State needs climate adaptation funding

Bihar is among the most climate-vulnerable states in India, facing increasing risks from floods, droughts, biodiversity loss and public health crises. The Economic Survey of India (2025) highlights that states in the Indo-Gangetic Plains, including Bihar, are particularly susceptible to climate change. Without urgent adaptation measures, these environmental challenges could trigger severe socio-economic instability.
To mitigate these risks, Bihar is actively working towards a sustainable future, particularly through renewable energy expansion. According to the Economic Survey of Bihar (2023-24), the state's power capacity reached 9,424MW in 2023 with 30% derived from renewable sources. Bihar has huge potential in solar and biomass energy and is investing in solar power, electric vehicles and a renewable energy grid to reduce dependence on fossil fuels. This transition is key to achieving India's net-zero target by 2070.
Agriculture remains a pillar of Bihar's economy, contributing 24.4% to the gross state value added (2023-24) and employing 54.2% of the workforce. However, climate change threatens traditional farming methods, increasing costs and reducing yields. Bihar's fourth agricultural road map (2023-28) focuses on climate-resilient farming, organic agriculture, modern technology adoption and research-driven solutions. This strategy is crucial for balancing economic viability with environmental sustainability.
Forests play a vital role in carbon sequestration, biodiversity conservation and climate resilience. According to the State of Forest Report (2023), Bihar's forest cover increased by 3.42% over a decade, reaching 7,532km² in 2023. The state also recorded a 106 km² rise in green cover outside designated forest areas, ranking second in the country after Gujarat. However, 61 hectares of natural forest were lost in 2023, resulting in 30.7 kt of CO₂ emissions. Expanding afforestation efforts, improving sustainable forest management and encouraging community-led conservation initiatives are key to offsetting these losses.
Bihar faces mounting environmental challenges with pollution and waste mismanagement becoming major concerns. The Environmental Kuznets Curve hypothesis suggests that environmental degradation initially rises with economic growth but improves once a state reaches a certain income level. Bihar, still in a transformational stage, generated 14,522 MTA of hazardous waste (2021-22), 74,263.69 TPA of plastic waste (2020-21), and 4,975 TDP of municipal solid waste. However, with limited common effluent treatment plants and an inadequate waste treatment infrastructure, effective waste management remains a challenge. Proper policies and investments are required to mitigate these risks.
Recognising the economic burden of climate adaptation, Bihar introduced Green Budgeting in 2020-21, aligning financial planning with environmental sustainability. The state also launched the Jal Jeevan Hariyali Abhiyan (2019) to promote afforestation, pollution control, and sustainable livelihoods. The Bihar State Pollution Control Board is collaborating with the United Nations Environment Programme (UNEP) to develop a climate resilient and low carbon development pathway, aiming for net-zero emissions.
Despite these efforts, Bihar ranks low in SDG 13 (climate action), scoring just 34 while it performs better in SDG 15 (life on land) with a score of 73. However, climate change projections indicate that Bihar will experience increased temperatures and altered rainfall patterns by 2047, affecting agriculture, water resources and livelihoods. Among India's 50 most climate-vulnerable districts, 14 are in Bihar.
The 16th Finance Commission must consider climate resilience funding as a criterion for resource allocation, enabling Bihar to integrate AI-driven solutions, modern technology, and policy innovations into its climate action strategy. Without decisive action, climate-induced challenges could intensify, threatening food security, public health and economic stability. Sustainable development and proactive adaptation remain the only pathways to securing Bihar's future in an era of climate uncertainty.
(Barna Ganguli is a faculty at Bihar Institute of Public Finance and Policy and Manoj Narayan is a social policy expert)