India would require about $1.5 trillion in investments by 2030 to address climate change and to boost its initiatives for energy transition, according to a July 2025 report published 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.
Deloitte also stated that the country will require an investment of $200–250 billion to reach the government’s target of 500 GW of non-fossil capacity by 2030 to work on areas such as advanced manufacturing, grid integration and system expansion.
At present, India has achieved 50% of total non-fossil fuel capacity of 242.8 GW, out of the total 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.
The Deloitte report also stated that expanding India’s renewable energy capacity addition will also need to be supported by scaling up energy storage infrastructure by eightfold—which would require an estimated $250–300 billion in capital expenditure by FY30.
The report added that government 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.
“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.
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."
He also said that there is a 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.
RBI Eyes Climate Disclosures
Meanwhile, the Reserve Bank of India (RBI) is close to finalising rules for climate-risk disclosure for banks, likely to be on a voluntary basis from fiscal year 2027 and then mandatory by fiscal year 2028, reported Reuters.
Banks will also be asked to conduct periodic stress tests to gauge the impact of adverse climate events such as floods, heatwaves and cyclones on borrowers and the economy, based on a guidance note which the central bank is also likely to issue soon, the sources told Reuters.
This move is expected to integrate climate resilience into lending practices and could play a key role in channelling the trillions of dollars needed for energy transition investments.
