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New report: India to challenge EU, US, China for share of USD 2.2 trillion global clean tech market*

Date
24 March 2011
New report: India to challenge EU, US, China for share of USD 2.2 trillion global clean tech market*

By prioritizing low carbon development now, India is creating a more prosperous future

NEW DELHI (India), 18 March 2011: Senior figures from Indian government and business, have backed a new report by international NGO The Climate Group that describes how a low carbon development path is the only one that will guarantee future prosperity for IndiaIndia’s Clean Revolution makes the compelling argument that by prioritizing low carbon development now, India is creating a better, more secure, and more prosperous future for its more than one billion people.

  • India’s share of the USD 2.2 trillion* market for low carbon goods and services in 2020 could be as much as USD 135 billion**, creating 10.5 million green jobs, and is likely to grow faster than any other country, according to HSBC research
  • India is making more progress than US on energy efficiency, and this market is expected to treble to INR 351,000 crore (USD 77 billion) in the next ten years**
  • India is now fifth in the world in terms of wind energy production**
  • Bold low carbon policies will increase India’s energy independence and help provide access to energy to those who still lack it
  • Low cost labor and a highly skilled manufacturing base will make India a major hub for clean technologies
  • The rate of increase of India’s private investment in clean energy will be 736% over the next ten years, three times that of US or China***

The information brought together in India’s Clean Revolution shows that enormous potential exists for generating new income and jobs by developing domestic renewable energy resources and clean technologies that improve the efficiency of key sectors such as transport and industry – saving energy and money. 

Shri Jairam Ramesh, Minister of State for Environment and Forests, Government of India, said: “There is no contradiction between India’s environmental and its developmental imperatives. This new report charts India’s progress on low carbon development and shows the exciting possibilities for new partnerships, growth and jobs. It highlights the many areas where Indian companies – in partnership with government and civil society at all levels – are already taking advantage of low carbon opportunities.”

At the launch event in New Delhi, Mark Kenber, CEO, The Climate Group, said: “The writing is on the wall – there is no such thing as a secure, high-carbon, low-cost future in India or anywhere else.  Only a clean industrial revolution can guarantee long-term prosperity for any nation and nowhere is this truer than in India. The good news is that the low carbon economy offers huge economic opportunities and that political and business leaders are already working together to ensure that an Indian clean revolution is now underway.”

Suresh Prabhu, Former Minister of Energy and Environment, Government of India, said: “India’s government has been bold in setting low carbon policies, and we are now starting to reap the benefits.  This report shows how, when mixed with India’s entrepreneurial spirit, we are creating a new breed of company that is capitalizing on the opportunities presented by addressing climate change, and who are now ready to compete on a global scale.”

A low-carbon development path will lead to increased energy security for India – a prerequisite for sustainable growth.  India’s coal imports could increase sevenfold by 2030 (IEA), making it vulnerable to external price changes, but blessed with ample wind and solar resources, the Indian Government is cultivating a blossoming clean energy industry.

A key player in the Indian energy market, Suzlon is fast becoming a world leader in sales of wind turbines.  Tulsi Tanti, Chairman and Managing Director of Suzlon Group, said: “Suzlon has been a leader in the clean industrial revolution we see happening in India.  There are now great opportunities for forward-thinking Indian businesses, in both the domestic and international markets, in building solutions to the challenges of climate change.  As the first Indian member of The Climate Group, Suzlon will continue to work to unlock further finance, encourage increasingly ambitious policies and develop the technologies needed for India’s low carbon development.”

Sunand Sharma, Chairman, ALSTOM Projects India, and Country President, ALSTOM India, said: “As a world leader in innovative and environmentally-friendly technologies, Alstom has been at the forefront of clean power development. However, clean energy requires substantial investments by the private sector in the coming years. The government needs to focus on incentivizing the industry to support clean energy in order to avail the economic opportunities arising out of the Indian clean revolution.”

India’s Clean Revolution highlights other success stories in India’s low carbon economy.  High fuel prices set by the Indian government for industry have driven dramatic energy efficiency improvements, such that India is now one of the world’s lowest-cost producers of both aluminium and steel.  While backed by local government incentives, Indian electric vehicle (EV) manufacturer Reva, trading internationally under the G-Wiz brand, has become one of the foremost EV manufacturers in the world and in 2011 will open a new plant in Bangalore which will produce 30,000 cars a year for local use and export.

With India looking at a reported USD 1 trillion investment in its infrastructure sector during its 12th Five Year Plan period, the Indian economy is at a crossroads in its development.  India must avoid the developed world model of high cost, high carbon development and instead chart a new low carbon pathway based on energy efficiency and energy security.

Dr Kirit Parikh, Former Member, Planning Commission India, said: “India has the opportunity to leapfrog the efforts of more developed economies by deploying newer, cleaner technologies.  We have the capabilities, and the benefits to India in seizing this opportunity now will be transformational – India’s Clean Revolution will mean sustainable growth in our economy and energy consumption.”

Partners in the India’s Clean Revolution report said:

Ms. Naina Lal Kidwai, Group General Manager and Country Head of HSBC Group in India: “In India we are working with The Climate Group to spark new public-private initiatives to deploy clean technologies that will save energy, cut emissions and create new jobs and prosperity. Achievements include ground-breaking trials of energy-efficient LED street lighting with the city of Kolkata, strengthening of public and private banks’ capacity to finance India’s Clean Revolution, and building new links between Indian businesses and leading international clean tech companies. We need to see much more of this kind of collaboration to set India’s economy on track towards a prosperous and low carbon future.”

Mr. Rana Kapoor, Founder, Managing Director & CEO, YES BANK: “We must commend The Climate Group on compiling such a comprehensive, accessible and action oriented report. We are privileged to have had the opportunity to contribute to this report by leveraging our experience. YES BANK’s participation is a testament of our differentiated knowledge based approach to this exciting sector. We look forward to working with various stakeholders to deliver on the tremendous business potential a low carbon India has to offer.”

* N Robins, C Singh, R Clover, Z Knight and J Magness, ‘Sizing the Climate Economy', HSBC Global Research, September 2010
** C Singh, N Robins, R Patel, 'Sizing India's Climate Economy', HSBC Global Research, January 2011
*** The Pew Centre, ‘Global Clean Power: A $2.3 Trillion Opportunity’, 2010, viewed on 11 March 2011,
http://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/Reports/Global_warming/G20-Report-LowRes.pdf

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