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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Strengthening Public Procurement for Climate Action and Competitiveness

Reform options for the EU public procurement directive

This report explains why the current European Union (EU) public procurement directive falls short in enabling green public procurement (GPP) and highlights the missed opportunities this creates for climate and competitiveness. The report presents high-level recommendations and detailed reform options to simplify rules, use procurement more strategically, and make GPP a consistent, practical driver of the EU's green transition.

November 28, 2025

Policy Recommendations

  • Make green public procurement the default across the European Union through a comply-or-explain approach supported by clear targets that create predictable demand for low-carbon and circular products.

  • Tie European preference rules to environmental performance so that any "Buy European" measures meaningfully support industrial competitiveness, climate goals, and circularity.

  • Simplify and harmonize procurement rules by clarifying legal requirements, improving digital tools, and aligning GPP obligations across EU sectoral legislation.

  • Strengthen monitoring and professionalization by improving data systems, tracking environmental outcomes, and investing in skills and capacity for contracting authorities.

Public procurement is a powerful yet underused lever for the EU's climate, circularity, and competitiveness goals. Although public authorities in the European Union spend nearly EUR 2 trillion each year, the current framework keeps GPP voluntary. Implementation remains uneven, rules are fragmented, and buyers face legal uncertainty and limited guidance. As a result, major opportunities to steer markets and cut emissions remain untapped. The missed opportunities are clear: few tenders include environmental criteria, most contracts are still awarded on lowest price, and legal uncertainty discourages ambitious GPP. Yet where sustainability requirements are clear and predictable, countries see rapid uptake, innovation, and emissions reductions. 

As the European Commission prepares to revise the procurement directives, this report sets out a practical roadmap for strengthening GPP. It identifies the structural challenges of GPP and outlines five high-level recommendations supported by detailed reform options. These include making GPP the default through a comply-or-explain approach, tying European preference rules to environmental performance, simplifying and harmonizing requirements, strengthening monitoring and data systems, and investing in professionalization. 

Together, these reforms would simplify procedures, improve accountability, build the skills and capacity of contracting authorities, and better align public spending with the EU's climate, circularity, and competitiveness objectives. They offer a coherent package for turning procurement from a missed opportunity into a strategic lever for Europe’s green transition.

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Coal Transition Impacts and the Approach to Inclusive Just Transition Policies in Indonesia

This publication examines the economic, social, and gendered impacts of potential coal mine closures across key coal-producing provinces in Indonesia. It explores the best pathways to pursue a just transition, identifying potential sectors, and proposing solutions for including vulnerable communities, such as women and informal workers.

December 1, 2025

Policy Recommendations

  • Combine quantitative economic models with qualitative, community-based methods, such as ethnography, participatory mapping, and focus groups.

  • Prioritize sectoral transitions and empower local governments. Economic diversification strategies should be put in place well in advance of coal mine closure to prevent economic shocks and associated social disruptions.

  • Tailor social protection to minimize income loss during coal mine closures.

  • Assign gender equality and social inclusion focal points and mandate inter-ministerial coordination to help embed inclusion into governance.

Indonesia’s shift away from coal offers a powerful opportunity to advance its climate commitments under the Paris Agreement while building more resilient, diverse, and inclusive local economies. This report assesses how a well-managed transition can unlock new engines of growth and quality jobs across five major coal-producing provinces: East Kalimantan, South Kalimantan, South Sumatra, Central Kalimantan, and Jambi.

Combining quantitative modelling with qualitative field research, the study examines how planned coal phase-outs could reshape economic output, employment, and livelihoods—especially for informal workers, women, and youth. It evaluates three policy scenarios that range from business-as-usual contraction to proactive, investment-led strategies that channel resources into high-multiplier industries and emerging green economy sectors.

The findings highlight that, while provinces such as East Kalimantan and South Sumatra face higher exposure to coal decline, targeted investment in food and beverage manufacturing, green industries, and other diversified sectors can drive robust job creation and economic renewal. More diversified regions, like Jambi, are already well-positioned to capture these opportunities. Insights from East Kutai show that communities are eager for alternatives and that inclusive planning, stronger social protection, and workforce reskilling can ensure people benefit directly from the transition.

The report concludes with strategic recommendations for national and local governments to seize this opportunity: strengthen institutional coordination, mainstream gender equality and social inclusion, expand safety nets, and develop locally tailored transition roadmaps. It also underscores the importance of combining macroeconomic analysis with community-level insights to design a just, job-creating, and future-ready energy transition for Indonesia.


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Report

Setting International Technical Standards to Shape Digital Trade Policy

Approaches, challenges, and opportunities for developing countries

As digital trade expands, digital technical standards are essential for ensuring interoperability, scalability, security, and seamless integration among actors across global markets.

November 20, 2025

Key Messages

  • Interoperability, scalability, and security in digital trade rely on internationally recognized technical standards. For developing countries, meaningful engagement in international standard-setting processes plays an increasingly important strategic role in securing digital market access.

  • Despite the strategic importance of digital standards, developing country stakeholders face barriers that limit their participation in international standard-setting. The "standardization gap" risks leaving these countries as passive "standard-takers" rather than active contributors.

  • Policy-makers can bridge the standardization gap by monitoring international forums, prioritizing open development processes, seeking targeted support to participate, and collaborating across countries and organizations.

This policy primer provides a comprehensive overview of digital technical standards: what they are, how they are developed, and why they are vital for digital trade policy. It explores international governance frameworks, standard-setting approaches, and the influence of trade agreements, while highlighting strategies major economies use to lead in defining these standards. The primer also addresses the unique challenges developing countries face in engaging with these processes and offers practical recommendations for policy-makers and trade officials. 

This report is part of a policy primer series, funded by the Swedish International Development Cooperation Agency (SIDA), aimed at deepening understanding of the key policy and regulatory foundations that shape today's digital economy.

This is the third report of the Building Blocks of Digital Trade Regulation series. You can continue exploring the series here:

Report details

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

A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia

Dire Dawa, Ethiopia, faces growing pressures from flash floods, soil erosion, and water scarcity. The SUNCASA initiative is restoring the Dechatu River catchment through afforestation, agroforestry, riparian restoration, and urban tree planting. This Sustainable Asset Valuation (SAVi) assessment evaluates the environmental, social, and economic performance of these nature-based solutions (NbS) and shows how they reduce flood risks, improve health, create livelihoods, and build resilience.

November 20, 2025

Key Findings

  • Restoring land in the Dechatu River catchment can significantly reduce flood damage, improve water quality, and lower heat-related health impacts. The greatest benefits come from avoided flood damage to infrastructure (USD 1.35 million) and savings in climate-related health expenses (USD 930,000).

  • NbS in Dire Dawa deliver strong economic and environmental value. Over 25 years, every USD 1 invested in NbS generates USD 1.36 in benefits. The interventions will also store up to 175,000 tonnes of carbon dioxide, demonstrating their contribution to climate mitigation and local adaptation.

  • Restoration creates jobs and strengthens resilience. Afforestation, agroforestry, and urban greening not only protect ecosystems but also create nearly 7,000 jobs and improve livelihoods. These activities enhance the city's ability to adapt to floods, droughts, and heat.

Dire Dawa lies in one of Ethiopia's most flood-prone catchments. Seasonal flash floods from the Dechatu River cause recurring damage to homes, infrastructure, and livelihoods, while deforestation, land degradation, and rapid urban growth have reduced the land's ability to absorb water. At the same time, groundwater depletion and pollution are intensifying water scarcity and health risks. 

To address these challenges, the SUNCASA (Scaling Urban Nature-based Solutions for Climate Adaptation in Sub-Saharan Africa) initiative, implemented by the International Institute for Sustainable Development, the World Resources Institute, and local partners with support from Global Affairs Canada, promotes gender-responsive NbS interventions in Dire Dawa. These include afforestation and agroforestry to restore degraded land, riparian buffer restoration to reduce runoff and erosion, and urban tree planting to mitigate flooding and heat. 

The Nature-Based Infrastructure Global Resource Centre conducted a SAVi assessment to evaluate the economic, environmental, and social performance of these interventions compared to a business-as-usual scenario. 

The results show that investing in nature provides strong and measurable returns. Every USD 1 invested in NbS generates USD 1.36 in benefits. The greatest impacts come from avoided flood damage to infrastructure, reduced health costs from water pollution and heat, and increased carbon sequestration—storing up to 175,000 tonnes of carbon dioxide and creating nearly 7,000 jobs by 2050. 

These findings show that NbS can restore degraded ecosystems, protect communities from climate impacts, and support sustainable livelihoods. Integrating these measures into local planning and investment strategies will help Dire Dawa strengthen climate resilience and promote inclusive development.

Report

Making It Happen

How the G20 can end fossil fuel subsidies in practice

This report explains how G20 members can finally deliver on their pledge to phase out inefficient fossil fuel subsidies. It proposes a three-tier categorization of subsidies—quick phase-out, phase-out with a robust strategy, and time-limited exemptions—and applies it to five G20 countries to show how national phase-out plans can work in practice.

November 18, 2025

Key Messages

  • G20 governments should adopt national fossil fuel subsidy phase-out plans to move from high-level pledges to transparent, time-bound reform.

  • Analyzing fossil fuel subsidies from Brazil, Germany, Italy, Mexico, and South Africa shows that many subsidies can be removed quickly, while most fiscal value lies in measures requiring well-planned, medium-term reforms.

As G20 countries seek productive investment in infrastructure, energy, education, health, and climate resilience both individually and as a group, one immediate opportunity remains underutilized yet actionable—fossil fuel subsidy reform. 

In 2023, G20 countries spent USD 794 billion on fossil fuel subsidies. These subsidies undermine climate goals, strain public budgets, distort markets, and weaken energy security by locking countries into volatile fossil fuel supply chains.

While emergency measures during the energy crisis explain the fossil fuel subsidy spike in recent years, the failure to implement the G20's commitment "to phase out inefficient fossil fuel subsidies," dating back to 2009, underscores that the G20 has fallen short of finding a constructive way to fossil fuel subsidy reform beyond blanket statements. 

This is exactly what the policy report acts on: our proposed framework categorizes fossil fuel subsidies in three tiers—quick phase-out, phase-out with a robust strategy, and time-limited exemptions—and offers a practical roadmap to deliver national reforms.

Analyzing fossil fuel subsidies from Brazil, Germany, Italy, Mexico, and South Africa shows that many subsidies can be removed quickly, while most fiscal value lies in measures requiring well-planned, medium-term reforms.

G20 economies can pursue these efforts individually and do not need to wait for every member to move at the same pace. Three G20 countries—Canada, France, and the United Kingdom—have already joined the Coalition on Phasing Out Fossil Fuel Incentives including Subsidies (COFFIS) to continue combining collective and national efforts and make reforming fossil fuel subsidies both actionable and achievable.

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Ethnographic Research as a Tool for More Inclusive Just Transition Policies

Lessons from Mpumalanga, South Africa

This report examines how ethnographic research can make South Africa's just transition more inclusive and participatory. Focusing on Mpumalanga's coal communities, the study highlights how ethnography—through long-term engagement and co-production—helps bridge trust gaps, capture lived experiences, and amplify marginalized voices often overlooked in top-down policy design.

November 14, 2025

Policy Recommendations

  • This report recommends institutionalizing co-production, allocating dedicated transition engagement funds, and strengthening replicable capacity.

South Africa's energy transition presents opportunities for low-carbon growth but also deep social risks in coal-dependent provinces like Mpumalanga. This report investigates how ethnographic methods can strengthen procedural justice and local participation in just transition policy-making. 

Using immersive fieldwork and a pilot co-production study in communities, such as Komati, Phola, and Emalahleni, the research identifies information gaps, exclusion of women and informal workers, and declining community services following coal plant closures. It demonstrates that ethnographic approaches—rooted in trust, lived experience, and long-term presence—yield deeper insights than one-off consultations. 

The report recommends embedding ethnography and co-production into just transition frameworks, establishing dedicated funding for inclusive engagement, and training government officials and community leaders in participatory research methods. Doing so can help ensure that vulnerable groups, particularly women and youth, are not left behind as South Africa advances its just energy transition.


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Topic
Climate Change Mitigation
Energy
Gender Equality
Just Transition
Impact area
Climate
Social Equity
Publisher
IISD
Copyright
IISD, 2025
Report

Non-Metallic Mining

Building the case for tailored tax and royalty regimes

This report analyzes the economics of non-metallic mining and the challenges of designing taxes and royalties for the industry. The report makes recommendations on how governments can tax the industry, focusing on royalty administration and addressing transfer pricing risks and questions around tax incentives and export taxes. It provides data for individual countries on value chains for specific non-metallic minerals.

November 13, 2025

Key Messages

  • The right tax and royalty policies for non-metallic minerals may depend heavily on the economics of each mineral.

  • Revenue maximization is not always the priority in fiscal policies for non-metallic minerals.

  • Unit-based royalties can be a good option for some non-metallic minerals. These simple royalties may be appropriate for keeping the cost of tax administration at a minimum, where the potential of these minerals to provide government revenue is limited.

  • When using fiscal policies to attract investment or spur development, governments should apply the principles of effective industrial policy. They should also use tax incentives with caution, given their poor track record in promoting investment.

Non-metallic materials—that is, minerals that are neither metals nor fuels—are present in every country and are essential for people’s daily lives. We estimate that over USD 217 billion of such minerals are produced annually in 66 countries around the world; the global total is likely to be much higher. 

In this context, how can governments design tax and royalty policies for non-metallic mining that achieve the right balance of mobilizing tax revenues from non-metallic mining; facilitating production, which may boost competitiveness and create jobs in downstream industries; and other objectives? This is the focus of the present study. Much of the existing analysis of mining tax and royalties is focused on higher-value, metallic minerals and may not be appropriate for non-metallic minerals. 

This report, therefore, proposes a framework for governments to design tax and royalty policies for non-metallic minerals. It focuses on the issues of royalties, export taxes, corporate income tax (especially transfer pricing challenges), tax incentives, artisanal mining taxation, and environmental taxation.

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