India's ambitious plans to meet its climate targets under the Paris Agreement will result into investment in various sectors including renewable energy, green buildings, transport infrastructure, electric vehicles, and climate-smart agriculture, said IFC, a member of the World Bank Group today.
The analysis is part of a regional study that examined the climate-investment opportunities in Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka and it said that these countries together represent 7.38 percent of global carbon dioxide emissions.
The report also identifies USD 172 billion of climate-smart investment opportunities in Bangladesh, USD 42 billion in Bhutan, USD 2 billion in the Maldives, USD 46 billion in Nepal, and USD18 billion in Sri Lanka.
"We also need to have a comprehensive approach to creating markets for climate business in key sectors. That means putting in place necessary policy frameworks, promoting competition, and building capacity and skills to open new markets," he added.
India's government is pursuing an agenda of "development without destruction", aiming to reduce the emissions intensity of its GDP up to 35 percent from 2005 levels by 2030, the report said.
As India works to deliver universal electricity access and address rapid urbanization, this creates business opportunities and the country's private sector is responding quickly to the opportunities created and is taking steps to make climate-smart investments marketable, IFC pointed out in the report.
To utilize the full potential of the identified opportunities, the IFC report said that some necessary actions including implementing demand-side reforms, enhancing grid flexibility, minimizing curtailment rates, and clarifying the withdrawal of any incentives for renewable power, are essential to ensuring continued expansion of the sector.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. (ANI)