India’s path to a sustainable future is defined by its ambitious climate and energy targets, and a new report by Deloitte, The Climate Response: Tapping into India’s Climate and Energy Transition Opportunity, makes clear the colossal investments required to meet these objectives. According to the report, India must mobilize around $1.5 trillion by 2030 to transform its energy sector, cut emissions, and strengthen climate resilience across the economy.
Scale of India’s Climate and Energy Commitments
India’s climate ambitions are sweeping. The country has announced its intent to achieve net zero emissions by 2070 and to reduce greenhouse gas emission intensity by 45% from 2005 levels by 2030. Central to these ambitions is the target of reaching 500 GW of non-fossil fuel capacity in the power sector by 2030.
Currently, India has built up 242.8 GW of non-fossil fuel power, including 184.62 GW from renewable sources, 49.38 GW from large hydropower, and 8.78 GW from nuclear energy. This represents about half of the country’s total installed capacity of 484.8 GW, but to meet its 2030 pledge, India needs to almost double this capacity in just five years—a scale of growth that stands out globally.
Renewable Energy: The Foundation of the Transition
Deloitte estimates that the expansion of renewable energy alone will require $200–250 billion by 2030. Investments will be needed not just in developing new solar and wind power plants, but also in scaling up advanced manufacturing, integrating renewables into the national grid, and expanding transmission systems. As the report states, “India will have to add 300GW of RE capacity by 2030… reaching this goal will need around $200–250 billion in investment by 2030, covering areas such as advanced manufacturing, grid integration and system expansion.”
The Challenge of Energy Storage
A major hurdle in India’s clean energy drive is managing the variability of renewable sources like solar and wind. To ensure reliable, round-the-clock electricity, Deloitte highlights the need to scale up energy storage infrastructure by eight times by FY30, requiring $250–300 billion in investment. Accelerating battery storage, pumped hydro, and other advanced storage solutions will be vital for maintaining grid stability as renewables increasingly power the nation.
Green Fuels: Powering Industry and Transport
India’s clean energy transformation goes beyond electricity. The government’s policies on ethanol blending and sustainable aviation fuel are expected to drive $75–80 billion in biofuels investment. Meanwhile, the National Green Hydrogen Mission—targeting annual production of 5 million metric tonnes by 2030—is set to attract $90–100 billion. Developing these green fuels will reduce reliance on imported fossil fuels, cut emissions, and help position India as a global green energy hub.
Resilient Infrastructure and Broader Climate Action
Building a climate-resilient India will require strategic investment in water management, climate-smart agriculture, sustainable transport, digital infrastructure, and waste management. Upgrading these sectors is projected to require more than $80 billion for water and agriculture alone, and as much as $650 billion for transforming transport systems.
Prashanth Nutula, a partner at Deloitte India, stresses that “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.”
Financing: Mobilizing Capital at Scale
Meeting India’s climate targets at this scale calls for innovative financing beyond public budgets. Viral Thakker, Deloitte South Asia’s sustainability leader, points out that “financial instruments, such as green bonds, climate funds and blended finance models, are important in mobilising capital for sustainability initiatives.”
Unlocking these capital flows is key for long-term resilience, job creation, and protecting vulnerable communities from climate risks. As Thakker notes, “By strategically harnessing climate finance, India can accelerate its decarbonisation efforts, offering immense investment potential in sectors poised for sustainable growth and innovation.”
The Path Forward
Deloitte’s latest research offers a clear-eyed view of the investment challenge India faces in realizing its climate and clean energy aspirations. The stakes are not just environmental—they are deeply economic and social. Transforming this $1.5 trillion challenge into an opportunity could safeguard India’s development gains, ensuring prosperity, security, and sustainability for decades to come.
