Report

Beyond Irrigation: Harnessing the untapped potential of solar pumps

Lessons from a solar-powered milling pilot in Uttar Pradesh

India has 1 million solar irrigation pumps (SIPs) that could potentially power other productive "secondary uses." This study evaluates the use of SIPs to power village grain mills. The mills delivered benefits in accessibility, costs, diversity of food processing, and gender empowerment. However, there was uneven uptake linked to siting, operator availability, and power limits. We provide practical policy fixes to increase community benefits.

February 10, 2026

Key Findings

  • Secondary use of power from solar irrigation systems can help address energy poverty in rural areas.

  • Milling is a viable secondary use of solar irrigation power. It delivered benefits to rural communities in India by cutting milling costs and travel time, making energy access more affordable and convenient, and supporting livelihood diversification.

  • Governments, technology developers, and businesses could further develop secondary use to boost economic viability and inclusion, such as by aligning policy and technologies with local needs, training women as owners/operators, ensuring adequate operator incentives, and pairing with battery storage.

  • Integrating secondary uses into government programs and state-level policies could maximize the economic returns from solar assets and maximize their potential to reduce energy poverty in equitable ways.

India has around 1 million standalone solar irrigation pumps, much of whose capacity sits idle outside irrigation seasons. This power can be harnessed for other productive secondary uses to extend benefits to smallholders, women, and rural entrepreneurs. 

Our study conducts an experimental field study in the state of Uttar Pradesh, India, to evaluate channelling that spare power into village grain mills in Uttar Pradesh. Community mills powered by solar pumps lowered milling costs, shortened travel, and enabled smaller, fresher, more diverse milling. Women, girls, and elders could mill independently, though deeper norms around household decision making reduced these impacts. Constraints were operational: operator availability, service quality, queues, and peripheral siting. Scaling secondary-use models with clear siting and service standards, female attendants, and simple retrofits can turn underused solar potential into engines of rural prosperity.


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Local Content Policies in Mining

Insights from a survey of producer countries

Local content in mining refers to the extent to which economic activities associated with the sector strengthen linkages and generate value within the domestic economy. Policies designed to increase local content matter because they shape how resource-rich countries translate extractive activities into broader development outcomes, yet they carry risks when poorly executed.

January 20, 2026

Key Messages

  • For many countries, local content policies represent a key opportunity to increase broader economic benefits from mining.

  • Local content policies should seek to balance benefits to local communities around mine sites while supporting broader national development.

  • Governments should clearly understand what activities are commercially viable in the short term, to avoid overburdening industry with requirements that are unrealistic.

  • Monitoring, learning, and adapting local content policies, and drawing lessons from other countries, can support more effective policy-making.

In response to rising interest in local content policies, the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development conducted a survey among its member countries to discuss their experiences with such policies and take stock of lessons learned from implementing local content policies. This report identifies insights from the survey and sets out several measures governments can consider to strengthen their local content policies.

Participating experts

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A Sustainable Asset Valuation Assessment of Nature-Based Solutions in Kigali, Rwanda

This Sustainable Asset Valuation (SAVi) assessment evaluates the economic, social, and environmental performance of nature-based solutions (NbS) implemented under the SUNCASA project. Using an integrated cost–benefit analysis, the report quantifies how afforestation, reforestation, agroforestry, riparian restoration, and urban tree planting can reduce flood damage, improve public health, create jobs, and strengthen Kigali’s long-term climate resilience. 

January 20, 2026

Key Findings

  • NbS significantly reduce flood damage to Kigali’s urban infrastructure, protecting flood-prone areas and delivering the largest share of total benefits.

  • Over a 25-year period, investing in NbS generates more than USD 2 in benefits for every USD 1 invested, with a benefit–cost ratio of 2.09 and a payback period of 7 years, making NbS a cost-effective option for urban climate adaptation.

  • By restoring ecosystems, SUNCASA NbS are projected to increase carbon storage by 30% (approximately 600,000 tons of carbon dioxide) compared to current levels. These interventions also deliver substantial public health savings by improving water quality and moderating extreme urban heat.

Kigali faces mounting climate and development pressures. Rapid population growth and urban expansion have increased surface runoff and soil erosion, while climate change is intensifying extreme rainfall and heat. Floods and landslides regularly damage homes, roads, and public infrastructure, as well as degrade water quality and pose serious health risks, particularly in informal and low-income settlements. 

To address these challenges, the Scaling Urban Nature-based Solutions for Climate Adaptation in Sub-Saharan Africa (SUNCASA) project supports gender-responsive NbS across Kigali. Implemented by the International Institute for Sustainable Development and the World Resources Institute, the project promotes afforestation and reforestation, agroforestry, riparian buffer restoration, and urban tree planting to restore ecosystems and reduce climate risks. The interventions target 2,500 hectares across six critical micro-catchments, including the planting of 85,000 urban trees. 

The Nature-Based Infrastructure Global Resource Centre conducted a SAVi assessment to evaluate the full life-cycle costs and benefits of these NbS interventions compared to a business-as-usual scenario. 

The results show that investing in nature delivers strong and resilient returns. Over a 25-year period, NbS in Kigali generate benefits more than twice their costs, with a payback period of just 7 years. The largest gains come from avoided flood damage to urban infrastructure, protecting hundreds of buildings and critical road networks, alongside major reductions in health costs linked to water pollution, floods, and heat.

Report

Electronic Commerce and the World Trade Organization

State of play ahead of the 14th Ministerial Conference

E-commerce now constitutes a core pillar of the global economy, with digital activities accounting for an expanding share of global GDP. As governments deepen cooperation to shape the rules governing digital trade, the World Trade Organization (WTO) remains the central forum for addressing emerging policy challenges and advancing international rulemaking. 

December 19, 2025

Key Messages

  • At the multilateral level, WTO members face a pivotal decision at MC14 on the future of the e-commerce moratorium and the broader work program, including whether to renew, make permanent, or allow the expected expiry.

  • At the plurilateral level, technical negotiations have concluded, but efforts to integrate the potential Agreement on E-Commerce into the WTO framework remain contentious, with no clear consensus yet in sight.

  • Many developing countries are continuing to weigh whether to join the e-commerce JSI, making needs assessments essential to evaluate readiness, clarify development benefits, and secure the support required for effective implementation.

This report provides a state-of-play update of the two main e-commerce tracks at the WTO: the multilateral Work Programme on Electronic Commerce—including debates on the future of the moratorium on customs duties on electronic transmissions—and the plurilateral Joint Statement Initiative (JSI) on electronic commerce, where a coalition of members has been negotiating new disciplines aimed at fostering an open, predictable, and trusted digital trade environment. Focusing on developments in 2024 and 2025, the report identifies key issues, areas of convergence and divergence, and the milestones ahead of the Fourteenth WTO Ministerial Conference (MC14). It also outlines the expected elements of the potential Agreement on Electronic Commerce. This publication forms part of a broader series tracking the evolution of e-commerce discussions at the WTO to support policy-makers and negotiators navigating this rapidly evolving field. 

This report was prepared with financial support from the Swedish International Development Agency (Sida).

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Topic
Trade
Project
Digital Trade
Impact area
Sustainable Economies
International Governance
Publisher
IISD
Copyright
IISD, 2025
Report

Indonesia’s Next Cooking Transition

Shifting to non-fossil cooking

This report transition compares three alternatives—induction stoves, dimethyl ether (DME), and city gas—and finds that induction stoves are the most practical and viable option to support Indonesia’s shift to cleaner, non-fossil cooking. The report details a roadmap for scaling induction cookstoves adoption in an inclusive way.

December 17, 2025

Key Messages

  • Cooking on induction is cheaper compared to unsubsidized LPG. Targeting LPG subsidies to low-income households and encouraging well-off households to switch to induction can generate annual savings for the government ranging from IDR 7–12 trillion.

  • Compared to DME and city gas, induction stoves are the most practical and viable option to support Indonesia’s shift to cleaner, non-fossil fuel cooking.

  • The single largest barrier to induction adoption is the current approach to LPG subsidies. Reforming LPG subsidies is critical to encouraging households to switch to induction that is cheaper to cook on compared to unsubsidized LPG.

Indonesia currently spends trillions subsidizing the 3-kg liquefied petroleum gas (LPG) cylinder each year for households—much of it flowing to households that do not need financial support. LPG subsidy stood at IDR 80.2 trillion/USD 5.14 billion in 2024, resulting in substantial financial strains on the government’s budget, along with energy security concerns, as most of the domestically consumed LPG was imported. 

This report compares three alternatives to LPG for cooking—induction stoves, DME, and city gas—and finds that induction stoves are the most practical and viable option to support Indonesia’s shift to cleaner, non-fossil fuel cooking. The report's findings are based on focus group discussions, in-depth interviews, and a survey of 100 households that had previously received an induction stove as part of a government pilot. 

This report finds that induction is cheaper for both households and the government when LPG is not subsidized. Encouraging households to switch from LPG to induction can result in household savings. Induction cookstoves also encourage public spending on upgrading the electricity supply, which can support broader electrification goals, such as those for cooling, electric vehicles, rooftop solar, and home batteries. 

LPG subsidies remain the single largest barrier to induction adoption. As LPG subsidies are universally available, households have limited incentive to shift to alternatives. The need to protect people on low income from higher energy prices necessitates a scenario where LPG subsidies are maintained for low-income households; for well-off households, LPG subsidies can be swapped for induction subsidies. This report finds that this scenario can generate annual savings for the government ranging from IDR 7.61 trillion (approximately USD 459 million) to IDR 11.87 trillion (approximately USD 717 million). These savings can be used for the capital investment required for the adoption of induction cookstoves among households. 

This report recommends the following: 

  1. Make electricity consumption and upgrades more affordable for scaling up adoption of induction cookstoves: Reform regulations to lower voltage upgrade costs, establish block tariffs for low-income households while ensuring cost recovery, and prioritize grid modernization.
  2. Implement subsidies for induction stoves: To reduce LPG dependence, implement one-off connection subsidies for induction stoves and induction compliant cookware.
  3. Reform LPG subsidies: The single largest barrier to induction adoption is the current approach to LPG subsidies. Reforming LPG subsidies with clear milestones and public awareness, while testing approaches like cash transfers to better target women from low-income households, could save IDR 7–12 trillion per year in public spending.

 

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Topic
Climate Change Mitigation
Energy
Gender Equality
Subsidies
Region
Indonesia
Impact area
Climate
Initiatives
Energy Transition in Southeast Asia
Publisher
IISD
Copyright
IISD, 2025
Report

Mapping India's Energy Policy 2025

Aligning government support for India's transition

India's energy policy is undergoing important shifts. This study gathers and updates the latest available data on energy-related government support and revenues in India, including fiscal year 2023–2024 (FY 2024). It also analyzes the state of India's energy transition from the perspective of shifts in public finance to inform future policy reforms.

December 16, 2025

Key Messages

  • Most (59%) energy subsidies remain locked in the form of electricity subsidies. Growing levels of electricity subsidies continue to constrain the fiscal headroom available with state governments for scaling clean energy programs.

  • Clean energy support is being channelized through direct budgetary transfers, while fossil fuel support is increasingly being provided by SOEs. Nearly 83% of capital expenditures of central SOEs went to fossils in FY 2024.

  • Energy revenues remain dependent on fossil fuels, contributing nearly INR 9 lakh crore (USD 108 billion) to the exchequer in FY 2024, exposing public finances to volatile price cycles and underscoring the need for revenue diversification.

  • Nearly 79% of India's fossil revenue came from consumption taxes in FY 2024, highlighting the need to improve price signals and reform tax measures based on polluter-pays principles.

Driven by the triple imperatives of energy security, affordability, and sustainability, the Government of India is gradually bringing structural policy reforms to align public financial flows with its clean energy goals. Results are beginning to show: clean energy subsidies provided over the last decade have contributed to a fivefold growth in renewable capacity since 2014 and have raised the non-fossil share of India’s electricity capacity to cross 50% in 2025. This energy capacity shift places India among a select group of countries that have achieved one of their nationally determined contributions targets 5 years ahead of time. 

This study finds that government support for fossil fuels in India reduced to five times the size of clean energy in FY 2024—the lowest in the last 5 years. As an important form of government support, subsidies are seeing an important shift. Clean energy subsidies remain small but grew by 31% year-on-year in FY 2024, reflecting continued government support. Fossil fuel subsidy, in contrast, recorded a 12% decline—the sharpest since COVID-19—but this was due to cyclical price movements, not structural policy shifts. 

However, India's energy state-owned enterprises (SOEs) continue to invest in new fossil fuel assets, led by oil and gas investments in FY 2024. The study finds that some SOEs are beginning to diversify, although the scale remains relatively small. 

In FY 2024, fossil fuels remained a critical source of government revenue, contributing nearly INR 9 lakh crore (USD 108 billion) annually to the exchequer (16% of all government revenue─centre and state combined). Three tax measures—excise and value-added tax on petrol and diesel, and the Goods and Services Tax compensation cess on coal (now abolished) alone—contributed nearly 50% of these revenues in FY 2024. 

The study makes the following recommendations: 

  1. Improve targeting of electricity subsidies: As India achieves higher levels of electrification, effective subsidy delivery—through smart metering, direct benefit transfers, and performance-linked grants to states—can help maintain affordability while containing fiscal growth in subsidy outlays. These reforms also strengthen distribution companies' finances and enable renewable energy integration through improved price signals.
  2. Guide SOE capital expenditures toward clean-energy priorities: As India expands clean energy programs, SOEs can play a catalytic role by diversifying portfolios, adopting sustainability metrics, and reinvesting in emerging clean-tech supply chains. Shifting a part of SOE capital expenditures from fossil fuel expansion to clean infrastructure can accelerate India's long-term energy independence goals.
  3. Build fiscal resilience through revenue diversification: Introducing next-generation measures—such as targeted carbon pricing, green taxes, and broader tax-base adjustments—can help gradually reduce reliance on volatile fossil revenues while supporting social and environmental objectives.

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Sustainable and Resilient Value Chains: Deforestation

This report examines how voluntary sustainability standards (VSSs) and private sector actors can prevent, respond to, recover from, and adapt to deforestation risks in global value chains.

December 9, 2025

Key Messages

  • Most VSSs and leading companies now include no-deforestation rules, farm mapping, and satellite monitoring, but to scale these methods and ensure success against deforestation, indirect suppliers and smallholders need to be supported with the necessary tools.

  • Lasting progress requires a smart mix of tools—standards, corporate action, traceability systems, landscape initiatives, and regulation—working together to build resilient, deforestation-free value chains.

Deforestation is among the most urgent environmental challenges in global value chains. It is driven by a combination of factors, including agricultural expansion, market demand for forest-risk commodities, and land-use dynamics. International trade also plays an important role in shaping incentives and sourcing patterns for forest-risk commodities, such as soy, palm oil, cocoa, timber, and beef. 

This analysis focuses on the roles of VSSs operating in forest-risk commodity sectors—such as the Forest Stewardship Council, the Roundtable on Sustainable Palm Oil, and Rainforest Alliance—and private sector actors in addressing deforestation across value chains. This evaluation utilizes a practical four-step sustainable and resilient value chains framework: Plan/Prepare, Respond, Recover, and Adapt. This approach assesses the effectiveness of standards and corporate practices, from establishing preventative rules to implementing lasting systemic change. 

Key findings indicate that prevention (Plan/Prepare) is the strongest area of progress, with organizations increasingly using advanced monitoring tools and clear rules to stop forest clearing. However, gaps persist in the response stage: monitoring often fails to reach indirect suppliers, especially those beyond tier 1 and 2 in supply chains. And while suspicion of deforestation triggers audits, specific interventions—such as providing necessary support to small farmers or setting clear compliance timelines—are often absent. 

Efforts to recover damaged areas, such as requirements tied to remediation, ecosystem rehabilitation, and grievance processes, have strengthened across VSSs and private sector actors, but implementation remains a challenge. Finally, adaptation actions, including landscape and jurisdictional initiatives and long-term producer support, are emerging but still need to be scaled beyond pilot-level interventions across geographies. 

The report underscores that meaningful progress requires not only strong requirements but also verification, transparency, and equitable support, particularly for smallholders and indirect suppliers. It also highlights the need to continue improving the design and implementation of VSSs and private sector approaches so they are more accessible, consistent, and aligned with emerging policy expectations, like the European Union Deforestation Regulation. 

Without sustained follow-through, early gains may not be durable, and the drivers of deforestation may persist. Ensuring that systems prevent, respond to, and learn from deforestation—while enabling farmers and local communities to thrive—is essential for resilient, deforestation-free value chains.

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Topic
Standards and Value Chains
Project
State of Sustainability Initiatives
Publisher
IISD
Copyright
IISD, 2025
Report

Budgeting for Net Zero: Powering India's reliable clean energy future

An assessment of firm and dispatchable renewable energy (FDRE) competitiveness to 2050

India needs clean, reliable, affordable power. This study assesses the cost competitiveness of firm and dispatchable renewable energy (FDRE)—solar, wind, and storage systems delivering 24-7 clean energy. FDRE is fast to build, can compete with coal, creates net jobs, and cuts emissions, but could be costlier than standalone solar, wind, or storage and should be used where demand profiles require firmness. 

December 8, 2025

Key Messages

  • Ensuring 24-7 power from FDRE requires developers to oversize the amount of solar and wind, resulting in surplus power generation. Selling 50% of surplus makes FDRE cheaper than new coal by 2030, selling 30% delays parity to 2048, and selling 100% (optimistic scenario) makes FDRE already cheaper.

  • Including mortality, morbidity, and carbon costs raises coal's price from INR 4.65/kWh to INR 13.19/kWh, making FDRE competitive in all scenarios. This shows the need for current power procurement frameworks to reflect pollution and climate costs in pricing.

  • FDRE raises GDP by 0.5% in 2032, 1% by 2038, and 1.8% by 2050 on an annual basis and creates 64,000 net jobs by 2050 (after accounting for coal job losses), compared to our baseline scenario (no FDRE). Gains come from lower air pollution, higher productivity, and investment in clean energy.

  • Coal-based power plants take 5–7 years to commission, while FDRE projects can be built in 2–2.5 years, even with storage included. Long lead times for coal increase cost uncertainty, fuel supply risks, fixed capacity charges, and expose discoms to stranded-asset risks as renewables become cheaper.

India's electricity system is evolving rapidly in response to rising demand, a changing resource mix, and the need for round-the-clock clean power. While coal remains the dominant source of reliable electricity, the declining costs of solar, wind, and battery storage are opening realistic alternatives. FDRE projects deliver clean power in line with specific demand profiles, shifting India from generation-based procurement to demand-based renewable solutions. However, uptake has been slow and questions remain around cost competitiveness, revenue certainty, and investment risk for developers and distribution companies. 

This study evaluates three core questions: whether FDRE can match or undercut new thermal power on cost; what kind of government support (if any) would be required to close any cost gap; and how FDRE deployment affects economic growth, employment, air pollution, and climate outcomes. Using scenario modelling, externality assessments, and stakeholder consultations, we compare FDRE cost trajectories with new pithead coal plants, estimate cost gaps to 2050, and explore the broader economic benefits of scaling FDRE. 

Our findings suggest that FDRE can provide reliable clean power at competitive prices, but that market design and tender structure will determine the pace and scale of deployment. The recommendations focus on practical changes that improve developer certainty, reveal true resource costs, and align energy procurement with long-term national priorities.

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Stocktake of Sustainability Standards and Initiatives for Minerals and Metals

Leveraging synergies between sustainability standards and initiatives and public instruments to enhance environmental governance

Amid the global rising demand for minerals and metals, this report from the UN Environment Programme (UNEP) and the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) maps over 100 sustainability standards and initiatives (SSIs) operating across value chains to clarify how they interact with laws and regulations and policy commitments, and how they might enhance environmental governance rather than undermine it.

November 27, 2025

Key Messages

  • The number of SSIs has doubled over the past 2 decades. The proliferation of SSIs—which can be very different in their governance, procedure, scope, and substance—across minerals and metals supply chains is confusing to many and has triggered complex interplays between SSIs and public instruments.

  • SSIs can complement but not substitute regulation. Well-designed and properly implemented SSIs have potential to promote better sustainability practices and help strengthen environmental governance.

  • SSIs with certain attributes are more likely to support public instruments toward positive environmental sustainability outcomes. We identify 15 hallmarks that can serve as a reference tool for policy-makers, standard-setters, and stakeholders to assess the credibility and effectiveness of SSIs.

  • Independent assessments of SSI impacts should be prioritized. Few SSIs and their implementation have undergone independent assessments of their impacts, costs, and trade-offs.

This study finds that while standards and initiatives are increasingly used to promote environmental and social performance, their rapid proliferation has created a fragmented and often confusing landscape for governments, companies, and communities. 

To address these challenges, the report identifies 15 hallmarks of effective sustainability standards across governance, scope, performance assurance, review mechanisms, and viability. The report further recommends these serve as a practical reference tool for policy-makers, that independent assessments of impacts be prioritized, and that greater cooperation and interoperability become a primary focus moving forward.

Report

A Natural Fit

Renewable energy and sustainable land management

The ongoing shift to renewable energy systems is necessary to avoid catastrophic climate change impacts but carries its own complex environmental footprint when it comes to land use. Governments and stakeholders should deploy equitable and context-specific dual-land-use systems to ensure a surge in renewable energy generation not only avoids land degradation, but actually improves land, food security, biodiversity conservation, and local livelihoods.

November 28, 2025

Policy Recommendations

  • Countries can avoid land degradation by siting renewable energy systems on land or freshwater systems that have already been degraded or modified by human activities, such as abandoned agricultural land, buildings and infrastructure, canals, and reservoirs.

  • Countries can reverse land degradation by the targeted siting of solar and wind farms on marginal or degraded land. For example, solar systems can support land restoration through shading or wind protection, providing clean energy while promoting soil health and vegetation growth under solar panels.

  • Improved access to low-cost energy at the farm and community levels provides critical support for sustainable water management in agriculture, zero-emission farm machinery, and food processing and storage that can reduce food loss, improve supply chain integration, and enhance community resilience.

  • In order to be equitable and effective, dual-land-use systems require an enabling environment that includes policy and sector coordination, governance and regulatory frameworks, finance and incentive mechanisms, and capacity building and stakeholder engagement.

Renewable energy, including solar and wind power, is becoming increasingly accepted by the public—and cost effective. In 2024, renewables accounted for 29.9% of global electricity generation, 46% of total installed power capacity, and over 90% of newly added capacity. Solar power increased by a record 29%, continuing the trend of doubling global solar capacity every 3 years. 

The global clean energy transition is gathering speed, but it carries its own complex environmental footprint. On average, renewable energies require more land than fossil fuels. This higher land footprint has raised concerns a rapid clean energy transition could harm land quality and compete with other land uses, such as food production, biodiversity conservation, and carbon sequestration. Renewable energy technologies also heavily rely on extraction and processing of critical minerals, which further increases their land footprint. 

This report explores challenges and opportunities at the renewable energy–land nexus. The authors scan the recent scientific and grey literature on interactions between renewable energy and land alongside integrated approaches that consider these interactions to create multiple benefits for the climate, land, biodiversity, and people. The report discusses

  • the land footprint of different renewable energy sources, while identifying how each source interacts with land and reviewing the potential negative and positive impacts that can arise from these interactions,
  • strategies to reduce land demand for renewable energy, and design systems and approaches that minimize land degradation and enhance benefits for land, biodiversity, climate, and people, and
  • governance and finance aspects that can provide entry points for decision-makers to support the development of integrated approaches.

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