India will need to invest approximately $1.5 trillion by 2030 to effectively scale up its climate and energy transition efforts, Deloitte India said in a report on Thursday, identifying renewable energy, biofuels and sustainable infrastructure as key investment areas.

The report, “The climate response: Tapping into India’s climate and energy transition opportunity,” outlines the capital required to meet India’s decarbonization targets and build long-term climate resilience across sectors, including agriculture, water, transport and digital infrastructure.

“This investment will reduce emissions, boost job creation, enhance energy security and protect vulnerable communities from climate risks,” said Viral Thakker, partner and sustainability and climate leader, Deloitte South Asia.

He added that climate finance tools such as green bonds and blended finance models will be essential in unlocking capital at scale.

Renewable Energy Goal

India aims to achieve 500 gigawatts of renewable energy capacity by 2030, up from its current levels of around 200 GW.

According to the report, adding the additional 300 GW will require an investment of between $200 billion and $250 billion, spanning advanced manufacturing, grid integration and system expansion.

This capacity ramp-up will also necessitate a nearly eightfold increase in energy storage infrastructure, requiring an additional $250 billion to $300 billion in capital expenditure by the end of the decade.

Biofuels, Green Hydrogen

The report identifies substantial investment opportunities in clean fuels. Bioethanol, sustainable aviation fuels, methanol, compressed biogas, and green hydrogen are expected to receive a combined investment of $170 billion to $180 billion, driven in part by government mandates for blending and decarbonization targets.

“India must integrate renewable energy, biofuels and advanced technologies into a cohesive, sustainable energy ecosystem, while supporting inclusive growth,” said Prashanth Nutula, partner at Deloitte India.

Transport, Water and Agri in Focus

A sustainable transport system aligned with environmental and economic goals could attract investments of $600 billion to $650 billion, the report said.

It also estimated $60 billion to $75 billion would be required for water-related infrastructure, including sourcing, treatment, conservation and recycling.

Sustainable agriculture — including practices such as precision farming, agroforestry and regenerative methods — is projected to need $20 billion to $22 billion in investments.

Digital Technology

Emerging technologies are also expected to play a pivotal role. Deloitte projects that digital solutions, such as artificial intelligence-powered monitoring tools, climate risk forecasting systems, and blockchain-based carbon tracking platforms, could draw up $65 billion in investment.

“Aligning infrastructure, waste management and digital transformation will be crucial to positioning India as a pioneer in sustainable development,” Nutula said.