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India’s greenfield development agenda defines its sustainable economic growth path. As part of its Nationally Determined Contributions under the Paris Agreement, India aims to reduce the emissions intensity of GDP by 45% from 2005 levels by 2030, ensure 50% of its power capacity is non-fossil fuel-based, and create an additional carbon sink of 2.5 to 3 billion tonnes of CO₂ equivalent through forest and tree cover.
Amit Kapur
Partner
JSA Advocates & Solicitors
The government’s LiFE (Lifestyle for Environment) initiative seeks to drive sustainable behavioural and consumption choices among citizens. India is pushing for greenfield investments in sectors such as renewable energy, green hydrogen, electric mobility, sustainable agriculture, green buildings, waste management and smart cities. Simultaneously, emission reduction targets have been imposed on nine hard-to-abate sectors, including cement, steel, aluminium and thermal power, with non-compliance attracting penalties.
The regulatory architecture underpinning greenfield development is both robust and evolving. It builds on the central and state laws across environmental protection, pollution control, biodiversity conservation and energy efficiency. Any new industrial, infrastructure, or energy project requires prior environmental clearance before construction can begin. Depending on the project’s size and location, approvals are granted by the Ministry of Environment, Forest and Climate Change, the State Environment Impact Assessment Authorities, or the district authorities.
Vishnu Sudarshan
Partner
JSA Advocates & Solicitors
Beyond environmental clearance, developers must obtain consent before construction and operations from the Central Pollution Control Board or the respective State Pollution Control Boards, which manage air and water pollution levels. Since 2016, industries have been categorised as white, green, orange or red, based on pollution potential. Each category entails different compliance and reporting requirements, which include strict terms and periodic submissions to demonstrate adherence.
Projects involving forest land or proximity to wildlife areas must also comply with the Forest (Conservation) Act, 1980, and Wildlife (Protection) Act, 1972. Similarly, any potential impact on biodiversity, coastal zones or wetlands invokes additional legislation such as the Biological Diversity Act, 2002, the Wetlands (Conservation and Management) Rules, 2017, and the Coastal Regulation Zone Notification, 2011.
Building and construction projects must conform to the Energy Conservation Act, 2001, and the Energy Conservation Building Code. Waste management in industrial operations is governed by sector-specific delegated legislation including the Solid Waste Management Rules, the Plastic Waste Management Rules, the Hazardous Waste Rules, and the E-Waste and Battery Waste Management Rules.
The extended producer responsibility concept holds manufacturers and importers accountable for the life cycle of their products, particularly for recycling and safe disposal. In parallel, state-specific climate action plans may impose additional requirements, particularly in ecologically sensitive or high-growth regions. Developers must assess these regional variations early in the planning stage.
The growing importance of environmental, social and governance (ESG) criteria has also influenced the regulatory environment. The Securities and Exchange Board of India now mandates Business Responsibility and Sustainability Reporting for listed entities. Even unlisted companies are adopting ESG reporting frameworks voluntarily to improve investor
confidence and capital access. Increasingly, global standards such as the International Finance Corporation Performance Standards and the Equator Principles are being adopted for due diligence and financing, especially in infrastructure and energy sectors.
Simultaneously, India is building a framework for a domestic carbon market under its “green credit” programme. This aims to incentivise emissions reductions at both corporate and individual levels through carbon offsets, emissions trading and green behaviour tracking. While still evolving, this market is expected to become a compliance requirement for many industries in the near future.
Despite a comprehensive framework, regulatory delays, fragmented approvals and procedural inefficiencies remain significant hurdles. Courts in India have taken a pro-environment stance, regularly applying the “polluter pays” and “precautionary principle”. Violation of environmental laws can lead to fines, imprisonment, project suspension, or even cancellation. Judicial scrutiny, particularly by the National Green Tribunal, continues to hold developers accountable for ecological damage.
To address the implementation challenges, India needs institutional reform. These include strengthening single-window clearance systems, digitising compliance tracking, expanding third-party audits, and promoting remote monitoring technologies.
Financial mechanisms such as compliance-linked incentives, concessional finance, and blended finance models can accelerate greenfield investment. Public participation, environmental awareness campaigns and the promotion of green credits will also be essential for lasting behavioural and systemic change.
In conclusion, India’s greenfield ambitions are inextricably linked with its environmental and climate objectives. Developers must navigate a complex but increasingly integrated compliance landscape. With the right mix of legal awareness, digital tools and policy support, greenfield operations can become key drivers of sustainable, inclusive and climate-resilient growth.
Amit Kapur and Vishnu Sudarshan are partners at JSA Advocates & Solicitors
JSA Advocates & Solicitors
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Karnataka, India
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