Net-Zero Isn’t Zero-Sum

Context: Actions to reduce emissions in different sectors could be the foundation of a stronger economy and a healthier population.

Steps to be taken for achieving net-zero emission

• Build cleaner: As International Energy Agency predicts that much of India’s future emissions will come from things that have not yet been built, like transport infrastructure, industry, and buildings.
  • Greater electrification and using hydrogen as a fuel: in industries like cement, iron and steel, and chemicals and retire existing coal power plants.
  • Change production methods: E.g. commercially produce hydrogen from electrolysis rather than fossil fuels.
• Accelerate the existing policies with investments of finance and technology: For e.g. -
  • The Union Territory of Ladakh, the state of Sikkim, Chennai and Bengaluru, and the panchayat of Meenangadi in Wayanad, Kerala, are already planning for carbon-neutral development.
• Improve energy efficiency: in large industries and their supply chains of Micro Small and Medium Enterprises.
• Carbon tax: to offset the loss incurred by the government in the energy sector.
  • Slowly phased in from a small amount roughly equivalent to the existing coal cess (or GST compensation cess) to reach Rs 2,500 per tonne of carbon dioxide by the middle of the century.
• Need to respect people’s rights to land and common property resources.

Projected benefits by achieving net-zero emission:

• Conservation of water: As India moves to cleaner sources of electricity, water consumption by power plants will decrease from more than 2.5 to 1 billion cubic metres per year in 2050. 
• Employment generation: It can generate 24 million jobs in just 15 years through –
  • Policies to promote electric vehicles along with cleaner electricity and hydrogen electrolysis can create jobs in the auto manufacturing industry and in the electricity and construction sectors.
• Reduction of carbon dioxide will also reduce other pollution.
• Economic benefits:
  • Reduction in crude oil import bill in the long run.
  • Due to carbon tax: It allows offsetting depletion in the Centre’s tax revenue from energy sector and can be used to support poorer households who spend large fractions of income on energy.

Conclusion: With imaginative policies, robust institutions, and international finance, India will be able to declare its freedom from polluting fossil fuels in the hundredth year of its independence.