India’s Climate Governance Gap
Insights on the structural reforms needed to move India from fragmented efforts to a unified climate strategy
In this episode, journalist Puja Mehra speaks with Economist Dr. Anoop Singh about the gap between India’s ambitious climate commitments and the institutional framework required to deliver them. As India moves closer to its 2030 targets, Singh argues that the real challenge lies not in announcing goals but in building the legal and fiscal architecture to implement them.
Drawing on international experience and recent developments — including the Supreme Court’s landmark ruling recognising the constitutional right to be free from the adverse effects of climate change — Singh explains why India remains one of the few major economies without a comprehensive national climate law. They discuss how fragmented, sector-specific policies have led to uneven implementation, why coordination between the Centre and states remains weak, and how climate finance cannot be mobilised or monitored effectively without clear institutional structures and climate budget tagging.
The conversation also examines state-level innovations in places like Kerala, Tamil Nadu, Odisha and Assam, and asks whether these “islands of excellence” can evolve into a coherent national framework. Tune in for a closer look at the structural reforms needed to move India from fragmented efforts to a unified climate strategy.
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TRANSCRIPT
Puja Mehra: Dr. Anoop Singh, thank you so much for coming to the show.
Anoop Singh: Thank you so much.
Puja Mehra: I have invited you today to the show to talk about India's climate change governance. You've written about the topic, although I do want to say to you that it's not a topic that could be considered a very hot podcast topic. And so the challenge for both you and me is going to be to keep listeners hooked on.
And I thought that, you know, what might help is if you could help them see through your discussion of climate governance, how intentions and implementations are two entirely different things in India, and how India's federal structure presents unique challenges and other stumbling blocks that policymaking tends to come up against. So with that sort of initial point, let me straight away ask you, what are India's climate commitments?
Anoop Singh: Well, I think if you do this in the winter in India, it's very timely. Everyone is concerned about it, at least in Delhi and North India, climate change is talked about a lot. It's important for India too, for various reasons.
But essentially, India has made very important commitments. And this was done some years ago. It has many different parts to it.
Perhaps most important is to reduce our emissions intensity by almost a half from its level in 2005, achieve a certain level of renewable capacity in the next few years by 2030. And after that, rely on renewables for half our needs. Now, these targets were enumerated and committed some years back.
They are being restudied by India. You know, the rest of the world is changing its approach. But India is an important factor in this.
And what India does will affect countries across the world as well.
Puja Mehra: Yes, that's right. But how ready are we here in India to recognise and combat climate change?
Anoop Singh: Well, let me make a number of points. The more people I speak to in Delhi, including in parliament, former parliamentarians and others, the interest on this is intense. And there are many parliamentarians who have actually asked for a discussion in India and have asked for climate law.
I'll come back to that point in a short while. But I will say what has been a signal development was about in March 24, not long ago, the Supreme Court of India delivered a landmark decision on a specific aspect of climate change. And it recognised the constitutional right to be free from the adverse effects of climate change.
So they used Article 21, the right to life, and use Article 14, the right to equality. And this was incredible that the Supreme Court made this decision in a different case, in a different context, but applying to India as a whole. Now, I would say that this Supreme Court judgement was important.
It was groundbreaking. However, it stopped short of emphasising how and when this has to be done. And so in a way, I would argue, it left space for the government of India to decide on its own how to apply this landmark decision.
Now, what I would say is this Supreme Court ruling has therefore given us and given parliament a compelling legal imperative for structured action. I'll come back to in a short while as to why this is so important for India and why India doesn't yet have the institutions to go down this route as yet.
Puja Mehra: Right. Sometimes listeners don't understand the link between intentions and how for them to convert into policy action, institutions are needed, the right sort of policy action and outcomes. So if you could just explain that, you know, what are these institutions and frameworks and targets that we need for climate governance?
Anoop Singh: Yeah. So let's look at the international experience because that is very important as we look at what India needs to do and what India should do and what India should have done by now. So countries worldwide have adopted various climate governance models.
It comes down to what kind of climate governance model the country has. Now, virtually every country has implemented what is called a national climate framework law. Such a law is a law particularly important in federations.
It provides the legal backbone for climate action. This kind of a law will set a binding target. It will define the institutional role and ensure accountability.
Now, it's interesting that India is one of the few countries that despite having these ambitious climate commitments, lacks any such what I would call overarching legislation. Instead, India has relied on sector-specific policies which has led to fragmented implementation. Most importantly in that context, since India has relied on sector-specific laws, and I would name among them the Saturday Electricity Act of 2003, it underscores the need for a cohesive legal framework to integrate climate goals across sectors and how to use existing institutions.
Such a law is not meant to, people say India is already highly centralised. So, the need for a law is not to centralise power. The need for a law is to codify, allow cooperation between the centre and the states.
For example, it needs bodies that will act in cooperation with each other and with the states. The committees India has, such as it has a so-called National Climate Council, but that council is effectively not functional. We need to have a process by which we can codify cooperation between states.
I bring states up because in India, states in different ways have done very innovative and very interesting developments for different aspects of climate change. But this is being done differently across the states and there's no law, there's no way in which these can be codified and cooperated among states. So, the first thing is most countries have a uniform national climate law.
India does not have one. It's a rare country. The Supreme Court of India specifically asked for the creation and legislation of a national climate law.
So, that's the first important step India must take.
Puja Mehra: Right. And there is a committee at the level of the Prime Minister's office that does take decisions on what India's position should be, for instance, on international climate negotiations, etc. Can they not coordinate with states and is climate something where ultimate targets will be met at the level of the states or can it be done at the level of the centre at all?
Anoop Singh: Well, you're right that there are some existing institutions, at least on paper, some are functioning. So, there is a Ministry of Environment, Forest and Climate Change institution. There's also on paper the Prime Minister's Council on Climate Change called the PMCCC.
These have been designated on paper as key drivers of national climate policy. However, the first one I mentioned, the MOEFCC, while it is meant to lead India's climate negotiations and to oversee the national action plan on climate change, there is virtually no cooperation between ministries. There's virtually no engagement with states.
The PMCCC, which is intended to be a needed high-level coordinating body, has had hardly any meetings over the last 10 years, as far as I know. It has not used its mandate in any way to address the complex demand of climate governance. And a related point is this.
India needs finance, countries need finance for climate change. Now, climate finance is a very important point and people are asking where is India's climate finance? Now, climate finance is not simply about how to get money and how to allocate money.
You need robust institutional architectures to ensure efficient, transparent, and accountable deployment. Without such institutions, climate finance risks being fragmented, misdirected, but most importantly, it won't emerge. So, everyone knows India needs money for climate finance.
What is not well understood is that climate finance flows across different, multiple, national, state, local. It goes across different sectors, energy, agriculture, transport. Unless you have the institutions that do this under a law that is a uniform law, it's not going to work.
And that's why India's climate finance has not reached the place, not reached where it needs to be.
Puja Mehra: When you say climate finance, are you speaking about government money or are you speaking about money that will be raised from, say, international money markets?
Anoop Singh: Both, including private sector. But you're not going to get money coming from abroad without institutions. And even domestically, if you want to apply resources to different states, you may ask the Finance Commission to do it.
But unless there is an institutional structure, a law, and related institutions, it's not going to happen. So, more fundamentally, for India, given where climate change is, it is critical. Number two, finance is also critical.
Number three, we are already in 2026. We're moving closer to our targets. Number four, we've not raised the finance.
Number five, we haven't set up the institutional structure that other countries have to develop that finance and to coordinate with the states.
Puja Mehra: And this climate finance money, does it have to go to the states or does it have to go through the states? That is, be channelled from the states into some projects, some of which may even be in the private sector. Who is going to be spending this money and for what?
Anoop Singh: It's going to be spent mainly by states, but it needs to be found a way to central states. Either you need to have certain kind of performance criteria, you need to have certain conditionalities. The problem with climate change is, it's very easy for states to increase the negative effect in neighbouring areas, as we see now in India.
The spillover effects are high. The inconsistency of standards across states can be high. We need a law to prevent this.
Puja Mehra: And how long do you think all this will take? What all will go into it? I'm beginning to feel a little worried after this conversation because we don't hear enough about it, which means not much is happening on this.
Anoop Singh: You're right that unless you're following this very carefully, people are talking of what finance India needs. People talk about the commitments we have made. Even important people whom I know, don't talk of the institutions needed to make it happen.
And you're right in saying, India has not focused on the need for a uniform climate law, but the Supreme Court has. Supreme Court recognised it. Supreme Court asked for it.
Puja Mehra: And just to get a better idea of how short we are of what is required, if you could explain with the examples of what's going on in other countries, so that it'll help us understand what all needs to be done.
Anoop Singh: Well, you know, we can look at this across the countries. So essentially what they've done is most countries have now passed these laws. These laws set certain binding targets.
These laws define the institutional roles that have to be played by certain institutions. And most importantly, they ensure accountability. Now, in my book, which you've seen, there is a section on climate change and public finance management.
This is very, very important. And I would say there is a big gap between the kind of data we collect from a macroeconomic point of view and the data that is needed to follow, measure, enforce climate change. There needs to be a way in which the data we collect nationally reflects our climate change policies, climate change implementation.
I also want to make one more point. You know, over the years, internationally, they have argued for certain data gaps to be removed. They've argued for a data gaps initiative.
The latest proposal by the G20 is to enhance the scope and quality of data that will be used to monitor climate finance and climate policy implementation. So basically it's called the data gap initiative. And this new initiative announced last year by the G20, it seeks to better integrate climate data with macroeconomic statistics.
Doing so will allow us to better understand the environmental impact of important economic policies, activities, effectiveness of states. And the issue of states is now very important. Indian states are doing a lot.
Puja Mehra: Before we get to the states, so what is this data that we need and how does it fit into the macroeconomic data that we already have or we already get?
Anoop Singh: Well, if you look at what the states are doing, you want to know how this is going to affect their policies of mitigation and adaptation. What one state can do can easily raise or make more complicated the issue of neighbouring states. You need to find a way in which you can monitor what states are doing.
Now, states are doing rather well in some cases, not so well in some cases. Without a law, you can't really go about this. Now, if you look at the states in India, I'll just make that one point.
The states that are most exposed to risk from climate change in India usually have the least capacity to respond. Without any framework law and institutional structure of implementation, climate spending in the centre and the states has been fragmented across departments. Without uniform classifications, without all the standards.
Puja Mehra: Now, I get that. What I'm asking is, for instance, let's say the sea will rise and Bombay may sink. What do we need to track in terms of data for that in this framework that you're talking about?
What should the laws say on things like that?
Anoop Singh: Well, most countries have not developed what I would call consistent climate budget tagging and how you set performance linked transfers. So, when you are spending, you need to understand the climate tagging effects of it. And unless you do that, you have no idea your policies are going to be monitoring and following your climate finance goals.
Puja Mehra: Understood. Yeah. I believe Orissa and Assam are sort of ahead of the other states.
What is it that they're doing right?
Anoop Singh: Well, you know, there are a number of states and they're doing it in so many ways. So, if you want me to give you a list as to what states are doing, there is so much. You've seen this in Odisha.
You've seen this in Assam too, doing rather well. Kerala has piloted what is most important called climate budget tagging. Unless you have climate budget tagging, you don't know if your policies are having a climate effect or not.
Do you want to give a couple of examples from that? Yes. So, let me see.
In the south, Kerala and Tamil Nadu have done this rather well. Tamil Nadu has established the Green Climate Company and this coordinates clean energy transitions. So, we know where clean energy is being implemented.
Gujarat and Maharashtra, as you can expect, are doing more in trying to align and bring together a public and private investment. And even Himachal and Uttarakhand, they are pioneering what is called payment for ecosystem models. So, there are a number of these events.
They are of all different kinds, but the problem is they are isolated. They are governed by the states. There is no coordination.
So, we need to move from having a few, what I would still call islands of excellence in certain states to a national framework for climate. That's what we don't have. So, most importantly, we need a legal foundation.
We need a national climate law. Number two, under the law, we need coordinating institutions. The current institutions, as I mentioned earlier, are fragmented.
They are under-resourced. We need a permanent intergovernmental climate council, which will align fiscal and climate goals. That's public finance management.
And most importantly, to coordinate cross-border challenges across states and then set national benchmarks that can be monitored. So, I think there's a lot that needs to be done, but countries across the world have gone down this road. And even climate change, although it has been questioned in some countries like the US, the institutions they have set up are still working.
India is a rare case where you have islands of excellence, as I call them, in certain states, but nothing is coordinated across the states. And the states that are the most in need are the states that are least monitored and where the least is being done. So, it is the opposite of where we need to be.
Puja Mehra: Understood. And where do you think this can be initiated? Is it going to take place from the Ministry of Environment or do you think it's going to have to be done at the level of the Finance Commission because there are fiscal, federal dimensions to it?
Anoop Singh: Everyone says, why doesn't the Finance Commission do it? The Finance Commission decides on certain aspects of taxes and transfers. It would be good to have certain institutions and certain instruments that can set criteria which the Commission can use to allocate transfers.
However, what we need is a national climate law. The Finance Commission has no role in it. That's why I suspect in a lot of these issues that need to be implemented, I don't think the Sistine Finance Commission has been able to recommend or will recommend these fundamental changes in a legal institution.
So, it has to come from Parliament. It has to come from the Government of India. It has to be working with the states.
We need the national climate law.
Puja Mehra: Well, I suspect it's going to have to be moved by the Ministry of Environment, perhaps with some help from the NITI Aayog or some institution like that, depending on which the next Finance Commission is going to have to frame something. Or maybe because the next Finance Commission will come much later, something may have to be done before that.
Anoop Singh: Yes, and I don't think the Finance Commission has played a role unless the law is set up. Now, as you say, why has it not been done so far? I think the answer is not for a certain institution to do it because it hasn't been done so far.
The Government of India needs to decide. It wants to do it and that's it.
Puja Mehra: True, true, true. We do see that, not a good trend, but we do see that laws get made rather quickly when the Government sets its mind to it, sometimes without discussion.
Anoop Singh: Yes, there are a few individuals who are presently in Parliament in India, in the Lok Sabha and Rajya Sabha from different states that have proposed this. But there are only a few of them.
Puja Mehra: You mean a private member's bill?
Anoop Singh: This is a private member's bill, yes. And there has been at least one such bill proposed in Parliament. There is a move by certain people.
This needs to build up. There needs to become a national consensus for India to move in this way.
Puja Mehra: Yes, it has to become a priority.
Anoop Singh: Yes, there's a lot in this. It's complicated to follow, but I think it's important to recognise that the states are acting in certain ways. It's nowhere enough to get India where it needs to be.
There are even islands of excellence in certain states. But you need a national law to take this forward and to codify cooperation across states.
Puja Mehra: Right. Thank you. Thank you so much.
Anoop Singh: Thank you.
