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India’s energy transition: what corporates say

What Indian corporates say about net zero, capital constraints and the role of sustainable finance — and what it means for transition strategy.

11 February 2026

5 mins

Corporate & investment bankingEnergySustainable and transition finance
A birds eye view of a city

This article draws on insights from our India and the Energy Transition report, based on a survey of leading Indian corporates.

India’s energy transition is entering a critical execution phase. Rapid economic growth, rising power demand and decarbonisation commitments are converging — increasing the pressure on corporates to act, while remaining competitive and financially resilient.

To understand how companies are navigating this reality, we surveyed 40 high-profile Indian corporates across five key sectors: consumer discretionary, consumer staples, energy, industrials and materials. Together, these companies generate over USD410 billion in annual revenues, providing a cross sectional view of corporate sentiment across emissions-intensive and transition-critical industries.

The objective of the survey was to understand how Indian corporates view the transition, what actions they are already taking, and what will determine the pace of progress in the years ahead.

Key findings from the survey

01

Corporate intent is strong – and action is underway

Indian corporates are broadly aligned on the direction of travel.

  • 95 per cent are concerned or very concerned about the environment.
  • 83 per cent believe India will achieve its net-zero ambitions.
  • 83 per cent have established net-zero strategies.
  • 93 per cent are already investing in emissions-reduction solutions.

This indicates that decarbonisation is no longer a future ambition – it is already embedded in corporate planning.

02

Capital is flowing to scalable solutions

Survey responses show strong convergence around solutions that are commercially viable today.

  • Solar is cited by 98 per cent of respondents as having the strongest growth potential.
  • Energy efficiency and recycling are widely adopted across sectors.
  • Wind (55 per cent) and hydrogen (53 per cent) are viewed as next-wave growth areas, though availability at scale remains a constraint.

03

The main barriers appear temporary, not permanent

While commitment is high, execution is constrained by practical challenges than can be addressed.

  • 63 per cent cite lack of availability of solutions at sufficient scale.
  • Current upfront costs and limited pricing power are key hurdles.
  • Local manufacturing capacity and infrastructure gaps slow deployment.

04

Finance is becoming the key accelerator

As investment needs rise, funding strategies are moving to the centre of the transition conversation.

  • Fewer than 40 per cent of corporates have used sustainable finance so far.
  • 86 per cent expect to use sustainable finance solutions in the future.
  • Green and sustainability-linked bonds and loans are viewed as the most relevant instruments.

05

Interest in carbon markets is growing

Carbon credits are expected to play a growing role in emissions-reduction strategies.

  • 68 per cent have not yet engaged with carbon markets.
  • 88 per cent expect to use carbon credits going forward.
  • India’s upcoming compliance carbon market, expected from 2026, is likely to be a key catalyst.

What does India’s energy transition mean for corporates?

The survey points to a clear conclusion: the challenge is no longer willingness, but execution at scale

For corporates, this has four immediate implications:

  • Transition strategy must be anchored in capital planning:- Decarbonisation is increasingly a balance-sheet and funding question. Companies will need to carefully sequence investments, protect liquidity and align funding tenors with long-dated assets.
  • Early movers will shape access to capital and cost curves:- As infrastructure, local manufacturing and carbon markets develop, early adopters are likely to benefit from stronger investor confidence and more competitive funding outcomes.
  • Sustainable finance flows will continue to grow:- With the majority of corporates expecting to use sustainable finance – credible transition plans, measurable KPIs and robust governance will be critical to accessing capital.
  • Carbon markets could influence strategy:- Carbon credits are increasingly part of broader cost management, investment decisions and supply-chain decarbonisation strategies.

How Standard Chartered supports clients

Standard Chartered supports clients across Asia, Africa and the Middle East in translating transition ambition into executable financial strategies.

Our capabilities span:

  • Transition finance solutions, including loans, bonds and blended structures
  • Capital structure and funding advisory for long-dated, capital-intensive investments
  • Sustainable finance and carbon market advisory, including readiness for evolving regulation
  • Sector-specific insights, combining local expertise with global perspectives

With a deep presence in India and a global network across key transition corridors, we help clients connect strategy, capital and execution.

Explore more insights

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Standard Chartered has an important role to play in supporting our clients, sectors and markets to deliver net zero, but to do so in a manner that supports livelihoods and promotes sustainable economic growth. We currently provide financial services to clients, sectors and markets that contribute to greenhouse gas emissions however we’re committed to net zero in our own operations by 2025 and in our financed emissions by 2050.

Learn more about our approach.