A recent analysis suggests that heavy climate funding and investment from rich nations will be crucial if the country is to decarbonize at the appropriate rate.
If India wants to attain net zero emissions by 2070, it will require more than $10 trillion (£7.4 trillion) in investment.
According to a new research by the Centre for Energy Finance (CEEW), the power sector alone would cost $8.4 trillion (£6.2 trillion).
Following criticism for its lack of action in setting objectives and deadlines for climate change, the government has vowed to reach net zero emissions by 2070 during the COP26 climate meeting in Glasgow.
According to the report, $1.4 trillion (£1 trillion) in concessional loans from developed countries will be required to mobilize foreign capital to cover the gap in investment deficits caused by decarbonizing its energy mix.
It also disclosed that the size of this financial assistance will fluctuate over the next few decades, from $8 billion (£5.9 billion) in the first decade to $42 billion (£31 billion) by the 2060s.
The cost for India to scale up its renewable energy output, create the required infrastructure, and begin work on green hydrogen generation to attain net zero will be $10 trillion (£7.4 trillion).
“Our research reveals that a transition to net zero emissions will require tremendous investment support from rich nations,” stated Dr. Arunabha Ghosh, CEO of CEEW. Over the next several years, developed nations must increase the number of hard objectives for climate funding.”
“India’s 2070 net zero aim is a bold promise that will not only help to global decarbonisation efforts but will also influence how companies and jobs of the future will look,” said the study’s lead author, Vaibhav Pratap Singh.
“Concessional access to foreign money would have to play a crucial role.”