New Delhi: India will need a total investment of $ 10.1 trillion to achieve net-zero emissions in 2070, while the nation can face a lack of $ 3.5 trillion, a study by the CEEW Center Finance (CEEC).
In COP26, which was recently concluded, Prime Minister Narendra Modi announced the goal of India to achieve zero-zero emissions in 2070.
“India will require a cumulative investment of $ 10.1 trillion to achieve zero emissions in 2070, according to an independent study Today’s released by CEEW Energy Finance Center (CEEC-CEF), “said a statement.
According to the statement, this investment will help resolve Indian strength, industrial and transportation sectors.
However, his first study also estimated that India could face a significant lack of investment of $ 3.5 trillion to reach its net-zero target.
Therefore, investment support of $ 1.4 trillion, in the form of financial concessions, will be needed from the developed economy to mobilize foreign capital that bridges the gap, suggested.
CEEC-CEF Study – Investment in the size of an investment of 2070 net-zero targets – also highlights that the majority of investments will be needed to change the Indian electricity sector.
The investment, amounting to $ 8.4 trillion, will be prompted to significantly improve generations of renewable energy and related integration, distribution and transmission infrastructure, the statement said.
Other $ 1.5 trillion must be invested in the industrial sector to prepare green hydrogen production capacity to advance the decarbonization of the sector, he added.
“In COP26, India announced a long-term and long-term climate target.
Our analysis found that the transition to zero-zero emissions would require mammoth investment support from developed countries.” Developed countries must increase hard targets for climate finance for years to come years .
Also, in front of the domestic, financial regulators such as RBI and SEBI need to make ecosystems that make it possible to finance the Indian transition to the green economy.
“Finally, given the size of the necessary investment, private capital, from domestic and international institutions, must form a large portion of investment, while public funds must play a catalytic role by assessing investment in existing clean technology and emerging,” Arunabha Ghosh, CEO, CEE, say.
The study also shows that the financial requirements of the US $ 1.4 trillion concession will not be spread uniformly in five decades to 2070.
The average annual concession requirements will vary from $ 8 billion in the first decade to $ 42 billion in the fifth decade.
“The target of 2070 net-zero India is a brave commitment that will not only contribute to global decarbonization efforts but will also form how business and work in the future will be seen.” Domestic and foreign sources are traditional such as domestic banks and non-banking financial companies (NBFC ), and debt capital markets – both local and international – will not be able to fund massive investments needed by their own.
Therefore, access to foreign capital for concession terms must play a key role, “Vaibhav Pratap Singh, lead the main program and author of this research, according to this study, the total capacity of solar power installed in India needs to increase to 5,630 gigawatts In 2070.
The use of coal, especially for power plants, it is necessary to peak in 2040 and fell 99 percent between 2040 and 2060, it was stated.
Furthermore, crude oil consumption in all sectors needs to peak in 2050 and decrease substantially by 90 percent Between 2050 and 2070.
Hydrogen green can contribute 19 percent of the total energy needs of the industrial sector, he added.