India Employer Forum

Compliance

Environmental Compliance in India: Green Mandates and the Future of Employment

  • By: India Employer Forum
  • Date: 24 July 2025

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India’s environmental compliance regime has entered a transformative phase. Through judicial rulings to legislative reforms, the country has established environmental protection as a cornerstone of economic development. The Supreme Court’s ban on ex-post facto environmental clearances marked a decisive shift, signalling that pollution can no longer be an afterthought in industrial planning. Across states, courts have stalled projects violating ecological safeguards—such as illegal constructions along riverbanks and unlicensed chemical facilities—indicating a robust trend toward pre-emptive enforcement.

Simultaneously, the Ministry of Environment and Forests, along with regulatory bodies like the Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs), are scaling up compliance measures through stricter emissions caps, mandatory disclosures, and digital monitoring. The Centre’s development of a national carbon credit trading platform, due for rollout by 2026, further anchors India’s trajectory toward market-based environmental governance.

Environmental Compliance is reshaping industries

This new regulatory intensity is reshaping industries at multiple levels. Sectors like cement, aluminium, textiles, and chemicals—traditionally high-polluting—are being nudged toward cleaner operations through mandates such as Zero Liquid Discharge (ZLD), Common Effluent Treatment Plant (CETP) integration, and Extended Producer Responsibility (EPR). In Ludhiana, for instance, the Punjab Pollution Control Board’s directive to enforce ZLD in small-scale dyeing units has raised both concerns and opportunities. While industry groups warn of job losses if micro-enterprises shut down, there is growing demand for environmental engineers and skilled operators to manage effluent systems and implement cleaner technologies.

Meanwhile, large infrastructure projects are now delayed or halted unless they undergo comprehensive Environmental Impact Assessments (EIAs). However, these regulatory changes are not only challenging industries but also creating significant employment opportunities for professionals in environmental consulting, impact modelling, and geospatial analysis.

Rise of green jobs

India’s shift toward sustainability is driving unprecedented job creation. A 2024 report by NLB Services estimates that India will generate over 7.29 million green jobs by FY2027–28, with long-term potential reaching 35 million by 2047. The emerging wave of green employment is being driven by opportunities across sectors such as renewable energy, sustainable construction, electric mobility, waste management, and circular economy initiatives.

In the renewable energy sector alone, TeamLease Services reported a nearly 19% employment growth in FY2025. Gujarat’s Hybrid Renewable Energy Park, expected to be among the largest globally, is slated to create over 100,000 jobs in wind, solar, and storage sectors. Ambani’s Green Energy Giga Complex in Jamnagar and Rajasthan’s Bhadla Solar Park are also major employment engines, generating tens of thousands of skilled and semi-skilled roles. According to CEEW, if India meets its 500 GW renewable energy target by 2030, over one million jobs will be created across installation, maintenance, energy storage, and ancillary services.

The skilling imperative

Despite the employment potential, a significant skill mismatch looms. A Reuters report from 2024 noted that India needs to train an additional 1.2 million workers by 2027 to meet green sector demand. The report recommended expanded educational reforms, public-private training partnerships, and even immigration reform to allow foreign technicians to plug short-term gaps. The challenge is not just to train new workers but also to reskill existing ones, particularly those in the informal and semi-skilled segments. Without targeted programs, the benefits of green employment could bypass those most in need of economic uplift.

As environmental compliance reshapes sectors, the need for workforce reskilling is urgent. The Ministry of Skill Development and Entrepreneurship, along with the National Skill Development Corporation, has launched sector-specific programs in solar energy, EV maintenance, water treatment, and environmental monitoring.

The Skill Council for Green Jobs (SCGJ), aligned with India’s Nationally Determined Contributions (NDCs), is leading many of these efforts. These programs are not only helping workers transition into new roles but are also ensuring that India can meet its expanding climate obligations without labour shortages. The Union Budget 2025 supported this trend by allocating incentives for green technologies, especially through Performance Linked Incentives (PLI) for solar manufacturing. These incentives alone are projected to create over 30,000 direct and 120,000 indirect jobs, according to ET Edge.

Compliance as a catalyst for growth

India’s environmental compliance evolution is unlocking a historic opportunity: to build a modern, green economy that balances ecological responsibility with mass employment. Regulations, once viewed as constraints, are now catalysts for new industries, jobs, and innovations.

But the path is not automatic. Realising this potential requires a coherent national strategy that links compliance with employment, formalisation with protection, and transition with justice. If this is achieved, environmental mandates will not only clean India’s air and water—they will also empower its workforce and define its development trajectory for decades to come.

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