India's Climate Finance Challenge: Decarbonising Heavy Industry

A new study reveals India needs $467 billion by 2030 to transition its key carbon-intensive sectors—steel, cement, power, and transport—to a low-carbon pathway. The report uses a bottom-up approach, highlighting steel and cement as major financial challenges and calling for domestic and international funding solutions.

In a landmark study, economists Janak Raj and Rakesh Mohan reveal that India must mobilize $467 billion by 2030 to decarbonize its most carbon-intensive sectors, including power, steel, cement, and transport.

The report, published by the Centre for Social and Economic Progress (CSEP), departs from traditional top-down models, adopting a bottom-up methodology to assess sector-specific climate finance needs. Surprisingly, the steel and cement industries are identified as the primary financial challenges, requiring 80% of the proposed funds.

Authors urge urgent domestic and international funding, recommending incentivizing private investment and building frameworks to support electric vehicle adoption. As India prepares for COP30 in November, the report underscores the significance of these financial strategies.