The New Climate Economy projects that by 2030, the global infrastructure investment needs would be $90 trillion. These investments are essential to support green economic growth in emerging markets and developing nations, as well as to update outdated machinery in rich nations and bring them into line with the battle against climate change.

Climate change and cities:
As an illustration, the UN has noted that 70% of all greenhouse gas emissions (GHG) originate from urban areas, the majority of which are energy-intensive, poorly planned, and devoid of public transportation.

However, there is space on our planet for other kinds of cities those that are more streamlined, environmentally friendly, and resistant to the effects of climate change. According to the UN's Sustainable Development Goals (SDG 9), these new cities will be built around sustainable infrastructure, innovation, research, and an environmentally conscious and inclusive business sector as pillars of economic growth and human well-being.

Definition of sustainable infrastructure:
The term "sustainable infrastructure" describes devices and frameworks that are built using all-around sustainable principles to satisfy the basic requirements of the populace. Examples of such infrastructure include telephone poles, bridges, roads, hydroelectric power plants, and other facilities. This indicates that all aspects of the infrastructure financial, social, institutional, and economic are ecologically friendly.

Benefits of environmentally friendly infrastructure:
Cities will become more hospitable and inclusive when outdated urban infrastructure is replaced with new, contemporary, sustainable components. Over the next ten years, this would require a multitrillion billion investment globally. However, if we follow the correct procedures, we will also experience economic expansion.

The following enumerates the primary benefits of sustainable infrastructure:

• According to The New Climate Economy, improved urban design combined with more environmentally friendly infrastructure may save the world 3.7 gigatons of CO2 annually over the next 15 years.
• Promoting renewable energy:
• A decentralized, digitalized electric infrastructure and a decarbonized economy could provide access to power for the billions of people who do not now have it.
• Generating green jobs:
• By 2030, the number of green jobs in the renewable energy sector might increase from the current 2.3 million to 20 million.
• Promoting growth in the green economy:
• A fundamental component of the new economy centered on climate and sustainability action is the construction of sustainable infrastructure.
• Balancing out disparities:
• Even the most fundamental requirements of developing nations, including access to running water, sanitary facilities, transportation networks, etc., cannot be met by the infrastructure of today; but, the sustainable alternative could.
  
  
• In order to meet the goals of the Paris Agreement, sustainable urban development also promotes the decarbonization of the economy and a gradual shift to a renewable energy paradigm. These goals should be achieved by 2050. The Global Commission on the Economy and Climate of The New Climate Economy (NCE) projects that by then, sustainable cities will have saved the world $17 trillion.
  
  

Development of Sustainable Infrastructure in India
Systems for planning, designing, constructing, operating, and decommissioning infrastructure that ensure social, economic and financial, environmental (including climate resilience), and institutional sustainability over the course of the infrastructure life cycle are referred to as sustainable infrastructure systems. Sustainable infrastructure comprises built infrastructure, natural infrastructure, and hybrid infrastructure that blends elements of both types of infrastructure. India needs infrastructure, but it also needs sustainable infrastructure. To bring about this shift, a clear framework that emphasizes project finance and takes social and environmental aspects into account at every stage of the project's lifecycle is essential. India needs sustainable infrastructure to flourish, and the nation must invest in renewable energy projects to reduce its carbon footprint and promote a more ecologically friendly energy mix.

Among the crucial infrastructure areas that will spur growth in the coming years are roads, railroads, ports, electricity, and urban infrastructure. Over half of all capital expenditures made by the Center in the last two years have gone toward roads and railroads. Over the past ten years, there has been a notable compound annual growth rate (CAGR) of over 40% in the government's spending on highways and road transportation.

In order to meet the goals of the Paris Agreement, sustainable urban development also promotes the decarbonization of the economy and a gradual shift to a renewable energy paradigm. These goals should be achieved by 2050. The Global Commission on the Economy and Climate of The New Climate Economy (NCE) projects that by then, sustainable cities will have saved the world $17 trillion.

India's Journey to a Future of Resilience through Sustainable Infrastructure:
With the help of several other initiatives and a budget commitment of US$ 122 billion (Rs. 10 trillion) for infrastructure investment in 2023-2024, India's infrastructure sector is growing quickly to support the nation's transformation into a global economic powerhouse.

Up to 2030, India will require more than half of its urban infrastructure which includes waste management, housing, transportation, power, and water to be created. India needs to spend US$ 4.5 trillion on infrastructure in order to improve societal well-being and economic progress. India committed to reaching net zero emissions by 2070 at COP26.

Development of Sustainable Infrastructure in India
Sustainable infrastructure comprises built infrastructure, natural infrastructure, and hybrid infrastructure that blends elements of both types of infrastructure. India needs infrastructure, but it also needs sustainable infrastructure. To bring about this shift, a clear framework that emphasizes project finance and takes social and environmental aspects into account at every stage of the project's lifecycle is essential. India needs sustainable infrastructure to flourish, and the nation must invest in renewable energy projects to reduce its carbon footprint and promote a more ecologically friendly energy mix.

Among the crucial infrastructure areas that will spur growth in the coming years are roads, railroads, ports, electricity, and urban infrastructure. Over half of all capital expenditures made by the Center in the last two years have gone toward roads and railroads. Over the past ten years, there has been a notable compound annual growth rate (CAGR) of over 40% in the government's spending on highways and road transportation. From 15% in FY15-FY19 to 37% in the last four years (FY20-24), the government's capital expenditures on railroads have increased at a compound annual growth rate. The Center has also made large increases in capital spending for ports, electricity, civil aviation, and telecommunications.

Basic guiding points:
The Strategic Planning
Policies, rules, and organizations that facilitate coordination between departments and between the national and local levels of government and public administration should be used as a basis for choices about infrastructure development. These choices ought to be supported by strategic planning that complies with current international agreements and global goals for sustainable development.

• Provision of Flexible, Resilient, and Responsive Services
• A thorough life cycle analysis of sustainability
  It is important to consider the financial and non-financial components of interrelated projects, systems, and sectors over their full cycles when evaluating the environmental, social, and economic sustainability of infrastructure as early as feasible in the planning and preparation stage. Life Cycle Sustainability Assessments should examine international ramifications and assess the cumulative effects on ecosystems and populations as part of a larger landscape, beyond a project's local neighborhood.
   
• Preventing Damage to the Environment
• Circularity and Resource Efficiency
  Infrastructure systems should be designed and integrated with circularity and sustainable technology and building materials to minimize their environmental impact and lower emissions, waste, and other pollutants.
• Empowerment, equity, and inclusivity
  A balance between social and economic goals needs to be struck when investing in infrastructure. With the aim of fostering social inclusion, increasing economic empowerment and social mobility, and upholding, protecting, and fulfilling human rights, infrastructure should allow fair access to and affordability of services for everyone. In addition to promoting human health and wellbeing and preventing harm to communities and users (especially the poor and marginalized), it should also be safe.
• Strengthening Financial Gains
  To maximize and safeguard its economic advantages, infrastructure should create jobs, support local companies, and offer amenities that benefit communities.
• Creative Financing and Sustainable Budgeting
  The frameworks of fiscal transparency, financial integrity, and debt sustainability should all be considered when developing infrastructure.
• Open, Inclusive, and Interactive Decision-Making
• Making Decisions Based on Evidence
  Data must be created by routinely observing the effects and performance of infrastructure, which should be made accessible to any party involved.

Infrastructure Investment That Is Sustainable
Financial arrangements specific to the use of environmentally friendly projects or activities to address climate change are referred to as "green finance." Green building, waste management (including recycling and proper disposal), energy conversion, and other energy-efficient initiatives are examples of environmentally sustainable undertakings. Creating energy from renewable resources like solar, wind, biogas, etc.; clean transportation with reduced greenhouse gas emissions; and other things are also included.

In addition, initiatives classified as sustainable under the Green Debt Securities disclosure requirement comprise adaptation to climate change, sustainable waste and water management, sustainable land use, encompassing sustainable agriculture and forestry, and biodiversity preservation. The finance needs for these kinds of activities are being met by the formation of new financial institutions, such as green banks and green funds, and financial products like green bonds and carbon market instruments like a carbon tax. All of these make up green finance.

• Bonds made of green stuff:
  In India, 63 green bonds had been issued as of April 28, 2023. Corporates and PSUs have issued the most of these bonds, according to an issuer-by-issuer breakdown. The profits from the bond may only be utilized to partially or fully finance eligible green projects that meet the four major criteria of the green bond program, either new or old. Revenue from bonds may only be used to fund or refinance qualifying social initiatives, both new and old, that align with the four pillars of the social bond principles (SBP).
   
• Linkages to Sustainability:
  Financial and/or structural characteristics of the bond instrument are flexible and depend on the issuer's ability to satisfy predetermined sustainability/ESG targets. Globally, bonds pertaining to sustainability were issued for US$ 118.8 billion in 2021. India has recently seen the issuing of sustainability-linked bonds by JSW Steel (US$ 500 million), UltraTech Cement (US$ 400 million), and Adani Electricity (US$ 300 million).
   
• Loans Related to Sustainability:
  Loan instruments that encourage the borrower to reach ambitious, predetermined goals for sustainable performance, and/or dependent facilities. Sustainability performance targets (SPTs) are used to track changes in the borrower's sustainability profile and measure the borrower's sustainability performance. SPTs may include key performance indicators, external ratings, and/or comparable metrics.

Strengthening Bonds:
The bond revenues will only be used to finance or refinance a combination of social and environmental projects. The four essential elements of the SBP and the GBP are represented by sustainability bonds. In 2021, a total of US$ 200.9 billion in global sustainability bonds were issued (5-year CAGR: 98.6%). India sold US$ 1.2 billion worth of sustainability bonds in 2021. Axis Bank (US$ 600 million) is one of the Indian banks that has recently issued sustainability bonds.

Over 80% of the nation's sustainable finance comes from investments made in India, which are mostly (nearly 60%) dependent on the private sector. The percentage of foreign donations increased from 13% to 17% between 2019 and 2020. The largest category of domestic sources consists of corporations, then commercial financial institutions.

Development of the Sustainable Development Goals:
To monitor India's advancement toward the Goal of Industry, Innovation, and Infrastructure which includes two of the eight Sustainable Development Goals (SDG) for 2030 four indicators at the national level have been developed. The four criteria that make up the "Bharat Net" are

1. Road connectivity,
2. Mobile teledensity,
3. Internet density, and
4. Gram panchayats.

With scores ranging from 0 to 72 for states and 0 to 100 for union territories, India's SDG Index Score for Goal 9 is 44 based on the four recognized national indicators. With a flawless score of 100 on the Index, the UTs of Delhi and Puducherry were the ones who were able to accomplish this aim. Among the initiatives the Indian government is launching to boost the infrastructure sector are the Pradhan Mantri Gram Sadak Yojana (PMGSY), Bharatmala, and Sagarmala programs. Our major initiatives, such as Made in India and Digital India, are focused on advancing innovation and the industrial sector.

Governmental Proposals

• In most states, the government of India (GoI) subsidizes the residential, institutional, and social sectors by paying 30% of the cost of installing rooftop solar panels. Up to 70% of the installation cost may be covered by the subsidies in some areas of the special category states. A generation-based incentive is another option available to beneficiaries. If their yearly generation surpasses 1100kWh-1500kWh, they will receive US$ 0.024 (Rs. 2) per unit of generation. Additionally, excess power can be sold for a price set by the government.
   
• The GoI introduced two phases of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme in 2015 and 2019. The scheme's goals are to increase credit availability, reduce the upfront cost of purchasing a vehicle, and build infrastructure (like charging stations) to promote the production and sale of environmentally friendly vehicles.
   
• The State Bank of India launched a "green auto loans" programme for electric vehicles, offering 20 basis points lower interest rates and a longer repayment period than standard auto loans, to help offset the high initial cost of such cars.
   
• To promote the manufacturing of high-efficiency modules for the renewable energy sector, the government has put in place the Production Linked Incentive (PLI) Scheme.

The RBI's priority sector lending programme now includes the renewable energy sector, with loans up to US$ 3.63 million (about Rs. 30 crore) for firms and up to US$ 1.21 million (about Rs. 10 crore) for households.

Notably, India committed to reducing GDP emission intensity by 45% (relative to the 2005 level) by 2030 and reaching net-zero by 2070 as part of its long-term strategy to transition to a low emissions pathway, which was formally stated at COP27.

India's transition to a low-carbon economy has advanced significantly since the COP27. The Energy Conservation Amendment Act 2022, for instance, underlines India's unwavering commitment to the transition targets by defining the minimum proportion of consumption of non-fossil sources for the nine most energy-intensive sectors. Under the same Act, India expanded the Energy Conservation and Sustainable Building Code's coverage beyond the commercial structures currently included in its purview to include offices and big residential buildings.

The National Green Hydrogen Mission was approved by the government in January 2023, with a budget of Rs 19,744 crore from FY24 to FY30. The FY24 Union Budget includes a 78% increase in FAME-II subsidies aimed at encouraging the use of electric vehicles. In keeping with our international commitments, all of these policies and initiatives show the proper intentions and deeds.

Conclusion:
Investing in infrastructure creates jobs, boosts the competitiveness of our industrial and service sectors, draws foreign direct investment, and raises the national standard of living, among other strong multiplier effects. Over the past ten years, the government has initiated numerous initiatives to promote infrastructure development in the nation, such as the National Infrastructure Pipeline (NIP), the National Monetization Pipeline (NMP), the PM Gati Shakti plan, and the National Logistics Policy.

. Future infrastructure development must therefore give equal, sustainable, and environmentally friendly growth first priority.

Notably, India committed to reducing GDP emission intensity by 45% (relative to the 2005 level) by 2030 and reaching net-zero by 2070 as part of its long-term strategy to transition to a low emissions pathway, which was formally stated at COP27.

India's transition to a low-carbon economy has advanced significantly since the COP27. The Energy Conservation Amendment Act 2022, for instance, underlines India's unwavering commitment to the transition targets by defining the minimum proportion of consumption of non-fossil sources for the nine most energy-intensive sectors. Under the same Act, India expanded the Energy Conservation and Sustainable Building Code's coverage beyond the commercial structures currently included in its purview to include offices and big residential buildings.

The National Green Hydrogen Mission was approved by the government in January 2023, with a budget of Rs 19,744 crore from FY24 to FY30. The FY24 Union Budget includes a 78% increase in FAME-II subsidies aimed at encouraging the use of electric vehicles. In keeping with our international commitments, all of these policies and initiatives show the proper intentions and deeds.

Written By: Siddharth Bhattacharyya BA.LLB student of Manav Rachna University, Faculty of Law.