Investments ranging from US$160 billion to US$200 billion will be required each year to fund India’s energy transition, according to French asset manager Amundi. The funding is equivalent to around 5% of the country’s GDP, and is necessary if India is to meet its targets of reducing emissions intensity by 45% by 2030, and reaching net zero by 2070. Despite increased budgetary allocations and efforts to establish a green bonds market, substantial policy actions are needed to attract private – especially international – capital, Amundi said. India is the third largest greenhouse gas-emitting country on the planet, and its emissions continue to rise. It is highly dependent on coal for electricity generation and power, and its demand for the most polluting fuel is not expected to peak until 2030 to 2035. Although creating a just transition that ensures minimal social impact is a particular challenge for the country, Amundi said there were hopeful signs. For instance, stricter disclosure standards introduced by the Securities and Exchange Board of India (SEBI) should bring companies more in line with global investors’ expectations. India is Asia’s second largest emerging market for green bonds, with issuances representing the equivalent of $25 billion as of December 2023. Some reforms have already resulted in a rise in private equity investment, while changes to make foreign investment simpler and more tax-efficient, including the Gujarat International Finance Tec-City (GIFT City), have shown promising signs, Amundi found. The report called for more collaboration between the public and private sectors.
