India’s Green Energy Transition | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• The interim budget for 2024-25 in India is anticipated to offer incentives for the renewable and clean energy sectors. This move underscores the government's commitment to bolstering these crucial areas. India's recent pledge to achieve net zero emissions by 2070 and generate fifty percent of its electricity from renewable sources by 2030 is a monumental step in the global battle against climate change. It signifies India's pioneering role in shaping a sustainable economic development model that diverges from carbon-intensive practices seen in many nations, potentially serving as a blueprint for other developing economies.
• India's ongoing transformation is remarkable, characterized by robust economic growth that has lifted millions out of poverty. The country's urbanization rate, adding a city the size of London annually to its urban population, necessitates extensive construction of infrastructure, including buildings, factories, and transportation networks. Historically, coal and oil have fueled India's industrial progress, providing modern energy access to an increasing number of citizens. Over the past decade, India has been connecting 50 million citizens to electricity annually.
• Given its immense size and projected growth, India's energy demand is expected to outpace that of any other nation in the foreseeable future. Achieving net zero emissions by 2070 requires substantial reliance on low-carbon energy sources to meet this burgeoning demand. Prime Minister Narendra Modi's announcement of ambitious targets for 2030, including the installation of 500 gigawatts of renewable energy capacity, a 45% reduction in emissions intensity, and the mitigation of one billion tonnes of CO2 emissions, reflects the country's commitment to this transition.

Overview of the Paris Agreement:

• The Paris Agreement, a landmark achievement in global climate action, emerged from the UN Climate Change Conference (COP21) held in Paris on December 12, 2015.

Characteristics of a Low Carbon Climate Resilient Economy

• Renewable Energy Sources: Utilization of solar, wind, hydro, and biofuels to replace fossil fuels, aiming to decrease greenhouse gas emissions and reduce dependency on coal, oil, and gas.
• Energy Efficiency and Conservation: Promotion of energy efficiency measures to minimize energy consumption and waste, along with the implementation of demand management strategies to optimize energy usage.
• Climate-Smart Agriculture and Forestry: Adoption of low-carbon and climate-smart practices in agriculture, forestry, and land use, emphasizing the enhancement of carbon sinks and the reduction of emissions from deforestation and degradation.
• Green Finance and Investment: Encouragement of green finance mechanisms to mobilize resources for sustainable projects, coupled with the promotion of investment and trade in low-carbon and climate-resilient activities and products.
• Social and Environmental Justice: Commitment to enhancing social and environmental justice, equity, and inclusion by ensuring fair distribution of benefits and costs of transitioning to a low-carbon economy. This includes protecting and empowering vulnerable groups to mitigate adverse effects and promote sustainable development.

Key Characteristics and Implementation

• Legally Binding Accord: The Paris Agreement stands as a legally binding international treaty designed to combat climate change and mitigate its adverse impacts.
• Commencement: It officially commenced on November 4, 2016, symbolizing a collective commitment among participating nations to undertake tangible actions in response to climate change.
• Participation Scope: Presently, 195 Parties, comprising 194 States and the European Union, have either ratified or acceded to the Paris Agreement.
• Net-Zero Emissions Objective: Central to the Agreement is the pursuit of a world where net-zero emissions are achieved, with the goal of limiting the global temperature increase to well below 2°C above pre-industrial levels, and striving to keep it below 1.5°C.
• Alignment with Sustainable Development Goals (SDGs): Recognizing the intertwined nature of climate action and sustainable development, the Paris Agreement's execution is vital for fulfilling the objectives outlined in the Sustainable Development Goals (SDGs).

Paris Agreement Objectives

• Temperature Control: A primary objective is the substantial reduction of global greenhouse gas (GHG) emissions to restrain the rise in global average temperature to below 2°C compared to pre-industrial levels, with efforts aimed at capping it at 1.5°C.
• Regular Evaluation: The Agreement mandates periodic assessments of collective progress toward its aims and objectives to ensure accountability and transparency.
• Financial Assistance: Developed nations commit to extending financial assistance to developing countries to help them combat climate change, enhance resilience, and bolster their adaptation capabilities.

Key Features and Implementation

• Legally Binding Treaty: The Paris Agreement stands as a legally binding international treaty addressing climate change and its adverse impacts.
• Entry into Force: It became effective on November 4, 2016, symbolizing a collective commitment by participating nations to take tangible actions to combat climate change.
• Participation: Presently, 195 Parties, including 194 States and the European Union, have ratified or acceded to the Paris Agreement.
• Net-Zero Emissions Goal: The Agreement marks a significant shift towards achieving a world with net-zero emissions, aiming to cap global temperature rise to well below 2°C above pre-industrial levels, with efforts to limit it to 1.5°C.
• Alignment with Sustainable Development Goals (SDGs): Implementing the Paris Agreement is crucial for realizing the Sustainable Development Goals (SDGs), acknowledging the interconnectedness between climate action and sustainable development.

Goals of the Paris Agreement

• Temperature Limit: The primary objective is to substantially reduce global greenhouse gas (GHG) emissions to limit the increase in global average temperature to well below 2°C above pre-industrial levels, with endeavors to restrict it to 1.5°C.
• Periodic Assessment: The Agreement mandates regular assessment of collective progress towards its objectives and purpose, ensuring transparency and accountability.
• Financial Support: Developed nations commit to providing financial assistance to developing countries to mitigate climate change, bolster resilience, and enhance adaptation capacities.

Functioning and Mechanisms

• Five-Year Cycle: The Paris Agreement operates on a five-year cycle, with countries expected to enhance their climate action plans every five years.
• Nationally Determined Contributions (NDCs): Each country is required to submit updated NDCs, delineating their national climate action plans and targets for emission reduction and climate adaptation.

India's Nationally Determined Contribution (NDC)

India, as a party to the UNFCCC and the Paris Agreement, has outlined its Nationally Determined Contribution (NDC), comprising specific targets aimed at mitigating climate change and fostering sustainable development.

Quantifiable Targets from 2015 NDC

• Reduction of Emissions Intensity of GDP: India aimed to decrease the emissions intensity of its Gross Domestic Product (GDP) by 33 to 35% by 2030 compared to 2005 levels.
• Increase in Non-Fossil Fuel-Based Energy: India committed to achieving approximately 40% of its cumulative electric power installed capacity from non-fossil fuel-based energy sources by 2030.

Updated NDC Targets (August 2022)

• Enhanced Reduction of Emissions Intensity of GDP: India revised its target to reduce the emissions intensity of its GDP to 45% by 2030 from 2005 levels.
• Increased Non-Fossil Fuel-Based Energy Capacity: The target for non-fossil fuel-based energy resources in electric power installed capacity has been raised to 50% by 2030.
• Additional Renewable Energy Target: India aims to achieve 500 gigawatts (GW) of renewable energy capacity by 2030 as part of its commitment under the Paris Accord.

Budget's Role in Promoting Green Energy

• Investment in Renewable Energy Infrastructure: Allocate funds for developing renewable energy infrastructure like solar and wind farms to expedite achieving India's renewable energy targets.
• Incentives for Renewable Energy Projects: Provide financial incentives, tax exemptions, and subsidies for renewable energy projects to stimulate private sector investment in green energy initiatives.
• Research and Development Funding: Allocate funds for research and development in renewable energy technologies to encourage innovation and reduce associated costs.
• Grid Modernization: Invest in modernizing electrical grid infrastructure to facilitate integrating renewable energy sources into the grid and ensure efficient distribution of green energy.
• Promotion of Electric Vehicles: Support electric vehicle adoption through incentives and charging infrastructure development to reduce reliance on fossil fuels for transportation, contributing to overall emissions reduction goals.
• Awareness and Education Campaigns: Allocate budgetary resources for awareness and education campaigns to promote public understanding of transitioning to green energy and encourage sustainable practices among citizens and businesses.