Two reports on financial planning and industrial decarbonisation of Jharkhand released
Ranchi: In a bid to strengthen the financial planning of the transition process, the Task Force-Sustainable Just Transition (Government of Jharkhand) and the Center for Environment and Energy Development (CEED) jointly released two reports at Ranchi on Monday.
The two reports, Transforming Jharkhand’s Economy in line with India’s net-zero ambitions and Decarbonising Jharkhand’s industrial sector for sustainable just transition, are prepared by the Institute for Energy Economics and Financial Analysis (IEEFA), CEED and World Resources Institute (WRI), India, respectively, under the guidance of the Task Force.
These reports spotlight the financing pathways for transition planning and ways of accelerating the cross-sectoral decarbonisation process in Jharkhand.
Additional chief secretary (health) and development commissioner Jharkhand, Ajoy Kumar Singh, highlighted that the state must plan ambitiously, finance strategically, and transition effectively. This involves mapping assets, identifying capital instruments, building financing partnerships across public and private sectors, and designing policy enablers.
“We can start with green budgeting as a key step. Future-ready planning integrates social safeguards with economic diversification through investments in green infrastructure, clean energy, and low-carbon sectors to promote inclusive growth,” said Singh.
He praised the initiatives taken by the Task Force through deep-dive research and plans, which provide valuable insights in policy planning for the state.
First report, Transforming Jharkhand’s economy in line with India’s net-zero ambitions, undertakes a cost modelling exercise to quantify transition finance needs with a decadal-based analysis. It estimates that nearly US$ 256 billion (Rs 22 trillion) between 2026 and 2070 is required to cover coal and thermal power phase-down, steel sector decarbonisation, community support, and developing new low-carbon industries.
It further estimates that by transitioning to new low-carbon ones, the state will be able to more than offset the loss of revenues it generates from the fossil fuel economy.
For instance, revenues from state goods and services tax (SGST), driven by economic diversification into low-carbon industries, are expected to surpass coal mining royalties after 2047, when coal revenues peak before declining through 2070. This revenue substitution delivers a net positive impact of about US$ 79.3 billion (Rs 6.7 trillion ) to the state. The report provides a financing framework to aid the planning process further.
Industry secretary Arava Rajkamal, emphasised on need of industrial decarbonisation.
“It goes beyond emission reduction — it is about reshaping the economic identity of tomorrow’s Jharkhand. A phased and strategic deployment approach across sectors will be essential — prioritising cost-effective, proven technologies in the near term while supporting emerging innovations and pilots such as renewables, green hydrogen, carbon capture, and advanced storage systems to enable states towards a low-carbon growth,” said Rajkamal.
The second report on ‘Decarbonising Jharkhand’s industrial sector for sustainable just transition’ takes a sector-agnostic approach and provides a clue towards greenhouse gas (GHG) emissions trends. Jharkhand accounts for 3.9% of the GHG emissions—primarily due to its mining and energy-intensive industrial base. The energy sector contributes 85% (including industry: 45% and electricity generation: 29%), while agriculture contributes 11%, transport 3%, and waste 1%. The report analyses how targeted policy interventions, clean technology adoption, sector-specific decarbonisation steps and coordinated state–industry–business actions can unlock pathways for low-carbon industrial growth.
