'Challenges remain in phasing out coal-based power infrastructure'

INDIA has consistently been the largest borrower from the Asian Infrastructure Investment Bank (AIIB) since its inception in 2016, including for several major green financing initiatives. In an interaction with Pushpita Dey, Erik Berglöf, chief economist of AIIB, discusses how India can accelerate its transition to a greener economy through policy reforms and international collaboration. Edited excerpts

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Despite global push for green financing and sustainable infrastructure, emerging economies like India still face hurdles in mobilising green capital. What key steps should India take to accelerate its transition to a greener economy? What India has achieved in installing renewable energy at very low cost is remarkable, and it has been driven largely by the private sector, supported by effective government policies. But challenges remain—particularly in phasing out coal-based power infrastructure. Major investment is needed in transmission grids and demand-side improvements that give consumers better control over how much energy they use and what type of energy they consume.