A balanced path to a greener future for India
India’s pledge to achieve net zero by 2070 is admirable. But the path announced by Prime Minister Modi at COP26 toward achieving that goal is – to say the least – ambitious. The 2030 commitments include a hefty reduction in projected emissions and 50% clean electricity generation, setting the bar high.
What you will learn from this report:
- We think the new climate goals will be difficult to achieve without significantly compromising India’s stated economic targets and its ambition to become a US$5tn economy by 2024/25. Indeed, it may not even be possible.
- Financing the transition will also be a big challenge. Studies peg the investment bill at around US$200bn per year in 2020s and 2030s for India to become net zero by 2070. The spending requirements increase progressively as the low-cost technologies are exhausted.
- With funding from developed economies likely to disappoint, India will be relying on private investment to fill the gap between its domestic resources and the requirements. The bleak track record of foreign investment in infrastructure projects doesn’t augur well in this regard.
APAC Key themes 2024 – A year of living cautiously
In 2024, the main influence on Asia is likely to be a global slowdown, particularly in China and the US. Moreover, governments have limited policy space to deal with these headwinds. Other negative influences, however, are set to ease further, including domestic inflation, external pressure on interest rates, and softening semiconductor prices. Overall, we expect a bumpy year as issues become more country-specific and policy responses and economic outcomes diverge.Find Out More
Monetary policy in ASEAN shifts focus
With the US Fed expected to remain on hold for a prolonged period, rate decisions in Asia are likely to become more idiosyncratic. We discuss the actions of three central banks, namely Bank Indonesia (BI), Bank Negara Malaysia (BNM), and the Bank of Thailand (BOT).Find Out More