Netzero target needs reduction in energy intensity

India’s goal of achieving the net zero target by 2070 would require an accelerated reduction in the energy intensity of GDP by around 5 per cent annually and a significant improvement in its energy-mix in favour of renewables to around 80 per cent by 2070-71, a report released by the Reserve Bank of India (RBI) said.

It further said that India’s green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030, adding that a balanced policy intervention with progress ensured across all policy levers, will enable India to achieve its green transition targets by 2030, thus making the net zero goal by 2070 attainable.

The report on currency and finance (RCF) for 2022-23 titled “Towards a Greener Cleaner India” contains a series of articles by various experts.

It covers four major dimensions of climate change to assess future challenges to sustainable high growth in India, namely, the unprecedented scale and pace of climate change; its macroeconomic effects; implications for financial stability; and policy options to mitigate climate risks.

India has embarked on a targeted and time-bound climate action plan to reduce carbon emissions and currently ranks the best amongst G-20 countries, as per the Climate Change Performance Index, 2023, the report added.