PSU projects accounted for Rs 7,000 Cr green investments: report

A new report by Climate Policy Initiative (CPI) shows that “green sectors” such as renewable energy, energy efficiency, and low-carbon transport, are helping drive economic growth in India. Commenting at CPI’s online report launch, Dinesh Jagdale, Joint Secretary, Ministry of New and Renewable Energy, said, “A roadmap should be put in place for clean, secure, affordable energy supply in the RE sector that is essential for all global communities. We need to develop refinancing models by mobilising domestic and foreign sources of private capital.”

The CPI report, supported by Shakti Sustainable Energy Foundation, titled ‘Landscape of Green Finance in India’, is a one of a kind study that presents the most robust information on green finance in India. The report highlights that, in total, green finance flows in India for FY 2017 were Rs 111,000 crore (USD 17 billion) and Rs 137,000 crore (USD 21 billion) for FY 2018. The total tracked green finance for the years 2016-18 amounted to Rs 248,000 crore (USD 38 billion). This compares to an estimated USD 170 billion per year required for India to finance its climate actions, putting tracked green investments at an estimated 10 percent of required investments across sectors.

“There is a need to differentiate between mature technologies, solar and wind, and those which may require handholding. To meet the goal of 450 GW, the full spectrum of renewable energies will need to be deployed in every sector. A 16-17 percent compound annual growth rate (CAGR) is required to meet 2030 goals. It is a huge target, but the intent is very clear and positive,” Jagdale further added.

The report mentions that green investments outpaced India’s GDP growth during the study period. The GDP of India grew at an average rate of 7.2 percent between 2016-17 and 2017-18, and the tracked investments suggest an increase of 24 percent.

Mahua Acharya, Asia Director, Climate Policy Initiative, said, “The report shows the significant potential of renewable energy and other green technologies to fuel India’s economy. It is also encouraging to know that Government of India’s support to unlock private investment has helped, but we also see much more needs to be done.”

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