: Indian private sector to drive carbon transition: Moodys #IndiaNEWS #Business Chennai, April 19 | Indian private sector has to drive the carbon transition efforts as the countrys significant economic

Indian private sector to drive carbon transition: Moodys #IndiaNEWS #Business
Chennai, April 19 | Indian private sector has to drive the carbon transition efforts as the countrys significant economic development needs will constrain the governments ability to extend sufficient financial support, said Moodys Investors Service.
According to Moodys, many large corporations have launched a wide range of emission targets through 2050.
Indias (Baa3 stable) 2070 net-zero target and intermediate goals through 2030 present significant policy implementation challenges for the government, carving a more central role for private companies and investors to drive the transition, according to a new report by Moodys.
The countrys high growth potential, significant economic development needs and large agricultural sector will likely weaken the governments policy resolve and financial capacity to drive the economys carbon transition. As such, Indias planned emissions reductions will be conditioned upon low-cost, long-term private capital, Nishad Majmudar, Assistant Vice President and Analyst said.
Many of the countrys large private companies have announced net-zero targets that are well ahead of Indian authorities goals, while the government-linked companies are comparatively behind. Additional policy signals to encourage transition would drive higher private investment.
The pace of Indias carbon transition will depend on the extent to which the government can balance energy affordability and reliability needs against its emissions reduction commitments, said Abhishek Tyagi, Vice President and Senior Credit Officer.
Reduced storage costs and the scalability of renewable projects with storage would support a faster transition, added Tyagi.
Indian banks significant loans to carbon-intensive sectors expose them to transition risks, and they will face pressure to decarbonise their loan books. At the same time, green financing presents a significant lending opportunity, given banks dominant role in credit intermediation in the country, Moodys said.
Source: IANS
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