Governing Energy Efficiency in India: Multi‐Level Coordination and the Role of States

ABSTRACT Energy efficiency is a key strategic lever for India's low‐carbon energy transition. It facilitates the twin objectives of climate action and energy security by reducing overall energy demand without impeding economic growth. For effective implementation of energy efficiency measures, especially in a country as vast and diverse as India, coherence across levels of governance is crucial. This involves alignment across a strong central government and 36 states and union territories in a quintessentially Indian federal structure. Each state has its focus sectors for development and is faced with challenges, be they socio‐economic, demographic, capacity, technical, or financial. Energy transition will, therefore, take place differently in different states. The paper examines states' role in various aspects of energy efficiency policy‐making and implementation, given India's fast‐evolving energy transition. This includes the existing structure at the state level, synergies with national priorities, and challenges that impede multi‐tiered governance. A combination of multi‐level governance analysis and gap analysis is used for this purpose. The paper also provides recommendations to address the gaps from three distinct perspectives: intra‐state, horizontal linkages among states, and vertical linkages of center‐state.