Developing countries like India can meet the climate targets under the Paris Agreement by catalysing trillions of dollars in private investment through policy reforms and innovative business practices, World Bank arm IFC said in a report today.
The report said renewable energy, off-grid solar and energy storage, agribusiness, green buildings, urban transportation, water, and urban waste management as the sectors that can bring about a crucial difference to catalyse private investment.
Already, over USD 1 trillion investments are flowing into climate-related projects in these areas, but trillions more could be triggered by creating the right business conditions in emerging markets, the report added.
"In India, ambitious targets and multiple reforms across sectors by the Government have steered the country towards exceeding its Nationally Determined Contributions target."
As part of the Paris Climate Agreement, India has targeted to reduce its greenhouse gas emissions up to 35 per cent by 2030.
This, the report said, presents India an attractive and emerging market for climate business that will accelerate the market for climate-friendly solutions.
"India is in the midst of a climate change revolution. It is making significant accomplishments in achieving its pledge to the Paris Agreement," said Jun Zhang, IFC Country Head for India.
IFC will continue working closely with businesses, investors, and governments to further support the goals set by the country, he said.
The Indian government has expanded its National Solar Mission because of a successful 13 GW capacity creation for solar power markets in 2017.
The new target of 175 GW of installed solar energy by 2022 is five times the original target. And it has now become the world's 4th largest wind power generator, with a target to install 60GW of by 2022.
The government also recently announced a commitment to end the sale of gasoline-powered cars by 2030.
"The private sector holds the key to fighting climate change," said IFC CEO Philippe Le Houerou.
The private sector has the innovation, the financing, and the tools.
"We can help unlock more private sector investment, but this also requires government reforms as well as innovative business modelswhich together will create new markets and attract the necessary investment. This can fulfil the promise of Paris," Houerou said.
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