1 min read.Updated: 18 Nov 2021, 12:03 PM ISTLivemint
According to CEEW Centre for Energy Finance (CEEW-CEF), over $10 trillion investment would help decarbonise India’s power, industrial, and transport sectors
Listen to this article
India will need a total investment of $10.1 trillion to achieve net-zero emission by 2070, a study has claimed. According to CEEW Centre for Energy Finance (CEEW-CEF), over $10 trillion investment would help decarbonise India’s power, industrial, and transport sectors. However, the first-of-its-kind study also estimated that India could face a significant investment shortfall of $3.5 trillion to achieve its net-zero target.
Recently, Prime Minister Narendra Modi announced India’s aim to achieve net-zero emissions by 2070 at the COP26 Summit. The study suggested that India would need investment support of $1.4 trillion, in the form of concessional finance from developed economies to mobilise foreign capital that bridges the gap. As per the study, the majority of the investment would be needed to transform India's power sector.
The CEEW-CEF study noted that at least $8.4 trillion will be required to significantly scale up generation from renewable energy and associated integration, distribution, and transmission infrastructure. And, $1.5 trillion will have to be invested in the industrial sector for setting up green hydrogen production capacity to advance the sector’s decarbonisation.
“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," Arunabha Ghosh, CEO, CEEW, said.
According to the study, India’s total installed solar power capacity would need to increase to 5,630 gigawatts by 2070. The usage of coal, especially for power generation, would need to peak by 2040 and drop by 99% between 2040 and 2060, it stated.
Further, crude oil consumption across sectors would need to peak by 2050 and fall substantially by 90% between 2050 and 2070. Green hydrogen could contribute 19% of the total energy needs of the industrial sector, it added.