Equity in Transition: IEEFA Urges India to Build Inclusive Financing Framework for a Just Energy Future

India’s ambitious shift toward a lowcarbon economy must be anchored in social equity and financial inclusivity, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report, released on July 7, 2025, calls for the creation of a robust Just Transition (JT) financing ecosystem that supports workers, communities, and regions dependent on fossil fuelbased industries.

 

Defining the Just Transition Imperative

As India accelerates its climate commitments, the transition away from coal, steel, cement, and automotive emissions must not leave vulnerable populations behind. The report emphasizes that a Just Transition must be inclusive, equitable, and locally responsive—especially in coalrich states like Jharkhand, Odisha, and Chhattisgarh.

 

Key highlights from the report:

Stakeholder Roles and Financial Instruments

The report maps out a multistakeholder ecosystem involving ministries, regulators, financial institutions, corporates, and civil society. It recommends:

Policy Recommendations and Roadmap

IEEFA urges the government to establish a national Just Transition financing roadmap that blends environmental ambition with socioeconomic inclusion. This includes:

Outlook

The report positions Just Transition not just as a climate imperative, but as a socioeconomic opportunity to empower India’s workforce and regions. With the right financial architecture, India can lead the Global South in demonstrating how to decarbonize without marginalizing.

 

Sources: IEEFA, Business Today, Just Transition Finance Lab, Stakeholder Consultation Report July 2025