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A report by Standard Chartered shows that Indian corporates are optimistic about the country's net-zero goals, with 83% having net-zero strategies and 93% investing in low-carbon solutions. Businesses expect a phased reduction of fossil fuel use over two decades and plan to increase investments in sustainable solutions in the next five years. Green and sustainability-linked bonds, along with carbon markets, are emerging as preferred financing tools. Corporates also see renewable energy and transport electrification as key to economic resilience, energy security, and environmental sustainability.
Standard Chartered recently released a report titled India and the Energy Transition, revealing strong confidence among Indian corporates in the country's ability to achieve net-zero targets. The survey, covering 40 companies, found that 83% of respondents have already established net-zero strategies, while 93% are actively investing in low-carbon solutions. Corporates view these initiatives not just as an environmental priority, but as central to socio-economic growth. Advertisement
The report indicates that businesses expect a gradual phaseout of fossil fuels over the next two decades, aligning with India's broader energy transition goals. Almost all companies surveyed, about 98%, anticipate increasing their investments in sustainable solutions over the next five years. While the uptake of sustainable finance is currently limited with less than 40% of corporates having used such instruments and just 32% exposed to carbon credits there is significant future interest. Around 86% plan to utilize sustainable finance tools, and 88% expect to participate in carbon credit markets.
Green and sustainability-linked bonds and loans have emerged as the most widely preferred instruments for financing energy transition projects. Corporates with operations that are water-intensive or labour-intensive are also showing interest in blue bonds and social bonds. According to the report, annual investments of up to USD 300 billion will be required for India to reach net-zero emissions, highlighting the scale of capital needed. Carbon markets are expected to play a crucial role in channeling funds toward decarbonisation, enabling companies to complement direct emission reductions with carbon credits.
Beyond reducing emissions, corporates see the shift to renewable energy as key to strengthening economic resilience and reducing reliance on fossil fuel imports. With India's total power demand projected to rise, significant investment will be needed to expand domestic power generation while maintaining energy security and minimizing environmental impact. The report also highlights transport electrification, with 83% of surveyed companies expecting that India's car and motorcycle fleet will largely be electric by 2050.
Ben Daly, Global Head of Transition Finance at Standard Chartered, highlighted that India's energy transition is gaining tangible momentum. He emphasized that rising electricity demand, corporate investments in clean energy, and the increasing role of sustainable finance and carbon markets will be vital in meeting energy needs while supporting economic stability. Shobana Chawla, Head of Sustainable Finance, India, noted that accelerating the adoption of low-carbon solutions will require scaling local manufacturing, expanding government support schemes, and enabling the financial sector to offer tailored sustainable finance solutions to corporates.
While India is currently the third-largest emitter globally, its per-capita emissions remain lower than those in developed economies. This underscores the need for a balanced, growth-oriented transition. The report reflects a clear appetite among corporates to expand energy transition initiatives across the country, supported by strong policy frameworks, capital markets, and proactive corporate strategies.
Source PTI
FAQ
Q1. How confident are Indian corporates about achieving net-zero targets?
According to Standard Chartered's report India and the Energy Transition, Indian corporates are highly confident, with 83% already having net-zero strategies in place. Additionally, 93% of companies are actively investing in low-carbon solutions, indicating strong corporate alignment with India's net-zero ambitions.
Q2. What is the timeline expected for phasing out fossil fuels?
Businesses surveyed anticipate a gradual reduction in fossil fuel use over the next two decades. They see this as part of a broader energy transition strategy to align with national targets for emissions reduction and sustainable development.
Q3. How are corporates planning to finance their energy transition initiatives?
Green and sustainability-linked bonds and loans are the most preferred financing instruments. Around 86% of companies plan to utilize sustainable finance tools, while 88% expect to participate in carbon credit markets. Water- and labour-intensive industries are also showing interest in blue bonds and social bonds to support decarbonisation projects.
Q4. How much investment is needed for India to reach net-zero emissions?
The report estimates that annual investments of up to USD 300 billion will be required to achieve India's net-zero goals. Carbon markets and sustainable finance will play a key role in directing capital toward emission reduction and complementary carbon credit mechanisms.
Q5. What role do renewable energy and transport electrification play in corporates strategies?
Corporates view renewable energy as essential for economic resilience, energy security, and environmental sustainability. About 83% of surveyed companies expect India's car and motorcycle fleet to be largely electric by 2050. These initiatives are seen as critical to reducing reliance on fossil fuels and supporting long-term energy security.
Q6. What are the challenges and enablers for scaling low-carbon solutions?
Scaling local manufacturing of renewable technologies, enhancing government support schemes, and enabling financial sector offerings tailored to sustainable finance are highlighted as key enablers. The report stresses that strong policy frameworks, capital markets, and proactive corporate strategies are vital for a successful energy transition.
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