India would require around $1.5 trillion investment by 2030 across key areas to address the climate challenge at scale, according to Deloitte India’s latest report. The report titled ‘The climate response: Tapping into India’s climate and energy transition opportunity’ highlights that investments will be driven by India’s efforts towards renewable energy, biofuels, decarbonisation and sustainable infrastructure to combat climate change.
Key Investment Areas
“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.
India will need an investment of around $200-250 billion by 2030 to add 300 GW of renewable energy capacity by 2030 to bridge the gap between its current capacity and the announced target of 500 GW of RE capacity, according to a latest report published by Deloitte.
The investments will need to cover areas such as advanced manufacturing, grid integration and system expansion.
Capital for a Sustainable Future
Furthermore, RE capacity addition will also need to be supported by scaling up energy storage infrastructure by eightfold, necessitating around $250-300 billion in capex by FY30, as per Deloitte.
The report points to a strong investment opportunity in green and biofuels such as bioethanol, Sustainable Aviation Fuels (SAF), methanol, Compressed Biogas (CBG) and green hydrogen.
“Government initiatives such as blending mandates and obligations will require significant capacity expansion, leading to potential investments of around $75–80 billion in biofuels and $90–100 billion in green hydrogen,” the report said.
Furthermore, it also highlights investment opportunities in critical areas supporting India’s climate resilience, including water security, sustainable agriculture and transport infrastructure. An estimated $60–75 billion will be needed for water-related infrastructure such as sourcing, treatment, supply, conservation and recycling.
Sustainable farming practices such as precision agriculture, agroforestry and regenerative methods could attract investments worth $20–22 billion, whereas building a sustainable transport system, focusing on environmental, social, economic and technological goals, is expected to require investments of $600–650 billion.
“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,” said Prashanth Nutula, Partner, Deloitte India.
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.
The report also emphasizes the role of technology in driving sustainability. Digital solutions such as AI-powered monitoring systems, climate risk forecasting tools and blockchain-enabled carbon tracking platforms are expected to enhance decision-making and accelerate climate mitigation efforts. These technologies are likely to attract investments of $60–65 billion.