Page 13 - Edelweiss India Conference 2022 FLIPBOOK

New Energy Digital Manufacturing Capital Markets Human Capital

ESG-led re-rating

India’s leading companies have started repositioning themselves to transform legacy
businesses into sustainable, circular and net-zero carbon. This shall turn in progressively
higher returns over several decades even as existing high-carbon generating assets are
repurposed to extend their economic life and earning capacity. And we believe that the
market shall re-rate these businesses upwards even before earnings actually start accruing. earliest gainers – a
target <USD1/kg green
Diverse sectoral implications though H2 cost (at ~one–fourth

We believe that the rollout of New Energy shall have diverse sector implications ranging global levels) should
from re-rating and growth acceleration to potential disruption. bridge the USD1/bbl
edge currently enjoyed
Re-rating: by USA
and fertilisers may turn net carbon-neutral, enhancing their longevity and enabling

<USD1/kg green H2 cost (at ~one–fourth global levels) should bridge the USD1/bbl edge
enjoyed by USA (gas-based H2).

Acceleration: Renewable power generation shall gain impetus.

Disruption: Some other industries may be disrupted—ICE-based automobiles, coal and
upstream oil & gas and perhaps even EVs (which are more polluting than FCEVs). FCEV
economics may match battery-operated EVs and ICEs by 2030.

COP26 expediting India’s New Energy
According to CEEW-CEF,
India unwrapped aggressive stepped-up targets at the latest COP26 summit India needs USD10.1tn
in Glasgow. In particular, its declaration of a 5-point agenda to tackle the in investments for net-
climate change challenge shall further accelerate the New Energy process. zero emissions by 2070
This is pivotal to the country’s long-term sustainable development goals.

Upward revision of targets in COP26 vis-ã-vis COP21…

At the COP26 summit held recently in Glassgow, United Kingdom, India pledged to
become carbon-neutral by 2070. It laid down a 5-point agenda to deal with climate change
challenges:
• Raise the country’s non-fossil fuel based energy capacity to 500GW by 2030
• Meet 50% energy requirements from renewable energy by 2030

• Reduce projected carbon emissions by one billion tonnes through 2030
• Cut carbon intensity of the economy to less than 45% by 2030
• Net zero emissions by the year 2070

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