A Working Paper titled “India’s Climate Finance Requirements” by Centre for Social and Economic Progress (CSEP) assesses India's climate finance requirements for substantially decarbonizing four key ‘hard-to-abate’ sectors: power, road transport, steel, and cement from 2022 to 2030.
- These sectors are "hard-to-abate" due to energy-intensive and emission-intensive production processes.
Key highlights of the Paper
- Rising emissions: India’s share in global carbon emissions rose from 2.5% in 1990 to an estimated 8.2% in 2023.
- Despite the increase in overall emissions, India's per capita emissions remain lower than the global average.
- Economic Risks: Climate change poses substantial economic risks, with potential per capita GDP losses ranging from 2.0% in 2030 to 3-9% by 2047, depending on mitigation efforts.
- Estimated Climate Finance: India's total climate finance requirement for substantial decarbonization of four key sectors (power, road transport, steel, and cement) averages around 1.3% of GDP annually.
Policy Recommendations
- Incentivize private investment: Provide incentives and regulatory measures to encourage private investment in low-carbon technologies and EV adoption.
- Government Role in Infrastructure: Government to step in to develop crucial infrastructure, such as EV charging networks, and invest in R&D for grid management, battery storage, and hydro-pump storage in the power sector.
- International cooperation: For CCS (Carbon Capture and Storage) technology transfer for hard-to-abate sectors.
