NEW DELHI: India’s push to lead the clean industrial transition among emerging economies is facing significant hurdles, despite having one of the largest project pipelines, a new report by the clean industry alliance Mission Possible Partnership shows.
India has 53 clean industry projects in development, tied with Australia for the highest number in the “new industrial sunbelt,” a group of renewables rich countries seen as key to the next wave of global decarbonisation.
However, only two of these projects have reached final investment decision this year, the Mission Possible Partnership, which is an alliance of companies and climate action organizations focusing on advancing decarbonisation in high-emission sectors, said.
Outdated construction rules and slow regulatory changes are holding back India’s cement industry from adopting cleaner technologies such as calcined clay and low carbon cement blends, the report said. High financing costs in emerging markets such as India limit the bankability of clean industry projects, it added.
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Some projects in India have already lined up buyers for clean energy and partial funding, but are still waiting for clear rules, permits and access to power transmission and other infrastructure, the study said.
The report also pointed to the lack of demand side regulation in India, such as blending mandates or green procurement rules, which are critical to creating markets for clean industrial products.
The study identified 70 projects outside China as “poised” for investment, representing a $140 billion global opportunity, with India among key markets.
But the report warned that without enabling policy frameworks, India risks missing out on the industrial transformation already underway in other regions.
China, in comparison, accounted for 12 of the 19 clean industry final investment decisions recorded globally this year, the report said.
