India's Green Transition

Context: India is on the right track to achieve ‘Net-zero Emission’, but needs to redouble its efforts to remove the obstacles.

Importance of net-zero commitment to India

• Vulnerability of topography: India’s topography uniquely vulnerable to climate change. Eg. Rising landslides in Himalayas and Western Ghats. 
• Economic stake: IMF study suggests that if emissions continue to rise in, India’s real GDP per capita could fall by 10% by 2100.
• Renewable energy technologies tend to be labour intensive as it can create millions of jobs by 2050.
• India, the third-largest emitter in the world: Although its per capita energy use is only a 3rd of the global average. 
• Scope of technological developments in India is making it possible to decouple economic and emissions growth by switching to renewables.
• Political will – Steps taken towards Greener Future of India: India is signatory to the Paris Agreement and is set to over-deliver on some of the targets like, 
• 40% of its installed power generation capacity was meant to come from non-fossil fuel sources by 2030. India has already reached 39% by September 2021.
• Net-zero approach could give a clear signal of India’s intentions: And provides better access to international technology, funding and markets.
• Export competitiveness a critical driver of GDP growth: Higher carbon efficiency can open up new markets and bring India in international competition, forcing domestic industry to become efficient. 

Challenges towards India to become net-zero

• Business-as-usual scenario: Carbon emissions were showing no signs of peaking.
• Loss of employment opportunities in coal industries, as it provides significant jobs across states such as Bihar, Jharkhand, Odisha and Chhattisgarh, which will be reduced.
• Developmental needs: Coal and fossil fuels still remains relevant for India in achieving poverty reduction.
• High energy investment requirement: High investments needed in transition to Green Technology.
• Transition years will be bumpy: Inflation could be volatile till renewables reached their potential; fiscal revenues from oil and coal should fall gradually; trade deficit could rise in transition to electric vehicles.

Way Forward

• Focus on sustainable wealth creation in economy: As 60% of India’s capital stock is yet to be built. 
• Leapfrog into new green technology: India can create a more responsible and sustainable economy after transition to green growth.
• High use of hydrogen technology and carbon capture strategies will need to reduce fossil fuel usage from 85% to 20% by 2070.
• Country can find better market access if its exports achieve a “green stamp” by imposing a carbon tax on exports from carbon emissions economies. 
• Finances of power distribution companies need to be improved: It would require a host of reforms.
• India needs a coordinated institutional framework: It can help overcome multiple levels of complexity like federalism, fiscal constraints and bureaucracy. Eg. Integrated Energy Ministry
• Government can act as a catalyst in reducing cost by providing incentives and partnerships in half of the industrial transition.

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