India presents $500 billion clean energy investment potential by 2030

India offers investment opportunities to the tune of $500 billion by 2030 in the clean energy value chain, including renewables, green hydrogen, and electric vehicles, commerce secretary Sunil Barthwal said.

Barthwal was speaking at the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum in Singapore.

IPEF was launched in May 2022 in Tokyo, and the forum comprises 14 members: Australia, Brunei, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the US.

The newly inaugurated inaugurated platform brought together top investors, clean economy companies, and startups from the region.

Indian companies, including ReNew Power, Avaada Energy Pvt. Ltd, Indusbridge Capital Advisors LLP. Founder, SEIP, and Powerica Ltd, were shortlisted for pitching their concepts on energy transition, transport and logistics, and waste management/waste to energy to global investors.

A coalition of investors, including Singapore’s Temasek and GIC, committed to injecting $25 billion into infrastructure investments in emerging markets.

Nivruti Rai, managing director and chief executive of the government’s investment promotion agency InvestIndia, said India is keen on collaborating with investors, clean economy firms, and innovative startups to drive sustainable infrastructure, climate technology, and renewable energy projects to meet net zero targets.

Investment in clean energy set to double

Meanwhile, in a separate development, the International Energy Agency IEA) said total energy investments worldwide is expected to exceed $3 trillion this year for the first time, with some $2 trillion set to go toward clean technologies.

Despite pressures on financing, global investment in clean energy is set to reach almost double the amount going to fossil fuels in 2024, helped by improving supply chains and lower costs for clean technologies, according to the IEA’s  World Energy Investment report.

The new report warned that there are still major imbalances and shortfalls in energy investment flows in many parts of the world, while highlighting the low level of clean energy spending in emerging and developing economies (outside China).

Clean energy spending in developing nations is set to exceed $300 billion for the first time – led by India and Brazil, but this accounts for only about 15% of global clean energy investment, far below what is required to meet growing energy demand in many of these countries, the report said.

“Clean energy investment is setting new records even in challenging economic conditions, highlighting the momentum behind the new global energy economy. For every dollar going to fossil fuels today, almost two dollars are invested in clean energy,” said IEA executive director Fatih Birol said in the report.

“The rise in clean energy spending is underpinned by strong economics, by continued cost reductions and by considerations of energy security. But there is a strong element of industrial policy, too, as major economies compete for advantage in new clean energy supply chains. More must be done to ensure that investment reaches the places where it is needed most, in particular the developing economies where access to affordable, sustainable and secure energy is severely lacking today,” he added.