An analysis and advisory organization has released an update on India’s “first effort” to track green investment flows, which are well below the country’s current need for its ambitious climate goals.
Climate Policy Initiative in its report titled “Green Finance Landscape in India”, has stated that “green finance tracked in 2019-2020 was ₹309 billion crore (almost $44 billion) annually, which is less than a quarter of India’s needs.”
The report estimates that for India to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement, the country needs approx. ₹162.5 lakh crore ($2.5 trillion) from 2015 to 2030 or thereabouts ₹11 lakh crore ($170 billion) a year, the US-based organization said in a statement.
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The assessment of financial flows has been estimated for key sectors of the real economy such as clean energy, clean transport and energy efficiency, the organization said.
The study tracks both public and private sources of capital, both national and international, and creates a framework for tracking the flow of finance from the source to the final beneficiaries through different instruments with an emphasis on bottom-up approaches based on reality. flows rather than commitments, providing the most accurate analysis yet of where India’s climate finance stands, the financial gaps it faces and the opportunities ahead, the statement said.
This year, the report also provides a first assessment of adaptation finance for select sectors.
“The report shows an increase in flows to the renewable energy sectors. This indicates the positive role that political support has played in the renewables sector. Also in the future we expect to see a similar role in other sub-sectors such as energy distributed renewable – rooftop. solar and clean mobility,” said Neha Khanna, Project Director and Lead Author at Climate Policy Initiative-India.
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