If the world wants to reduce the effect of global warming and keep the increase in temperature below 2 degree Celsius, the plan and approach around climate mitigatio implemented is not just transformational for India but needs to be mirrored globally
New Delhi: COP26 in Glasgow saw India’s Hon’ble Prime Minister make a bold announcement that India will become Net Zero by 2070. Ranked as the third highest emitter of GHGs, transitioning to becoming a green economy is going to be a tall ask, but as we have been witnessing, the country and its citizens are up for the challenge. Many progressive and aggressive policy changes have been brought about to lower the carbon footprint, especially in the six highest polluting sectors of power, automotive, aviation, steel, cement, and agriculture. According to the United Nations Environment Programme (UNEP), a green economy is a low-carbon, resource-efficient and socially inclusive economy. In these economies, growth in employment and income is driven by public and private investment into economic activities, infrastructure and assets that reduce carbon emissions and pollution, enhance energy, and resource efficiency, and lower the risk of loss of biodiversity and ecosystem. In short, if India is looking to become a green economy, its future economic and sustainable growth need to walk together.
As we move forward in this journey, we need to adopt a multidimensional approach. For starters, 57.7 % of the total installed capacity comes from fossil fuels. Coal is one fossil fuel that is highly affordable
and found in abundance in India. The mining and exploration of coal resulted in the mushrooming of small towns and across even the remotest regions in the country. Shifting suddenly from coal, as the
primary source of energy, puts the entire ecosystem, including these towns and cities, at risk. To prevent this collapse, investment in a robust rehabilitation strategy to de-risk coal-dependent regions, rebuilding current mining towns and villages, and deploying adequate measures to protect them socially has become non-negotiable.
For India’s decarbonization efforts to accelerate, a significant amount of investment from both the public and private sectors will be needed. These funds can be used for the research and development of rawmaterials, implementation of cleantech and import or development of technology and equipment from overseas through affordable climate financing methods like Production Linked Incentive (PLI) schemes.
According to a report by the parliamentary panel on finance, India needs an additional annual investment of up to $100 billion to meet its 2070 net-zero carbon emissions goal, with the private sector needing to double its existing CapEx, despite already investing $65 billion-$100 billion to lower carbon emissions. When it comes to investing in innovation and state-of-the-art technologies, international collaborations are critical, especially for the modernization of the national transmission grid. To handle the switch from traditional thermal power to the increasing levels of renewable energy, investments are needed for the expansion and modernization of the grid, and to improve the reliability and efficiency of transmission lines. Also, when it comes to buildings and infrastructure, all existing (if possible) and future buildings need to be made more environment-friendly, keeping sustainability at the core of their value chain.
The question then begs itself, given the significant costs involved, does it still make sense to sacrifice and divert investments from economic growth towards sustainable growth? Despite the lukewarm response of other member nations of COP, is it feasible for India to lead the charge and continue along its green transition journey? Or, do we follow countries like China, the US, the UK and other rich developed nations who are economic heavyweights because they used what was available to them in abundance – fossil fuels. Some schools of thought say that India should continue to play to its strengths and focus on becoming an economic superpower instead of trying to achieve its net zero targets, which will require a huge amount of investment and access to technologies that it doesn’t have at the moment. However, it is important to take note that India’s transition towards becoming a green economy started almost a decade ago and is well underway. Along with a few Scandinavian countries, India is one of the few countries acting on its promises to reduce its carbon footprint.
According to a UNEP report published in 2022, India’s per capita greenhouse gas emissions stood at 2.4 tCO2e (tonne carbon dioxide equivalent), well below the world average of 6.3 tCO2e. The US, Russian
Federation and China being among the top greenhouse gas emitters stood at 14, 13 and 9.7 tCO2e respectively. Therefore, given the amount of investment needed, should India take it upon itself to pick up the slack for all the other countries and bear the burden?
On the face of things, given the challenges and the hurdles India will have to leapfrog, it doesn’t make sense for the country to continue this green transition journey, but this would be an extremely narrow-minded approach. India must most definitely work and continue transitioning towards Net Zero and has been recognized by UN Secretary-General António Guterres several times for its efforts to fight climate change. As the leader of the G20, India is in a position to wield its influence to persuade other nations to follow its model and approach to decarbonization. Leading by example will go a long way in attracting FDI and transfer of technology from rich developed countries along with investment from international lenders, like the World Bank and the International Monetary Fund (IMF), at lower interest rates.
Despite global uncertainties, India’s economy is poised to grow at around 5.5% for 2023-2024. As the economy grows, so will its energy needs. Investing in green energy is going to be essential for India to meet these needs and simultaneously become ‘Aatma Nirbhar’ and by reducing its dependence on high-cost energy imports. Reports from the World Economic Forum show that in achieving its green goals, India can create over 50 million jobs and have an overall economic impact of $15 trillion by 2070. Most of the new employment opportunities are estimated to be seen in the renewable power space, power networks and electrification infrastructure alongside the EV and green mobility and manufacturing industry sectors. It is vital to take note that as India grows, so will its carbon footprint. To combat this sudden rise, the country’s focus will need to shift towards the innovation and acceleration of green technology, green financing opportunities, and the storage, capture and utilization of sources of green energy.
For India to achieve its green ambitions, support from the international community and the public and private sectors is critical. Also, becoming a green economy will ensure that all future growth is not just sustainable but has potential economic ramifications that cannot be dismissed. India today, is well on its way to becoming the leading warrior against climate change and an economic superpower. If the world wants to reduce the effect of global warming and keep the increase in temperature below 2°C, the plan and approach around climate mitigation being implemented is not just transformational for India but needs to be mirrored globally.
