Climate action imposes heavy cost on developing nations: Chief Economic Advisor

New Delhi: Chief Economic Advisor (CEA) V Anantha Nageswaran said on Thursday that climate action, including energy transition, imposes a heavy cost on the developing nations. Observing that emerging countries are already grappling with the twin challenges of poverty alleviation and economic growth, he said climate change and energy transition are an added burden.

Climate action: The cost of energy transition

Energy transition must bear three costs, including a rise in the costs of production from rising fuel cost and higher costs of new energy sources as they replace traditional sources, he said at an event organised by the Centre for Social and Economic Progress. He suggested that developing countries need to build the ship even as they are sailing.

India has announced that it aims to reach net-zero emissions by 2070 and meet 50 percent of its electricity requirements from renewable energy sources by 2030.

Prime Minister Narendra Modi has announced more ambitious targets for 2030, including installing 500 gigawatts of renewable energy capacity, reducing the emissions intensity of its economy by 45 percent, and reducing a billion tonnes of CO2.