India could register a gap of $178 billion in revenue from fossil fuels by 2050 as the world moves towards cleaner energy to limit global warming to 1.5°C, a report by International Institute for Sustainable Development (IISD) said on Thursday.
Under the 2015 Paris Agreement, countries have agreed to limit global warming to below 2°C, preferably to 1.5°C, compared to pre-industrial levels. Six emerging economies — Brazil, Russia, India, Indonesia, China and South Africa — need to start changing their fiscal policies to account for declining fossil fuel use or risk a $278 billion gap in revenues by 2030, the report titled ‘Boom and Bust: The Fiscal Implications of Fossil Fuel Phase-Out in Six Large Emerging Economies’ said.
These countries represent 45% of both the world’s population and its carbon dioxide (CO2) emissions, 25% of global gross domestic product (GDP), and a significant share of the world’s poor. They are particularly vulnerable to the fiscal impacts of the energy transition because of their high reliance on fossil fuel revenues, the study said.
