Funding India’s climate future, the trillion-dollar question’
India faces a significant financial challenge in achieving its climate goals, requiring ₹162.5 trillion by 2030 and an estimated $10.1 trillion for net-zero emissions by 2070. The private sector needs strong regulatory incentives to invest in decarbonizing key sectors, which currently lack economic viability without policy support. A comprehensive financing strategy and institutional resolve are essential to mobilize the necessary capital for climate action in India.
- ▪India will require ₹162.5 trillion by 2030 to meet its Nationally Determined Contributions.
- ▪Decarbonizing four key sectors will require $467 billion in additional capital expenditure between 2022 and 2030.
- ▪India has issued $55.9 billion in green, social, and sustainability-linked debt by the end of 2024.
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There is one figure that should command the attention of every policymaker, banker, and financial expert in India. India will require ₹162.5 trillion — roughly $2.5 trillion — by 2030 to meet its Nationally Determined Contributions. Over the longer term, the cost of achieving net-zero emissions by 2070 is estimated at $10.1 trillion, nearly three times India’s current GDP.This is not a counsel of despair. India has more tools to bridge this gap than it has deployed so far. But doing so requires a clear financing strategy and the institutional resolve to build mechanisms that can mobilise capital at scale.The financing gapDecarbonising just four sectors — steel, cement, power, and road transport, which together account for more than half of India’s carbon emissions — will require $467…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Hindu.
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