The objective of this paper is to identify the nature of incentives available in India to address climate change, specifically by encouraging Renewable Energy (RE) and Energy Efficiency (EE) initiatives, both of which are fundamental to India’s
climate change strategy. Higher fossil fuel prices, energy security concerns and environmental considerations constitute the composite factors behind the regulatory impetus for RE and EE in India. However, the practical impetus for RE and
EE initiatives can be clearly traced to the overall policy thrust to address climate change.