Copyright © HT Digital Streams Limited All rights reserved. These recommendations come at a time when India is approaching its 2030 deadline to achieve 500 GW of non-fossil electricity capacity. (PTI) Summary NITI Aayog said the proposed Low Carbon Development Commission would develop bankable project pipelines for mitigation and adaptation, while mobilizing $100 billion annually by building capacity to attract and absorb climate investment. New Delhi: India’s top government think tank has called for a panel to guide policy and coordinate multi-ministerial efforts on climate action and energy transition, two people aware of the development said. NITI Aayog, in its draft roadmap for net-zero routes, said the proposed Low Carbon Development Commission would develop bankable project pipelines for mitigation and adaptation, while mobilizing $100 billion annually by building capacity to attract and absorb climate investment, the people cited earlier said on condition of anonymity. These recommendations come at a time when India is approaching its 2030 deadline to achieve 500 GW of non-fossil electricity capacity. Among its nationally determined contributions (climate actions submitted by countries under the 2015 Paris Agreement), India plans to achieve net zero carbon emissions by 2070. Furthermore, India has also committed to reducing the emission intensity of its GDP by 45% from 2005 levels by 2030. will also work to “mobilize $100 billion annually by building capacity to attract and absorb climate investment,” the first person said. These pathways include measures to reduce emissions across mobility, industry, energy and agriculture, while promoting waste management, sustainable construction, mass transport, non-motorised and electric mobility, energy efficiency and a circular economy. Queries emailed to NITI Aayog, Union ministries of new and renewable energy, power and environment, forest and climate change remained unanswered till press time. Net zero means cutting greenhouse gas emissions to as close to zero as possible, and offsetting the rest through carbon capture technologies and afforestation, among other things. The think tank reiterated its proposal to set up a National Green Finance Institute. It first spoke of the institute in its annual report for the financial year 2025 (FY25), envisioning it bridging the funding gap to reach the ambitious national net-zero target. The institute is expected to focus on blended financing, offer guarantees to reduce the weighted average cost of capital and develop standardized term sheets and power purchase agreements. RR Rashmi, former bureaucrat and distinguished fellow for green shipping at Delhi-based The Energy and Resources Institute (TERI), said: “The proposed commission could be a desirable institution as a scientific and technical body entrusted with the work of data collection, analysis, projection and interpretation of emissions towards a net zero goal. hours.” “However, its function as a regulatory body to help achieve the goal has been questioned, as India’s development trajectory is not led by a centralized body but a host of institutions in a federal structure comprising central ministries, sectoral bodies and state governments,” he said, adding that the development of proposals for mitigation and adaptation should best be left to the financial agencies that support become Funding is critical to the implementation of projects aimed at combating climate change, and the lack of it has been a major obstacle to the global transition goals. India has seen an accelerated flow of capital to transition and low-carbon initiatives and technologies, but there are still concerns about a massive financing gap. NITI Aayog estimates that India will need $21 trillion in investments to reach net zero by 2070, of which $14 trillion is already available, of which $7 trillion is yet to be mobilized. “Key challenges in climate finance include a weak business case for new technologies, such as CCUS (carbon capture, utilization and storage), green hydrogen, and green ammonia, as well as an evolving one for existing and established businesses such as renewable energy. Furthermore, to achieve the 500GW of non-fossil capacity by 2030, along with storage, India will need $050 billion per year to add capacity per year to install. annually,” said Vaibhav Pratap Singh, executive director, Climate and Sustainability Initiative (CSI), a global research organization. He noted that in terms of international capital inflows, global players are more interested in equity investments in clean energy projects and companies, rather than loans, even if equity comes last in terms of repayment. “This is because global financiers are reluctant to lend to developing countries for long periods, such as 16 or 20 years. While FDI (foreign direct investment) inflows in renewable energy have grown, they have increased 3 times in FY25 compared to the previous financial year,” Singh said. According to a Deloitte India report published in July, by the end of this decade, India will need $1.5 trillion in investment by 2030 across key areas to address the climate challenge at scale. The investments will range across sectors, including renewable energy, biofuels, decarbonisation and sustainable infrastructure. In the past few months, the Union Ministry of New and Renewable Energy has held meetings on green finance amid the growing need to scale up and expand green energy penetration through storage capacities, transmission capabilities and green hydrogen. On September 15, Mint reported that the ministry is looking into the feasibility of contract for difference or CfD for power purchase agreements, which could be promoted instead of the conventional long-term pacts of up to 25 years along with innovative financing models such as mezzanine financing, which combines debt and equity. According to CfD, either party must pay the difference between the contracted and the actual price. Apart from this, the Ministry of New and Renewable Energy is considering seeking tax incentives for green bond buyers from the Ministry of Finance. The ministry has already suggested that banks simplify financing for renewable energy projects, especially rooftop solar panels, and called for the introduction of a renewable energy financing obligation to ensure dedicated financing for the sector, similar to renewable purchase obligations (RPO) for electricity distribution companies. At a workshop on mobilizing renewable energy finance in February, Renewable Energy Minister Pralhad Joshi said India had secured commitments worth ₹34.5 trillion at the World Renewable Energy Summit in Gandhinagar last year. He also called on financial institutions to streamline lending processes, ease compliance burdens and adopt a more supportive approach to financing clean energy projects. In March, Union Environment Minister Bhupender Yadav said India had already achieved a 36% reduction in emission intensity between 2005 and 2020 and was on track to meet its 2030 target. 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NITI Aayog proposes new panel to strengthen India’s net-zero push
