by admin | May 25, 2021 | Corporate, Corporate finance, Economy, Finance, Investing, News
International Finance Corporation
New Delhi : India’s ambitious plans to meet its climate targets under the Paris Agreement represent about $3.1 trillion worth of investment opportunities by 2030, a report by the International Finance Corporation (IFC) said on Thursday.
According to IFC, a member of the World Bank Group, the sectors offering those investment opportunities are renewable energy, green buildings, transport infrastructure, electric vehicles and climate-smart agriculture.
As per the IFC estimation, India’s renewable energy sector that aims to install 175GW of capacity by 2022, has opportunities worth $448 billion. India aims for a 40 per cent of its installed capacity to be renewables (solar, wind, etc) by 2030.
Aiming to tap rapid urbanisation, where according to earlier reports 70 per cent of the required construction by 2030 is yet to come, the report predicts $1.4 trillion worth investment opportunities in green-building and infrastructure.
IFC further analyses that $250 billion investment could come in transport infrastructure and $667 billion in electric vehicles to meet the government’s goal of electrifying all new vehicle by 2030.
On solid waste management, IFC report states that $11 billion worth investment could come in this sector, to bridge the gap between the significant amount of waste produced and the availability of appropriate infrastructure for solid waste management by 2030.
The report sees potential investments worth $128 billion in climate-smart urban water to collect, treat and manage urban wastewater to curb urban water stress and $194 billion climate-smart agriculture to boost agricultural productivity, enhance resource efficiency and resilience, and to modernise the sector in India.
“The only way that the South Asian countries can take advantage of these climate investment opportunities is with a strong and engaged private sector,” said IFC CEO Philippe Le Houérou.
Part of a regional study that examines the climate-investment opportunities in Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka, the analysis says that all these countries together represent 7.38 per cent of the global carbon dioxide emissions.
The report also identifies $172 billion of climate-smart investment opportunities in Bangladesh, $42 billion in Bhutan, $2 billion in the Maldives, $46 billion in Nepal, and $18 billion in Sri Lanka.
“We also need to have a comprehensive approach to creating markets for climate business in key sectors. That means putting in place necessary policy frameworks, promoting competition, and building capacity and skills to open new markets,” added Le Houérou.
—IANS
by admin | May 25, 2021 | Business, Investing, Large Enterprise
International Finance Corporation
New Delhi : India is on track to meet its climate targets, including reducing the greenhouse gas emissions by up to 35 per cent by 2030, by channelling trillions of dollars in private investments through a combination of policy reforms and innovative business models, a report said on Thursday.
“Developing countries like India can meet climate targets promised in the landmark Paris Agreement by catalysing trillions of dollars in private investments through a combination of smart policy reforms and innovative business models,” according to the report by International Finance Corporation, a member of the World Bank Group.
“Already, more than $1 trillion in investments are flowing into climate-related projects in these areas. But trillions more could be triggered by creating the right business conditions in emerging markets,” the report found.
The report titled ‘Creating Markets for Climate Business: An IFC Climate Investment Opportunities’ identifies seven industry sectors that can make a crucial difference in catalysing private investment – renewable energy, off-grid solar and energy storage, agribusiness, green buildings, urban transportation, water, and urban waste management.
India’s target, submitted as part of the Paris Climate Agreement, envisages a reduction of greenhouse-gas emissions intensity by up to 35 per cent by 2030. This presents the country as an attractive, and emerging market for climate business and will accelerate the market for climate-friendly solutions, it said.
“The private sector holds the key to fighting climate change. The private sector has the innovation, the financing, and the tools. We can help unlock more private sector investment, but this also requires government reforms as well as innovative business models – which together will create new markets and attract the necessary investment. This can fulfill the promise of Paris,” IFC CEO Philippe Le Houerou said.
India’s success in creating markets for solar power, estimated at more than 13 GW in capacity in 2017, has led the government to expand its National Solar Mission. The new target of 175 GW of installed solar energy by 2022 is five times the original target.
Similarly, India has now become the world’s fourth largest wind power generator, with a target to install 60GW by 2022. The government also recently announced a commitment to end the sale of gasoline-powered cars by 2030.
Additionally, India is leading the market, along with China, in grid-tied renewables with nearly half of new capacity added. The country leads the off-grid solar market, with over 3 million systems sold in 2016. It is also anticipated that rooftop solar for residential and commercial consumers, is set to grow in key emerging markets including India.
In India, IFC has invested about $1.2 billion in climate-friendly projects through direct investments, in the last five years.
“India is in the midst of a climate change revolution. It is making significant accomplishments in achieving its pledge to the Paris Agreement. IFC will continue working closely with businesses, investors, and governments to further support the goals set by the country,” Jun Zhang, IFC Country Head for India, said.
—IANS
