Green investments in India to rise 5x to Rs 31 lakh cr through 2030: Crisil

New Delhi: India will see a five-fold growth in green investments to Rs 31 lakh crore between 2025 and 2030, rating agency CRISIL said on Wednesday. It further said this is a crucial part of an estimated USD 10-trillion investments needed through 2070 to achieve the country's net-zero goals as per the Updated First Nationally Determined Contribution (NDC) under the Paris Agreement.

"Based on the plans announced by the government and corporates, and progress on the ground, we estimate Rs 31 lakh crore of green investments through 2030," Crisil Ltd Managing Director & CEO Amish Mehta said.

"Accelerating grants and incentives, scaling up blended finance initiatives with multilaterals, policy support and flexibility to drive initiatives for carbon market development and industrial decarbonisation are imperatives in the road ahead," he added.


Among India's key NDC commitments are a 45 per cent reduction in the carbon intensity of its gross domestic product (GDP) by 2030 from 2005 levels, and an increase in the share of cumulative installed power capacity from non-fossil-fuel-based energy resources to 50 per cent.

The rating agency said of the Rs 31 lakh crore investments foreseen, Rs 19 lakh crore is seen going into renewable energy and storage, Rs 4.1 lakh crore into transport and automotive sectors, and Rs 3.3 lakh crore into oil & gas.

However, it said for relatively high-risk projects such as green hydrogen, CCUS (carbon capture, utilisation and storage), energy storage and other emerging technologies, government grants and incentives will hold the key in improving project viability.

According to the latest Crisil InfraInvex, which has been measuring the investability or 'investment attractiveness' of select infrastructure sectors, four power-linked sectors -- renewables, conventional generation, transmission, and distribution -- have done well due to improving policy framework and investment opportunities.

Mining and the EV ecosystem saw some loss of investment attractiveness, Crisil InfraInvex added.

The mining sector can benefit from sharper focus on critical minerals, while the EV ecosystem awaits the next round of policy interventions.