Developed nations must bridge $6.5 trillion gap in India's net-zero push: NITI Aayog, Pg19

Key Highlights:

• NITI Aayog reports India can achieve net-zero emissions by 2070 and developed economy status by 2047.
• Achieving this requires an additional $6.5 trillion investment from developed nations beyond current policies.
• Under the net-zero pathway, cumulative investment needs reach $22.7 trillion by 2070, compared to $14.7 trillion under current policies.
• India aims to increase international finance share in climate investment to 42% by 2070, from 17% in FY23.
• India has reduced emissions intensity of its GDP by 36% from 2005 levels and achieved 50% non-fossil fuel power capacity ahead of schedule.

Detailed Insights:

• The incremental $8.1 trillion requirement for net-zero is primarily driven by the power sector, followed by industry and transport.
• India could mobilize around $16.2 trillion by 2070 through targeted reforms and deeper integration with global capital markets.
• A dedicated National Green Finance Institution is recommended to mobilize and deploy capital for the transition.
• Current climate investment flows are about $135 billion annually, with $80-90 billion supporting clean energy, which is insufficient for long-term goals.
• India needs to deepen its corporate bond market from 16% of GDP in 2023 to 30% by 2070 and increase financialization of household savings from 60% to 75%.

Key Concepts Involved:

• Net-Zero Emissions: Balancing greenhouse gas emissions released into the atmosphere with the amount removed.
• Nationally Determined Contribution (NDC): Climate action targets set by countries under the Paris Agreement.
• Emissions Intensity of GDP: The amount of greenhouse gas emissions produced per unit of economic output.