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India's Just Transition Challenge: Balancing Coal Dependence with Clean Energy Growth

9 days ago
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India's Just Transition Challenge: Balancing Coal Dependence with Clean Energy Growth

Key Insights

  • India's clean energy expansion faces hurdles as coal-dependent regions and workers risk being left behind without equitable transition plans.

  • Coal still powers 70% of India's electricity, but states like Jharkhand are pioneering coal-to-clean energy transitions.

  • India's renewable sector, with 110 GW solar and 50 GW wind capacity, must address a skills gap to create 35 million green jobs by 2047.

  • Climate finance remains a barrier, with India needing $10-$19 trillion to meet its 2070 net-zero target amid global funding shortfalls.

India’s ambitious clean energy push is at a crossroads as the country grapples with the dual challenges of decarbonization and ensuring a just transition for coal-dependent communities. While renewable energy capacity has surged—solar exceeding 110 GW and wind installations crossing 50 GW in early 2025—coal remains the backbone of India’s power sector, accounting for nearly 70% of electricity generation. States like Jharkhand, Odisha, and Chhattisgarh, heavily reliant on coal revenues and jobs, underscore the urgency of equitable transition strategies.

Efforts to repurpose retired coal assets for clean energy are gaining traction, with India ranking fourth globally in such initiatives. Jharkhand has established a state-level task force to address transition challenges, but systemic solutions are needed. Coordinated investments in education, healthcare, and infrastructure are critical to mitigate economic shocks in coal-dependent regions and prevent deepening inequalities.

The renewable energy sector’s rapid growth presents a paradox: while government projections suggest 35 million green jobs by 2047, a glaring skills mismatch threatens to leave workers behind. Pilot programs, such as women-led solar technician training in rural areas, offer hope but require scaling. A multi-stakeholder approach—integrating vocational education, industry alignment, and labor protections—is essential to prepare the workforce for the energy transition.

Financing remains a formidable hurdle. India’s 2070 net-zero target demands $10-$19 trillion, yet global climate finance commitments, including the unmet $100 billion annual pledge under the Paris Agreement, fall short. India is exploring innovative models like climate-resilient bonds and blended finance to attract private capital for long-term projects.

Industrial decarbonization is another frontier. With steel capacity projected to reach 330 million tonnes by 2030, reliance on coal-intensive processes risks locking in emissions. Transitioning to hydrogen-based direct reduced iron and carbon capture technologies requires strategic public-private partnerships and policy incentives.

Gender equity is also pivotal. Women constitute less than 11% of India’s renewable energy workforce, highlighting the need for inclusive policies in land rights, credit access, and technical training. Without addressing these disparities, India’s green economy risks perpetuating existing inequalities.

Public perception adds complexity. While climate concern has dipped, renewable energy’s potential to improve air quality and employment enjoys broad support. Leveraging this sentiment through civic education and local governance could bolster political momentum for climate reforms.

India’s journey toward a just transition hinges on embedding equity into every policy layer—energy, labor, finance, and education. Success would position India not just as a climate leader but as a model for inclusive, sustainable transformation.