Renewable energy, green hydrogen, water security among key focus areas

India will require close to USD 1.5 trillion in investments by 2030 to address climate challenges at scale and drive its climate and energy transition across critical sectors according to Deloitte India’s latest report on India’s Climate and Energy Transition Opportunity
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The report identifies that the bulk of this funding will be directed toward areas such as renewable energy (RE), biofuels, decarbonisation, and sustainable infrastructure, which are central to India’s climate strategy. These investments, Deloitte notes, are not just about cutting emissions but also about job creation, energy security, and protecting communities from worsening climate risks.

Deloitte estimates that USD 200–250 billion will be required to add 300 GW of renewable energy capacity, a crucial step toward India’s 2030 target of 500 GW. Additionally, scaling energy storage by eight times current capacity may demand a further USD 250–300 billion in capital expenditure. Emerging sectors such as bioethanol, sustainable aviation fuel, green hydrogen, and compressed biogas are likely to attract combined investments of USD 165–180 billion. Water-related infrastructure, sustainable agriculture practices, and transport systems could draw USD 600–750 billion more.

Beyond energy, Deloitte flags urgent investment needs in water security, sustainable agriculture, and transport infrastructure. Water infrastructure, from treatment and supply to recycling, is expected to require USD 60–75 billion. Precision farming, agroforestry, and regenerative practices could attract USD 20–22 billion, while green transport systems aligned with environmental and social goals may need a massive USD 600–650 billion.

“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. Unlocking investment at scale and ensuring equitable access to climate finance will help drive long-term resilience in India’s most climate-sensitive sectors. By strategically harnessing climate finance, India can accelerate its decarbonisation efforts, offering immense investment potential in sectors poised for sustainable growth and innovation”, said Viral Thakker, Partner and Sustainability and Climate Leader, Deloitte, South Asia.

“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. Equally, attention must be given to climate-vulnerable sectors beyond energy, particularly agriculture, water and related ecosystems, which are critical to building long-term climate resilience. 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”, added Prashanth Nutula, Partner, Deloitte India.

The report also underlines the role of digital tools like AI-based monitoring systems and blockchain-enabled carbon tracking in accelerating mitigation efforts, estimating tech-driven sustainability investments at USD 60–65 billion. The report further highlights strong investment potential in green and biofuels, including bioethanol, Sustainable Aviation Fuels (SAF), methanol, Compressed Biogas (CBG), and green hydrogen. Government mandates such as fuel blending obligations are likely to drive capacity expansion and push investments to USD 75–80 billion in biofuels and USD 90–100 billion in green hydrogen.