Rapid Climate Action is a $11 trillion Opportunity for India, Here’s How
According to a report from Deloitte Economics Institute, India must act now to prevent a $35 trillion loss in economic potential due to irreversible climate change over the next 50 years. The report, titled “India’s Turning Point” outlines how climate action could drive our economic future. It explains how the country could achieve an economic value of $11 trillion instead of the same period, by limiting rising global temperatures and realizing its potential for ‘export decarbonisation’ to the world.
“We have a narrow window of time – the next 10 years – to make the necessary decisions to reverse the trajectory of climate change. No one is untouched by the effects of climate change, but it is time for India to lead and show that the window of opportunity is how climate action is not a narrative of cost, but one of sustainable economic development,” said Atul Dhawan, Chairperson, Deloitte India. “As India aspires to become a $5 trillion economy, foreign and domestic investment are key to driving growth, so the opportunity should be used to align ambitions with climate options”, Dhawan added.
With no action on climate change, the average global temperature could rise by 3 °C or more by the end of this century. This will make it harder for people to live and work, as sea levels are rising, crop yields are falling, infrastructure is damaged, and other challenges that have plagued the nation in recent decades. threat to its progress and prosperity. Over the next 50 years, the top five most affected industries in terms of economic activity are expected to account for a significant share of climate-related losses. These industries – services (government and private), manufacturing, retail, tourism, construction and transport – currently account for over 80% of India’s GDP. Together, they form the basis of the contemporary economic engine of the country.
Deloitte India estimates that by 2070, these five industries alone will experience annual losses in value added to GDP of more than $1.5 trillion per year. Deloitte’s research also suggests that if governments, businesses and communities act boldly and swiftly to address climate change over the next decade, the average global temperature rise could be limited to about 1.5℃ by 2050. A scenario that will reduce the impact of climate change. For India and the rest of the world. At the same time, India can achieve significant economic growth by supplying products and services, and the world will need financing to limit temperature rise.
“We need to transition the world’s economies to new, low-emission paths, and India is well positioned to take a leading role in this process globally. By making the right choices now, India can chart a more prosperous path to a lower-emissions future, accelerating progress to the rest of the world by exporting key technologies, processes, and know-how,” said Viral Thakkar, Partner and Sustainability Leader, Deloitte India. Accelerated decarbonization could bring significant benefits to India and the world. India can use the transition to lower emission levels to restructure its economy towards growth in advanced industrial sectors, taking advantage of low-cost clean energy export markets, because this sector will experience a rapid increase in the demand for energy in the coming years.