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India will need coordinated policy changes across energy, agriculture, taxation and finance to expand renewable capacity while pursuing its long-term development and climate goals, former Finance Commission chairman N K Singh said at a high-level panel discussion at the London School of Economics.\u00a0<\/p>
Speaking at the session titled \u201cScaling the Green Transition\u201d, Singh highlighted India\u2019s twin objectives of becoming a developed country by 2047 and achieving net-zero emissions by 2070.\u00a0<\/p>
He said meeting the net-zero target would require a \u201cconstellation of action\u201d across a wide range of sectors. India\u2019s policy think tank NITI Aayog had already examined the steps needed to achieve the 2070 goal, but implementation would depend on sustained policy support and institutional coordination, he added.\u00a0<\/p>
Singh identified the large-scale adoption of renewable energy as a key area requiring attention. While India and other countries have significant solar, wind and other renewable resources, making full use of them would require more than simply adding generation capacity.\u00a0<\/p>
The transition, he said, would need changes in taxation policies, investment incentives and the rationalisation of subsidies. Governments would also have to address regulatory and institutional constraints that slow the deployment of renewable energy and related infrastructure.\u00a0<\/p>
Singh also called for agricultural development programmes to be brought more closely into climate initiatives. Agriculture, he said, could not remain outside discussions on emissions reduction, particularly because of its role in methane emissions.\u00a0<\/p>
He referred to the growing international focus on methane and said the issue should become an integral part of agricultural strategy. Policies would need to examine not only how methane emissions could be reduced but also how methane could be captured and productively used.\u00a0<\/p>
The panel also discussed carbon capture, carbon storage and carbon pricing. Singh said these issues required greater policy attention as countries considered different pathways to reduce emissions while meeting rising energy demand.\u00a0<\/p>
On financing, Singh said the scale of investment required for the transition could not be met through public expenditure alone. Even traditional partnerships between governments and private investors would be insufficient to address the large financing requirement.\u00a0<\/p>
He called for greater use of innovative financing tools, including guarantees, blended-finance structures and other mechanisms that could reduce risks and attract private investors to green projects in emerging economies.\u00a0<\/p>
Singh said efforts to mobilise private capital had not yet achieved the required momentum. Despite extensive discussions on using public and development finance to leverage commercial funding, he noted that \u201cthe needle on that has not moved very much\u201d.\u00a0<\/p>
He also questioned the cautious approach followed by some multilateral development banks, particularly their emphasis on protecting credit ratings, preferred-creditor status and institutional balance sheets.\u00a0<\/p>
Referring to earlier debates on development-bank lending capacity, Singh said concerns over maintaining the highest possible credit rating had often restricted institutions from deploying more capital. Some development banks, he noted, had continued to grow despite operating with ratings below the top AAA grade.\u00a0<\/p>
Singh said the \u201cprejudices and predilections\u201d of some institutions had become a handicap in expanding financial support for developing countries. A change in institutional approach would be required to move investment at the scale demanded by the green transition.\u00a0<\/p>
He also said the withdrawal of a major emitter from international climate arrangements should not prevent other countries from continuing their efforts.\u00a0<\/p>
Singh argued that coalitions of willing countries could move ahead even in the absence of universal participation. He pointed to multilateral development banks in which the United States was not a shareholder or did not have a determining role, saying such institutions had room to take decisions independently.\u00a0<\/p>
The absence of one major country, he said, should not become an \u201coverarching shadow\u201d over the broader agenda. Other countries and institutions could continue to pursue measures considered necessary for their economic and environmental future.\u00a0<\/p>
Singh said the newly-constituted group would continue its work over two years. Its next meeting was proposed to be held in Bangkok alongside the annual meetings of the International Monetary Fund and the World Bank.\u00a0<\/p>
An initial report is expected to be presented at the next Raisina Dialogue, after which the group\u2019s recommendations would be brought to the attention of Indian policymakers.\u00a0<\/p>
The LSE discussion brought together policymakers, economists and sustainability experts to examine the challenges involved in financing renewable energy, mobilising private capital and supporting countries at different stages of the transition.<\/p>