Budgeting for Net Zero

The report evaluates the financial viability of five clean energy technologies in India: battery energy storage systems (BESSs), solar photovoltaic (PV), electric vehicles (EVs), offshore wind, and green hydrogen (GH2). While current subsidies are sufficient for solar PV and BESSs, significant funding gaps remain for offshore wind and green hydrogen. The analysis suggests that while the government does not need to fund the entire cost gap due to potential private sector catalysis, international climate finance and policy reforms are essential to meet 2030 goals.

• Government support has enabled battery energy storage systems (BESSs), solar PV, and electric vehicles (EVs) to either achieve cost parity with conventional alternatives or be on track to do so within ten years.
• Current Central Government subsidies are adequate to cover the cost gap for solar PV and BESSs, meaning no further direct financial support 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 of 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 covers only about 5% of the cost gap and will run out before 2030. Bridging the full cost gap for GH2 from 2024 to 2030 would require nearly 0.96% of India's GDP.
• Public investment does not need to cover the entire cost gap because it can attract private sector investment. Other mechanisms, such as fossil fuel taxation reforms and renewable purchase obligations, can also drive investment, and international climate finance is critical for high-viability gap technologies like GH2 and offshore wind.

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} }