India’s climate progress may end up too haphazard without a coherent institutional framework

Subscribe to enjoy similar stories. India’s climate policy has entered a decisive phase. The country must sustain rapid economic growth while managing mounting climate risks that threaten infrastructure, agriculture, energy security and urban resilience.

Over the past year, policymakers have accelerated mitigation and adaptation initiatives, reinforced by climate-related provisions in the recent budget, which expanded allocations for renewable energy (RE), grid integration, storage, clean-technology deployment and climate-resilient infrastructure, alongside fiscal arrangements under the 16th Finance Commission (FC). A draft Climate Finance Taxonomy was also prepared, aimed at mobilizing private capital for the energy transition; official documents stress that this must be treated not as a standalone climate agenda, but as an integrated strategy linking growth, energy security and institutional preparedness. Progress is visible across several fronts.

RE capacity continues to expand, supported by incentives for domestic manufacturing of solar modules and batteries, plus investments in grid integration and storage. The National Green Hydrogen Mission aims to decarbonize hard-to-abate industries, while electric mobility adoption is advancing, especially in two-wheelers. Climate adaptation is gaining urgency as heatwaves, floods, and cyclones impose rising costs.

At the fiscal level, the 16th FC strengthened local bodies and disaster management funding, increasing resources for water solutions, sanitation and urban infrastructure that are increasingly climate-sensitive. Yet climate spending remains dispersed across ministries and tiers of government, making investments difficult to track or prioritize. Climate initiatives