India's Urgent Need for a Development-Focused Climate Strategy

India stands at a pivotal crossroads in its journey toward sustainable development. As the world's most populous nation and a rapidly growing economy, the country faces mounting pressures from climate change while striving to lift millions out of poverty and fuel industrial expansion. Traditional climate strategies often prioritize emission reductions at the expense of economic growth, but a landmark research paper from the Observer Research Foundation (ORF) challenges this dichotomy. Titled The Green Development Compact: Atlantic Ambition, Southern Scale, the paper argues that for nations like India, the climate transition must serve development goals as much as decarbonization efforts. This approach resonates deeply in a country where renewable energy capacity has surged to over 267 gigawatts (GW) of non-fossil sources as of early 2026, representing nearly 46 percent of total installed power capacity.

The document, authored by prominent experts Amitabh Kant, former G20 Sherpa and ex-CEO of NITI Aayog, and Samir Saran, President of ORF, was released on January 3, 2026. It critiques the Global North's inward-focused green industrial policies—such as the U.S. 'Clean Energy Marshall Plan' and the European Union's extractivist models—and calls for collaborative frameworks that leverage India's scale, speed, and abundant renewable resources alongside Northern capital and innovation.

Unpacking the Green Development Compact Framework

At its core, the Green Development Compact is a proposed partnership model designed to integrate resources from the Global North with those of the Global South. Unlike competitive, protectionist strategies that risk relegating developing economies to low-value roles in green supply chains, this compact emphasizes co-development, mutual economic security, and distributed value creation. For India, this means transitioning from fossil fuel imports to a self-reliant green economy without sacrificing industrialization.

The framework rests on three pillars. First, co-development and co-growth involve joint manufacturing hubs where Northern firms co-finance Southern production facilities. Imagine U.S. battery designers partnering with Indian cell manufacturers to supply both domestic and export markets under favorable tariffs—a 'gigafactory alliance' that boosts jobs and technology transfer. Second, economic security through interdependence ensures no single region dominates, with reciprocal supply agreements reducing vulnerabilities. Third, distributed value creation aligns investments with supply chain chokepoints like skilled labor, capital, energy, and critical minerals, allowing India to process raw materials locally rather than exporting them unrefined.

Operational Instruments to Make It Happen

The ORF paper outlines practical tools to operationalize the compact, addressing key barriers like high capital costs and technological gaps. One standout is long-term purchase or offtake guarantees: Northern governments committing to 15-year contracts for green commodities from Southern partners. This de-risks projects for Indian producers of green hydrogen or steel, slashing financing costs that currently carry hefty 'risk premiums' due to sovereign ratings.

Another innovative proposal is an 'Innovation Commons'—a multilateral R&D consortium akin to CERN or COVAX, but for climate tech. Here, countries co-develop technologies like solid-state batteries or green ammonia turbines, treating intellectual property as a global public good with open protocols for domestic adaptation. India's Digital Public Infrastructure serves as a model, enabling private sector innovation atop shared foundations. Finally, 'fixing finance' involves risk-hedging facilities and loan assessments tied to off-taker credit ratings, making funding for Indian solar or wind farms as affordable as in the West.

• Offtake guarantees reduce project risks by securing revenue streams upfront.
• Innovation Commons foster shared IP ownership and rapid tech dissemination.
• Risk-bending finance lowers borrowing costs for high-potential Southern initiatives.

India's Renewable Energy Momentum and Path to Net-Zero

India's progress provides fertile ground for the compact. By late 2025, non-fossil capacity hit 267 GW, with solar leaping 39 percent to 136 GW and wind up 13 percent. Total renewables now comprise 46 percent of over 460 GW installed capacity, on track toward the 500 GW non-fossil target by 2030 and net-zero emissions by 2070. Solar generation alone rose 22 percent year-over-year to 164.5 billion units in 2025, driven by aggressive project commissioning.

Yet challenges persist: coal still dominates generation, and the economy's carbon intensity must drop 45 percent by 2030. The compact could accelerate this by channeling Northern investments into India's vast solar potential—estimated at 750 GW—and wind resources exceeding 300 GW. Examples include Indonesia's mineral export bans with local processing mandates, which India could emulate for lithium or rare earths.

Implications for India's Economy and Job Market

Beyond energy, the compact promises broad economic uplift. By enabling green industrialization, India can create millions of jobs in manufacturing, R&D, and services. For instance, joint ventures in electrolyzer production or battery gigafactories would upskill workers and retain value domestically. This aligns with India's need to balance development—projected GDP growth of 7 percent annually—with climate resilience against floods, droughts, and heatwaves threatening agriculture and infrastructure.

In higher education, this opens doors for research jobs in sustainable technologies. Institutions like the Indian Institutes of Technology (IITs) and Indian Institute of Science (IISc) are already leaders, with IIT Delhi and IIT Kharagpur topping environmental sciences rankings. Amrita Vishwa Vidyapeetham's Center of Excellence in Advanced Materials and Green Technologies exemplifies university-led innovation ripe for compact partnerships. Aspiring academics can explore higher ed jobs in these fields to drive India's green future.

Challenges, Critiques, and Stakeholder Perspectives

While visionary, the proposal faces hurdles. Northern fiscal constraints limit subsidy appetites, and geopolitical tensions—especially China's manufacturing dominance—complicate alliances. Critics argue offtake guarantees mimic protectionism, potentially inflating costs if not managed transparently. Southern nations must negotiate market access for finished goods, avoiding raw material traps like the EU's push for imported green ammonia.

Stakeholders vary: Indian policymakers see it as empowering NITI Aayog's green growth agenda, while industry leaders welcome de-risked investments. Global South voices, echoed in ORF's analysis, demand equity beyond Paris Agreement pledges. Experts like those at Bruegel note alignment challenges but praise mutual dependence as a path to resilient chains.

The Role of Higher Education in Green Innovation

Universities are pivotal to the compact's success, serving as hubs for the proposed Innovation Commons. India's top institutions are stepping up: REVA University and GD Goenka lead in sustainable rankings, while the Institute of Chemical Technology's Centre for Green Technology advances eco-materials. Students and faculty contribute through CO2 capture research at VIT's Green Technologies Centre and sustainability curricula at NAMTECH.

This creates career pathways in academia. For those eyeing professorships, check professor jobs focused on climate tech. Crafting a strong academic CV can position you for these roles, blending research with policy impact.

Global Context and Future Outlook

The compact extends beyond India-US/EU ties, incorporating multilateral bodies like the Asian Infrastructure Investment Bank. As India's Union Budget 2026 emphasizes CCUS, critical minerals, and nuclear alongside rooftop solar, it signals readiness. Looking ahead, successful pilots—like European carmakers sourcing Indian green steel—could scale globally, cutting transition costs and fostering a 'democratic industrial civilization.'

For India, achieving net-zero by 2070 hinges on such innovations, with higher education driving talent pipelines. Explore scholarships for green studies or higher ed career advice to join this wave.

Read the full ORF paper for deeper insights. Also, see India's renewable stats at MNRE.

Photo by Gayatri Malhotra on Unsplash

Actionable Steps for Stakeholders and Policymakers

To advance the compact:

• Governments: Pilot offtake deals for green hydrogen exports.
• Universities: Form consortia for shared R&D, linking to research assistant jobs.
• Industry: Invest in joint ventures with tech transfer clauses.
• Individuals: Upskill via green programs; rate professors at Rate My Professor.

In conclusion, the ORF paper charts a pragmatic path where climate action fuels prosperity. India, with its youthful demographic and solar bounty, is poised to lead. Engage with higher ed jobs, university jobs, and career advice to contribute. Post your thoughts below and shape the discourse.