COP 28: Over the next decade, these solutions will help mobilise private capital towards the $10.1 trillion needed to meet India's net-zero target by 2070
The Climate Finance Leadership Initiative (CFLI) India revealed financial solutions capable of mobilising over USD 6.5 billion to support India's low-carbon, climate-resilient development. Michael R. Bloomberg, the UN's Special Envoy on Climate Ambition and Solutions and Chair of CFLI, made the announcement during the ongoing UN climate talks in Dubai, UAE.
These solutions target sectors aligned with the Indian government's climate priorities, including e-mobility, circular economy, green hydrogen, and renewables. Over the next decade, these initiatives aim to attract private capital towards the USD 10.1 trillion required to achieve India's net-zero target by 2070.
"The culmination of this public-private partnership will help India accelerate its clean energy transition and offers the way forward for India and others to reach net-zero targets, while also improving public health, creating jobs, and building a stronger and more resilient economy," said Bloomberg.
N. Chandrasekaran, Chairman of Tata Sons, emphasised the substantial investments needed for India to meet the global 1.5-degree pathway outlined in the Paris Agreement.
Earth's global surface temperature has risen by approximately 1.15 degrees Celsius, largely due to CO2 emissions from fossil fuel burning since the industrial revolution. Without intervention, the world is on track for a temperature rise of around 3 degrees Celsius by the end of the century, posing serious risks to businesses and global ecosystems.
Climate science underscores the urgency of halving emissions by 2030 from 2009 levels to limit global temperature rise to 1.5 degrees Celsius and avoid irreversible effects of climate change. Countries, including India, have committed to ambitious goals to reduce emissions and transition to sustainable energy sources.
CFLI India, formed to accelerate investment in sustainability sectors, has focused on developing concepts for e-mobility, circular water economy, and renewable energy. These concepts involve innovative financial structures across the public and private sectors, addressing complex issues in line with India's climate goals.
Chandrasekaran highlighted that CFLI India's initiatives have facilitated collaboration between the public, private, and multilateral sectors, providing valuable insights for scaling climate-related investments. Shemara Wikramanayake, Managing Director and CEO of Macquarie Group, emphasised the importance of close collaboration between the public and private sectors to unlock substantial financial commitments for climate projects in emerging markets.
The experience in India demonstrates the readiness of multilateral finance institutions to catalyse investments alongside private capital for scalable and innovative solutions in critical sectors like e-mobility.