Keeping Off Fossil Fuel Can Help India Save $600-B In 20 Years, Says Report

The report further said transitioning to a low-carbon electricity system could also bring financial savings if the country can reduce the cost of finance. These savings, when coupled with a reduction in the high financing costs can provide the country with additional financial capacity to meet its economic and development goals.

The CPI report warned that the government and banks should also be aware of future risks of fossil-fuel asset value losses. Of the potential new coal-fired power plants that are currently planned or under construction, 77 per cent are at risk of causing asset value loss, it said, adding that long-term, low-cost debt can reduce the cost of low-carbon power by 30 per cent in the country.

"Our analysis reveals that with the right policy choices, over the next 20 years India and the rest of the world can achieve the emissions reductions necessary for a safer, more stable climate and still free up billions of dollars for investment in development and other parts of the economy," said CPI senior director David Nelson.

On China, the report said since it is the biggest polluter apart from being the biggest consumer of oil, a transition away from oil and with the right policies, can lead to a net benefit to the financial system of over USD 1 trillion.

China, the US, Europe and India are the four largest polluters and the biggest consumers of fossil fuel. China and other net oil consuming countries together comprise three-fourths of global oil demand.

Similarly the EU, which is also a net consumer of oil can lead to a net benefit to the financial system of over USD 1 trillion by adopting no-fossil fuel based technologies.

On the US, the report said being a net consumer of oil, the US, with the right policies, can save more than USD 300 billion.

The savings that the US will accrue is lesser than other economies as the large majority of its fossil fuel assets are privately owned with the governments, including municipal utilities, owning only around 20 per cent of the coal-fired power plants and little of oil, coal,or natural gas assets, CPI said.
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