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