Think Tank: India Requires up to $12.1 Trillion by 2050 to Achieve Net Zero Goal
India has committed to reducing its carbon intensity to below 45 percent by 2030 and achieving net zero emissions by 2070.
According to a think tank, India will require investments totaling US$7.2 trillion (A$10.7 billion) to $12.1 trillion by 2050 to realize its net zero goals.
The country has pledged to lower its carbon emissions to under 45 percent by 2030 and achieve net zero emissions by 2070.
Despite this commitment, the Institute for Energy Economics and Financial Analysis (IEEFA) reported a 20.3 percent decrease in India’s renewable energy capacity additions from 16 gigawatts (GW) in 2022 to 13GW in 2023.
To meet the anticipated power demand by fiscal year 2031-32, which may change due to recent temperature irregularities, India needs to increase its power generation capacity to 900GW from the current 445GW.
India experienced a substantial surge in power demand over the past year due to a severe summer and prolonged heatwave, with New Delhi reaching a record temperature of 52 degrees Celsius.
While India added around 16.4GW of power in the first seven months of this year and is projected to add another 25GW, it falls short of the current annual requirement of 45GW.
Director for South Asia at IEEFA, Vibhuti Garg, emphasized the role of public finance in helping India achieve its net zero objective. Garg suggested that public sector banks need to increase their lending limit to the renewable energy sector to support this transition.
Philanthropic funds are also being channeled into pilot projects to enhance their viability and scalability in India.
The Indian government has allocated budget provisions to accelerate the shift to clean energy, including reducing custom duty on solar panels, introducing credit guarantee schemes, and developing a climate finance taxonomy.
ADB to Support Green Bonds in India
Earlier this month, the Asian Development Bank (ADB) announced an investment of US$25 million in Vivriti Capital Limited’s certified climate bond issue to fund companies involved in electric vehicles, solar and wind energy, and waste management.
Director General for Private Sector Operations at ADB, Suzanne Gaboury, highlighted the importance of climate bonds in bridging the climate finance gap in India and promoting decarbonization in various sectors.
