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India Needs $22.7 Trillion Investment to Achieve Net-Zero Emissions by 2070: NITI Aayog
According to a NITI Aayog study, India will need a total investment of $22.7 trillion to achieve net-zero carbon emissions by 2070. Of this, $8 trillion will need to be raised by 2050. Current annual investment is $135 billion, while $500 billion is needed annually.
NITI Aayog said in a study on Monday that India will need a total investment of $22.7 trillion to reduce greenhouse gas emissions and achieve net-zero carbon emissions by 2070.
According to the study, this will require an investment of $500 billion annually, while actual investment by 2024 was approximately $135 billion. Of this, only $70-80 billion supports clean energy.
The study states that out of the total $22.7 trillion, $8 trillion will need to be mobilized in advance by 2050. Of this, approximately $5 trillion should be related to the power sector.
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According to the study, with domestic and external reforms, India can raise approximately $16.2 trillion to achieve net-zero carbon emissions by 2070. This means that a financing gap of $6.53 trillion remains between the requirement and projected flows.
For raising the required capital at home, India will have to increase the size of the corporate bond market, the financialization of domestic savings, and the scope of investment by institutional investors in new sectors. For raising the required capital from abroad, India will have to increase foreign direct investment as well as foreign portfolio investment.
The study states that the transition towards net-zero carbon emissions will have limited impact on gross domestic product (GDP) growth in the long term.
