India's Green Investment Growth
India is projected to significantly increase its investments in green infrastructure and energy projects, with a five-fold growth expected over the next five years, reaching Rs 31 trillion by 2030, according to CRISIL. This growth is driven by government announcements, corporate plans, and on-ground progress.
Green Investment Breakdown
- Renewable Energy (RE): Rs 18.8 lakh crore
- Oil and Gas: Rs 3.3 trillion
- Transport and Automotive: Rs 4.1 trillion
Net-Zero Goals and NDC Commitments
- India requires $10 trillion investments by 2070 to achieve net-zero goals.
- The Updated First Nationally Determined Contribution (NDC) under the Paris Agreement includes:
- A 45% reduction in the carbon intensity of GDP by 2030 from 2005 levels.
- Increasing the share of cumulative installed power capacity from non-fossil-fuel-based resources to 50%.
Decarbonisation in Road Transport
The road segment is a major contributor to carbon emissions, accounting for 90% of CO2 emissions in the transportation sector. CRISIL suggests a multi-faceted approach for decarbonisation, including:
- Creation of green financing pools through government-backed green bonds.
- Establishment of a national decarbonisation fund and public-private partnerships.
- Innovative financing like asset monetisation, which has raised over Rs 1.1 trillion for National Highways Authority of India.
- Funds should focus on sustainable construction materials, IoT-enabled road management, and green logistics hubs, with an emphasis on high-traffic corridors initially.
Renewable Energy in Indian Railways
Increased central budget allocations will lead to rapid growth in the production of renewable energy by Indian Railways, aiding in achieving net-zero carbon emissions and reducing operational costs. This will require:
- Supportive government policies, including subsidies for renewable energy and streamlined approvals.
Emerging Technologies and Financing
- For high-risk projects like green hydrogen, CCUS, and energy storage, government grants and incentives are essential.
- Private sector participation, specialised climate/venture funds, and multilateral involvement will play a crucial role.
- Blended finance and first-loss guarantee structures through multilateral organizations will help scale these technologies.