A just energy transition

Context: Switch to renewables will require a focus on livelihoods. 

Need for transition to clean energy:

• Boosting clean energy investments brings immediate gains, including job creation and new economic opportunities. 
• According to the Council on Energy, Environment and Water (CEEW), the deployment of 450 GW of renewables would employ more than half a million workers.
• Supporting rural livelihoods and increasing community resilience: In rural India, clean energy innovations for farms and businesses offer a market opportunity worth more than $50 billion.

Disruptions of energy transition:

• Accessibility and equality: Emerging and developing economies are starting from different baselines than advanced economies.
• Job creation: New jobs would need to be found over time for the coal miners affected by the changes, as well as for people who work in the fossil fuel power plants that will close down.
• Limited participation of women: According to a 2019 study by CEEW and the IEA, women account for nearly 32% of the renewables workforce globally but only around 11% of the rooftop solar workforce in India.

Way Forward: To achieve the trifecta of jobs, growth and sustainability, India must strive to put people at the centre of its energy transformation. 

• Finding new jobs: Credible severance packages and insurance cushions would also help make the transition easier to navigate. 
• Policymakers must earmark special “transition funds” to help coal-dependent regions, some of which are among India’s poorest, to remodel their economies and develop new industries.
• Stimulus spending in the labour-intensive construction sector could promote the Affordable Housing Mission.
• Many local jobs could also be promoted by the Make in India Initiative, particularly if it is focused on manufacturing energy-efficient appliances, battery technologies and renewable energy systems.
• Rationalising energy subsidies: Subsidies should be directed towards those who need them most. 
• This would help sustain the gains of the Saubhagya and Ujjwala schemes. Fiscal resources freed up through subsidy reform should then be invested in clean energy solutions in underserved regions.
• Energy transition in rural: Can be driven by dedicated policies to promote renewables, incentivise investment in decentralised low-carbon power sources like rooftop solar and build the capacity of clean energy entrepreneurs.
• Ensure gender parity: Including investments in suitable facilities for women at project sites, designing guidelines for flexible working arrangements, and creating programmes to prepare more women for leadership roles.
• Engaging the youth: It is critical to ensure that the energy transition is sustainable, inclusive and enduring. Young entrepreneurs in India have already shown their impact.

Conclusion: India’s energy transition is already an inspiration for many emerging economies. A people-centric approach, backed by good policy design, will not only help India build a clean and inclusive energy future but could also provide a model for other countries and communities worldwide.