Green transition will require shakeup of fiscal architecture: Suman Bery

India's green transition needs fiscal reform, says NITI Aayog's Suman Bery, as global energy shifts and supply risks reshape opportunities for the Global South

With massive investments required for developing new sources of energy, NITI Aayog Vice Chairman Suman Bery on Wednesday said that India’s ambitions of green transition will require a shakeup of fiscal architecture. 

“To a surprising degree, fiscal architecture has been bound up with the fossil energy situation, supply chain disruptions, and massive financing constraints,” Bery said at the Institute for Studies in Industrial Development WIDER Development Conference here. 

Bery, borrowing an argument from Venezuelan economist Ricardo Hausmann, said that the global energy transition may favour the Global South. 

This, he said, is due to the fact that the current makeup of global energy is “mobile”, or sources of energy which can be easily transported, which is evident in what is happening in the Strait of Hormuz.