RBI’s report estimates India’s Green Financing Requirement at 2.5% of GDP
The Reserve Bank of India’s (RBI’s) report on Currency and Finance (RCF) for the year 2022-23 states that India’s green financing requirement is estimated to be at least 2.5 percent of GDP annually till 2030.
It must be remembered that the Government of India has set the target to achieve net zero carbon emissions by 2070.
The RBI’s report covers four major dimensions of climate change to assess future challenges to sustainable high growth in India.
unprecedented scale and pace of climate change;
its macroeconomic effects;
implications for financial stability;
policy options to mitigate climate risks.
The report further states that India’s goal to achieve the net zero target by 2070 would require an accelerated reduction in the energy intensity of GDP by around 5 percent annually.
A significant improvement is also required in energy-mix in favour of renewables to around 80 percent by 2070-71