India Needs $1.5 Trillion To Meet 2030 Climate And Energy Goals: Deloitte

(MENAFN- Live Mint) New Delhi: India will require around $1.5 trillion in investments by 2030 to tackle climate change and accelerate its energy transition, according to a new report by Deloitte.

The report, titled The Climate Response: Tapping into India's Climate and Energy Transition Opportunity, highlights the scale of capital needed across renewable energy, biofuels, decarbonisation efforts, and sustainable infrastructure to meet the country's climate goals.

To reach the government's target of 500 GW of non-fossil capacity by 2030, Deloitte estimates a required investment of $200–250 billion, spanning areas such as advanced manufacturing, grid integration, and system expansion.

As of now, India's total non-fossil fuel capacity stands at 242.8 GW, accounting for about half of the country's total installed capacity of 484.8 GW. This includes 184.62 GW of renewable power, 49.38 GW from large hydro projects, and 8.78 GW of nuclear energy.

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The report also notes that expanding India's renewable energy capacity must be accompanied by a significant scale-up in energy storage infrastructure-by nearly eight times-which would require an estimated $250–300 billion in capital expenditure by FY30.

Mandates on ethanol blending, sustainable aviation fuel, and the adoption of green hydrogen are expected to drive additional investments of $75–80 billion in biofuels and $90–100 billion in green hydrogen, Deloitte said.

“This investment will reduce emissions, boost job creation, enhance energy security and protect vulnerable communities from climate risks. Financial instruments, such as green bonds, climate funds and blended finance models, are important in mobilising capital for sustainability initiatives,” said Viral Thakker, partner and sustainability and climate leader, Deloitte South Asia.

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He added that unlocking investment at scale and ensuring equitable access to climate finance would help build long-term resilience in India's most climate-sensitive sectors.“By strategically harnessing climate finance, India can accelerate its decarbonisation efforts, offering immense investment potential in sectors poised for sustainable growth and innovation,” Thakker said.

Prashanth Nutula, partner, Deloitte India, said,“To accelerate its climate journey, India must further strengthen its commitment to integrating renewable energy, biofuels and advanced technologies into a cohesive, sustainable energy ecosystem. This must be supported by investments in energy storage, infrastructure and grid reliability while prioritising inclusive growth."

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He also emphasised the need to focus on climate-vulnerable sectors beyond energy. "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,” Nutula added.

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