Green Investments Set to Soar 5x to ₹31 Trillion by 2030: Are We Ready for the Boom?
Green Investments: India is projected to experience a five-fold increase in green investments, reaching ₹31 trillion between 2025 and 2030, according to Crisil’s announcement at the India Infrastructure Conclave 2025. This surge in investments is a critical component of the approximately $10 trillion needed by 2070 to meet the country’s net-zero objectives outlined in the Updated First Nationally Determined Contribution (NDC) under the Paris Agreement.
Key commitments within India’s NDC include a 45% reduction in the carbon intensity of its gross domestic product (GDP) by 2030 compared to 2005 levels, as well as a goal to raise the share of non-fossil-fuel-based energy resources in the cumulative installed power capacity to 50%.
As India emerges as the fastest-growing large economy in the medium term, it faces a unique opportunity to harmonize its developmental and environmental priorities. The country’s energy demands are only expected to rise, underscoring the importance of a balanced transition towards achieving net-zero emissions.
Significant progress has already been made towards green objectives, with anticipated green investments totaling ₹31 trillion by 2030, as stated by Amish Mehta, Managing Director and Chief Executive of Crisil Ltd. Mehta emphasized the need for accelerating grants, incentives, and scaling up blended finance initiatives with multilateral organizations to drive the transition towards a carbon-neutral economy.
Of the projected ₹31 trillion investments, Crisil’s infra index predicts that ₹19 trillion will be allocated to renewable energy and storage, ₹4.1 trillion to the transport and automotive sectors, and approximately ₹3.3 trillion to oil and gas industries.
The annual Crisil Infrastructure Conclave serves as a platform for stakeholders to come together and discuss ideas, actions, and reforms to drive India’s infrastructure development. This year’s theme, ‘Navigating India’s decarbonization journey’, focuses on three key areas: sectoral decarbonization pathways and challenges, greening infrastructure and urban mobility, and financing decarbonization efforts.
During the event, the Crisil Infrastructure Yearbook 2025 was unveiled by Union Minister for New and Renewable Energy, Pralhad Joshi. The event was attended by policymakers, financiers, CEOs from industries that are difficult to decarbonize, as well as representatives from energy and infrastructure sectors, funding agencies, and other stakeholders.
The yearbook features a unique national index, the Crisil InfraInvex, which measures the investment attractiveness of various infrastructure sectors. The latest scores show that momentum is stable or improving in most of the 12 infrastructure segments tracked, based on factors such as policy, regulation, financials, operations, and sustainability.
Renewables, conventional generation, transmission, and distribution sectors have shown strong performance due to improvements in the policy framework and investment opportunities. However, the mining and electric vehicle (EV) ecosystems have experienced a decline in investment attractiveness. Crisil suggests that the mining sector could benefit from a focus on critical minerals, while the EV ecosystem is awaiting further policy interventions.
Funding large-scale investments continues to be a significant challenge. For well-established technologies with lower risk profiles, such as solar power, wind power, and two-wheeler electric vehicles, there is sufficient debt financing available through banks, sector-focused development finance institutions, and bond markets. The development of green bond markets also presents a promising opportunity. In addition to robust capital markets, the monetization of operational assets through secondary sales and infrastructure investment trusts can ensure adequate equity funding.
On the other hand, high-risk projects like green hydrogen, carbon capture, utilization, and storage (CCUS), energy storage, and other emerging technologies will require government grants and incentives to enhance project viability. These projects will heavily rely on equity, with the private sector, specialized climate/venture funds, and multilateral organizations playing a crucial role. Utilizing blended finance and first-loss guarantee structures through multilaterals will be essential for scaling up these technologies in their early stages.
India must find a balance between economic growth, energy security, and environmental sustainability while addressing challenges such as financing gaps and technological barriers. Innovative financing solutions are key to ensuring consistent investments. With a growing reliance on climate funds and multilateral funding agencies, and with banks integrating climate risk into their lending processes as directed by the Reserve Bank of India, it is imperative for corporations to enhance their disclosure of environmental, social, and governance (ESG) and sustainability-linked metrics. Rahul Prithiani, Senior Director and Global Head of Energy and Sustainability at Crisil Intelligence, emphasized the importance of this approach in navigating the complex landscape of financing for sustainable projects.
Collaboration among the government, private sector, funding institutions, industry associations, and developmental agencies is essential for turning decarbonization from a challenge into a cornerstone of the country’s growth strategy. International cooperation also plays a crucial role in this transformation, offering benefits such as partnerships for technology transfer, concessional financing, and expertise exchange through platforms like the International Solar Alliance. According to Crisil, leveraging these partnerships can significantly contribute to the success of decarbonization efforts.
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