GS Paper III
News Excerpt:
The recent heatwave has reminded countries of the stark risks posed by climate change and has brought the focus back on sectors like power and industry, which account for the bulk of carbon emissions.
What is Green growth?
It means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies.
What does Green Growth aim to achieve?
These policies are an integral part of the structural reforms needed to foster strong, more sustainable, and inclusive growth. They can unlock new growth engines by:
- Efficiency: It creates incentives for greater efficiency in the use of natural resources, reducing waste and energy consumption, unlocking opportunities for innovation and value creation, and allocating resources to the highest value use.
- Investor Confidence: Boosting investor confidence through greater predictability in how governments deal with major environmental issues.
- New Markets: Opening up new markets by stimulating demand for green goods, services, and technologies.
- Fiscally sound policies: Contributing to fiscal consolidation by mobilizing revenues through green taxes and the elimination of environmentally harmful subsidies, helping free up resources for anti-poverty programs in areas such as water supply and sanitation.
Obstacles to Green Growth in India:
- Carbon-Intensive Industries:
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- Key sectors contributing to India's carbon footprint include power, steel, cement, chemicals, fertilizers, and refineries.
- Industries like power generation and manufacturing sectors substantially hinder India's transition to green practices.
- Dominance of Fossil Fuel-Based Power Plants:
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- Most of India's carbon emissions originate from fossil fuel-based power plants, exacerbating the nation's carbon footprint and hindering efforts to effectively address climate change.
- Voluntary Adoption Amid Regulatory Ambiguity:
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- Despite the absence of governmental mandates mandating the transition to green technology, some companies have initiated voluntary efforts to adopt environmentally sustainable practices.
- However, the lack of regulatory clarity poses challenges, exposing companies to risks associated with uncertain policy frameworks.
- Risks Associated with Transition:
- Transitioning to green technology entails inherent risks, including potential changes in policies, technology, market dynamics, and legal frameworks.
- The primary risk lies in technological challenges, which may impede companies' ability to adopt and integrate green technologies into their operations effectively.
- This transition will need almost an estimated Rs 11-12 lakh crore of investments in RE power until 2030, along with over Rs 5-6 lakh crore towards investments in transmission infrastructure and storage capabilities.
Government steps to promote green growth:
- Promotion of Clean Energy Initiatives:
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- The government has initiated various schemes aimed at encouraging the adoption of clean energy technologies including, the Production Linked Incentive (PLI) scheme to boost solar panel manufacturing, funding for offshore wind and battery projects, and incentives for electric vehicles such as the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme.
- Additionally, the introduction of initiatives like the National Green Hydrogen Mission and the issuance of green bonds serve to incentivize investments in environmentally sustainable practices.
- Transition to Renewable Energy Sources:
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- To recognize the imperative to reduce reliance on fossil fuel-based power generation, the government has set a target of increasing the share of renewable energy to 50% of the total energy mix by 2030.
- To achieve this goal, significant investments are being directed towards the development and deployment of renewable energy projects across the country.
- Integration of Renewable Energy with Storage Systems:
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- Ensuring a reliable and uninterrupted supply of energy from renewable sources necessitates the integration of wind and solar power with energy storage systems.
- By harnessing the potential of energy storage technologies, India can overcome the intermittency challenges associated with renewable energy sources and enhance grid stability.
- Carbon Capture and Storage (CCS) in Heavy Industries:
- Industries with high carbon emissions, such as steel and cement manufacturing, are targeted for interventions aimed at reducing their environmental impact.
- The government is exploring avenues for implementing carbon capture and storage (CCS) technologies to mitigate carbon emissions from these sectors, thereby aligning with India's commitment to achieving net zero emissions by 2070.
Way Forward:
- Policy Alignment: Ensure alignment of policies and regulations with the goals of promoting green technology adoption, providing clarity and incentives for industries to transition towards sustainable practices.
- Investment Mobilization: Mobilize investments in research, development, and deployment of green technologies, fostering innovation and scalability to meet the growing demand for sustainable solutions.
- Public-Private Partnerships: Foster collaborations between the public and private sectors to leverage resources, expertise, and technology in accelerating the adoption of green technologies across industries.
- Capacity Building: Invest in capacity-building initiatives to enhance the skills and knowledge base required for the effective deployment and management of green technologies, ensuring a skilled workforce capable of driving the transition towards sustainability.
- Awareness and Education: Raise awareness and educate stakeholders about the benefits of green technology adoption, fostering a culture of environmental stewardship and responsibility.
