Jharkhand needs green budgeting and sustainable financing to drive the state’s energy transition was the unanimous opinion during a day-long conference held in Ranchi on Thursday.

The conference was hosted by the Jharkhand government’s task force on sustainable just transition and its technical partner, the Centre for Environment and Energy Development (CEED). The US-based Institute for Energy Economics and Financial Analysis (IEEFA) also released a report titled Just Transition Financing Pathway for Jharkhand at the conference.

The concept of just transition is broadly defined as ensuring that no one is left behind or pushed behind in the transition to low-carbon and environmentally sustainable economies and societies.

The report reveals Jharkhand’s significant reliance on fossil fuels, which accounted for 32 per cent of the state’s revenue during the fiscal year 2022-23. In comparison, Chhattisgarh and Odisha derived 22 per cent and 16 per cent of their revenues from fossil fuels, respectively.

Additionally, the report states around 57 per cent of Jharkhand’s GST collection comes from fossil fuel-dependent industries, with steel, iron, cement, and coal contributing about 40 per cent, and automobiles and petroleum adding another 17 per cent.

The report aptly advocates for greening the economy by integrating sustainable finance and green budgeting measures to meet development goals and address transition needs.

The conference discussed various financial instruments and mechanisms to support the state’s effort towards greening the economy.

Amarendra Pratap Singh, chairperson of the Jharkhand State Finance Commission (JSFC) and a retired bureaucrat, highlighted the essential role of green budgeting in aligning financial decisions with environmental priorities.

“Strategic planning in the green budgeting process is crucial for building financial structures that support sustainable growth,” he said.

He emphasised that public funds promote sustainability and climate resilience while encouraging innovation and green opportunities that support development goals.

Chairperson of the task force on sustainable just transition and retired forest official, Ajay Rastogi emphasised the importance of green financing in facilitating Jharkhand’s shift to a forward-looking economy.

“Developing a financing framework to effectively guide investments into green infrastructure is important. Increasing budget allocations for green initiatives is vital for meeting national climate targets,” he stressed.