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International Renewable Energy Agency Report
News: India has made exceptional success in increasing its renewable energy capacity, according to a recent report by the International Renewable Energy Agency (IRENA) titled “Low-cost finance for energy transition.”
India’s accomplishments are labelled as “unprecedented” in the report.
India wants to reach 175 GW of renewable energy capacity by 2022 (100 GW from solar, 60 GW from wind), and 500 GW of non-fossil fuel capacity by 2030.
By 2070, India wants to have net-zero emissions of greenhouse gases, which will cost an estimated $10 trillion in investment.
India’s third-place finish in the index in 2021 demonstrated its dedication to the growth of renewable energy.
India has the fourth-largest global base of solar and wind energy, which is expanding quickly.
The fulfilment of national goals has been significantly aided by the comprehensive policies of the Indian government.
Through providing financing to companies, IREDA (Indian Renewable Energy Development Agency) has been instrumental in putting into operation about 20 GW of renewable energy capacity.
Investment in the private sector is attracted by green bonds, which lowers the cost of funding for green initiatives.
India has issued $18.3 billion worth of green bonds overall, with a record $7 billion issuance in 2021.
Through creative financing strategies, IREDA has supported new technologies such battery energy storage systems, green hydrogen electrolysers, e-mobility, and waste-to-energy.
With its issuance of sovereign bonds, the Indian government hopes to decrease the supply of non-green bonds and hence lower average bond yields.
The majority of the bonds were bought by local banks and insurance companies, with minor participation from foreign banks.
Green bond investments are categorised as infrastructure investments by insurance companies and count towards the Reserve Bank of India’s mandated liquidity ratio.
Investment in sovereign green bonds is permitted at any level because they fall under the category of specified securities.
