India’s net-zero push could unlock $22 tn opportunity

Agencies New Delhi, India's ambition to achieve net-zero emissions by 2070 could generate an estimated USD 22.7 trillion investment opportunity, creating one of the world's largest long-term markets for global capital across renewable energy, electricity grids, storage and emerging clean technologies, according to a new report by Australian economist Nicki Hutley. The report, titled India's Net Zero Transition is the World's Net Zero Transition, argues that India's ability to reconcile rapid economic development with decarbonisation will have consequences far beyond its borders, given its growing energy requirements and rising contribution to global greenhouse gas emissions. The estimated investment requirement is too large to be financed through domestic resources alone, with the report projecting a funding gap of about USD 6.5 trillion that would need to be met substantially through international capital. India could finance just over 70 per cent of the estimated requirement domestically, leaving foreign investors, development finance institutions and international financial markets with a significant role in funding the transition, the report says. Hutley, an economist associated with Australia's Climate Council and who has more than three decades of experience in financial markets, investment and economic consulting, makes the case that India's transition should be viewed not merely as a climate obligation but as a major investment opportunity for global businesses and financial institutions. Live Events The investment opportunity spans renewable power generation, electricity transmission and distribution, battery storage, green hydrogen, transport electrification, industrial decarbonisation and other technologies needed to reduce the carbon intensity of economic growth. The scale of the opportunity reflects the challenge India faces in meeting its development aspirations while limiting emissions. India is the world's third-largest greenhouse gas emitter in absolute terms, but its per-capita emissions are estimated at 3.1 tonnes of carbon dioxide equivalent, less than half the global average of 6.6 tonnes, according to the report. Its gross domestic product per capita is about USD 2,810, significantly below the global average, underscoring the need for sustained economic expansion, infrastructure development and improvements in living standards. The report argues that India cannot be expected to sacrifice economic growth to meet climate objectives. Instead, the priority must be to ensure that rising energy consumption is met increasingly through low-carbon sources rather than locking the economy into long-term dependence on fossil fuels. India has set a target of achieving net-zero emissions by 2070 and is seeking to become a developed economy by 2047, the centenary of its independence. The country's expanding population, urbanisation, industrialisation, demand for air conditioning and rapid growth in data centres are expected to drive substantial increases in energy demand over the coming decades. How that demand is met will be critical not only for India's emissions trajectory but also for global efforts to meet the Paris Agreement's temperature goals. India has made significant progress in expanding its non-fossil electricity capacity. Such sources accounted for 54.2 per cent of installed power capacity by June 2026, according to the report. However, renewable energy's contribution to actual electricity generation remains considerably lower, at around a quarter of total grid generation. The report's central argument is that India's transition cannot be viewed as a domestic financing exercise or a climate initiative confined to national boundaries. With an estimated USD 22.7 trillion in investment required through 2070, India represents a potentially transformative market for international investors, technology providers, infrastructure developers and financial institutions. But converting that opportunity into actual capital flows will depend on addressing structural barriers, including the cost of financing, regulatory predictability, grid infrastructure and the financial health of electricity distribution companies. For global investors, the challenge will be to identify commercially viable projects across an energy system undergoing rapid expansion and technological change. For India, the challenge is to ensure that the next phase of economic growth is powered increasingly by clean energy rather than fossil-fuel infrastructure that could lock in emissions for decades. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on India net zero emissions decarbonisation investment clean technology market India greenhouse gas emissions India electricity generation India international capital for India (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) 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