India needs $10 trillion to achieve net zero emissions by 2070: CEEW

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admin November 26, 2021
Updated 2021/11/26 at 7:58 AM

According to a study by climate and energy research organisation CEF Centre for Energy Finance, India would need close to $10 trillion (700 lakh crore) to achieve net zero emissions by 2070. (CEEW-CEF). The Council for Energy, Environment, and Water Research (CEEW) is a New Delhi-based think tank.

The vast majority of this money, around $8.4 trillion, would be required to dramatically increase renewable energy output while also putting in place the requisite integration, distribution, and transmission infrastructure. To accelerate the industrial sector’s decarbonization, an additional $1.5 trillion would need to be spent on green hydrogen generation capacity. Green hydrogen is hydrogen gas that is produced using renewable energy and may be utilised for a variety of applications, including heating, battery charging, and automobile fueling.

According to the report, India will need $3.5 trillion in investment help from developed countries in the form of concessional credit to reach net-zero emissions by 2070. Loans with interest rates below the market are referred to as concessional financing.

At the just completed G20 conference in Glasgow, Scotland, Prime Minister Narendra Modi stated India’s national targets to increase the share of renewable energy in installed capacity and achieve net zero by 2070. According to experts, the greatest chance for the world to stay below 1.5 degrees Celsius by the end of the century is to achieve a net zero by 2050.

“India declared aggressive near-term and long-term climate objectives at COP26,” stated Arunabha Ghosh, CEO of CEEW. According to our findings, a net-zero-emissions transition will require massive investment from wealthy nations. Over the next several years, developed nations will need to set more stringent climate finance goals. Domestically, financial authorities such as the Reserve Bank of India and the Securities and Exchange Board of India (SEBI) must provide an enabling environment for India’s transition to a green economy. Finally, given the magnitude of the investments necessary, private money from both local and foreign institutions should account for the majority of the investment, while public funds should act as a catalyst by de-risking current and upcoming clean technology initiatives.

According to the CEEW-CEF report, India’s $1.4 trillion in concessional financing needs would not be evenly distributed over the next five decades, till 2070. The average yearly demand for concessional financing would range from $8 billion in the first decade to $42 billion in the fifth decade.

According to research released last month by the CEEW, India’s total installed solar power capacity will need to expand to 5,630 gigawatts by 2070 to meet demand. Coal consumption, particularly for electricity generation, would have to peak by 2040 and then decline by 99 percent between 2040 and 2060.

Furthermore, crude oil use in all sectors would have to reach a high point by 2050 and then drop by 90% between 2050 and 2070. Green hydrogen has the potential to provide 19% of the industrial sector’s overall energy demands.

Source: The Hindu

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