Chapter: Decarbonisation Goals: Benchmarking NTPC and Tata Power with Enel and Recommending a Sustainability-Linked Finance Framework

The case-study analyzes the decarbonization strategies of India’s major power companies, NTPC and Tata Power, in the context of India’s 2070 net-zero emissions target, which requires an estimated US$10.1 trillion investment (with US$8.4 trillion needed for the energy sector alone). It critically examines both companies’ current greenhouse gas reduction targets, finding them significantly less ambitious than global peers like Enel – NTPC aims for only 3% reduction by 2022 and 17% by 2032, while Tata Power targets 12% by 2026 and 20% by 2030, compared to Enel’s 64% by 2023 and 80% by 2030.

The chapter highlights that while both Indian companies have ambitious clean energy deployment targets, they lack concrete investment plans and formal sustainability-linked finance (SLF) frameworks aligned with science-based emissions reduction targets. The chapter recommends establishing formal SLF frameworks similar to Enel’s approach to unlock new capital through green or sustainability-linked debt instruments, which would be crucial for accessing foreign private capital needed to bridge India’s US$3.5 trillion investment gap in achieving its decarbonization goals.

Book Publisher: Taylor & Francis