Source: Mint
Context:
India is approaching its 2030 target of 500 GW non-fossil electricity capacity and aims to achieve net-zero carbon emissions by 2070 under its Nationally Determined Contributions (NDCs). India also targets a 45% reduction in emission intensity of GDP by 2030 (from 2005 levels). NITI Aayog’s draft roadmap outlines institutional and financial measures to achieve these goals.
Proposed Institutional Mechanisms
a) Low Carbon Development Commission (LCDC):
- Purpose: Guide policy, coordinate multi-ministry climate action, and develop bankable project pipelines for mitigation and adaptation.
- Functions:
- Policy support and data analysis on emissions.
- Mobilize $100 billion annually in climate finance.
- Assist in national communications on climate change and manage national emission inventories.
- Role: Primarily scientific and technical, rather than regulatory; supports states and professional agencies in project execution.
b) National Green Financing Institute (NGFI):
- Purpose: Bridge the financing gap for India’s net-zero targets.
- Functions:
- Focus on blended finance, providing guarantees to reduce Weighted Average Cost of Capital (WACC).
- Develop standardized term sheets and power purchase agreements (PPAs).
- Promote investment in emerging technologies (CCUS, green hydrogen, green ammonia) and renewable infrastructure.
Key Climate Measures Highlighted
- Emission reductions across mobility, industry, energy, and agriculture.
- Promotion of waste management, sustainable construction, mass transit, non-motorized and electric mobility, energy efficiency, and circular economy.
- Net zero approach involves reducing emissions to near-zero levels and offsetting the remainder through carbon capture, afforestation, and other measures.
