The recent discussions on sustainable development have increasingly emphasised the role of green jobs in driving economic growth while reducing environmental degradation. Green jobs, defined as employment opportunities that contribute significantly to preserving or restoring environmental quality, have emerged as a key component of sustainable development. With India’s economy experiencing rapid growth and facing diverse environmental challenges, the promotion and expansion of green jobs present both opportunities and challenges.

India, as one of the world’s fastest-growing economies and a signatory to global climate agreements, faces the dual challenge of maintaining economic growth while reducing carbon emissions and enhancing environmental sustainability. The concept of green jobs aligns closely with India’s national priorities, as outlined in its nationally determined contributions (NDCs) under the Paris Agreement, which include targets for reducing greenhouse gas emissions intensity and increasing the share of non-fossil fuel power capacity.

Despite the growing recognition of the potential of green jobs, their expansion in India is hindered by various institutional, economic, social, and technological barriers, collectively posing significant challenges to the widespread adoption and growth of green employment opportunities. Some of these obstacles include inadequate policy frameworks tailored to the specific needs of green sectors, limited access to finance and investment for green enterprises, skills mismatches within the labour force, and a lack of technological infrastructure to support green industries. 

Skill mismatches and technological infrastructure

Skills mismatches within the labour market are a significant barrier to the widespread adoption of green jobs in India. The rapid evolution of green technologies and practices requires a workforce equipped with specialised skills in areas such as renewable energy, energy efficiency, and sustainable agriculture. However, current education and training systems often fail to adequately prepare workers for careers in emerging green sectors, exacerbating labour market imbalances and hindering the transition to a green economy.

Additionally, inadequate technological infrastructure poses a significant challenge to the growth of green industries and the creation of sustainable employment opportunities. Limited access to advanced technologies, particularly in rural and underserved areas, restricts the scalability of green enterprises and limits their capacity to innovate and compete in global markets.

Policy frameworks and financial challenges

The absence of robust policy frameworks designed to support green sectors and enterprises remains a critical barrier. While India has made progress in formulating environmental policies and setting renewable energy targets, gaps persist in translating these commitments into actionable strategies that effectively promote green job creation and sustainability. Furthermore, the lack of coherent policy coordination across different government departments and jurisdictions complicates efforts to scale up green job initiatives.

Financial barriers also continue to impede the growth of green enterprises and the creation of new green jobs. Despite the increasing trend of global investments in renewable energy and sustainable technologies, access to finance remains a significant challenge for small and medium-sized enterprises (SMEs) operating in green sectors. Limited access to affordable credit, coupled with regulatory uncertainties and high transaction costs, constrains the ability of green businesses to expand operations and create employment opportunities at scale. 

Role of different stakeholders 

To address the complex array of barriers and unlock the full potential of green jobs in India, a multi-faceted approach involving various sectors is required. 

Private Sector: Scaling up green jobs in India and fostering sustainable development necessitates comprehensive efforts involving the private sector, government, and other stakeholders. The private sector should increase investment in green technologies and innovation by enhancing research and development funding and adopting industry-leading sustainability practices. Expanding access to finance through partnerships with financial institutions and utilising green bonds is essential. Additionally, improving workforce skills through training programs developed in collaboration with educational institutions and fostering public-private partnerships to drive innovation through pilot projects and shared knowledge are crucial.

Government: The government needs to establish strong policy frameworks that specifically support green industries and ensure policy consistency across departments. Facilitating access to finance by creating dedicated green funds and lowering regulatory barriers will support green enterprises. Investments in education and training, such as updating curricula to incorporate green technologies and expanding vocational training, are crucial to preparing the workforce for green careers. Improving technological infrastructure, particularly in rural areas, and promoting digital transformation will enhance the scalability of green businesses.

Other stakeholders: NGOs, international organisations, and academia should advocate for policy and regulatory reforms by participating in policy dialogues and offering technical assistance. Capacity-building efforts through training programs and knowledge sharing are essential. Facilitating access to finance and resources by mobilising international funding and supporting SME development will bolster the growth of green sectors. Promoting research and innovation through applied research and industry collaboration will address challenges and seize opportunities in green job creation. Collectively, these actions will enable India to overcome barriers to green jobs and achieve sustainable development. 

Initiatives on the Promotion of Green Jobs

Several sectors in India offer tremendous opportunities for generating green jobs. The Union Budget 2024-2025 announced several initiatives that have the potential to create green jobs across various sectors:

Agriculture: Enhancing productivity and resilience in agriculture through investments in research and development of climate-resilient crop varieties and promoting natural farming could create up to 10 million green jobs in agricultural extension services, organic certification, and sustainable farming practices over the years. 

Energy security: Initiatives such as the PM Surya Ghar Muft Bijli Yojana for rooftop solar plants and the policy for pumped storage projects indicate a strong push towards renewable energy, which could significantly generate green jobs and improve the renewable energy supply chain.

Infrastructure: Investment in infrastructure provides opportunities to create green jobs in sustainable construction, energy-efficient building design, and the maintenance of green infrastructure such as smart grids and sustainable transportation networks. 

Urban development: Emphasis on transit-oriented development and the creation of ‘Cities as Growth Hubs’ could lead to green job creation in urban planning, sustainable transport management, and the development of green spaces within cities.

Manufacturing and services: Promoting MSMEs and labor-intensive manufacturing with an emphasis on the production of eco-friendly goods could lead to the creation of green jobs in sustainable production, recycling, and the development of clean technologies.

Tourism: Expanding pilgrimage and tourist sites with a focus on sustainability could create green jobs in eco-tourism, heritage conservation, and sustainable hospitality services.

Innovation, research, and development: The creation of the Anusandhan National Research Fund and the formation of a venture capital fund for the space economy could lead to the creation of high-skilled green jobs in research, technology development, and innovation.

Green economy reforms: Next-generation reforms through the formulation of an Economic Policy Framework could help create a green economy by incentivising green investments and creating a supportive regulatory environment for green job growth. 

To realise the full potential of green job creation, it is crucial to align these initiatives with skill development programs that equip the workforce with the necessary competencies in green technologies and sustainable practices. The government’s focus on simplifying tax structures and reducing compliance burdens for businesses, particularly in the renewable energy sector, can further incentivise private investment and accelerate green job creation.

The recent emphasis on green jobs in the Union Budget 2024-25 lays the foundation for the growth of green jobs across multiple sectors, which is critical for India’s transition to a sustainable and inclusive economy. While the concept of green jobs holds immense promise for fostering sustainable development in India, addressing the complex array of barriers is essential to unlocking their full potential.

Authors: Prof. Barun Kumar Thakur, Faculty of Economics, FLAME University, Janardhana Anjanappa, CEO, Tyche Investments, & Prof. Sridhar Samant, Faculty, TISS.