India On A Right Track Towards Net-Zero But Need Finances: Report

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A new report by Brusels-based think tank Strategic Perspectives compared the performance of five major economies- US, China, EU, India and Japan on zero carbon technologies. The report compared the performance of these five major economies on manufacturing, deployment and investment in key decarbonization technologies like renewable energy, and electric vehicles (EVs), as well as the economic transition to net zero for the first time. 

The report showed that the net-zero transition policies have significantly strengthened competitiveness, energy security and future economic prosperity. The group of countries includes the three largest emitters as well as the host of this year’s G-7 and the G20.

The report noted that due to the massive scale-up of renewables, China alone accounts for 55 percent of the world’s additional RE installed capacity and more than half of electric cars in the world run in China. It found that in the European Union (EU) wind and solar accounted for 22 percent of the electricity mix in 2022, surpassing gas at 20% although the energy security crisis has created challenges that more investments in clean energy must meet.

“While India’s starting position is not comparable to the fiscal space of the other four economies, it stands out in its ability to position itself well in the new industrial era. The analysis shows a significant potential to grow its importance in the global new industrial transition where it must scale up investments in R&D and not solely rely on tech transfer and Chinese imports,” a media statement said. 

The report also claimed that India aims to position itself in the global net-zero supply chain as an emerging economy. The report also observed that India still faced different challenges. However, India can meet its net zero commitments faster with committed financial support from the developed economies.

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“India is among few countries which is on track to meet its NDC target. However, it will need to invest $12.7 trillion to reach net zero emissions by 2050. India remains one of the fastest-growing major economies, especially as China’s post-pandemic recovery has slowed and India has become the fifth largest economy in the world. India is making progress in incorporating solar and wind into its electricity generation, almost doubling its share from 2017 figures (5% to 9%),” the report said. 

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It also added that the electric vehicle industry is expected to grow at a compound annual growth rate of 49% between 2022 and 2030, creating 50 million jobs by 2030. 

Linda Kalcher, Executive Director of Strategic Perspectives, said, “A new industrial era based on zero-carbon technologies has emerged. China, the EU and the US are competing to seize the biggest shares in the growing global markets and secure supplies for their domestic demand. In a world where you lead or risk being left behind, manufacturing zero-carbon technologies turns into a precondition for industrial growth, innovation and competitiveness”, emphasized.”

Kalcher added, ” Zero-carbon technologies can potentially replace fossil fuels faster than some might realize. This means that setting ambitious phase-out dates at COP28 and domestically is not merely aspirational but a reflection of the direction in which major economies are going. Targeted financial support or new economic partnerships are crucial to ensure all countries can join the technology race and afford a just energy transition”.