Green Investment in Renewable Energy Projects: A Path to Cleaner Revival in Post-pandemic India

Abstract

The COVID-19 pandemic has adversely impacted the global economy by disrupting the market mechanism. The impact has been more severe than any other economic crisis in history. Post-pandemic economic recovery is the challenge presently faced by the world economies. The revival needs to address the prevailing challenges of climate change, environmental protection, and inclusive growth. Many national and international organizations have jointly undertaken various initiatives related to climate change mitigation, adaptation and reduction of carbon emissions. Developing renewable energy (RE) sector infrastructure and adopting energy-efficient technologies are the highest-yielding initiatives. The present study explores the role of green investment channelled towards RE projects for the cleaner revival of the Indian economy. It attempts to identify various challenges and drivers of green investment in renewable energy projects. The study proposes a theoretical framework by analyzing the factors and their prospects in reviving and ensuring the green recovery of the economy. The comprehensive literature review shows that the absence of a well-developed capital market, slow technological development, and policy uncertainty are significant barriers (Fuss et al., 2008; Halimanjaya, 2015; Bhatnagar & Sharma, 2021). Development of financial instruments, immediate liquidity infusion and low-cost green energy supply can attract investment in green projects. The study is an addition to the literature on GI in renewable energy projects. The factors identified in the study can be subject to the structural equation modelling for analyzing the impact within the variables. The results can support policy formulation that addresses GI’s challenges in renewable energy projects.