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CSEP report highlights substantial financial requirement to Decarbonize ‘Hard-to-Abate’ sectors | Current Affairs | Vision IAS
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CSEP report highlights substantial financial requirement to Decarbonize ‘Hard-to-Abate’ sectors

Posted 01 Sep 2025

2 min read

A Working Paper titled “India’s Climate Finance Requirements” by Centre for Social and Economic Progress (CSEP) assesses India's climate finance requirements for substantially decarbonizing four key ‘hard-to-abate’ sectorspower, road transport, steel, and cement from 2022 to 2030

  • These sectors are "hard-to-abate" due to energy-intensive and emission-intensive production processes.

Key highlights of the Paper

  • Rising emissions: India’s share in global carbon emissions rose from 2.5% in 1990 to an estimated 8.2% in 2023.
    • Despite the increase in overall emissions, India's per capita emissions remain lower than the global average.
  • Economic Risks: Climate change poses substantial economic risks, with potential per capita GDP losses ranging from 2.0% in 2030 to 3-9% by 2047, depending on mitigation efforts.
  • Estimated Climate Finance: India's total climate finance requirement for substantial decarbonization of four key sectors (power, road transport, steel, and cement) averages around 1.3% of GDP annually.

Policy Recommendations

  • Incentivize private investment: Provide incentives and regulatory measures to encourage private investment in low-carbon technologies and EV adoption.
  • Government Role in Infrastructure: Government to step in to develop crucial infrastructure, such as EV charging networks, and invest in R&D for grid management, battery storage, and hydro-pump storage in the power sector.
  • International cooperation: For CCS (Carbon Capture and Storage) technology transfer for hard-to-abate sectors.
  • Tags :
  • Decarbonization
  • Carbon Emission
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