India needs $10.1-trn investment to reach net-zero emission goal by 2070
India will require a total investment of $10.1 trillion to achieve net-zero emissions by 2070, while the nation could face a shortfall of $3.5 trillion, a study by CEEW Centre for Energy Finance (CEEW-CEF) said.
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New Delhi: India will require a total investment of $10.1 trillion to achieve net-zero emissions by 2070, while the nation could face a shortfall of $3.5 trillion, a study by CEEW Centre for Energy Finance (CEEW-CEF) said. At the recently concluded COP26, Prime Minister Narendra Modi announced India's aim to achieve net-zero emissions by 2070. According to the statement, the investments would help decarbonise India's power, industrial, and transport sectors.
However, the study also estimated that India could face a significant investment shortfall of $3.5 trillion to achieve its net-zero target. Hence, investment support of $1.4 trillion, in the form of concessional finance, would be required from developed economies to mobilise foreign capital that bridges the gap, it suggested. Arunabha Ghosh, CEO, CEEW, said: "At COP26, India announced bold near-term and long-term climate targets. Our analysis finds that a transition to net-zero emissions would require mammoth investment support from developed countries. They must ramp up hard targets for climate finance over the coming years.
Also, on the domestic front, financial regulators like 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, while public funds should play a catalytic role by de-risking investments in existing and emerging clean technologies."
