{"id":218540,"date":"2022-12-15T17:56:58","date_gmt":"2022-12-15T12:26:58","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=218540"},"modified":"2022-12-15T17:56:58","modified_gmt":"2022-12-15T12:26:58","slug":"answered-what-are-the-financial-roadblocks-to-indias-dream-to-achieve-net-zero-by-2070","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-are-the-financial-roadblocks-to-indias-dream-to-achieve-net-zero-by-2070\/","title":{"rendered":"[Answered] What are the financial roadblocks to India\u2019s dream to achieve net-zero by 2070?"},"content":{"rendered":"<table>\n<tbody>\n<tr>\n<td width=\"616\"><strong>Introduction:\u00a0<\/strong>Contextual introduction.<br \/>\n<strong>Body:\u00a0<\/strong>Explain some financial roadblocks to India\u2019s dream to achieve net-zero by 2070.<\/p>\n<p><strong>Conclusion<\/strong>: Write a way forward.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In the recent <strong>Glasgow climate summit (COP26),<\/strong> India announced new climate targets. One such ambitious target is achieving Net Zero by 2070. According to the <strong>\u2018Getting India to Net Zero\u2019 report<\/strong>, India will require an economy-wide investment of <strong>$10.1 trillion<\/strong> from now if it is to achieve its net-zero emissions target by 2070.<\/p>\n<p><strong>Financial roadblocks in achieving net-zero by 2070:<\/strong><\/p>\n<ul>\n<li>India needs over <strong>$400 billion in capital annually<\/strong> to accelerate emissions reduction, much of which is risky because it involves new technologies, and requires state support.<\/li>\n<li>India is <strong>home to some of the world\u2019s most polluting cities<\/strong> led by Delhi. Despite that, the\u00a0<strong>outlay for the environment ministry<\/strong>is only Rs70 billion.<\/li>\n<li>India\u2019s\u00a0<strong>renewable energy companies<\/strong>have raised only around $6.8 billion in debt from offshore capital markets since January 2021. This is\u00a0<strong>less than 2%<\/strong>\u00a0of India\u2019s annual decarbonising costs.<\/li>\n<li>Last year, the <strong>green bond issuance<\/strong> in India was a mere $750 million.<\/li>\n<li>Lack of\u00a0<strong>cost-competitive technology alternatives<\/strong>in India.<\/li>\n<li>The government is\u00a0<strong>silent on financially supporting<\/strong>any decarbonisation efforts, except an Rs.100 billion subsidy scheme for EVs.<\/li>\n<li>In 2021 India\u2019s renewable sector attracted only $12-$15 billion in investment. Further, <strong>funding costs are the largest expense<\/strong> for renewable projects.<\/li>\n<li>Indian <strong>banks are reluctant<\/strong> to provide funds for decarbonisation. For instance, India\u2019s biggest bank, SBI, rarely funds commercial and industrial renewable projects.<\/li>\n<li>Traditional domestic and foreign sources and debt capital markets will not be able to fund the massive investments needed for decarbonising and they have <strong>limited access to foreign capital<\/strong> on concessional terms.<\/li>\n<\/ul>\n<p>Renewable projects are an easier way for corporates to reach net zero. So,\u00a0<strong>emission reduction projects should be funded by banks<\/strong>. India should\u00a0<strong>facilitate access to low-cost, long-term and diversified capital<\/strong>\u00a0to facilitate decarbonising the Indian industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction:\u00a0Contextual introduction. Body:\u00a0Explain some financial roadblocks to India\u2019s dream to achieve net-zero by 2070. Conclusion: Write a way forward. In the recent Glasgow climate summit (COP26), India announced new climate targets. One such ambitious target is achieving Net Zero by 2070. According to the \u2018Getting India to Net Zero\u2019 report, India will require an economy-wide&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/answered-what-are-the-financial-roadblocks-to-indias-dream-to-achieve-net-zero-by-2070\/\">Continue reading <span class=\"screen-reader-text\">[Answered] What are the financial roadblocks to India\u2019s dream to achieve net-zero by 2070?<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-218540","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/218540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=218540"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/218540\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=218540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}