Green investments to rise 5x to ₹31 trillion through 2030: Crisil

Among India’s key NDC commitments are a 45% reduction in the carbon intensity of its gross domestic product (GDP) by 2030 from 2005 levels and an increase in the share of cumulative installed power capacity from non-fossil-fuel-based energy resources to 50%.

“As the fastest-growing large economy over the medium term, India has a window of opportunity to balance its developmental and environmental aspirations and priorities. Our energy needs will only accelerate from here, so a balanced transition to the net-zero is crucial.

“For sure, notable strides have been made towards our green goals. Based on the plans announced by the government and companies and progress on the ground, we estimate ₹31 trillion of green investments through 2030,” said Amish Mehta, managing director and chief executive, Crisil Ltd.

“Accelerating grants and incentives, scaling up blended finance initiatives with multilaterals, policy support and flexibility to drive initiatives for carbon market development and industrial decarbonisation are imperatives in the road ahead,” he added.

Of the expected ₹31 trillion investments, the Crisil infra index said, ₹19 trillion is seen going into renewable energy and storage, ₹4.1 trillion into transport and automotive sectors, and ~ ₹3.3 trillion into oil and gas.

The annual Crisil Infrastructure Conclave provides stakeholders a platform to discuss and generate ideas, actions and reforms to drive India’s build-out. The theme this year is ‘Navigating India’s decarbonization journey’, with a focus on three dimensions: sectoral decarbonization pathways and challenges, greening infrastructure and urban mobility, and financing of decarbonization.

The event saw the release of the Crisil Infrastructure Yearbook 2025 by Union minister for new and renewable energy Prahlad Joshi in the presence of policymakers, financiers, CEOs from hard-to-abate industries, energy and infrastructure, representatives of funding agencies and other stakeholders.

Investment attractiveness

The yearbook includes a unique national index, the Crisil InfraInvex, which has been measuring the investability or “investment attractiveness” of select infrastructure sectors since 2017. The latest scores indicate the momentum is stable or improving in most of the 12 infrastructure segments tracked on dimensions such as policy, regulation, financials, operations, and sustainability. 

Four power-linked sectors—renewables, conventional generation, transmission, and distribution—have done well due to improving policy framework and investment opportunities.

Mining and EV ecosystems saw some loss of investment attractiveness, as per the index. The mining sector can benefit from sharper focus on critical minerals, while the EV ecosystem awaits the next round of policy interventions, Crisil said in a statement.

That said, funding massive investments remains a challenge.

For established technologies with relatively lower risk profiles, such as solar power, wind power, and two-wheeler EVs, adequate debt finance is available through banks, sector-focused development finance institutions, and bond markets. The development of the green bond markets is likely to provide significant opportunity, too. Besides, robust capital markets, the monetization of operational assets through secondary sales and infrastructure investment trusts can ensure adequate equity funding.

However, for relatively high-risk projects such as green hydrogen, CCUS (carbon capture, utilization and storage), energy storage and other emerging technologies, government grants and incentives will hold the key in improving project viability, the report said.

Reliance on equity will be high here, and the private sector, specialized climate/venture funds, and multilaterals will have a greater role. Further, blended finance and first-loss guarantee structures through multilaterals will be important to ensure scaling up of some of these technologies in the initial phase.

“India needs to balance its economic growth, energy security and environmental sustainability priorities and explore ways to overcome challenges such as financing gaps and technological barriers. Innovative financing can help ensure consistent investments. Given the reliance on climate funds, multilateral funding agencies and in the backdrop of integration of climate risk in the lending process by banks driven by the Reserve Bank of India, it is important that corporates enhance disclosure of ESG and sustainability-linked metrics,” said Rahul Prithiani, senior director and global head, energy and sustainability, Crisil Intelligence.

A collaborative approach involving the government, private sector, funding institutions, industry associations, and developmental agencies will be crucial to transforming decarbonization from a challenge into a cornerstone of the country’s growth strategy. International cooperation, too, can yield benefits—partnerships for technology transfer, concessional financing and expertise exchange through platforms, such as the International Solar Alliance, to name a few, Crisil said.