, whole-of-government approach that seamlessly integrates governance structures, financing systems, technology pathways, foreign investment strategies, and social inclusion frameworks. The scale and complexity of India’s transition to a low-carbon economy call for synchronized and systemic action across central ministries, state governments, financial regulators, private sector actors, and international partners.

Strengthened climate governance must form the central pillar of this integrated approach. Revitalizing institutional mechanisms such as the Prime Minister’s Council on Climate Change and ensuring that sectoral ministries systematically align their mid to long-term plans with national climate targets is essential. The establishment of sector-specific taskforces, mandated to coordinate actions across ministries such as Power, New and Renewable Energy, Steel, Transport, and Urban Affairs, can drive the operationalization of sectoral decarbonization pathways. The NMCC can play a pivotal role in strengthening climate governance by revitalizing institutional mechanisms and fostering alignment across sectoral ministries through dedicated taskforces, thereby driving coordinated, sector-specific decarbonization aligned with national climate goals. To unlock the full potential of the NMCC, a strategic reset is needed—one that places greater emphasis on adaptation, strengthens coordination across institutions, scales up investment, and enables states to address local climate risks more effectively. A revitalized and inclusive NMCC can become a cornerstone of India’s developmental journey toward Viksit Bharat@2047. At the state level, the acceleration of the revision and implementation of State Action Plans on Climate Change (SAPCCs), supported by enhanced financial and technical assistance, is vital to ensure that climate objectives are embedded within subnational development strategies. Real-time digital platforms for monitoring NDC implementation progress should be developed to enhance transparency, support mid-course corrections, and enable evidence-based decision-making.

Simultaneously, deepening and diversifying the climate finance ecosystem is paramount. Finalizing and adopting India’s green taxonomy by 2025 would provide a standardized classification system for green and sustainable investments, enhancing market integrity and aligning with international best practices. Scaling up sovereign and municipal green bond issuances, with robust impact measurement and reporting frameworks, can tap into new pools of capital. Mobilizing private sector finance at scale will require the development of de-risking instruments such as first-loss guarantees, green insurance products, and blended finance platforms that reduce the perceived risks associated with emerging technologies like green hydrogen, offshore wind, and battery energy storage. Strengthening climate-related financial disclosures, including the evolution of SEBI’s BRSR framework toward mandatory assurance of ESG data for larger firms, and embedding climate risk stress testing into banking supervision by the Reserve Bank of India, will bolster the resilience and transparency of India’s financial system.

Accelerating the commercialization and deployment of transformative technologies is equally critical. Public-private partnerships should be leveraged to establish large-scale demonstration projects for green hydrogen industrial clusters, offshore wind farms, and grid-scale battery storage systems. Dedicated innovation funding, including challenge grants and concessional finance mechanisms, should target high-risk, high-reward areas such as carbon capture utilization and storage (CCUS), green ammonia, and next-generation battery chemistries. Fast-tracking regulatory approvals for pilot projects and facilitating the quicker adoption of global technology standards can shorten innovation cycles and bring emerging technologies to market more rapidly. Building domestic clean technology supply chains through production-linked incentive (PLI) schemes, green manufacturing corridors, and strategic mineral security policies will also be critical in  ensuring India’s competitiveness in the global low-carbon economy.

Repositioning India’s foreign direct investment (FDI) strategy to prioritize low-carbon sectors must be integral to the policy package. Investment promotion agencies should actively market India’s green industrial corridors and emerging clean technology clusters to global investors, presenting a coherent narrative of regulatory stability, financial incentives, and project readiness. Bilateral investment dialogues should be expanded to include dedicated tracks for green investment promotion, ensuring that climate considerations are embedded into broader trade and economic cooperation frameworks. Leveraging India’s leadership within G20, BRICS, and other multilateral platforms to advocate for stronger global commitments to climate-aligned FDI can further broaden investment pipelines.

Ensuring that equity and social inclusion are at the heart of India’s transition strategy is non-negotiable. A comprehensive Just Transition framework must be urgently developed, clearly delineating institutional responsibilities, financing mechanisms, and social protection measures for coal-dependent regions. Early pilots, particularly in states such as Jharkhand and Odisha, can help establish scalable models for worker reskilling, economic diversification, and community resilience. Gender-responsive climate planning, indigenous community engagement, and targeted social safety nets must be integrated into all major climate programs to ensure that the benefits of the low-carbon transition are widely and fairly shared.

Finally, India must continue to leverage international partnerships strategically. Expanding climate technology cooperation through platforms such as the International Solar Alliance, the Leadership Group for Industry Transition (LeadIT), and emerging hydrogen partnerships with the USA, European Union, Japan, and Australia will be critical to accessing cutting-edge innovations and financing. At COP30 and beyond, India must sustain its advocacy for climate equity, a fair global carbon market architecture, and an ambitious new collective quantified goal for climate finance. Ensuring that international frameworks facilitate technology transfer, financing, and capacity-building for developing economies will align global structures with India’s development and climate priorities.

In sum, delivering NDC 3.0 requires a transformation in how India plans, finances, executes, and monitors its climate ambitions. A systemic, whole-of-government strategy that simultaneously strengthens governance, deepens financial ecosystems, accelerates technology commercialization, mobilizes foreign investment, and embeds social inclusion will provide India the best opportunity to emerge as a global exemplar of sustainable development. The next five years will be decisive. With the right policy actions and concerted effort, India can demonstrate that economic dynamism and climate leadership are not mutually exclusive but mutually reinforcing.

References

  1. Press Information Bureau. (2024, March 28). Nation achieved 40 per cent of its installed electricity capacity from non-fossil fuel sources, 11 years ahead of 2030 target. Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=2034915
  2. Department of Economic Affairs. (2024). Report of the Sub-Committee on Climate Finance. Ministry of Finance, Government of India. https://dea.gov.in/sites/default/files/Sub%20Committee%20Report%20Final.pdf
  3. Press Information Bureau. (2024, May 15). India’s total renewable energy installed capacity has increased from 76.37 GW in 2014 to 186.46 GW in 2023. Government of India. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2073038
  4. Press Information Bureau. (2023, January 12). India State of Forest Report (ISFR) 2021: Increase of 2,261 sq km in forest and tree cover compared to ISFR 2019. Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=1906388
  5. Central Electricity Authority. (2025). Advisory on co-locating energy storage system with solar power projects to enhance grid stability and cost efficiency. Ministry of Power, Government of India. (source)
  6. Climate Policy Initiative. (2024). Landscape of green finance in India 2024. https://www.climatepolicyinitiative.org/wp-content/uploads/2024/12/Landscape-of-Green-Finance-in-India.pdf
  7. Council on Energy, Environment and Water. (2023). Unlocking municipal green bonds: A solutions factory brief. https://www.ceew.in/gfc/solutions-factory/publications/CEEW-GFC-Muni-Green-Bonds.pdf
  8. Reserve Bank of India. (2024). Draft disclosure framework on climate-related financial risks. https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=4393
  9. Ministry of Environment, Forest and Climate Change. (2008). National Action Plan on Climate Change (NAPCC). https://moef.gov.in
  10. Ministry of Power. (2023). Notification on Carbon Credit Trading Scheme (CCTS). 

About the Authors

Shubhashis Dey, Solutions for Sustainable Living

Shubhashis Dey is a climate policy expert with over 20 years of experience in mitigation, adaptation, and resilience. He has advised key national and international bodies, including SEBI’s ESG Advisory Committee, NITI Aayog’s Climate Finance Working Group and Energy Modelling Forum, the DEA’s Sustainable Finance Task Force, and the Mitigation Action Facility. A Certified Energy Auditor and 2023 Canberra Fellow, he is also a SABIT alumnus and was named Asia’s Energy Innovator of the Year by the Association of Energy Engineers, USA.

Dr. Alexander Fisher, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Dr. Alexander Fisher is a climate economist and seasoned international cooperation professional, currently leading the Indo-German Coordination on Climate Change (IKI Interface India) as Director. In this role, he oversees the implementation of more than 30 projects under Germany’s International Climate Initiative (IKI). With over 25 years of experience spanning Asia, Europe, and Africa, Alex has held senior roles at ClimateWorks Foundation, GIZ, and the German Ministry for the Environment (BMUV), where he played a pivotal role in advancing climate diplomacy, international finance, and transparency frameworks such as ICAT. He holds a PhD in Economics from the European University Viadrina and executive credentials from the London School of Economics.