Vulnerability Assessment of Mineral-Rich States to Energy Transition

The briefing identifies Odisha, Chhattisgarh, and Jharkhand as the most vulnerable Indian states to the energy transition due to their heavy reliance on coal production and power generation. The assessment uses a multi-dimensional framework—covering fiscal losses, climate risks, socioeconomic impacts, diversification potential, and political economy—to rank states. Odisha is ranked as the most vulnerable, primarily due to high physical climate risks and high CSR dependency, while West Bengal is the least vulnerable due to a more diversified economy, despite having the highest fiscal deficit among the group.

• Odisha is the most vulnerable state to the energy transition, driven by high exposure to physical climate risks and the highest level of CSR spending from public sector undertakings in fossil power and mining compared to other assessed states.
• Chhattisgarh is the second most vulnerable state, characterized by the highest conventional fuel capacity among the assessed states and the largest proportion of its population dependent on solid fossil fuel mining.
• Jharkhand's vulnerability is marked by a high dependency on fossil fuel mining for state revenue, with over 25% of its revenue derived from this source, and stretched state finances.
• West Bengal is the least vulnerable of the five states due to a more diversified economy and lower revenue dependence on fossil fuels, although it faces the highest fiscal deficit and limited renewable energy potential to replace existing fossil capacity.
• Madhya Pradesh faces lower revenue dependence on fossil fuels than the other states but carries significant investment risk due to its substantial fossil power capacity.
• The assessment identifies a 'troika' of highly vulnerable states—Chhattisgarh, Jharkhand, and Odisha—whose economies and revenues are substantially dependent on the extraction and utilization of solid fossil fuels.

APA

Sen, V., Khurana, S., & Habib, T. (2023). Vulnerability Assessment of Mineral-Rich States to Energy Transition. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/05/Vulnerability-Assessment_Publication.pdf

Chicago

Sen, Vivek, Saarthak Khurana, and Tariq Habib. Vulnerability Assessment of Mineral-Rich States to Energy Transition. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/05/Vulnerability-Assessment_Publication.pdf.

Wikipedia

{{cite report |last1=Sen |first1=Vivek |last2=Khurana |first2=Saarthak |last3=Habib |first3=Tariq |title=Vulnerability Assessment of Mineral-Rich States to Energy Transition |publisher=Climate Policy Initiative |date=May 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/05/Vulnerability-Assessment_Publication.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sen2023vulnerability, author = {Sen, Vivek and Khurana, Saarthak and Habib, Tariq}, title = {{Vulnerability Assessment of Mineral-Rich States to Energy Transition}}, institution = {Climate Policy Initiative}, year = {2023}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/05/Vulnerability-Assessment_Publication.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }