The Rajya Sabha was informed on Thursday that India will require around US $1 trillion in additional money over the next 10 years in order to satisfy Prime Minister Narendra Modi’s promises set at the recently ended COP26 climate conference.
On Wednesday, Ashwini Choubey, Minister of State for Environment, responded to Rajya Sabha MP Sushil Modi’s question about India’s required climate finance, saying that the country anticipates developed nations to transfer $1 trillion annually to developing countries in order for them to meet their climate targets.
During the global event, Prime Minister Narendra Modi announced that India’s non-fossil capacity will reach 500 GW, renewables will meet 50% of India’s energy needs, the total projected carbon emissions will be reduced by 1 billion tonnes, and that carbon intensity will be reduced by 45% by 2030, additionally, India will achieve net-zero emissions by 2070.
Under the Paris Agreement, which signatory countries adopted in 2015, India submitted a Nationally Determined Contribution (NDC) with goals to lessen the emission’s intensity of its Gross Domestic Product (GDP) by 33-35% from 2005 levels, to accomplish approximately 40% cumulative electricity production from renewable energy resources, and to create an additional carbon sink of 2.5-3 billion tonnes by 2030.
Developed countries pledged to a $100 billion per year mobilization goal by 2020.
The Glasgow Climate Pact expressed profound disappointment that the developed-country parties’ aim had not yet been attained, and has recommended that the UNFCCC’s Standing Committee on Finance provide a report in 2022 on progress toward the aim of mobilizing $100 billion per year to meet the needs of developing nations.
According to Vaishnaw, India’s climate measures have so far been mostly funded by local resources, as in the Third Biennial Update Report (BUR) to the UNFCCC in February 2021, local mobilization totalled US$1.374 billion, while the Global Environment Facility and Green Climate Fund granted funds totalling to US $165.25 million between 2014 and 2019.
In this context, the government has launched the Perform Achieve and Trade (PAT) scheme, which aims to reduce carbon emissions in 13 energy-intensive sectors and has allowed up to 100% FDI under the automatic route in the renewable energy industry.
Furthermore, the inter-state Transmission System (ISTS) fees for inter-state sale of solar and wind power for new projects has been waived, a trajectory declaration for Renewable Purchase Obligation (RPO), formation of renewable energy parks and National hydrogen mission, has been announced.
The non-fossil fuel energy in India has expanded by more than 25% in the previous seven years and now accounts for 40% of the country’s energy mix due to the measures adopted.