Odisha, one of India’s most resource-rich states, stands at a pivotal juncture as it seeks to transition from a coal-dependent economy to a sustainable, low-carbon future. A newly released report by the International Forum for Environment, Sustainability, and Technology (iFOREST), in collaboration with the Government of Odisha's Department of Energy, offers a comprehensive roadmap for this transformation. Titled "Just Transition in Odisha for Green Growth and Green Jobs," the report emphasises the importance of balancing economic growth, environmental sustainability, and social equity.
The findings were unveiled at a multi-stakeholder meeting in Bhubaneswar, drawing participation from government officials, industry leaders, civil society representatives, and media. The event focused on strategies to attract investments for green industries, develop renewable energy infrastructure, and build a future-ready workforce capable of driving Odisha’s green economy.
Odisha’s emissions challenge: A need for immediate action
Odisha is currently one of India’s highest emitters of greenhouse gases (GHGs), contributing 9.7% of the country’s total emissions. The coal-based power and steel sectors account for 84% of these emissions, making the state a significant player in India’s decarbonisation efforts. Odisha’s per capita GHG emissions stand at 6.9 tonnes, more than double the national average of 2.8 tonnes.
Highlighting the urgency of the transition, Dr. Chandra Bhushan, President and CEO of iFOREST, said: "Odisha has a unique opportunity to become a national hub for green minerals and metals. However, to achieve this, the state must implement a just transition policy that ensures investments are directed toward green industries while protecting the welfare of workers and communities dependent on coal and steel."
Key districts: The hotspots of energy transition
The report identifies seven key districts as the epicenters of Odisha’s industrial and mining activities: Angul, Dhenkanal, Jajpur, Jharsuguda, Sundargarh, Sambalpur and Kendujhar. These districts collectively produce 100% of Odisha’s coal and house a majority of its coal-based power plants and steel industries. The transition to a green economy will significantly impact these regions, necessitating tailored strategies to mitigate job losses and promote sustainable development.
A just energy transition: Mitigating socioeconomic risks
One of the most pressing concerns is the potential displacement of workers in coal mining, power generation, and steel manufacturing. The report estimates that over 930,000 formal and informal jobs could be affected if the energy transition is not managed carefully.
Shri Hemant Sharma, Principal Secretary of the Energy Department, highlighted the government’s commitment to a fair transition: "Justice must be embedded in our energy transition strategy. We are committed to ensuring that those whose livelihoods are affected are not left behind. This requires meticulous planning, investment in skills development, and leveraging financial resources effectively."
Recommendations: A roadmap for a green economy
The iFOREST report provides a detailed set of recommendations to guide Odisha’s transition:
Development of a just transition policy
Formulate a comprehensive just transition policy with specific regional plans for key industrial clusters such as Angul-Dhenkanal and Jharsuguda-Sundargarh-Sambalpur.
Scaling up renewable energy
Achieve an 11 GW renewable energy target by 2030.
Streamline land allocation and regulatory frameworks to accelerate renewable energy projects, particularly on 11,000 hectares of reclaimed coal mining land.
Enforcing Renewable Purchase Obligations (RPOs)
Mandate a 43.33% Renewable Purchase Obligation (RPO) for captive power plants by 2030.
Promoting green steel
Establish hydrogen-ready steel plants from 2025 and target 25% green steel production by 2035.
Strengthening workforce development
Build a robust skilling ecosystem focused on:
Green energy technologies
Green metals and mining
Green manufacturing processes
Green construction and infrastructure development
Collaborate with institutions like the World Skills Centre and the Skill Council for Green Jobs to implement targeted training programs.
Utilising financial resources
Leverage ₹35,000 crores from District Mineral Foundation (DMF) funds and an estimated ₹2,50,000 crores from coal cess over the next two decades to finance the Just Transition.
Strategic use of coal mining land
Reclaimed coal mining areas, particularly in Talcher and Jharsuguda, offer a significant opportunity for renewable energy projects. By converting these lands into sites for solar and wind energy generation, Odisha can simultaneously address land degradation and increase its renewable energy capacity.
Industry-government collaboration: A multi-sectoral approach
The multi-stakeholder meeting featured prominent industry leaders from companies like Mahanadi Coalfields Limited, Tata Steel, Jindal Steel & Power Limited, and representatives from government agencies such as GRIDCO and the Odisha Renewable Energy Development Agency (OREDA).
Srestha Banerjee, Director of Just Transition at iFOREST, underscored the importance of collaboration: "A successful just energy transition requires a multi-sectoral approach. Industry, government, and civil society must work together to ensure that green growth does not compromise the welfare of communities dependent on traditional industries."
Odisha’s role in India’s net-zero ambition
The state’s efforts are closely aligned with India’s broader climate goals, particularly the commitment to achieve net-zero emissions by 2070. Odisha’s transition to a green economy could serve as a model for other coal-dependent states, demonstrating how economic growth, environmental sustainability, and social justice can coexist.
Shri Kanak Vardhan Singh Deo, Deputy Chief Minister of Odisha, reaffirmed the state’s commitment: "Odisha is poised to lead India’s green revolution. With collective effort, we will move towards a greener, more sustainable future, contributing to India’s net-zero targets."
The iFOREST report provides a clear blueprint for Odisha to become a leader in green industrial development. By implementing its recommendations, the state can transform its economy, create sustainable jobs, and significantly reduce its carbon footprint, positioning itself as a key player in India’s green future.