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REPORT
How a Green Economy can deliver Jobs, Growth, and Sustainability in Odisha

Suggested citation: Jain, Abhishek, Gunjan Jhunjhunwala, et al. 2025. How a Green Economy can Deliver Jobs, Growth and Sustainability in Odisha. New Delhi: Council on Energy, Environment and Water.

Authors:

Report Leads:
Abhishek Jain and Gunjan Jhunjhunwala

Core Team:
Wase Khalid, Aaditya Malhotra, and Urwa Tul Wusqa

Research Team:
Nicole Almeida, Parineet Kaur Chowdhury, Nikhitha Jagadeesh, Aishwarya Jain, Aishwarya Joshi, Apoorve Khandelwal, Neeraj Kuldeep, Shruti Nambiar, Shruti Prakash, Theres Thomas, Akanksha Tyagi

Overview

India stands at a critical juncture where the need for a green economy is not just an environmental imperative but also an economic opportunity. Transitioning to a low-carbon growth pathway complements our growth ambitions while ensuring that we remain committed to our international obligations, particularly our commitment to achieving net zero emissions by 2070. A green economy provides innovative solutions to the pressing economic challenges posed by climate change, allowing us to harness our vast potential.

As India transitions towards a green economy paradigm, its success will largely depend on implementation at the subnational level—within its states. This study focuses on Odisha, a state that has emerged as a leader in climate action, pioneering innovative initiatives to address environmental challenges. Odisha is also a fossil fuel-rich state with a strong extractive economy. By examining Odisha’s green economy potential, the study aims to understand how state-level strategies can align economic growth with sustainability goals.

Our research indicates that if Odisha actively adopts and scales up green value chains, it can generate approximately 10 lakh full-time equivalent (FTE) jobs by 2030, contribute an estimated INR 2 lakh crore (USD 23.7 billion) to the state GDP, and attract investments totalling INR 3.5 lakh crore (USD 41.8 billion). This translates to a remarkable 23 per cent increase in the state GDP and a 20 per cent rise in investments. A jobs and economic prosperity approach makes a green economic transition people-centric and hence politically- and policy-relevant.

With this report we aim to expand the imagination of a green economy in India to include, but also go beyond, the energy transition sector. A green economy must include a circular economy, nature based solutions and the bio-economy with scope to expand into other low carbon economic sectors. Across these sectors we identified 28 value chains and explained our methodology to estimate the size of the jobs, market and investment opportunities for each of them. The study proposes an implementation plan called the Green Odisha Initiative (GrOI), which will adopt a whole-of-government, a whole-of-economy and a whole-of-state approach. It proposes a multi-departmental institutional mechanism, a common results framework (CRF), and the roles and responsibilities of the private sector and civil society in unleashing the potential of a green economy in Odisha.

Key Highlights

  • We estimate that Odisha has the potential to create approximately 10 lakh full-time equivalent (FTE) jobs, directly contribute INR 2 lakh crore (USD 23.7 billion) to the state GDP, and attract INR 3.5 lakh crore (USD 41.8 billion) in investments by 2030. It would mean about 23 per cent additional state GDP and about 20 per cent additional investments for the state.
  • For this potential to be achieved, Odisha must adopt and scale up 28 value chains across three emerging green sectors - energy transition (ET), circular economy (CE) and bioeconomy and nature-based solutions (BE and NbS).
  • The ET sector can generate around four lakh jobs and INR one and a half lakh crore in market opportunity with an investment of just less than INR three lakh crores, and the CE sector can generate 30 thousand jobs and INR 10 thousand crores in market opportunity with an investment of less than INR three thousand crores. The combined sectors of bio-economy and nature-based solutions can generate a little more than five lakh jobs and INR 26 thousand crores in market opportunity with an investment of around 64 thousand crore.
  • It is noteworthy that the jobs-to-investment ratio varies greatly across sectors and across value chains. The number of FTE jobs per INR Cr of investment is about 12 to 9 times higher for CE and BE+NbS, respectively, as compared to ET — further emphasising the need to broaden our green economic transition beyond only green energy transition, given the jobs-intensive growth that India needs.
  • To realise the immense potential of a green economy in Odisha, we propose an implementation plan called the Green Odisha Initiative (GrOI) at an economy-wide level. We suggest a combination of a whole-of-government, a whole-of-economy and a whole-of-state approach for the GrOI to be actionable.
  • Under the whole-of-government approach, we recommend designing a Common Results Framework (CRF) to ensure convergence of the prevailing schemes and programmes across various departments, leveraging them to promote the green economy. This step is essential for budgetary allocations and for regularly monitoring the progress of the initiative. The CRF will also propose department-level goals and targets.

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“Socioeconomic development and sustainability action need not to be at odds with each other. The vast economic potential of a green economy in Odisha must serve as a testimony and inspiration for other states to follow suit. As India marches towards 2047, we can become the largest green economy in the world.”

Executive summary

India is one of the fastest-growing economies in the world and is home to the world’s largest population. With reasonably young demographics, India needs jobs-intensive economic growth and not merely economic growth. Simultaneously, India needs to achieve an ambitious climate target to be net zero by 2070 while making its economy resilient to the impacts of climate change. India’s economic development strategy needs a concomitant focus on jobs, growth, sustainability and resilience. Adopting a green economy paradigm could help India meet these four strategic outcomes, unlocking tens of millions of jobs while fostering a low-carbon and resilient economy.

The case for a green economy in Odisha

As India embarks on a green economy paradigm, its real implementation will happen in the Indian states. To understand the relevance of a green economy at a state level, we focus on Odisha, a state that has pioneered several positive climate action initiatives. Odisha was the first to draft a state action plan on climate change, adopt climate budgeting initiatives and institutionalise the state disaster management authority. The state also boasts ecological diversity, from dense forests to a long coastline, a thriving industrial base, and significant dependence on conventional extractive economic sectors. The state also needs economic diversification, given the vulnerability of its current economic sectors to a low-carbon transition as well as emerging climate impacts.

We estimate the jobs, market and investment (J-M-I) opportunities, should Odisha adopt a green economy paradigm. The report also elaborates on what it would take for Odisha to adopt and implement such an economic paradigm.

For the assessment, we considered various emerging green sectors of the economy, namely, the green energy transition (ET), the circular economy (CE), and the bio-economy and nature- based solutions (BE and NbS). These green economic sectors were selected considering:

  • the growing interest of the Indian private sector-from corporates to start-ups-in these sectors;
  • emerging supportive government policies;
  • the need to expand the spectrum of emerging climate solutions, including but also beyond the ET; and
  • microenterprises to large industries and from primary sectors to tertiary ones.

Across these sectors, we identified and shortlisted 28 value chains based on (i) their suitability to Odisha’s geographic and natural resource context; (ii) inputs received from the state officials; and (iii) their commercial maturity (within or outside Odisha). These value chains range from battery manufacturing to sustainable packaging to ecological mangrove restoration (EMR). A detailed list is provided in Figure below.

It is worth noting that the three green economic sectors and their value chains do not constitute an exhaustive list — many more green economic opportunities are likely to emerge in the coming times. We selected these diverse value chains and sectors to broaden the discourse on the green economy and its economic potential in India. Currently, many of these emerging green opportunities are not on the radar of policymakers, economists, industrialists, financiers, and civil society actors. This first-of-its-kind report would help broaden their imagination and understanding of the possibilities that the green economy paradigm can offer.

Green economy value chains are diverse in nature and extend beyond renewable energy

 

A green economy paradigm can unlock huge opportunities for jobs and economic diversification in Odisha

 

Catalysing a green economy in Odisha

The jobs, market, and investment (J-M-I) estimations build the case for promoting these value chains, but the next big question is, what should be the approach to realising this potential? We tackle this question at two fundamental levels: (i) efforts to implement and scale each value chain and (ii) efforts across the value chains at an economic paradigm level.

At the value chain level, we answer a range of important questions to move forward in supporting these value chains:

  • What are the key barriers limiting the emergence and scale-up of the value chain? What could be the mitigation strategies to overcome these barriers?
  • What are the roles and responsibilities of different state departments in promoting and supporting each value chain? Who could be the lead and allied departments for each value chain?
  • What are the key risks in scaling the respective value chain? What could be the associated mitigation strategies?
  • What are the prevailing successful on-ground examples for each value chain? What can we learn from them?

At the economy-wide level, to realise the immense potential of a green economy in Odisha, we propose an implementation plan called the Green Odisha Initiative (GrOI). It weaves in and builds upon the state’s ongoing isolated efforts to develop green value chains and offers a state-wide and economy-wide coherent approach.

  • A whole-of-government approach
    • The GrOI will function as an overarching initiative of the state government, directly under the leadership of the chief minister. Its secretariat will be hosted at the Planning and Convergence Department (P&CD), which oversees interdepartmental planning and coordination.
    • A Common Results Framework (CRF)3 is to be designed to ensure convergence of the prevailing schemes and programmes across various departments, leveraging them to promote the green economy. This step is essential for budgetary allocations and for regularly monitoring the progress of the initiative. The CRF will also propose department-level goals and targets.
    • A committee of select department secretaries, chaired by the chief secretary, will be established to oversee the formulation and implementation of the initiative.
    • A subcommittee, consisting of state officials at the director level of the respective departments, will be formed to support the secretary-level committee in ensuring active collaboration and coordination between departments in implementing the GrOI.
  • A whole-of-economy approach
    • The GrOI aims to catalyse all sectors and segments of the economy – from primary to tertiary, micro, small, and medium enterprises (MSMEs) to large industries, and manufacturing to services – by greening existing business activities and promoting new green activities and value chains.
    • Once the CRF is operationalised, it will enable the state to estimate how much of the budget is aligned with advancing the green economy in the state. The government can then set progressively increasing targets to expand this share of the budget over time.
    • The GrOI will catalyse active policy signalling from the state government to direct private-sector investment towards Odisha’s green sectors. This includes creating a more conducive and supportive policy environment for green enterprises, providing favourable incentives where needed, and implementing regulations to scale up green value chains. Additionally, it may also include an ecosystem development approach around value chains as well as cross-cutting support via areas such as skill development for green sectors.
  • A whole-of-state approach
    • The GrOI's on-ground implementation should be pan-Odisha, ensuring that all geographical regions across the state begin evolving and aligning their economic activities with more future-relevant economic sectors.
    • Local contexts, such as biological resources and locational advantages, will naturally influence the kinds of green value chains that can be developed in different regions. For example, the seaweed value chain would be dominant in the coastal districts, while certain CE value chains may be dominant in more urbanised parts of the state.

The private sector and civil society must complement the endeavours of the government with regard to the GrOI through the implementation of technology, innovation, investments, skills development, community engagement, local institutional capacity building, and other similar measures.

Conclusion

A green economy has the potential to unlock vast economic and job opportunities, especially as we broaden the imagination beyond just the energy transition. Many of these emerging opportunities need public support and the private sector’s attention today so that the jobs for our youth and our economy can thrive and become resilient in a low-carbon and climatechanged future. Not investing in a green economy now may mean losing out in the global competitive landscape as the demand for green products and services will skyrocket in the coming years.

This report is one of the first to estimate, characterise, and showcase a pathway for realising these opportunities at a state level in India. While the scope and potential of the green economy could be even greater, it will require coordinated efforts from the state, markets, and civil society to translate this opportunity into a tangible reality for millions on the ground.

FAQs

Frequently Asked Questions

  • What is India's green economy paradigm?

    A green economy paradigm for India must focus on: (i) mainstreaming sectors and value chains in the economy that further job-intensive economic growth while regenerating/safeguarding the natural capital; (ii) enhancing economic resilience by investing in sectors that would be relevant and thriving in a low-carbon and climate-changed world; (iii) expanding the ‘greening’ of the economy to include sustainability-oriented sectors, such as bio-economy, and nature-based solutions, the circular economy in addition to the energy transition and (iv) building the capacity and skills of the (future) workforce to actively transform the economy from extractive to a regenerative one.

  • What are the three key green economic sectors, and how were they identified for Odisha?

    The three green sectors identified are Green Energy Transition (ET), Circular Economy (CE), and Bioeconomy & Nature-based Solutions (BE and NbS). These were identified based on the following parameters: (i) evolving government policies (ii) growing interest from the private sector in India, ranging from large industries to start-ups, towards these sectors; (iii) the need to identify job-intensive growth opportunities in addition to energy transition (iv) the need to further economic activity across all levels of the economy – from microenterprises to large industries, and from primary to tertiary sectors.

  • What do the Energy Transition (ET), Circular Economy (CE), and Bio-economy & Nature-based Solutions’ (BE & NbS) sectors entail?

    ET involves adopting essential technologies to shift towards a non-fossil-fuel-based economy. We have identified 14 value chains within ET, including the deployment of renewable energy (RE) sources like solar and wind, decentralised applications of renewable energy for livelihoods, as well as the manufacturing of critical components needed for these sources. It also encompasses technologies, products, and services aimed at decarbonisation, such as EVs and GH2. Transitioning to greener energy sources has the potential to create significant job opportunities and unlock new markets. The CE is a system in which materials are never wasted and natural resources are restored. In this model, products and materials are cycled through processes such as maintenance, reuse, refurbishment, remanufacturing, recycling, and composting. We have identified four key value chains within CE – construction and demolition (C&D) waste, lithium-ion battery (LIB) waste, plastic waste, and electrical and electronic equipment waste (e-waste). BE is described as an efficient method of transforming and utilising biological resources to generate economic goods, thus fostering revenue growth towards realising a sustainable economy. It encompasses a broad range of value chains, including bio-inputs, biogas, bio-fibres, and biopackaging. While the BE focuses on product-based industry framing, NbS involve actions like protecting, restoring, or sustainably managing natural ecosystems to create income and job opportunities for local communities. It encompasses value chains such as agroforestry, ecological mangrove restoration, seaweed cultivation, sustainable forest management, and sustainable tourism. Within this combined sector, we have identified 10 value chains which could contribute to Odisha’s green transition.

  • How were the green economic value chains identified for Odisha?

    We estimate the job, market, and investment (J-M-I) potential for each of the green value chains till 2030. For jobs, only full time direct jobs are calculated with indirect and induced job opportunities described but not estimated. Additionally, for each value chain, we identify lead and allied government departments, challenges to implement and corresponding mitigation approaches, ecological risks at scale and a real-life story of success to inspire action.

  • What institutional mechanisms have been proposed to implement a green economy in Odisha?

    The study recommends forming a secretary-level committee and officers’ sub-committees to oversee the Green Odisha Initiative (GrOI). The Planning and Convergence Department (P&CD) would provide secretariat support, and a Common Results Framework (CRF) would help align schemes and monitor progress.

  • How is CEEW continuing to engage with the Green Odisha Initiative?

    The CEEW has signed an MoU with the Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL), the single-point of contact for all industrial investments in the state — devises the investment promotion, facilitation and aftercare strategy for Odisha. As per the MoU the CEEW will serve as knowledge partners to the government and support through a Project Management Unit.

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