India will require an estimated US $467 billion in climate financing by 2030 to decarbonise its most carbon-intensive sectors, according to a recent study. The report highlights the immense financial challenge and the urgent need for mobilisation of resources to support sustainable transformation across power, steel, cement, and transport industries.
The steel sector, being one of the largest contributors to industrial emissions, faces increasing pressure to transition towards greener production methods. Adoption of low-carbon technologies, energy-efficient processes, and the integration of renewable energy sources are identified as critical steps. However, the scale of investment needed remains a major obstacle, with industry leaders calling for greater policy support, public-private partnerships, and international financing frameworks to meet these requirements.
Alongside steel, the power sector remains central to India’s decarbonisation pathway. Expansion of renewable energy capacity, upgrading of transmission infrastructure, and the gradual phasing out of coal are expected to demand significant financial input. Similarly, cement—another emission-heavy sector—will require large-scale adoption of carbon capture technologies and alternative materials to reduce its footprint. The transport sector, driven by electric mobility and cleaner fuels, adds further weight to the financing challenge.
The study stresses that without a strong flow of climate finance, India’s net-zero ambitions could face delays, undermining both environmental targets and industrial competitiveness. It also underlines the role of international cooperation, pointing out that developed nations must step up climate funding commitments to help emerging economies manage the transition without compromising growth.
For India, mobilising this capital will not only be a matter of meeting global climate obligations but also a crucial opportunity to strengthen domestic industries, generate employment, and ensure long-term sustainability in economic growth.
