Just Transition financing ecosystem: stakeholder consultation report

India is at a defining moment in its journey towards a low-carbon economy. As climate commitments are accelerating, the transition must also be just—meaning that the shift away from fossil fuels should be inclusive, equitable, and supportive of workers and communities dependent on carbon-intensive sectors like coal, steel, cement, and automotives. Ensuring a Just Transition (JT) is particularly important in coal-producing states like Jharkhand, Odisha, and Chhattisgarh, where the economy and livelihoods are deeply intertwined with fossil fuel-based industries. A robust and inclusive financing ecosystem is essential to manage transition risks and unlock opportunities. India has made progress in sustainable finance. However, financing for the social dimensions of transition—such as worker reskilling, community resilience, and regional diversification—remains limited. This report explores how India can design a JT financing ecosystem that blends environmental ambition with socio-economic inclusion.