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India will need to invest a staggering USD 10 trillion in green technologies and energy efficiency initiatives by 2070, according to a new report by Crisil.
The report noted that this investment is critical for the country to meet its decarbonisation goals and work towards achieving net-zero emissions by 2070. The report was shared during the fifth edition of the Crisil Infrastructure Conclave, which focused on India's strategies for reducing carbon emissions and transitioning to cleaner energy sources. It said "By 2070, India will have to spend an estimated USD 10 trillion on green investments and to drive energy efficiency" The report also noted that the country has already set ambitious targets for 2030. India aims to reduce its carbon intensity by 45 per cent and increase the share of non-fossil-fuel energy in its total installed capacity to 50 per cent. To meet these targets, India anticipates a significant rise in green investments, which are expected to increase five-fold by 2030. This surge in investments presents a transformative opportunity, valued at nearly Rs 31 lakh crore. The report highlighted that India's commitment to decarbonisation has never been more urgent, as it emerged as the third-largest emitter of greenhouse gases globally in 2023. The country's emissions surged by 6.1 per cent last year, contributing to 7.8 per cent of global emissions. With energy demand expected to rise in the coming decades, India faces the dual challenge of balancing rapid economic growth with the need for sustainable energy solutions. Of the projected investments, the renewable energy sector is set to receive the largest share, with Rs 18.8 lakh crore earmarked for clean energy initiatives. The transport and automotive sectors are expected to attract Rs 4.1 lakh crore, while the oil and gas sectors will require Rs 3.3 lakh crore to support their transition to greener practices. It said "We expect green investments to surge five-fold through 2030, creating a transformative opportunity valued at nearly Rs 31 lakh crore. Of this, renewable energy is set to have a lion's share of Rs 18.8 lakh crore, transport and automotive Rs 4.1 lakh crore and oil and gas Rs 3.3 lakh crore". Crisil also highlighted that the path to decarbonisation is not without its challenges. Financing gaps, technological barriers, and concerns around energy security are some of the hurdles India must overcome. However, the report emphasizes that a collaborative approach will be essential. The involvement of the government, private sector, funding institutions, and industry associations will be crucial in turning decarbonisation into a growth opportunity rather than a burden. The report added that international cooperation will also play an important role in India's journey towards a sustainable future. Partnerships for technology transfer, concessional financing, and expertise exchange--such as the International Solar Alliance--will help India accelerate its green transition. Through investments in emerging technologies like green hydrogen and electric vehicles (EVs), India has the potential to set a global benchmark for sustainable development and lead by example in the fight against climate change. (ANI)
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