Expert Group on Financing India’s Long-Term Low-Carbon Development Strategies

India aspiring to be a Net-Zero Emission Economy by 2070, makes it imperative that all economic and policy choices by Government at different levels and industry create an ecosystem that brings it closer to this long-term target. The Indian Government announced the Long-Term Low-Carbon Development Strategy (LT-LCDS) at COP27, which offers the framework within which these economic and policy choices are to be made. India’s LT-LCDS focuses on (i) eradicating country’s development deficits and (ii) ensuring the energy security, while rationally utilizing its natural resource endowment. It has identified seven key areas of transition necessary for achieving the Net-Zero goal, which include: low carbon development of electricity systems consistent with enhanced development benefits, develop an integrated, efficient, inclusive low-carbon transport system, promoting adaptation in urban design, energy and material-efficiency in buildings, and sustainable urbanization, promote economy-wide decoupling of growth from emissions and development of an efficient, innovative low-emission industrial system, CO2 removal and related engineering solutions, enhancement of forest and vegetative cover consistent with socio-economic and ecological considerations, economic and financial aspects of low-carbon development. The transition to a low-carbon economy will entail several costs pertaining to technological innovations and new technology development, infrastructure development, and transition costs. India has thus far undertaken climate actions primarily with its own resources.

The Expert Group comprises of members from the industry and the financial sector and shall build policy briefs on evaluation of India’s financial strategy with respect to its LT-LCDS, particularly in the context of Indian steel industry and the adjacent MSME sector; analysis of policy frameworks and investment markets at international level favourable to financing technology transfer, new technology and infrastructure development, and green transition in India; recommendations for strengthening existing policy and regulatory frameworks and identifying innovative financial instruments at national and international levels promoting increased green investments along with ensuring just transitions. The theme of deliverables of the Expert Group is mobilizing international finance and policy environment towards financing just transitions in India’s hard-to-abate industry sectors. The policy briefs shall be developed through consultative approach with multi-stakeholder involvement; co-authored pieces of work – with relevant industry CEOs as Lead Authors. The Expert Group will also develop recommendation reports elaborating on the 'economic and financial aspects of low carbon pathways' for select/all transitions identified in India’s LT-LCDS in the context of the proceedings and deliberations at COP28, developed through multi-stakeholder involvement approach.