Infrastructure News

India needs $10.1 tn for net zero, private investment key: Amitabh Kant, ET Infra


NEW DELHI: G20 Sherpa and former NITI Aayog chief executive Amitabh Kant on Tuesday said that India requires a colossal investment of $10.1 trillion to achieve its net-zero emissions target by 2070, underscoring the necessity of mobilizing private capital alongside public funds to meet this ambitious goal.

Speaking at the “Climate Financing” conference organized by Ease of Doing Business, Kant highlighted that India’s immediate requirement is to secure annual clean energy investments of $260 billion from 2026 to 2030, which will surge to $350 billion annually over the next five years. He pointed out the current shortfall in green finance, with India only managing $45 billion per annum, a fraction of what is needed to achieve its climate objectives.

“The future of climate financing in India hinges on blended finance,” Kant asserted. He advocated for the strategic combination of concessional finance with commercial finance to mobilize private resources and develop private sector markets effectively.

Addressing the rapid urbanization in India, Kant compared the country’s challenges to building infrastructure equivalent to two Americas by 2030. He stressed the need for a developmental path that diverges from the fossil fuel-dependent urbanization of developed countries, focusing instead on renewable energy sources.

Kant also highlighted the potential of green hydrogen in India’s energy landscape, noting the country’s advantageous position for producing it at a competitive cost. “Reforming multilateral development banks to align with market needs and doubling private capital mobilization is crucial for India,” he added.

Concluding his remarks, Kant called for an accelerated transformation and strategic financial planning to secure climate funds at more favorable rates. He underscored the critical need for a significant blend of private and public financing to meet India’s climate and developmental targets.

  • Published On Jan 10, 2024 at 12:39 PM IST

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