Page 11 - AsiaElec Week 15 2022

AsiaElec POLICY AsiaElec

India’s net zero goal to

cost over $12 trillion

INDIA IN a report issued by Standard Chartered, it has “Emerging market self-financing would lead
been announced that India will require at least to higher taxes and an increase in government
US$12 trillion to achieve the net-zero goals set borrowing. In total, between now and 2060,
by New Delhi in recent years. emerging market household consumption could
A number deemed largely out of reach for the be reduced by 79.2 trillion,” a number he says
government of Prime Minister Narendra Modi could actually be shown to increase by $1.7 tril-
in the current and even foreseeable economic lion each year on the back of developed market
climate of the subcontinent, India’s $12 trillion action to boost financing of nations such as India
figure is, however, just a fraction of the predicted over the next forty years.
$94.8 trillion the same report says is required to In the past week, India was also predicted to
help all the world’s emerging markets reach long miss 100 GW of installed solar targets set for the
desired climate goals in the decades ahead. end of the calendar year by around 27%.
At present the $94.8 trillion figure far exceeds The nation at present can only post figures of
the planet’s annual GDP. 50% of the predicted 100 GW target as actually
“Indian household spending could fall by a being installed; a combination at present of 60%
total of US$5.8 trillion if it has to self fund its of utility grade solar, with the rest made up of
journey to net zero,” the report claims, add- nationwide rooftop installations.
ing that investment by the private sector could And even though a further 19 GW is now on
supply up to $83 trillion of the total needed. course to be installed over the next eight months
Meanwhile, should India’s finance requirements “Even with this capacity addition, about 27%
be provided by the developed world, domes- of India’s 100 GW solar target would (still) be
tic household outlay across India could also unmet,” according to Jyoti Gulia, co-author of a
increase by up to $8 trillion. report released by JMK Research in India, and
Speaking of India and other emerging mar- the Ohio based Institute for Energy Economics
kets, Standard Chartered’s group chief executive and Financial Analysis (IEEFA).
Bill Winters said “(E)merging markets need a The lion’s share of the shortfall is being attrib-
great deal of investment to transition to net zero uted to problems facing rooftop installations
and the stakes have never been higher. Without Gulia says, adding that while utility-scale solar
the help from developed markets, improvement capacity in India is now on track, and the coun-
in emerging market prosperity could be halted try is set to achieve nearly 97% of its 60GW target
or reversed, which would not only be unjust “(T)his makes it imperative to have a more con-
but would have a hugely negative impact on the certed effort towards expanding rooftop solar.”
world economy.” Should India continue at its current rate of
Winters went on to add “Developed market installation until 2030 when New Delhi has set
funding could (also) help prevent the worst of itself a target of 300 GW of solar linked to the
global warming, as well as stimulating global national grid to help supply power to what will
GDP” something he says would suffer under by then be the world’s most populous nation, it
nation’s such as India having to wholly self-fi- will still be 86 GW short of its goal.™
nance their moves towards ambitious net-zero
goals.

Week 15 13•April•2022 www. NEWSBASE .com P11