Greater Noida(Business Desk): According to Deloitte India’s latest report, The climate response: Tapping into
India’s climate and energy transition opportunity, India would require ~US$1.5 trillion investment by
2030 across key areas to address the climate challenge at scale. The investments will be driven by India’s
efforts towards renewable energy, biofuels, decarbonisation and sustainable infrastructure to combat
climate change.
The report further breaks down the investment opportunity into key areas such as renewable energy,
bioenergy, green hydrogen and its derivatives and energy storage solutions. It also highlights water
security, sustainable agriculture, sustainable transport infrastructure, circular economy, waste
management and digital systems and platforms as critical areas of investment that drive India’s climate
and energy transition initiative.
Viral Thakker, Partner and Sustainability and Climate Leader, Deloitte South Asia, said, “This investment
will reduce emissions, boost job creation, enhance energy security and protect vulnerable communities
from climate risks. Financial instruments, such as green bonds, climate funds and blended finance models,
are important in mobilising capital for sustainability initiatives. Unlocking investment at scale and ensuring
equitable access to climate finance will help drive long-term resilience in India’s most climate-sensitive
sectors. By strategically harnessing climate finance, India can accelerate its decarbonisation efforts,
offering immense investment potential in sectors poised for sustainable growth and innovation.”
Prashanth Nutula, Partner, Deloitte India, said, “To accelerate its climate journey, India must further
strengthen its commitment to integrating renewable energy, biofuels and advanced technologies into a
cohesive, sustainable energy ecosystem. This must be supported by investments in energy storage,
infrastructure and grid reliability while prioritising inclusive growth. Equally, attention must be given to
climate-vulnerable sectors beyond energy, particularly agriculture, water and related ecosystems, which
are critical to building long-term climate resilience. A comprehensive strategy that aligns infrastructure,
waste management and digital transformation will be crucial in creating resilient, future-ready
communities and positioning India as a true pioneer in sustainable development.”
India will have to add 300 GW of RE capacity by 2030 to bridge the gap between its current capacity and
the announced target of 500 GW of RE capacity. The report suggests that reaching this goal will need
around US$200–250 billion in investment by 2030, covering areas such as advanced manufacturing, grid
integration and system expansion.
Furthermore, RE capacity addition will also need to be supported by scaling up energy storage
infrastructure by eightfold, necessitating ~US$250-300 billion in capex by FY30.
The report points to a strong investment opportunity in green and biofuels such as bioethanol,
Sustainable Aviation Fuels (SAF), methanol, Compressed Biogas (CBG) and green hydrogen. Government
initiatives such as blending mandates and obligations will require significant capacity expansion, leading
to potential investments of ~US$75–80 billion in biofuels and US$90–100 billion in green hydrogen.
The report highlights investment opportunities in critical areas supporting India’s climate resilience,
including water security, sustainable agriculture and transport infrastructure. An estimated US$60–75
billion will be needed for water-related infrastructure such as sourcing, treatment, supply, conservation
and recycling. Sustainable farming practices such as precision agriculture, agroforestry and regenerative
methods could attract investments worth US$20–22 billion, whereas building a sustainable transport
system, focusing on environmental, social, economic and technological goals, is expected to require
investments of US$600–650 billion.
The report also emphasizes the role of technology in driving sustainability. Digital solutions such as AIpowered monitoring systems, climate risk forecasting tools and blockchain-enabled carbon tracking
platforms are expected to enhance decision-making and accelerate climate mitigation efforts. These
technologies are likely to attract investments of US$60–65 billion.
