Jharkhand needs $256 billion for low-carbon transition by 2070: IEEFA

Jharkhand will require about $256 billion (Rs 21.52 lakh crore) between 2026 and 2070 to transition away from fossil fuels while maintaining social and economic stability, according to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). The study, “Jharkhand’s Just Transition: A Roadmap for Economic Growth and Diversification,” was prepared for the state government’s Task Force on Sustainable Just Transition.

The report estimates that the investment will fund the closure of coal mines, decommissioning of thermal power plants, site remediation, and decarbonisation of the steel sector. Despite the high upfront cost, IEEFA projects a net gain of Rs 6.7 lakh crore ($79.3 billion) for the state by 2070, driven by new industries, jobs, and diversified revenue streams.

According to IEEFA’s Shantanu Srivastava, the transition will involve phasing out carbon-intensive assets and building new low-carbon capacity while mobilising large-scale capital. Jharkhand’s renewable energy potential, industrial base, and reserves of critical minerals position it to become a low-carbon manufacturing hub for electric vehicles, solar panels, battery storage systems, and green hydrogen.

The report also highlights nature-based opportunities such as natural farming and carbon market-linked rural livelihoods. Around Rs 1.05 lakh crore ($12.5 billion) will be needed for reskilling, compensation, and rehabilitation of coal-dependent workers and communities.

IEEFA said that while public funds will play a catalytic role, most financing will need to come from private investors, concessional multilateral capital, and blended finance structures. A clear policy roadmap and regulatory consistency will be critical to attract this investment.

IEEFA’s Energy Finance Analyst Soni Tiwari said the transition is both a high-risk challenge and a high-return opportunity. Acting now, Jharkhand can protect its economy from coal decline and position itself as a leader in India’s low-carbon growth.