Green finance is key to decarbonising India’s transport sector
New Delhi, India (Urban Transport News): Indian think tank NITI Aayog and World Resources Institute (WRI), India, with the support of GIZ India, organized a virtual consultation workshop on “Financing Transport Decarbonization” under the NDC initiative -Transportation for Asia (NDC-TIA) project.
The Indian government is actively working to decarbonise transport, with a focus on adopting sustainable mobility.
The objective of the workshop is to identify actionable strategies and bring together financing institutions and transport organizations to work collectively to promote innovative financing policies for the decarbonization of transport.
The workshop brought together dignitaries from various ministries, NDC-TIA project partners, representatives from Indian banks, international financial institutions and private sector companies, as well as stakeholders and experts from the transport sectors. and funding.
NITI Aayog CEO Amitabh Kant delivered the keynote address while Dr. Stephen Koch, Minister and Head of Department for Economic and Global Affairs, Germany delivered a special address.
In his keynote address, NITI Aayog CEO Amitabh Kant said, “We need more such financial instruments to give new impetus to clean mobility in India. This is why we must put States, national and international financial institutions, manufacturers and operators on the same wavelength. We must provide funding mechanisms that are broadly applicable, acceptable and, above all, sustainable. We must foster shared mobility by leveraging private sector investment and unlocking funding for electric buses, which form the heart of public transport in our cities. Our overarching goal should be to balance the needs and aspirations of our citizens, to improve quality of life and productivity by improving connectivity, to reduce the cost of logistics and to accelerate clean mobility while adopting a climate-focused and sustainable approach, not just from an environmental point of view, but also from a financial point of view. Green financing will make it possible to finance electric vehicles at low interest rates.
Dr Stephen Koch said, “India needs a strong roadmap for transport electrification. Funding plays a crucial role here. Raising capital is possible through multi-stakeholder collaborations. The NDC-TIA initiative brings together a wide range of participants to facilitate peer-to-peer learning and information exchange on various themes, including “Financing Transport Decarbonization”.
WRI India CEO, Dr. OP Agrawal said, “Transportation, the third highest greenhouse gas emitting sector in India, accounts for 14% of our energy-related CO2 emissions. It is also the fastest growing sector in the country. Therefore, moving towards a low-carbon future would necessarily involve accelerated decarbonisation of the transport sector.
“The lack of availability of financing is one of the main obstacles to the decarbonization of the transport sector. Strategic investments and innovative financial solutions can kick-start an accelerated transition to 100% zero-emission motor vehicles, which is a key part of the COP26 declaration,” added Amit Bhatt, Executive Director (Integrated Transport), WRI India.
The NDC-TIA is a joint program of seven organizations that engages India, China and Vietnam to promote a comprehensive approach to transport decarbonization in their respective countries. The project is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports the initiative on the basis of a decision adopted by the German Bundestag.
NITI Aayog is the implementing partner for the Indian component of the project.