India Needs $15 Trn Investments To Achieve Net-zero Emissions By 2070: Report
India will require a massive USD 15 trillion in investments to achieve its net-zero emissions target by 2070, according to a report by FICCI and Deloitte India.
The report titled 'India's energy-transition pathway: A net-zero perspective', highlighted three fundamental pillars of India's energy transition: grid decarbonisation, industrial decarbonisation and transport transition.
These three pillars are expected to address approximately 90 per cent of the nation's current emissions.
Notably, grid decarbonisation aims to increase the share of electricity in the final energy mix from 18 per cent in 2020 to over 50 per cent by 2070. The report added that this will require an ambitious capacity addition of approximately 50 GW/year of renewable energy (RE), marking a notable escalation from the historical average of 15–20 GW annually.
To achieve these targets, the report recommended that the central and state governments expedite the bidding process for the procurement of renewables. State governments, which are positioned to play a pivotal role, must ensure swift land allocation/acquisition and accelerate statutory clearances for project development.
The second pillar, industrial decarbonisation, primarily focuses on pivotal sectors like steel, cement, aluminium and fertilisers. The spotlight in this is firmly on green hydrogen (GH2), which is anticipated to find broad applications across these industries.
As per the Deloitte analysis, by 2070, GH2 is projected to satisfy a substantial portion of energy demand, going more than 50 million tonne (MT).
To address the economic implications of GH2, the report suggested that measures be taken to reduce its cost and foster an environment that promotes its broad acceptance. It is crucial to support early-stage demonstration projects, particularly in the cement and steel industries.
The third pillar, transport transition emphasises India's strategic shift towards low-emission technologies. The spectrum ranges from battery electric vehicles (BEVs) to hydrogen combustion engines to fuel cell electric vehicles (FCEVs). The development of a comprehensive charging infrastructure complemented by visionary urban planning is integral to this shift.
As per the report, a robust public-private partnership (PPP) to establish charging infrastructure and hydrogen refuelling systems is essential for the transport transition. Both, central and state governments need to prioritise efficient urban planning strategies that can reduce travel distances and motorised travel demand, by investments in railways, including their augmentation and modernisation, as well as in freight corridors and mass public transit, it said.
