This study evaluates investments required to achieve India’s net-zero emissions target of 2070. Achieving net-zero involves technology pathways as well as financial flows. These finance flows, or investments, also known as total investment, are required to fund the construction of the associated physical infrastructure. The mobilisation of investments to achieve net-zero expectedly will be sourced from domestic banks, Non Banking Finance Companies (NBFC), and debt capital markets, both domestic and international. However, an investment gap will remain between the total investment required to achieve net-zero and the amount that can be reasonably mustered from conventional sources. Bridging the gap requires investment from overseas, likely on concessional terms. The value of concession required is assumed equivalent to the cost of hedging, irrespective of whether the capital flows are equity or debt. The value of the concession represents the real value of external investment support required for achieving net-zero.
The study analyses the total investment, investment gap and investment support needed under four net-zero scenarios for India, including the declared 2070 target.