A Good Climate Year

Context: Few entries in the energy and climate calendar for 2021 give a reason for optimism this year, even though the shadow of Covid-19 continues to loom.

Factors signifying 2021 as a Good Climate Year:

• Positive attitude of United States(US): with the possibility of the US re-joining the Paris Agreement.
  • Multiple measures for the renewables sector in the US: including tax credits for offshore wind, grants for charging infrastructure for electric vehicles and funding for research and development.
• Possible boom of electric cars: BloombergNEF has estimated that electric passenger cars sold by all manufacturers globally over 2020 totalled more than 2.7 million.
  • Tesla delivered about 500,000 electric cars in 2020 (36 % higher than its 367,500 units in 2019). And will be sold in India in 2021.
• Boosting solar energy: economics are making low-carbon transitions inevitable.
  • Low tariffs: dipping down to Rs 1.99 due to intense competition, expectations of further declines in solar panel prices and availability of cheap capital.
  • Coal India branching out to solar manufacturing: including ingots, wafers, cells and modules, solar generation and aluminum mining, refining and smelting.
    • Other state-owned companies, such as NLC India (formerly Neyveli Lignite) and a hydro company SJVN, are also expanding their footprint in the renewables space.
  • Provision of rooftop solar rights to the consumers in India: to have 24x7 electricity supply. Net metering is to be provided for loads of up to 10 kilowatts, and gross metering for higher loads.
• Upcoming Conference of Parties (COP) -26 at Glasgow: will bring parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.
  • Many countries are already choosing to stimulate their economies through green measures in energy, mobility as well as in heating and cooling.