India, facing the twin challenge of helping combat climate change while growing its economy, could cut its energy consumption by 22 per cent by 2030 even as its GDP grows six-fold to $4 trillion from the 2005 levels, but must spend at least 600 billion euros (Rs 42 lakh crore) over the next two decades, says global consulting firm McKinsey & Co.
The consultancy, in an independent study, advises India to walk the green path by grabbing opportunities in environmentally friendly business opportunities while cutting back on harmful fossil fuels. “To achieve all this would be challenging including funding an incremental investment,” the report says.
The report released on Wednesday said India could lower emissions by 30 to 50 per cent to approximately 2.8 billion to 3.6 billion tones, which in turn could also reduce the country’s energy consumption.
However, this would require an upfront incremental capital investment of 1.8 to 2.3 per cent of GDP between 2010 and 2030, says the report, assuming a 6 to 9 per cent growth trajectory.