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PWOnlyIAS

August 25, 2023

India’s Net-Zero Transition Offers $12.7 Trillion Investment Opportunity

Context:

According to India’s New Energy Outlook report by BloombergNEF, India’s path towards a net-zero economy by 2050 presents an investment opportunity estimated at $12.7 trillion.

  • Net Zero refers to the balance between the amount of greenhouse gas (GHG) that’s produced and the amount that’s removed from the atmosphere.

Changes in Energy Mix

  • Wind and solar power capacity: It is projected to increase thirty-fold, reaching 2,998 gigawatts by 2050, contributing to 80% of the electricity supply.
  • Other Sources: Nuclear power accounts for 9%, while the remainder is sourced from hydro, biomass, hydrogen-fired thermal plants, and thermal power plants equipped with CCS.

Investment Opportunities

  • Net-Zero Emissions: Investment levels need to increase by 1.7 times, reaching an average of $438 billion annually and totalling $12.7 trillion by 2050.
  • Increasing Demand: An investment of $7.6 trillion is projected in energy supply and demand from 2022 to 2050, averaging $262 billion annually.
  • Electric Vehicle: The sales constitute a substantial portion of energy demand investment in both scenarios, with $3.9 trillion allocated for EV deployment.
  • Fossil Fuels: To mitigate emissions from the remaining use of fossil fuels, India would require an investment of $870 billion. 
    • Significantly, investment in fossil-fuel power decreases from $317 billion to $142 billion.

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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