Headquarters
The Energy and Resources Institute (TERI)
Darbari Seth Block, Core 6C,
India Habitat Centre, Lodhi Road,
New Delhi - 110 003, India
Mobilizing private finance for climate action has become a central concern in both global and national finance agendas, particularly as public funding alone is insufficient to meet the growing investment needs for mitigation and adaptation. Blended finance—defined as the strategic use of public or concessional capital to attract private investment—has emerged as a promising tool to bridge this financing gap. However, despite its potential, its application remains limited in emerging markets like India due to structural barriers, regulatory constraints, and a lack of institutional coordination.
India has demonstrated strong climate leadership under the Paris Agreement and is on track to meet its existing Nationally Determined Contribution (NDC) for 2030. As countries prepare to submit new NDCs ahead of COP30 in 2025, which reflect a country’s “highest possible ambition,” grounded in the principles of “common but differentiated responsibilities and respective capabilities,” India has a timely opportunity to build on this success by setting out a clear, ambitious vision for 2035 that advances both national development goals and global climate commitments.
There is significant potential to increase waste diversion in India, which can extend the lifespan of disposal sites, advance a circular economy, reduce emissions, and improve air quality and public health.
The shift to a sustainable and low-carbon future is imperative as global temperatures have risen above a critical point. Therefore, switching to alternative renewable energy sources is essential to address climate security concerns and meet the growing energy demand. Bio-based resources are renewable and have great potential for achieving the decarbonization goal. We call this the biotransition, which refers to the shift from a fossil-based economy to biobased economy that places a strong emphasis on using biological resources.
Twelve Eastern and North-Eastern states together own barely 9 per cent of India’s installed generation capacity—about 42 GW, of which only 10 GW is renewable. Yet official resource potential show an extraordinary ≈218 GW of technically exploitable solar, wind, small-hydro and biomass potential, including ~50 GW of large-hydro potential in the Himalayan rivers. Bridging that gap is critical for meeting India’s 500 GW non-fossil target by 2030 and its net-zero pledge for 2070.
In response to extreme levels of fine particulate air pollution in India and the increasing recognition of its adverse health impacts, the Indian government launched the National Clean Air Programme (NCAP) in January 2019 (Ministry of Environment, Forest, and Climate Change, 2019). The NCAP aims to improve air quality in 131 cities, including non-attainment cities and Million Plus Cities across 24 states through a multi-stakeholder engagement approach. All 131 cities have developed city Action Plans (CAPs) and are being implemented by Urban Local Bodies.
There is an increasing realization that effective low carbon growth of our societies requires urgent, broad-scale changes at a systemic level in how we manufacture and consume products. One such area of focus is the production of iron and steel, which among heavy industries is the largest source of CO2 emissions and the second largest energy user, responsible for around 7% of global emissions from the energy system. Iron and steel production is heavily dependent on fossil fuels due to the high heat requirements needed in these processes. To reduce carbon emissions from production processes effectively, nothing short of industrial transformation is required.
Policy Recommendations from WSDS Thematic Track on Critical MineralsSet up Reprocessing Parks and the Need for Purchasing End-of-Life Waste
The cement industry is one of the core industries in India and holds significant importance in the country’s economy. India is the second largest cement producer in the world, accounting for 8% of total installed capacity. The per capita consumption of cement in India is 257 kg, far less than the global average of 540 kg. The sector generates about 20,000 downstream jobs for every million tonne of cement produced.
The discussions and negotiations for the JTWP and the NCQG so far reflect the broader challenge of aligning global ambitions with practical actionable steps towards equitable climate action. Looking ahead, the JTWP has the potential to be a framework for deeper, more effective collaboration towards a collective narrative around implementing the Paris Agreement through just transition pathways at global as well as national scales, leading to tangible progress towards a sustainable and equitable future. This potential cannot be realized without a commensurate outcome of the NCQG process. The NCQG must be aligned to the needs of the JTWP outcomes.