Just Energy Transition: Economic Implications for Jharkhand

This report by the Climate Policy Initiative (CPI) analyzes the annual economic implications of a low-carbon energy transition for the state of Jharkhand, India. It estimates that the cumulative annual economic impact on Public Sector Undertakings (PSUs), the state government, and the local community would be INR 725.9 billion (USD 8.7 billion). The document provides a detailed breakdown of potential losses in revenue, employment, and livelihoods across the solid fossil fuel mining and power generation sectors, while recommending a comprehensive Just Transition (JT) plan to mitigate these adverse effects.

• The total annual economic implication of a low-carbon transition for stakeholders in Jharkhand—including PSUs, their workforce, the state government, and the community—is estimated at INR 725.9 billion (USD 8.7 billion). This is composed of INR 608.3 billion from the solid fossil fuel mining sector and INR 117.6 billion from solid fossil fuel-based power generation.
• The transition is projected to cause a significant decline in state revenues, with an estimated annual loss of approximately INR 38 billion from solid fossil fuel mining alone. This represents about 5% of the state's current revenue levels and could hinder the delivery of social services and funding for District Mineral Foundation Trusts (DMFT).
• The loss of livelihoods resulting from the energy transition could lead to an erosion of 7% of Jharkhand's Gross State Domestic Product (GSDP). This includes impacts on direct and indirect employment in mining and power generation, as well as associated informal livelihoods in the vicinity of these assets.
• Indirect and contractual employees are identified as the most vulnerable group during the transition. Unlike direct employees, who may receive severance pay or relocation, indirect workers typically lack such benefits and face a higher risk of job extinction.
• The report recommends that state-owned mining and power companies use their balance sheets and expertise to diversify into growth sectors such as energy storage, green hydrogen, solar energy, and clean mobility to offset losses.
• Jharkhand is the first Indian state to establish a task force specifically to enable a Just Energy Transition, recognizing that it is the most likely of the mineral-rich eastern states to face significant adverse short-term impacts from a low-carbon shift.

APA

Habib, T., Khurana, S., & Sen, V. (2023). Just Energy Transition: Economic Implications for Jharkhand. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf

Chicago

Habib, Tariq, Saarthak Khurana, and Vivek Sen. Just Energy Transition: Economic Implications for Jharkhand. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf.

Wikipedia

{{cite report |last1=Habib |first1=Tariq |last2=Khurana |first2=Saarthak |last3=Sen |first3=Vivek |title=Just Energy Transition: Economic Implications for Jharkhand |publisher=Climate Policy Initiative |date=December 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{habib2023just, author = {Habib, Tariq and Khurana, Saarthak and Sen, Vivek}, title = {{Just Energy Transition: Economic Implications for Jharkhand}}, institution = {Climate Policy Initiative}, year = {2023}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Just-Energy-Transition-Economic-Implications-for-Jharkhand-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }