New Delhi, November 18 : .India will need to invest $10.1 trillion cumulatively to reach net zero emissions by 2070 according to an independent report released Thursday by CEECEF. According to the Centre for Energy Finance – Council for Environment, Energy and Water (CEEWCEF), these investments will help India decarbonize its power, industry, and transport sectors.The first study of its kind estimated that India would need to invest $3.5 trillion in order to reach the net zero target.
According to the CEEWCEF report ‘Investment Sizing India’s 2070 Net Zero Target’, developed countries would need support in terms of concessional financing of $1.4 trillion to mobilise foreign capital.
At the recent COP26 climate change summit, Prime Minister Narendra Modi announced that India aims to have net zero emissions by 2070.A net zero concept is any unit that prevents or draws out the same amount of carbon as the atmosphere.
It can be either a house, factory, state, or country.
The majority of investments needed for India’s transformation would need to be made in the power sector.These investments, totaling $8.4 Trillion, would be necessary to increase the production of renewable energy as well as its integration, distribution and transmission infrastructure.The study concluded that $1.5 trillion more would need to be spent in industrial sectors to set up green hydrogen production capacities to accelerate the sector’s carbonization.
India set ambitious near-term as well as long-term targets for climate change at COP26.We found that developing countries would need to provide massive investment support to make the transition from net-zero emission possible.
CEEW CEO Arunabha Gahoshi stated that developed countries need to set clear targets for climate financing in the next years.
Vaibhav Pratap, the programme lead and the lead author, stated that India’s goal of 2070 net zero is an ambitious commitment.
It would contribute to global efforts for de-carbonization and would shape the future of businesses and employment.
Traditional domestic and foreign sources, such as banks and non-banking financial corporations (NBFCs), would be ineligible to finance the huge investments that they would require.
Singh said that foreign capital would be needed to fund the massive investments they need on concessional terms.
The study is a follow-up to CEEW’s “Implications for a Netzero Target in India’s Sectoral Energy Transitions and Climate Policy” study.
It was launched October 12th and estimated the five sectors that India would have to change if it wanted to reach net-zero by 2070.
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