Budgeting for Net Zero

This report by the International Institute for Sustainable Development evaluates the financial support required for India to meet its 2030 clean energy goals across five key technologies: battery energy storage systems (BESSs), solar photovoltaic (PV), electric vehicles (EVs), offshore wind, and green hydrogen (GH2). It identifies cost gaps—the amount costs must drop to reach parity with conventional technologies—and assesses whether current government subsidies are sufficient to bridge these gaps.

• Government support has enabled solar PV, BESSs, and EVs to either achieve cost parity with conventional alternatives or be on track to do so within the next ten years.
• Current Central Government subsidies are adequate to cover the cost gaps for BESSs and solar PV, meaning no further direct financial aid is needed, though regulatory reforms and faster auctions are still required.
• Offshore wind and green hydrogen (GH2) have the most significant cost gaps. To utilize India's 71 GW offshore wind potential, short-term government support of approximately INR 9,000 crore (USD 1.08 billion) per GW is necessary.
• Current funding for green hydrogen (GH2) covers only about 5% of the cost gap and will run out before 2030. Bridging the entire cost gap for GH2 from 2024 to 2030 would require nearly 0.96% of India's GDP.
• Public funding does not need to cover the entire cost gap because small public investments can attract private sector capital. Additionally, international climate finance, fossil fuel taxation reforms, and renewable purchase obligations are identified as critical tools for directing investment.

APA

Gajjar,, S. R. L. M. J. B. S. G. R. M. K. B. (2024). Budgeting for Net Zero. International Institute for Sustainable Development. https://www.iisd.org/publications/report/india-budgeting-for-net-zero

Chicago

Gajjar,, Swasti Raizada,Tara Laan,Sunil Mani,Saumya Jain,Andrea Bassi,Deepak Sharma,Anasuya Gangopadhyay,Upasna Ranjan,Gautham Molleti,Sarah Khan,Bidisha Banerjee,Jaymin. Budgeting for Net Zero. International Institute for Sustainable Development, 2024. https://www.iisd.org/publications/report/india-budgeting-for-net-zero.

Wikipedia

{{cite report |last1=Gajjar, |first1=Swasti Raizada,Tara Laan,Sunil Mani,Saumya Jain,Andrea Bassi,Deepak Sharma,Anasuya Gangopadhyay,Upasna Ranjan,Gautham Molleti,Sarah Khan,Bidisha Banerjee,Jaymin |title=Budgeting for Net Zero |publisher=International Institute for Sustainable Development |date=16 December 2024 |url=https://www.iisd.org/publications/report/india-budgeting-for-net-zero |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gajjar2024budgeting, author = {Gajjar,, Swasti Raizada,Tara Laan,Sunil Mani,Saumya Jain,Andrea Bassi,Deepak Sharma,Anasuya Gangopadhyay,Upasna Ranjan,Gautham Molleti,Sarah Khan,Bidisha Banerjee,Jaymin}, title = {{Budgeting for Net Zero}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = dec, url = {https://www.iisd.org/publications/report/india-budgeting-for-net-zero}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }