New Delhi: Coal vs Renewables Financial Analysis 2022 identifies L&T Finance as the largest investor in renewable energy project finance in 2021, replacing SBI.
The fifth edition of Coal vs Renewable Financial Analysis, authored by Climate Trends and the Center for Financial Accountability (CFA), was launched Tuesday at the CFA’s annual Energy Finance Conference, held in conjunction with IIT Madras.
Total financing for new energy projects in 2021 is down 60% compared to 2017 levels, but for the first time since reports there will be no new project financing for coal power projects in 2021 .
Meanwhile, financing for renewable energy projects has increased by 39% year-over-year since 2020. To reach its 2030 target of 450 GW of installed capacity, it will need to install 2.5 times more renewable energy than he does today.
“The writing is on the wall. Lending institutions are increasingly moving away from coal financing given the risks. After Federal Bank, the first commercial bank to announce a policy to exit coal, Sarvodaya Small Finance Bank also We have announced the end of funding for the project, which should encourage institutions that have provided loans or underwriting services, or that have stakes in coal companies, to reconsider their financing,” said a financial statement. said Joe Athially, executive director of the Responsibility Center.
Of the total Rs 33,893 crore put into renewable energy projects, L&T Finance was spotted as the largest investor in 2021, pouring Rs 4,214 crore into the sector.
After Rajasthan, Gujarat is the largest beneficiary of renewable energy loans, with 22,187 kroner and 4,025 kroner respectively pouring into the state.
Together, they account for 77% of all renewable energy loans. Some estimates say he will need $10 trillion for India to move to net zero by her 2070.
“The sheer scale of climate finance needed to meet India’s mitigation goals requires a holistic approach. The recent announcement of the Sovereign Green Bond Framework is encouraging. US$2 billion for the fiscal year (which is small compared to India’s ultimate funding needs, but demonstrates India’s ambition to expand renewable energy and reduce carbon intensity). says Shivani Shah, communications strategist at Climate Trends.
In early August, India renewed its National Determined Contribution (NDC) for the Paris Agreement, which commits 450 GW of non-fossil installed capacity.
Furthermore, the draft National Power Plan 2022 sees a reduction in coal production capacity of around 18GW by 2030 compared to the OGC report released in 2020.
To make this happen, state-owned institutions and private banks need to make cheaper financing available for renewable energy projects.