India needs $10 tn. to meet net zero

What is the news?

According to a study by climate and energy research firm, CEEW Centre for Energy Finance (CEEW-CEF), India is going to need Rs 700 lakh crore (10 trillion) to meet its net-zero target by 2070.

What are the findings of the study?

Majority of the funds would be needed to significantly scale up generation from renewable energy and for the necessary integration, distribution and transmission infrastructure. A smaller part would have to be invested in the industrial sector for setting up green hydrogen production capacity.

Concessional finance: India would fall short by $3.5 trillion to achieve net-zero emissions by 2070. Hence, investment support of $1.4 trillion, in the form of concessional finance, would be required from developed economies.

Concessional finance refers to loans at below-market interest rates.

On the domestic front, financial regulators such as the RBI and SEBI need to create an enabling ecosystem for financing India’s transition to a green economy.

Finally, given the size of the investments required, private capital, from both domestic and international institutions, should form the bulk of investment. Public funds should work towards de-risking investments in existing and emerging clean technologies.

Must Read: Glasgow Climate Pact – Explained, pointwise

Source: This post is based on the article “India needs $10 tn. to meet net zero” published in The Hindu on 18th Nov 2021.

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