Funding India’s clean energy transition
Needed, a flood of funds - istock.com/Pogonici×
As the financing requirement will be huge, the way forward is to focus on subsidised credit enhancement and green taxonomy
India’s commitment to energy transition remained steadfast even amid the Covid-19 pandemic with 22 GW capacity sanctioned at renewable energy (RE) auctions in 2020. However, the capacity of domestic financial institutions to fund this energy transition has not remained unscathed. The RBI’s January 2021
Financial Stability Report indicates that gross non-performing assets of the banking system are set to rise from 7.5 per cent (of total advances) in September 2020 to 13.5 per cent by September 2021.
Last week we celebrated the five year anniversary of the Paris Agreement, the monumental moment when the world’s leaders came together at the 21
st Conference of Parties (COP) and agreed to take the necessary action to ensure a better world for our children.
This past weekend, world leaders came together again to recognize the resolve of so many countries across the globe in working toward a safer, more resilient world with net-zero greenhouse gas emissions.
During the past five years, the determination of the international community has been tested; during the present year we have been hit by a virus that will have long-lasting impacts on our societies.