Syllabus
GS Paper 3 – Environmental conservation; Environmental pollution and degradation; Environmental Impact Assessment.
Applications where to apply?
When asked about
– Net zero transition
– Renewable Energy
– Sustainable Development
Context
Government support is critical for technology transition to achieve climate goals.
Source
The Indian Express | Editorial dated 18th May 2024
Hurdles on the path to green growth — and how to remove them
The recent heatwave has highlighted the imminent threats posed by climate change, emphasizing the importance of international efforts like those led by the Conference of Parties (COP). The World Meteorological Organisation’s confirmation that 2023 was the warmest year on record underscores the urgency of addressing carbon emissions, particularly from major sectors like power and industry. As the third-largest carbon emitter, India faces increased scrutiny and a pressing need to transition towards greener energy solutions.
Focus on Carbon Emissions
- The power, steel, cement, chemicals, fertilizers, and refinery sectors are under significant scrutiny because they are the primary contributors to carbon emissions.
- Addressing emissions in these industries is crucial for achieving climate targets.
- India ranks as the third-largest emitter of carbon dioxide globally, necessitating focused efforts to reduce its carbon footprint across various sectors.
Government Initiatives towards Green Energy
- Renewable Energy (RE):
- The government has introduced the Production Linked Incentive (PLI) scheme to promote the manufacturing of solar modules, boosting the adoption of renewable energy sources.
- Viability Gap Funding:
- Schemes have been launched to support offshore wind and battery storage projects, addressing financial gaps and encouraging investment in renewable technologies.
- Electric Vehicles (EVs):
- The Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme aims to accelerate the adoption of electric vehicles in India, reducing reliance on fossil fuels and lowering emissions.
- National Green Hydrogen Mission:
- This mission focuses on promoting green hydrogen production, which can significantly reduce emissions in sectors like refining, chemical, and fertilizers.
- Energy Conservation Bill Amendments:
- Legislative changes have been made to the Energy Conservation Bill to enhance energy efficiency and support the transition to greener technologies.
- Green Bonds:
- The government has introduced green bonds to finance environmentally sustainable projects, providing a boost to green energy investments.
Transition Risks
Transitioning to green technologies involves various risks that entities must manage. These risks can affect the success and sustainability of their green initiatives.
- Policy and Regulatory Risks:
- Changes in government policies and regulations can create uncertainties for businesses.
- As governments globally implement stricter environmental standards and climate policies, companies must continuously adapt to comply.
- Sudden policy shifts can lead to increased costs for compliance, unexpected investments in new technologies, and operational disruptions.
- Businesses may face penalties or fines if they fail to meet new regulatory requirements.
- Technological Risks:
- Adopting new green technologies can be risky due to their novelty and the associated high costs.
- These technologies may also face operational challenges, such as integration with existing systems and reliability issues.
- This risk is particularly acute for smaller companies with limited resources.
- Market Risks:
- Market conditions, including the availability and price of green technologies, can fluctuate.
- Market demand for green products may also be unpredictable, affecting the economic viability of green investments.
Future Solutions
- Policy Interventions and Government Support:
- Implementing supportive policies, subsidies, and tax benefits to encourage green technology adoption.
- It can reduce financial burden on businesses and promotes widespread adoption of sustainable practices.
- Carbon Capture, Utilization, and Storage (CCUS):
- Developing and implementing CCUS technologies in hard-to-abate sectors like steel and cement.
- Example: CCUS in cement manufacturing to reduce emissions by 60-70%.
- Technological Innovations:
- Investing in research and development of new green technologies to improve efficiency and reduce costs.
- Enhanced technological capabilities can make green technologies more accessible and reliable.
- Example: Developing more efficient battery storage systems for renewable energy.
- Voluntary Steps by Entities:
- Encouraging businesses to take voluntary initiatives towards sustainability and green technology adoption.
- This will demonstrate commitment to reducing emissions, potentially attracting environmentally-conscious consumers and investors.
Conclusion
As India navigates the transition to green energy, substantial investments and technological advancements will be crucial. The government’s support through policy interventions and financial incentives will play a vital role in accelerating this shift. Achieving India’s climate goals, including enhancing the share of non-fossil power to 50% by 2030, will require a collaborative effort between government and industry. Addressing the technological risks and ensuring a reliable supply of renewable energy are key to a sustainable and greener future.
Related Topics
Sovereign Green Bonds (SGrB)
Fixed-income financial instruments which are used to fund projects that have positive environmental and or climate benefits. It carry guarantees related to the repayment of principal and payment of interest by the sovereign or the government.
Key features of framework –
- Principles for ‘green project’ classification:Encouraging energy efficiency.Reducing carbon and greenhouse gases emissions.Promoting climate resilience and/or adaptation.Values and improves natural ecosystems and biodiversity in accordance with SDG principles.
- Selection and evaluation of projects – Green Finance Working Committee (GFWC) with Ministry of Finance
- Deposition of Proceeds with – Consolidated Fund of India
- Track record – Public Debt Management Cell
- Eligible projects will use the raised proceeds from sovereign green bonds for capitalisation or re-capitalization.
Related PYQ
Do you think India will meet 50 percent of its energy needs from renewable energy by 2030 ? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain. [ UPSC Civil Services Exam – Mains 2022]
Practice Question
Discuss the major challenges and opportunities associated with India’s transition to green energy. [250 words]