NEW DELHI, India Sep 6 – India’s starting position in the race to reach ‘Net-Zero’ is not comparable to the fiscal space of four economies including the US, EU, China and Japan, but it stands out in its ability to position itself well in the new industrial era, according to a report.
The new report, ‘Competing in the new zero-carbon industrial era’ by think tank, Strategic Perspectives, compares the performance of five major economies – US, China, EU, India and Japan on zero carbon technologies.
It shows that the net-zero transition policies have significantly strengthened competitiveness, energy security and future economic prosperity. The report also points out a few positive development points that show that India is on the right track in the race to zero-carbon technologies.
According to the report, the first point is that “India is among few countries which are on track to meet its Nationally Determined Contributions target, however, it will need to invest USD 12.7 trillion to reach net zero emission by 2050.
India remains one of the fastest-growing major economies, especially as China’s post-pandemic recovery has slowed and India has become the fifth-largest economy in the world.”
“India is making progress in incorporating solar and wind into its electricity generation, almost doubling its share from 2017 figures (5 per cent to 9 per cent),” it added.
Thirdly, the electric vehicle industry is expected to grow at a compound annual growth rate of 49 per cent between 2022 and 2030 creating 50 million jobs by 2030.
Fourthly, the pro-transition policies like the Energy Conservation Act are giving the impetus to investors and industry Regarding international public financial flows, for 2020-21, India was the top recipient for the past two years (USD 2.9 billion, with 66 per cent for solar energy), as per the report.
“While China and the EU continue to lead in the wind sector, the US and India are following each other closely in terms of manufacturing capacities and could continue gaining market shares as their respective domestic policies are implemented,” the report read.
The report further says that it is clear that India cannot be compared on equal footing with the other economies given its different entry position on economic development.
