Subsidies for renewable energy and electric vehicles in India more than doubled in the financial year 2022, but it will be critical for the government to build this momentum over the coming years to reach the country’s climate targets, according to a study by the International Institute for Sustainable Development (IISD) released on Tuesday. The study, titled ‘Mapping India’s Energy Policy 2022: Tracking Government Support for Energy’, found that subsidies for renewable energy rose from from Rs 5,774 crore in 2021 to Rs 11,529 crore in 2022, while support for electric vehicles jumped 160 per cent from Rs 906 crore to a record-high of Rs 2,358 crore.

This rise is the result of greater policy stability, a 155 per cent jump in the installation of solar photovoltaic, and the post-COVID-19 economic resurgence, the study found.

Yet, to establish this trend, the government needs to further enhance the support measures – including subsidies, public finance, and investments by publicly-owned companies – over the next few years to reach 500 GW of non-fossil capacity by 2030 and become net-zero by 2070, experts said.