Climate adaptation to cost India Rs 85.6 lakh crore by 2030: RBI

The cumulative total expenditure for adapting to climate change in India is estimated to be Rs 85.6 lakh crore by 2030, according to the Reserve Bank of India.

India’s green financing needs to plug the infrastructure gap caused by climate events could be at least 2.5 per cent of the annual GDP, RBI’s Report on Currency and Finance said.

“Different sectors of the economy have different emission intensities, it is advisable to not have a uniform climate mitigation strategy across sectors,” the document suggested.

A graph showing various policy-driven zero carbon emission scenarios by 2070. Credit: Pulaha Roy

The chart above highlights various policy-driven net zero or zero carbon emission scenarios by 2070. For a developing country like India, the transition impact is considered minimal when following the Current Policies in the 2030 scenario but even then the GDP will shrink by 1.19 per cent.

India is one the most-future-risk-prone countries to climate change, noted Global Climate Risk Index 2021. So how does a developing country mitigate such events?

Also read: Most Asia-Pacific countries ill-prepared for natural disasters: ESCAP

Sector-specific climate mitigation strategies can address the crisis to an extent, as suggested by the report. But without any policy action, India’s carbon dioxide emission levels will rise from 2.7 gigatonnes in 2021 to 3.9 gigatonnes by 2030.

In order to avoid such a scenario, renewable energy, electric vehicles and energy-efficient appliances should cater to 55 per cent of the country’s future energy requirements.

For the rest 45 per cent — hard-to-abate sectors like heavy industries, animal husbandry and agriculture — a combination of renewable and deploying efficient carbon pricing or transferring the responsibility to producers can help address the issue.

Policy-wise, India is the highest-performing G20 country.  NITI Ayog’s state-wise performance analysis gives an idea of how different regions are performing on the climate change and energy fronts.

Chhattisgarh, Madhya Pradesh and Jharkhand are lagging behind in terms of overall scores among larger states, according to the policy think tank’s State Energy and Climate Index based on six indicators. While Gujarat, followed by Punjab, is the best performer due to its electricity distribution companies faring well regarding infrastructure and financial position.

Among the smaller states and Union Territories, Chandigarh, Goa and Delhi are the highest performers, while a lot needs to be done in Lakshadweep and Arunachal Pradesh. 

Read more:

•  Cyclone Mocha may not hit India; Bangladesh, Myanmar coasts likely to be impacted
• Cyclone to miss Indian coast, likely to make landfall in Myanmar by May 13-14 say IMD models

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