Search Climate Insights Directory

India is uniquely positioned to produce cost-competitive sustainable aviation fuel (SAF) using a power-and-biomass-to-liquids (PBtL) pathway. By combining low-cost green hydrogen—enabled by plummeting solar and battery costs—with abundant agricultural residue, India can produce SAF that is more cost-effective and has lower carbon intensity than competing technologies like HEFA, ATJ, BtL, and PtL. Analysis indicates that a 2030 PBtL project could produce SAF at costs 40% lower than recent fossil jet fuel prices, with parity potentially reached in the 2030s. Beyond decarbonization, this approach reduces dependence on crude oil imports (currently 90% of supply) and mitigates severe air pollution caused by open-field residue burning, which is linked to 44,000 to 98,000 premature deaths annually. The brief recommends government support through first-of-a-kind demonstration projects near Delhi, Pune, and Mumbai airports, the use of trade policies to access EU and UK markets, and the implementation of incentives based on the social cost of carbon and avoided health costs from air pollution.

The report argues that India is uniquely positioned to lead in sustainable aviation fuel (SAF) production via the power-and-biomass-to-liquids (PBtL) pathway. By combining world-leading low-cost green hydrogen (driven by cheap solar power) with an abundance of surplus agricultural residue, India can produce SAF at costs significantly lower than global benchmarks. The analysis shows that PBtL is more resource-efficient and has a lower carbon intensity than other pathways like HEFA, ATJ, and BtL. The report projects that PBtL SAF could reach price parity with fossil aviation turbine fuel (ATF) in the 2030s, providing a hedge against crude oil price volatility and reducing air pollution from crop residue burning. It identifies regions around Delhi, Pune, and Mumbai airports as ideal for first-of-a-kind demonstration projects.

The report analyzes the role of Indian state governments in localizing the EV and battery supply chain, arguing that while central policies provide strategic direction, states control critical levers like land, power, and regulatory clearances. It finds that net localization for high-cost components like batteries and motors remains below 20%. The study categorizes 14 states into 'leading', 'aspirational', 'emerging', and 'differentiated' based on their policy strength and manufacturing competitiveness. Key recommendations include shifting toward indirect equity investment models to de-risk upstream battery production, establishing a design-linked incentive for R&D, and introducing phased zero-emission vehicle (ZEV) mandates to create demand certainty.

The report analyzes India's energy subsidy landscape in FY 2025 and FY 2026, highlighting a significant imbalance where fossil fuel subsidies are three times higher than clean energy subsidies. It details the fiscal strain on state governments due to rising electricity subsidies and the vulnerability of the national budget to global LPG and crude oil price volatility caused by conflict in the Gulf. The analysis argues for a strategic shift from recurring fossil fuel subsidies to one-time capital investments in renewable energy, electric cooking, and electric mobility to enhance energy security and fiscal sustainability.

The SET 2026 report assesses 21 Indian states on their electricity transition, finding that progress is fragmented and that leadership in one area, such as decarbonisation, does not automatically ensure system-wide readiness. While states like Karnataka and Himachal Pradesh lead in decarbonisation, and Delhi and Haryana excel in power ecosystem readiness, most states face structural gaps in areas like smart metering, energy storage, and DISCOM financial health. The report emphasizes the need for coordinated state-level interventions to align capacity additions with grid readiness and market-enabling policies.

The report examines agriphotovoltaics (AgriPV) as a solution to land-use conflicts between solar energy and agriculture in India. It identifies significant technical potential, ranging from 3,156 GW to 13,803 GW, but notes that adoption is hindered by high capital costs, rigid land-use laws, and a lack of a formal regulatory definition. The study models feed-in tariffs between INR 3.67/kWh and INR 5.49/kWh, concluding that AgriPV is economically viable and offers lower levelized tariffs than non-DRE grid-connected projects. Key recommendations include mandating AgriPV under Renewable Purchase Obligations (RPO), defining it as a distinct renewable energy source, and adopting cost-plus tariff frameworks that account for elevated structures and farmer lease payments.

India's transition to electric mobility requires significant technology upgrades for automotive component MSMEs, who face structural barriers to affordable capital. CPI estimates that these MSMEs need INR 55,000 crore (USD 6.6 billion) in investment between FY2026 and FY2035 to maintain their industry share. To bridge this gap, the report proposes AC-TUFF, a blended-finance special purpose vehicle utilizing a tiered capital stack (first-loss, concessional, and commercial capital) and an integrated technical assistance wing. The facility aims to mobilize a total corpus of INR 5,000 crore to support the localization of EV components, which has a projected annual market potential of INR 3.86 lakh crore by FY2035.

Climate Central analysis indicates that human-caused climate change increased the likelihood of an intense heat event in western and northwestern India from May 18-20, 2024. Forecasts predict daily high temperatures 3°C to over 6°C above average, with some areas exceeding 47°C and nighttime lows remaining above 34°C. Approximately 543 million people in India are expected to experience at least one day with a Climate Shift Index (CSI) level of 3 or higher during this period.

India faces significant climate vulnerability, with adaptation investment needs estimated between USD 14 billion and USD 67 billion annually for 2015-2030. While the government utilizes a 'co-benefits' approach—integrating adaptation into broader development goals—this makes it difficult to track specific adaptation funding. Analysis of six states' updated State Action Plans on Climate Change (SAPCCs) reveals a collective annual investment need of INR 444.7 billion (USD 5.5 billion) for 2021-30. State governments are the primary drivers of adaptation finance, but their capacity is constrained by high debt levels and strict borrowing limits under the Fiscal Responsibility and Budget Management (FRBM) Act. The report recommends that the 16th Finance Commission include adaptation variables in fund devolution and suggests using Public-Private Partnerships (PPPs) and blended finance to attract private capital, which is currently limited by data gaps and uncertain returns.

The 2024 Indian States’ Electricity Transition (SET) report identifies Gujarat and Karnataka as consistent top performers in decarbonising their power sectors and preparing their market ecosystems. While some states like Delhi and Odisha show high readiness or strong market enablers, they struggle with actual decarbonisation. Conversely, states such as Jharkhand, Bihar, West Bengal, and Uttar Pradesh exhibit structural challenges and slow progress across all dimensions. The report recommends strengthening state-level regulatory frameworks and developing specific subnational transition plans to address these uneven disparities.

The report examines India's strategic position in the electric vehicle (EV) battery supply chain, identifying opportunities in mineral processing and cell manufacturing. It analyzes key investment drivers—such as guaranteed demand, infrastructure, and policy incentives—and evaluates India's comparative advantages, including low labor costs and a strong chemical sector, against challenges like critical mineral dependency and the need for more upfront capital subsidies to attract multinational firms.

The report examines the role of voluntary sustainability standards (VSSs) in the South Asian cotton sector, specifically in Bangladesh, India, Pakistan, and Sri Lanka. It identifies three primary sustainability challenges: excessive synthetic pesticide use, severe water depletion, and volatile farmer incomes. The analysis finds that VSSs like Better Cotton, Organic, Fairtrade, and the REEL Cotton Code have significant market potential, particularly those allowing genetically modified (GM) cotton, which dominates the region. Spatial analysis indicates that VSSs are largely implemented in high-need areas, though gaps remain in regions like Andhra Pradesh and Haryana. The report concludes that while VSSs provide a framework for sustainable production, there is a lack of integrated regional policy or trade agreement provisions to scale these benefits, recommending stronger alignment between government policies and VSS requirements.

This executive summary describes the States’ Electricity Transition (SET) Scoring system developed by Ember to evaluate the electricity transition across 16 Indian states, which represent 90% of India's annual power requirement. The analysis focuses on four dimensions: decarbonisation, power system performance, power ecosystem readiness, and policies and political commitments. While some states like Karnataka show strong performance across all metrics, others, particularly Bihar, Uttar Pradesh, and West Bengal, require significant improvements in decarbonisation and system performance to meet national targets.

The report argues that demand response for residential cooling can mitigate the grid stress caused by increasing air conditioner use during heatwaves in Haryana. By 2030, targeted load reduction of residential cooling could reduce peak load requirements by up to 400 MW, resulting in power purchase savings of up to INR 83 lacs per event. The document identifies barriers to implementation, including a lack of granular data on consumer behavior and the need for dynamic tariffs and smart meter penetration.

As of March 2022, India had installed 110 GW of renewable energy (RE) capacity, representing 63% of its 175 GW target for December 2022. Progress is highly uneven across states; while Telangana, Rajasthan, Karnataka, and Andaman and Nicobar have surpassed their targets, 27 states and union territories have achieved less than 50% of their goals. Five states—Maharashtra, Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, and Tamil Nadu—account for two-thirds of the national shortfall. Recent growth has been heavily concentrated in Rajasthan and Gujarat, which together provided 73% of new RE capacity between October 2021 and March 2022. To meet the 2030 target of 450 GW RE, India requires an average annual addition of 42.5 GW.

A survey of 1,600 farmers in Haryana reveals that agricultural electricity subsidies are poorly targeted, with the wealthiest farmers receiving 50% of benefits compared to 30% for the poorest. The report recommends leveraging the PM-KUSUM scheme to transition low-income farmers to solar-powered irrigation and replacing flat-rate tariffs with slab-based tariffs to reduce subsidies for large landowners. It also emphasizes the need for dynamic registries and coordination between state agencies to accurately identify poor beneficiaries.

The report finds that agricultural electricity subsidies in Haryana are regressive, with the wealthiest farmers receiving a disproportionate share of benefits. It suggests transitioning to solar-powered irrigation via the PM-KUSUM scheme, introducing slab-based tariffs, and improving the identification of poor farmers through inter-agency coordination.

The document outlines a framework for the sustainable deployment of solar irrigation in India, focusing on the water-energy-food (WEF) nexus. It provides detailed guidance across five key areas: inter-departmental coordination, financing and affordability, beneficiary targeting, infrastructure support, and monitoring and evaluation (M&E). The guide emphasizes the need to protect groundwater resources, support small and marginal farmers, and transition away from high-subsidy models through innovative financing and ownership structures.

The report argues that India's post-pandemic recovery should prioritize 'building back better' by investing in natural capital and nature-based solutions (NbS). It examines the role of public and private finance, the need for a green finance taxonomy, and the importance of integrating biodiversity values into agriculture, infrastructure, and sub-national climate action plans. Key focus areas include land restoration targets, the conservation of wetlands within the Central Asian Flyway, and the mitigation of illegal wildlife trade.

The report argues that India must shift its policy focus from large grid-scale projects to distributed renewable energy (DRE) to meet its target of 175 GW of renewable energy by 2022. It identifies a critical investment gap, estimating that annual DRE investment must increase from USD 2 billion in 2019 to USD 18 billion by 2024. Key barriers include the financial instability of state electricity distribution companies (DISCOMs), which has led to hostility toward net-metering and the imposition of grid support charges. The report recommends a rejuvenated policy framework that integrates DISCOMs as demand aggregators and service providers across several DRE applications, including rooftop solar, energy storage, EV charging, and solar-powered agricultural tools.