Global Net Zero Not Possible Without India: Economist Nikki Hutley

The 31st United Nations Climate Change Conference (COP31) is currently being held in the city of Antalya, Turkey. During this important summit, the energy transition of India, the world's most populous country, has become a key subject of discussion. Australian economist Nikki Hutley, in a conversation with NDTV, clarified that whether India achieves its climate goals is not just a concern for India, but is significant for every country in the world. She emphasised that the goal of global net zero cannot be fulfilled without India.

Nikki Hutley has authored a paper titled 'World's Net Zero Cannot Be Complete Without India's Net Zero'. In a conversation with NDTV's Gauri Dwivedi, she explained that developed nations should view India's climate needs as an opportunity rather than a burden. She noted that economic development is the priority for India. Prime Minister Narendra Modi's government has set development goals to increase the income of every Indian. This development will require immense energy. Generally, development and emission reduction are considered opposites, but according to Hutley, both development and clean energy can be advanced together.

Hutley raised an interesting point that this conflict between development and environment is no longer just a problem for developing countries. Developed nations are now facing the same dilemma, as electricity requirements are increasing rapidly there too due to the rising demand for data centres. The problem for which India had been pressured for years is now being observed in developed countries as well.

If development and decarbonisation are possible together, the biggest obstacle is financial assistance. According to Hutley, securing more funds is absolutely essential to make this transition successful. The figures for this are very large. According to a NITI Aayog study released in February, India requires a total investment of 22.7 trillion dollars to achieve the net zero goal by 2070. Despite various reforms, India may be able to mobilize approximately 16.2 trillion dollars, resulting in a large gap of about 6.5 trillion dollars.

Nikki Hutley argues that governments alone cannot bear this economic burden. Private corporations will have to play a significant role in this process, and bringing private climate finance into India is inevitable. According to her estimates, approximately 60% of India's total funding requirements should come from international sources.

Climate finance is at the top of India's priorities at COP31 in Antalya. Here, countries are reviewing the promises made in Baku in 2024, where a pledge was made to provide 300 billion dollars annually for developing countries by 2035. However, developing countries have long argued that this amount is insufficient and a large portion of it comes in the form of debt (loans), which is a matter of concern.

Nikki Hutley is an Australian economist who has researched the relationship between India's net zero process and global climate goals and has written a paper on this subject.