Special Offer!

Steel and cement emerge as the biggest financial challenge in India’s climate transition.

India Needs $467 Billion by 2030 to Decarbonise Steel, Cement, Power and Transport: Study.                                                                                                            

India will require $467 billion in climate finance by 2030 to decarbonise four key sectors—power, steel, cement and transport—according to a study by the Centre for Social and Economic Progress (CSEP). The report, authored by economists Janak Raj and Rakesh Mohan, estimates an annual investment need of $54 billion (1.3% of GDP) between 2022 and 2030. Contrary to common assumptions, the study finds steel and cement—hard-to-abate sectors requiring costly carbon capture and storage (CCS)—account for over 80% of the financing requirement, while power needs only $57 billion thanks to declining renewable energy costs. The transport sector will demand heavy investments in EVs, charging infrastructure, and grid upgrades. The authors recommend incentivising private investment, international technology transfers, and targeted subsidies. They warn that delays could lock India into high-emission pathways. With COP30 approaching, the findings aim to guide India’s strategy while offering lessons to other emerging economies.