India could add as much as 7.3% to its gross domestic product and create 20 million jobs by 2032 if it moves up the timeline to achieve net zero emissions two decades ahead of its stated target of 2070, according to a new report.
(Bloomberg) — India could add as much as 7.3% to its gross domestic product and create 20 million jobs by 2032 if it moves up the timeline to achieve net zero emissions two decades ahead of its stated target of 2070, according to a new report.
Yet, a faster transition will mean the South Asian nation will need $13.5 trillion in economy-wide investments compared to the $10.1 trillion it will cost to make the shift by 2070, according to a report by the New York-based Asia Society Policy Institute that used economic modeling by Cambridge Econometrics. Former Australian Prime Minister Kevin Rudd, Former UN Secretary General Ban Ki-Moon and Vivek Pathak, head of climate business for the IFC, released the report in New Delhi on Friday ahead of meetings with India’s power and foreign ministers.
India will need substantial investments and benefits will also come with trade-offs, it said. If the country receives no money from wealthy nations to fund its climate transition, it could leave Indian households worse off by cutting consumption by as much as $165 billion by 2060 because of higher product prices and taxes, including carbon taxes to finance investments in clean energy.
In that scenario, where India has to fund its shift domestically, it will cost its homes less than half that, $79 billion, if it stayed on target for 2070, the report said. However, it would also create 15 million jobs by 2047, 5 million less than if it sped up its goals to 2050.
“The economic and social benefits of India’s transition to net zero will be amplified if the country can de-risk and attract additional finance soon,” a press statement released with the report said.
India, which announced plans to neutralize carbon emissions by 2070 at the COP26 last year, has sought along with other developing nations, more funding from developed nations to complete their transition toward cleaner energy and transport. India had last year said it needed $1 trillion to meet its climate goals. Developed nations are yet to meet their promise to provide $100 billion in climate support.
India implementing all of its current commitments, with other countries doing the same, would lead to global warming of at least 1.6°C by 2100, the report said. That will overshoot the 1.5°C limit set out in the Paris Climate Agreement in 2015 as a shared goal of governments across the world.