Since the past few years, India has had its eye on mending its climatic conditions. The certainty of this goal for even more serious when India updated it’s NDC(Nationally Determined Contribution) by increasing the goal to reduce the emission intensity to 45% by the year 2030. India also has plans to be the global center for the production and export of Green Hydroden.
However, more power calls for more responsibility, and the exorbitant number of climatic objectives that India has needs extraneous endorsements. Which is why, in this blog, we’ll talk about how Global Finance can help India come out ahead in addressing climate change policies.
How much will it cost to achieve India’s Climatic Targets?
Let’s begin the list with Ambani’s $75 Billion plan to make India a hydrogen hub, which already has 25 green hydrogen plants in the pipeline by 2025.
According to India’s NDC to the United Nations, the country pledges to achieve about 50% of its installed electric power capacity from non-fossil fuel sources by 2030. It also aims to create a carbon sink of 2.5 billion to 3 billion tonnes through “additional” forest cover by that same year.
And lastly, the behemoth of it all, India aims to be carbon neutral or achieve net-zero carbon emissions by 2070. And India would require “trillions of dollars” in Green financing to make this happen.
Global Finance — A shot in the arm
The Economic Survey Report 2022-23 read, “Even if India has so far undertaken climate actions on its own, the heightened expectations of further large-scale climate measures have to be equated with the enhanced initiatives by developed countries in terms of providing means of implementation, including finance, technology transfer, and capacity-building support”
This implies that Green Financing can effectively boost the odds of India living up to its climatic targets. Here are a few ways global finance can fasten the process:
- Investing in renewable energy projects in India like solar power and wind power. This can reduce the country’s dependence on fossil fuels which ultimately reduces carbon emissions
- Financing for sustainable agriculture like organic farming and agro-forestry to improve soil health
- Investing in energy efficiency measures such as building retrofits like double glazing, cavity wall, smart thermostats, etc.
- Lastly, offering Green Bonds to help raise funds for climate-related projects in India.
India’s climate goals are ambitious indeed. But achieving them is a no-one-man task. Or, in this case, a no-one-entity task. It would require a synced-up effort from governments, financial institutions, and businesses altogether. Working together can encourage promoting sustainable development, reducing greenhouse gas emissions, and build a prosperous future for all, and Global finance has a crucial role to play here.
Idea Credits: https://www.thehindu.com/sci-tech/energy-and-environment/economic-survey-2022-23-india-needs-global-finance-to-achieve-climate-goals/article66455334.ece
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