India to attract $10 billion low carbon investments in 2023: Bank of America

Low carbon energy investments into India could rise. According to reports, India may attract investments worth $10 billion in the low-carbon energy segment next year. Bank of America analysts have identified India as a bright spot in a subdued capital-raising market, Oilprice.com said.

India has already received funding from Singapore, Norway, and Abu Dhabi among others.

“If you really have to get your ESG story right, and if you are into energy, then you can do large pieces of work in India,” Kaku Nakhate, Bank of America’s President and Country Head of the Indian division told Bloomberg.

Earlier, the World Economic Forum noted that a total of $14.5 billion was invested in renewable energy in India. This was 125 per cent higher compared to financial year 2020-21 and 72 per cent higher than in the pre-pandemic period of the 2019-20. As of August 31, 2022, renewable energy sources, including large hydropower, have a combined installed capacity of 163 GW in India.

“Rising electricity demand, falling prices for renewable energy, India’s push to manufacture solar photovoltaic modules, government support schemes aimed at boosting Indian manufacturers’ competitiveness and attracting investment (Production Linked Incentive schemes), and the waiver of transmission charges for renewable energy are the key drivers of India’s renewable energy growth right now,” Vibhuti Garg, Director, South Asia, Institute for Energy Economics and Financial Analysis told WEF.

India’s annual CO2 emissions are now the third highest in the world. The International Energy Agency however pointed out that India’s CO2 emissions per person “put it near the bottom of the world’s emitters, and they are lower still if you consider historical emissions per person.” The same is true of energy consumption: the average household in India consumes a tenth as much electricity as the average household in the United States, the IEA said.

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