Syllabus: GS3/Environment
Context
- The Green Transition Board began its work with members stressing that the global climate agenda has moved beyond setting targets to mobilising investment and ensuring implementation.
Green Transition Board
- It was announced at the Raisina Dialogue 2026.
- It aims to provide policy recommendations on climate finance, multilateral development bank (MDB) reforms, and India’s transition towards 2,500 GW of clean energy capacity by 2047 and net-zero emissions by 2070.
- Secretariat: Observer Research Foundation (ORF) Middle East
- Primary Focus: India’s green transition
- Broader Objective: Develop policy pathways for emerging markets and developing economies (EMDEs).
About Green Transition
- It is a shift from carbon-intensive economic systems to a low-carbon, climate-resilient and sustainable development model.
- It seeks to transform energy, industry, transport and agriculture along with ensuring economic growth and social inclusion.
Need for Green Transition
- Climate Change Mitigation: Fossil fuel combustion accounts for nearly 75% of global greenhouse gas emissions.
- A green transition is necessary for limiting global warming to 1.5°C, as set out in the Paris Agreement.
- Transitioning to clean energy is essential to limit global warming to 1.5°C, as envisaged under the Paris Agreement.
- Energy Security: Dependence on imported fossil fuels exposes economies to geopolitical disruptions and price volatility.
- Renewable energy enhances self-reliance and energy sovereignty.
- Sustainable Economic Growth: Green sectors create employment opportunities in renewable energy, battery manufacturing, EVs and green hydrogen.
- The International Renewable Energy Agency (IRENA) estimates millions of jobs can be generated globally through clean energy expansion.
- Public Health Benefits: Reduced air pollution lowers health costs and improves quality of life.
- Achieving SDGs: Green transition contributes directly to SDGs relating to climate action, affordable energy, sustainable cities and responsible consumption.
Current State of the Green Transition in India
- India has succeeded in exceeding more than 50% of the share of installed electricity capacity based on non-fossil fuel sources ahead of its Nationally Determined Contribution (NDC) deadlines.
- Capacity in renewable energy (including large hydro) has reached more than 230 GW.
- The ambitions of India include:
- 500 GW non-fossil fuel capacity by 2030;
- 50% cumulative electric power capacity from non-fossil sources by 2030;
- Net zero emissions by 2070;
- 2,500 GW capacity in clean energy by 2047.
- New Areas: The fast growth in solar and wind energy generation; scaling up of the production of green hydrogen; the increase in electric mobility and battery storage; and development of rooftop solar energy under the PM Surya Ghar Yojana.
- India is set to achieve net-zero much before 2070, given the availability of proper finance and technology.
Issues and Concerns in Green Transition
- Climate Finance Gap: Developing countries face severe shortages in affordable long-term finance.
- Global climate finance commitments remain inadequate and unevenly distributed.
- Limited Private Investment: Perceived risks in emerging economies discourage private investors.
- Many projects lack the ability to achieve bankability.
- Multilateral Development Banks Reform Needed: Existing MDBs have a limited lending capacity.
- Developing countries require concessional finance and participation in the decision-making.
- Technology Transfer Issues: The cost, intellectual property rights and lack of access prevent using advanced technologies.
- Grid and Storage Problems: The integration of large quantities of renewable energy requires investments in transmission grids, energy storage facilities, smart grids, and reliable supply chains.
- Problem of Just Transition: Transition away from fossil fuels may cause negative consequences for workers and regions relying on coal-based industries.
- Dependency on Critical Minerals: The use of renewable technologies is based on lithium, cobalt and rare earth elements.
Related Global Initiatives/Programs
- Paris Agreement (2015): The goal is to restrict global temperature increase to well below 2°C and preferably to 1.5°C.
- Conferences of the Parties (under UNFCCC): It guides the actions of the world in the climate field; COP30 (Brazil) will focus on implementation and climate finance.
- UN Sustainable Development Goal 7: It provides access to affordable, reliable, sustainable and modern energy for all.
- Global Stocktake: It evaluates the collective progress on achieving Paris Agreement objectives.
- Loss and Damage Fund: It helps the most vulnerable developing countries in dealing with climate impacts.
- International Solar Alliance (ISA): A global initiative led by India and France.
India’s Initiatives and Efforts
- National Action Plan on Climate Change (NAPCC): Missions on solar energy, energy efficiency and sustainable habitats.
- Green Hydrogen Mission: The goal is to transform India into a global producer and exporter of green hydrogen.
- PM Surya Ghar Muft Bijli Yojana: It encourages the adoption of rooftop solar energy in households.
- Production Linked Incentive (PLI) Scheme: The scheme stimulates domestic manufacturing of solar modules and advanced chemistry cells.
- FAME Scheme: It supports adoption of electric vehicles.
- Biofuel Policy: The policy promotes ethanol blending and alternative fuels.
- Sovereign Green Bonds: They finance the construction of green infrastructure projects.
Way Forward: Strengthening Green Transition
- Make reforms to MDBs for expanding concessional climate finance and de-risking investments.
- Develop innovative financial instruments, such as blended finance and green bonds.
- Invest in grid infrastructure, energy storage and transmission grids.
- Encourage international cooperation for technology transfer and capacity building.
- Implement just transition through skill building, social protection and regional diversification.
- Increase domestic manufacturing of renewable energy technologies and processing of critical minerals.
- Improve project preparation to turn climate commitments into bankable investments.
- Foster South-South cooperation among emerging economies to learn best practices.
Conclusion
- Creation of the Green Transition Board is a sign of India’s willingness to move from climate ambitions to climate implementation.
- The board can help in bridging the gap between ambitions and actions through focusing on climate finance, reform of MDBs, technology access and mobilization of private investments
- Recommendations of the board aim to define India’s path to net-zero by 2070 and become a model for other developing economies seeking sustainable development.
| Daily Mains Practice Question [Q] Discuss the major challenges in mobilising green finance for developing countries. Suggest measures to strengthen climate finance architecture and accelerate a just green transition. |
