India's $89 Billion Clean Industry Pipeline struggles to attract funding, report says
A report from the clean industry alliance revealed that India's $89 billion clean industrial project pipeline is experiencing funding bottlenecks. Only one project reached a decision on final investment in the last six months.
Mission Possible Partnership's and Industrial Transition Accelerator's report said that the South Asian nation had 41 clean industry projects, including green ammonia production, hydrogen production, and sustainable aviation fuels. However, it faces challenges in turning announcements into operational facilities.
The alliance aims to accelerate decarbonisation of high-emission industries.
According to a report, India's clean-industry projects secured $13 billion of committed investment. This is far less than China's $61 and the United States $54 billion.
Faustine Delasalle, CEO at MPP, stated that the slow development of clean commodities markets in India was a major barrier to investment.
The higher cost of capital is a problem that is stifling investments in emerging and developing economies. Delasalle stated that we need to take advantage of the growing interest from private and development finance institutions in clean industry developments.
The report highlights an estimated $1.6 trillion worth of projects announced, but never financed. 692 out of 826 clean industrial commercial projects in 69 countries are still waiting for financing.
The report stated that "less than 15 projects reach a final investment decision each year, which delays the climate, economic, and social benefits associated to clean industrial development." It also added that policy uncertainty was hampering progress. Reporting by Sethuraman N.R.; Editing and proofreading by Pooja D.S.
(source: Reuters)
