India’s commitment to reach net zero by 2070 has accelerated the transition to clean energy, particularly in the power sector. While this shift offers long-term benefits—including green growth, employment opportunities, and reduced emissions—it also poses significant risks for states that rely heavily on solid fossil fuel mining and related industries. Without timely and well-planned interventions, the transition could disrupt livelihoods, public revenues, and local economies. Ensuring that the low-carbon transition is also just and equitable is therefore critical to sustaining progress and public support.

Just transition challenges vary widely across regions, sectors, and stakeholder groups. In India, fossil fuel–dependent states such as Jharkhand, Chhattisgarh, and Odisha face heightened exposure to transition risks. Addressing these risks requires region-specific strategies that respond to local economic structures, workforce needs, institutional capacity, and financing constraints.

This brief proposes a Just Transition Financing Framework (JTFF) to support state- and sector-level transitions through coordinated, multi-stakeholder action. The framework focuses on enabling evidence-based policymaking, strengthening institutional and workforce capacity, supporting project preparation, and mobilising public and private finance. Together, these building blocks aim to direct capital to priority areas, close knowledge and financing gaps, and support inclusive governance.

Using Jharkhand as a case study, the report demonstrates how a state-level financing framework can support effective last-mile delivery of transition assistance and be adapted across sectors and regions to advance a just and sustainable transition.

Dowload the report here