India's $1.4 Trillion Path to Net-Zero: A Financial Challenge

India needs USD 1.4 trillion to achieve a net-zero economy by 2070. The Economic Survey 2023-24 highlights the substantial funding gap and the limited international support, stressing the need for 2.5% of GDP allocation to green finance. Challenges include high capital costs and regulatory issues.

India requires an investment support of USD 1.4 trillion, averaging USD 28 billion per year, to become a net-zero economy by 2070, as per the Economic Survey 2023-24 tabled in Parliament on Monday.

Achieving net zero involves balancing greenhouse gas emissions with their removal from the atmosphere by natural processes or carbon capture techniques. The report noted that India's climate action has been mostly financed through domestic resources, with limited international finance flow.

Data from the Reserve Bank of India indicates that addressing the substantial funding gap requires allocating 2.5% of India's annual GDP to green finance. The survey underscored the unprecedented challenge of raising financial resources of this scale.