4th May 2023 (8 Topics)
1
May
2
May
3
May
4
May
5
May
6
May
8
May
9
May
10
May
11
May
12
May
13
May
15
May
16
May
17
May
18
May
19
May
20
May
22
May
23
May
24
May
25
May
26
May
27
May
29
May
30
May
31
May
India’s cost of adapting to climate change needs seen at $1 trillion: RBI
Context
India needs to spend an estimated 85.6 trillion rupees ($1.05 trillion) by 2030 to adapt its various industries to be compliant with climate change norms, a report by the Reserve Bank of India.
The Report
- Title: Reserve Bank of India’s (RBI) Report on Currency and Finance
- Report theme: Towards a Greener Cleaner India
- The report is written by contributors from the Department of Economic and Policy Research.
Key Highlights of the Report
- India’s goal of achieving the net zero target by 2070 would require-
- an accelerated reduction in the energy intensity of GDP by about 5% annually
- a significant improvement in its energy mix in favour of renewables to about 80% by 2070-71
- Financing requirement: The green financing requirements in India could be at least 5% of GDP annually to address the infrastructure gap caused by climate events.
- Vulnerability of financial institutions: Results of a climate stress test reveal that public sector banks (PSBs) may be more vulnerable than private sector banks. Globally, however, the measurement of climate-related financial risks remains a work in progress.
- Requirement of sector-centric approach: Different sectors of the economy have different emission intensities, so it is advisable to not have a uniform climate mitigation strategy across sectors.
- Without any policy action, India’s carbon dioxide emission levels may rise to 3.9 gigatonnes by 2030, from 2.7 gigatonnes in 2021.
India’s Climate Finance Strategy
- Long-Term Low Emission Development Strategy(LT-LEDS): In November 2022, at COP27, India submitted its Long-Term Low Emission Development Strategy (LT-LEDS) to the United Nations Framework Convention on Climate Change.
- Issue: This requires trillions of dollars of investment. Yet India currently lacks a comprehensive climate finance strategy for mobilizing the capital required to execute the LT-LEDS.
- Green Bonds: India’s maiden issue of green bonds, within the broader green bonds framework outlined by the government is commendable.
- Issue: India may issue $3 billion of green bonds in the financial year 2023–2024, but still this will amount to only 1.6 per cent of its overall annual borrowing.
Courses
Study
Notes
Home
Resources
More
