India's Net-Zero Ambitions to Cost its Economy $215B Over Seven Years

India's transition to a low-carbon economy will require an investment of approximately $190 billion to $215 billion over the next seven years, according to a report by Moody's. This significant financial commitment is necessary for the country to meet its ambitious renewable energy goals as part of its broader decarbonization efforts.

India has set a long-term target of achieving net zero emissions by 2070, and while substantial progress has been made towards meeting interim targets for 2030, challenges remain. John Wang, Vice President of Moody's, emphasized the importance of the government's role in managing potential job losses in legacy industries as the country transitions to greener energy sources. Effectively addressing these risks will be key to mitigating the social and economic impacts tied to decarbonization.

Moody's noted that despite India's efforts to shift to renewable energy, its fast-growing economy and expanding population will continue to fuel high energy demand, particularly from carbon-intensive sectors. This dynamic makes the transition to a low-carbon economy more complex, as the country must balance growth with its environmental commitments. The path to achieving India's 2070 net zero goal remains challenging, but ongoing investment and policy adjustments will be critical to success.