The International Energy Agency (IEA) is advocating for a substantial increase in global efforts to combat climate change. According to the IEA, the world needs to triple its renewable energy capacity and double its energy efficiency by the year 2030. This ambitious goal is set to reduce dependence on fossil fuels and is aligned with the objective of limiting global warming to 1.5 degrees Celsius by the end of the century. The IEA’s call underscores the urgency and scale of action required to address the challenges posed by climate change and transition towards a more sustainable energy future.
India on path to triple renewable energy capacity by 2030 but faces financing hurdle: Report
India’s 14th National Electricity Plan (NEP) outlines an ambitious strategy to more than triple its renewable energy capacity by 2030. However, achieving this target would necessitate a substantial investment of USD 293 billion, according to a report released by the global energy think tank Ember.
The International Energy Agency (IEA) has emphasized the imperative for nations to triple their renewable energy capacity and double energy efficiency by 2030 to mitigate the reliance on fossil fuels and limit global warming to 1.5 degrees Celsius by the century’s end.
Over 60 countries, including the US, the European Union (EU), and the UAE, have rallied behind this commitment, endorsing the goal of tripling renewable energy and doubling energy efficiency. The G20 nations, under India’s presidency, have also supported the initiative, with the UAE, as the host of this year’s UN climate conference, advocating for a global agreement on this matter at COP28.
Ember’s analysis underscores that India needs an additional USD 101 billion in financing to further expand its renewable energy capacity and align with the IEA’s proposed net-zero scenario. The IEA’s Net Zero Emissions by 2050 Scenario outlines a global pathway to achieve net zero CO2 emissions by 2050, with advanced economies reaching this milestone ahead of others.
In the context of climate change, achieving net zero entails striking a balance between the greenhouse gases released into the atmosphere and those removed. The Ember report suggests that India is already on track to significantly bolster its renewable energy capacity, making it plausible to realize the ambitious goal of tripling this capacity.
The emphasis on renewable energy expansion aligns with the broader global imperative to reduce reliance on fossil fuels and curb the rise in greenhouse gas emissions. If India continues with its plans for a substantial increase in renewable energy, it not only contributes to meeting its national targets but also aligns with the broader international objectives of mitigating climate change. This proactive approach positions India to make meaningful strides toward achieving a sustainable and low-carbon energy future.
Expanding India’s renewable energy capacity to align with the International Energy Agency (IEA) net-zero pathway requires an additional USD 101 billion, as indicated by the Ember report. The think tank underscores challenges such as payment delays and unfavorable rules and regulations that act as deterrents for investors, hindering the necessary funding for achieving these goals.
The financial requirements to meet both the targets outlined in the 14th National Electricity Plan (NEP14) and the IEA net-zero scenario far exceed the current investment and funding capacities available in India, according to the report.
Neshwin Rodrigues, Ember’s India Electricity Policy Analyst, emphasized the need for financing to build capacity in renewables, storage, and transmission to meet the NEP14 targets. Despite the inherent investment risks, securing more financing at competitive rates is deemed crucial to enhance India’s ambitions and align with the global net-zero pathway.
This access to finance is deemed critical for India to avoid the construction of new coal capacity to meet the increasing demand in the coming decade. The report highlights the importance of overcoming financial barriers to ensure India’s viability in achieving its renewable energy and climate targets.