$22.7 trillion needed to attain net zero goal by 2070: Niti

An investment of $22.7 trillion will be needed for India to reach its net zero goal by 2070, government think tank Niti Aayog said in a report titled “Scenarios Towards Viksit Bharat and Net Zero: An Overview”, released on Monday.

The think tank said it had outlined more than a dozen policy prescriptions to support India’s transition to clean energy while aligning with its aim of becoming a Viksit Bharat by 2047.

However, it noted that while India could credibly mobilise around $16.2 trillion for its net zero transition by 2070 through a structural expansion in the scale, depth and efficiency of available capital, a financing gap of $6.53 trillion would remain.

“Given domestic constraints and the risk of crowding out and higher interest rates, this gap is expected to be met largely through external sources, raising the share of international sources to 42 per cent of total capital needs by 2070, up from 17 per cent in 2022-23,” it said.

The report also cautioned that the net zero transition would have limited impact on long-term GDP growth, stating that India’s GDP was projected to remain broadly resilient even in net zero scenarios, reaching $30 trillion by 2047, in line with the Viksit Bharat goal.