New Delhi: The Climate Finance Leadership Initiative (CFLI) India Friday announced finance solutions with the potential to mobilise over $6.5 billion to support India’s low-carbon, climate-resilient development.
Michael R Bloomberg, the UN’s Special Envoy on Climate Ambition and Solutions and Chair, CFLI, made the announcement at the ongoing UN climate talks in Dubai, UAE.
These solutions are focused on sectors aligned with the Indian government’s climate priorities such as e-mobility, circular economy, green hydrogen and renewables. Over the next decade, these solutions will help mobilise private capital towards the $10.1 trillion needed to meet India’s net-zero target by 2070, a statement said.
“The culmination of this public-private partnership will help India accelerate its clean energy transition and offers the way forward for India and others to reach net-zero targets, while also improving public health, creating jobs, and building a stronger and more resilient economy,” said Bloomberg.
“India needs very large investments to achieve the global 1.5-degree pathway in line with the Paris Agreement,” said N Chandrasekaran, Chairman, Tata Sons.
Earth’s global surface temperature has risen by around 1.15 degrees Celsius and the CO2 spewed into the atmosphere, largely due to the burning of fossil fuels since the start of the industrial revolution, is closely tied to it.
In the business-as-usual scenario, the world is heading for a temperature rise of around 3 degrees Celsius by the end of the century.
A warming planet is creating serious risks for businesses, from disrupted supply chains to rising insurance costs to labour challenges.
Climate science says the world must halve emissions by 2030 from the 2009 levels to limit global average temperature rise to 1.5 degrees Celsius as compared to the pre-industrial levels to avoid extreme, destructive and likely irreversible effects of climate change.
Countries have made ambitious commitments to reduce emissions of planet-warming greenhouse gases, and keep temperature rise to below the 1.5 degrees Celsius mark.
India has committed to reducing emissions intensity of its gross domestic product by 45 per cent by 2030 from 2005 levels, and achieving 50 per cent of its cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
CFLI India was formed with an objective of accelerating investment in sustainability sectors in India. Over the last two years, CFLI India members have partnered in developing concepts to address complex issues across themes such as e-mobility, circular economy for water, and renewable energy.
The concepts include innovative financial structures across the public and private sector for circular water economy, new financial products targeted to increase e-mobility adoption, and catalysing investments for green ammonia and grid upgrades.
This initiative has helped advance collaboration between public, private, and multilateral sectors. Learnings from this targeted and rapid approach to scaling climate-related investments can be applied across markets,” said Chandrasekaran.
“Unlocking large financial commitments for climate projects in emerging markets calls for close collaboration across the public and private sector. Our experience in India shows that multilateral finance institutions are ready to be catalytic and invest alongside private capital to create innovative, scalable solutions in sectors like e-mobility that are critical to slowing emissions growth and reducing air pollution,” said Shemara Wikramanayake, Managing Director and Chief Executive Officer, Macquarie Group.
PTI