An Introduction to Corporate Transition Assessments in India

The document introduces the Corporate Transition Assessment (CTA) framework, designed for financial institutions in India to move beyond surface-level disclosures and evaluate a company's transition readiness across strategy, feasibility, and accountability. It specifically applies this framework to a case study of a leading Indian primary steel producer ('Company X'), detailing the process of mapping transition vulnerability, assessing decarbonisation strategies, and evaluating the technical and economic feasibility of levers such as green hydrogen, scrap utilisation, and Carbon Capture, Utilisation, and Storage (CCUS). The guide also provides a broader analysis of the Indian steel sector's decarbonisation landscape, including the role of government policies and the potential of various technology pathways to reach net-zero targets.

• The Corporate Transition Assessment (CTA) framework evaluates companies across three dimensions: strategy and ambition, feasibility, and accountability, with a specific emphasis on "asset-level analysis, forward-looking investment alignment, and dependency mapping".
• In the Indian steel sector, the Reserve Bank of India (RBI) is pushing banks to integrate climate risks into assessments through actions such as the "Draft Expected Credit Loss Framework" and the "Draft disclosure framework for climate-related financial disclosures".
• For the case study 'Company X', the analysis shows that while the company has a 2050 net-zero target, its current targets only cover 87% of capacity, and if all announced plants are built, the target would cover "only 22% of projected production capacity".
• Company X's transition is heavily dependent on the feasibility of CCUS because it continues to invest in the BF-BOF route; however, CCUS is currently "unproven at scale globally" and its deployment is hindered by the fact that some of the company's largest plants are "isolated from carbon storage sites".
• Scrap utilisation is a high-impact lever, but its scaling in India is limited by a fragmented recycling ecosystem where "90% of steel recycling is informal and fragmented".
• The Indian government is supporting industrial decarbonisation through several initiatives, including the "INR19,744 cr Green Hydrogen Mission" and an "INR20,000 crore allocation to CCUS in the Union Budget 202627".
• The document notes that the EU Carbon Border Adjustment Mechanism (CBAM) is the "most immediate transition driver" for Company X, as over 80% of its exports go to the EU.
• The guide suggests that banks can use CTAs to identify "transition finance products tailored to sectoral transition needs" and to inform "realistic stress testing and scenario analysis".

APA

Ghate, A., Malyan, A., Sood, K., Saxena, R., Ghosh, A., Pinge, D., Tandon, G., Gada, K., Haris, K. M., & Khanna, N. (2026). An Introduction to Corporate Transition Assessments in India. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/CTA-Playbook.pdf

Chicago

Ghate, Akshima, Ankur Malyan, Kaustav Sood, Riya Saxena, Anjan Ghosh, Divya Pinge, Gauri Tandon, et al. An Introduction to Corporate Transition Assessments in India. Climate Policy Initiative, 2026. https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/CTA-Playbook.pdf.

Wikipedia

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BibTeX

@techreport{ghate2026introduction, author = {Ghate, Akshima and Malyan, Ankur and Sood, Kaustav and Saxena, Riya and Ghosh, Anjan and Pinge, Divya and Tandon, Gauri and Gada, Kalpesh and Haris, Khaja Mohammad and Khanna, Neha}, title = {{An Introduction to Corporate Transition Assessments in India}}, institution = {Climate Policy Initiative}, year = {2026}, month = feb, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/CTA-Playbook.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }