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Transitioning to a low-carbon economy presents several challenges for India. Here are some key challenges identified:

1. Administrative and Socio-economic Heterogeneities: India’s diverse administrative and socio-economic landscape poses challenges in implementing uniform climate and energy policies across states and regions. The geographical distribution of costs and benefits of these policies needs to be carefully understood to ensure equitable outcomes and avoid political resistance .
2. Political Economy Constraints: Devising politically feasible policies for the transition to a low-carbon economy requires a deep understanding of how these policies would impact different stakeholders. Concerns over disproportionate impacts on poor households, rising inequality, and concentrated costs on specific groups can undermine public support for climate policies .
3. Technological and Infrastructural Challenges: Transitioning to clean energy technologies requires significant investments in renewable energy infrastructure, grid integration, and energy storage. Scaling up emerging technologies such as hydrogen, battery storage, and low-carbon alternatives in sectors like steel, cement, and fertilizers also poses technological and infrastructural challenges.
4. Economic Implications: The shift to a low-carbon economy may have economic implications, particularly for sectors heavily reliant on fossil fuels. Balancing the need for economic growth and job creation with the imperative of reducing carbon emissions requires careful planning and policy interventions .
5. Limited Evidence and Vulnerabilities: Limited evidence on the needs of those affected by the transition and existing social and economic vulnerabilities can hinder India’s ability to achieve a just and equitable low-carbon development pathway. It is crucial to identify potential transitional challenges across income groups, genders, sectors, regions, and communities to ensure an inclusive and fair transition