Will India Budget for Clean Energy Development, Green Job Creation?

As India’s ambitious clean energy targets continue to capture headlines, the central government has released its 2015 Union Budget. This budget includes the doubling of tax on coal to Rs. 200 ($3.25) per metric ton (which goes to the National Clean Energy Fund to potentially fund clean energy projects) and the development of the National Investment and Infrastructure Fund (NIIF). However, some domestic solar and environmental groups expected to see more broad support in the budget for the country’s environmental causes and clean energy goals of developing 100 gigawatts (GW) of solar energy by 2022, and a 60 GW Wind Mission. With this new budget announced on the heels of RE-Invest 2015, India’s first renewable energy financing summit, the hope is that momentum between industry and government will build to actualize a clean energy future for India, ultimately increasing energy access across the population and creating climate-friendly jobs – over a million of them according to a recent analysis conducted by NRDC and the Council on Energy, Environment and Water (CEEW).

Huge Employment Opportunities

This interim report analysis illustrates that 1,000,000 full-time equivalent (FTE) jobs would be created if India reaches its solar energy goal of 100 GW by 2022, and another 183,500 FTE jobs would be generated by the wind sector if it reached its 60 GW target. According to NRDC-CEEW estimates, the majority of these clean energy jobs would be in non-technical (semi-skilled and unskilled) roles, providing training opportunities for a growing climate-conscious population and aligning with one of Prime Minister Modi’s government priorities to facilitate job creation. As momentum grows for the solar and wind markets, the message is simple: clean energy production creates jobs.

Looking Ahead

In order to support the enormous job creation potential of India’s 2022 renewable energy development goals, NRDC and CEEW’s report released at RE-Invest last month has three key recommendations:

1. Currently, the full range of economic benefits of employment generated by India’s clean energy industries are largely unknown due to a lack of reporting by solar and wind companies. Solar and wind energy companies in India can match international business practices by reporting a project’s job creation numbers.


2. Availability of job creation numbers can guide policy decisions as the framework is developed for how India will achieve targets through its Solar and Wind Missions. Along with solar parks and large-scale projects, targeted policies could aim to promote distributed generation technologies such as rooftop solar projects which are more labor-intensive and can create more jobs. Government agencies and local companies could also collaborate on skills development to train this growing workforce.


3. Indian government and business leaders can support the enormous job creation potential of its 2022 renewable goals by prioritizing the availability of affordable capital through innovative financing interventions such as green banks and green bonds.

India is primed to scale up the renewable energy sector and reap the benefits of a stronger economy, energy access, and cleaner air, all while helping combat global climate change. With clean energy companies coming forward with commitments totaling 266 GW at RE-Invest, a Union Budget that potentially offers some clean energy support for clean energy through the increased coal cess and infrastructure fund, needed momentum for the solar and wind markets can continue to grow.

Will India Budget for Clean Energy Development, Green Job Creation?