NITI Aayog and World Resources Institute (WRI), India, with the support of GIZ India, conducted a virtual consultation workshop on ‘Financing for Decarbonization of Transport’ as part of the NDC-TIA project.
- Transport, the third-most greenhouse-gas-emitting sector in India, accounts for 14% of our energy-related CO2 emissions.
- It is also the most rapidly growing sector in the country.
- The lack of availability of financing is one of the biggest impediments towards the decarbonization of the transport sector.
- We need more such financial instruments to provide a further impetus to clean mobility in India. This is why we need to bring states, domestic and international financial institutions, manufacturers and operators on the same page.
- We must come up with financing mechanisms that are widely applicable, acceptable and, most importantly, sustainable.
- We must foster shared mobility by leveraging private sector investments and unlocking financing for e-buses, which form the core of public transportation in our cities.
- Our overarching aim should be to balance the needs and aspirations of our citizens, improve liveability and productivity by improving connectivity, bring down the cost of logistics and accelerate clean mobility while taking an approach which is climate-centric and sustainable—not just from an environment point of view, but also from a financial perspective.
- Green financing will enable low interest cost financing of electric vehicles.
- India requires a robust roadmap for the electrification of transport. Financing plays a crucial role here. Mobilization of capital is possible through multi-stakeholder collaborations.
- Strategic investments and innovative financial solutions can kickstart an accelerated transition to 100% zero-emission motor vehicles, which is an essential takeaway from the COP26 declaration.
About NDC-TIA project
- NDC-TIA project i.e. NDC-Transport Initiative for Asia project is a joint programme of seven organizations that engages India, China and Vietnam in promoting a comprehensive approach to decarbonizing transport in their respective countries.
- The project is part of the International Climate Initiative (IKI).
- The Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) supports the initiative on the basis of a decision adopted by the German Bundestag.
- The NDC-TIA initiative brings together a wide spectrum of participants to facilitate peer-to-peer learning and information exchange on various themes, including “Financing the Decarbonization of Transport”.
- NITI Aayog is the implementing partner for the India component of the project.
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