Fitch Solutions says new climate target poses upside risks to outlook for renewable growth

Fitch Solutions on Thursday said the new climate targets announced at the COP26 summit by Prime minister Narendra Modi pose an upside risk to its outlook for renewable growth in the country. With the new targets, it expected to see attempts to alleviate the issues regarding supply chains, manufacturing and project development that have long plagued renewable proliferation.

“The market’s rapidly growing need for electricity will keep the market highly reliant on coal power, posing challenges to the country’s decarbonisation plans,” it said. “Hydrogen will offer a unique pathway to decarbonisation in the power and wider energy sectors as the market seeks to cut one billion tonnes of carbon dioxide emissions.”