NEW DELHI: At a time when India is working on its 2035 climate action targets, the govt’s think tank, Niti Aayog, on Monday released a roadmap to achieve the country’s ‘net zero’ emission goal by 2070, noting that the transition will need cumulative investment requirements of $22.7 trillion, around $500 billion annually, to finance several “high-level actions” to meet the twin objectives of ‘Viksit Bharat’ (developed India) and long-term carbon neutrality. It said at least $6 trillion out of the total investment requirement needs to come from external sources.The govt think tank also underlined that India’s coal consumption will continue to rise till 2047, giving enough hint of what India’s updated climate action – Nationally Determined Contributions (NDC) – for 2035 would look like. The roadmap – Scenarios Towards ‘Viksit Bharat’ and Net Zero: An Overview – emphasised India’s vision of becoming a developed economy by 2047 and achieving ‘net zero’ emissions by 2070, saying it will require a “delicate balancing act”.“Many of the technologies needed for net zero have yet to reach commercial maturity, while mature low-carbon technologies often demand large up-front investments,” the report said, referring to challenges.Noting a scenario of transition to clean energy in India, the report flagged that the non-fossil fuel power generation (including captive) share is expected to increase from 23% in 2025 to 65% in the current policy scenario and 80% in the ‘net zero’ scenario by 2050. “It is further expected to rise above 80% by 2070 in the current policy scenario, and to 100% in the ‘net zero’ scenario, it said.“The ‘net zero’ strategy is simple – first, electrify energy use. Two, green and clean electricity. Three, control demand through Mission LiFE. Four, focus on circularity and efficiency. Last, cheaper external finance is needed. Clearly stated, India’s coal consumption will go up till 2047 even as energy intensity decreases and efficiency goes up, while meeting ‘net zero’ goals. India can leapfrog to be a global leader in clean technologies. 85% of India of 2047 is yet to be built and can be built to be climate-friendly,” said B.V.R Subrahmanyam, CEO, NITI Aayog, on the occasion of the release of the report. Besides focus on clean energy, the roadmap’s high-level actions for India’s ‘net zero’ transition include focus on circularity, urban mobility, efficient buildings, proper land use, critical minerals, and robust data for monitoring, reporting & verification (MRV) systems as core infrastructure.On financing the transition, it noted that the power sector alone accounts for over half of total needs ($22.7 trillion), reflecting its central role in enabling economy-wide electrification and the expansion of low-carbon generation.“On an annualised basis, this cumulative requirement translates into average flows of approximately $500 billion per year, compared with actual annual investment of around $135 billion in 2024, of which only $70–80 billion currently supports clean energy,” the report said.Of this total, approximately $8 trillion must be front-loaded by 2050, including nearly $5 trillion in the power sector, given the capital-intensive nature of most low-carbon technologies, it added.The think tank noted that the financing gap of $6.5 trillion remains, as an estimated aggregate flow of only $16.2 trillion is expected against the ‘net zero’ scenario investment requirement of $22.7 trillion, and suggested having a “National Green Finance Institution” in the country to take care of the needs.It, at the same time, expressed confidence in India’s approach, saying India’s ‘net zero’ transition will create a new ‘Indian Development Model’ combining economic vitality, technological leadership, and sustainability. “The pathways India shows will be a lighthouse for the developing world. The Indian Development Model will set the trend for others,” said the think tank.“NITI Aayog has undertaken a comprehensive and rigorous exercise that will serve as a benchmark – a starting point for future discussions on ‘Viksit Bharat’ and ‘net zero’. The reports are a great resource for policymakers and researchers on charting India’s course to these twin objectives,” said V Anantha Nageswaran, Chief Economic Advisor to the government. The report has come out with 11 reports that detail the findings of India’s first government-led, multi-sectoral, integrated study to assess development scenarios that deliver on the Viksit Bharat 2047 while simultaneously reducing net greenhouse gas (GHG) emissions to zero by 2070.The study entails a “scenario-based analytic modelling exercise” that integrates economic growth, India’s development priorities, and climate commitments. It has been prepared by 10 inter-ministerial working groups that examined long-term transition scenarios across key domains like macroeconomic aspects of the transition, sectoral low-carbon transition in power, transport, industry, buildings, and agriculture; financing for climate action; critical minerals; R&D and manufacturing; and the social implications of the transition. Go to Source
