Climate: Let's get our institutional architecture right

India’s climate policy has entered a decisive phase.

- ANOOP SINGH

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.