Context:

According to a report, ‘Competing in the New Zero-Carbon Industrial Era’ India is among five major global economies in the race to reach net zero.

More on News:

• There was a clear technology competition between China, the EU and the US, but this year’s G7 host Japan and G20 host India provided more geographic balance with their ambitions in the global technology race to the top.
• The report shows that the net-zero transition policies have significantly strengthened competitiveness, energy security and future economic prosperity. 
• It also points out a few positive development points that show that India is on the right track in the race to zero-carbon technologies. 
• According to the report, India is among few countries which are on track to meet its Nationally Determined Contributions targets.

• India has strong ambitions to become an integral part of the global net-zero supply chain, the foundations are there for it to benefit from the transition in the near future, if additional investments can be secured.

About Net Zero:

• Net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance.
• Importance of Net Zero:
  • To avert the worst impacts of climate change and preserve a liveable planet.
  • Global temperature increase needs to be limited to 1.5°C above pre-industrial levels, as called for in the Paris Agreement.
  • To keep global warming to no more than 1.5°C, emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

Major Challenges Faced by India:

• Poor Targeting: According to Climate Action Tracker, India’s net zero target performs poorly in terms of its scope, target architecture and transparency.
  • Ex: India should clarify the emissions scope of the target and better quantify its mitigation measures and pathways.
• Oil Consumption: Oil is the main source of energy for the transportation sector, the majority of which is imported.
  • According to the International Energy Agency, India is the world’s third-largest consumer of energy and it is growing at the fastest rate in the world. 
• Renewable Energy Components Import:  International Energy Agency (IEA) projects a slowdown in India’s renewable sector in 2023–24 mainly due to higher prices, lower auction volumes and trade policies.
  • In 2021–22, India imported nearly US $76.62 billion worth of solar cells and modules from China.
• Agriculture Emissions: Agriculture is a significant source of emissions in India, particularly due to methane emissions from rice paddies and livestock. 
• Financial Constraints: Transition to a low-carbon economy requires investments in renewable energy, energy-efficient technologies, and sustainable infrastructure.
• Over-Dependence on Coal: As per the Ministry of Power, of the total installed power generation capacity, 57% is from fossil fuels, mostly thermal coal.

Steps taken by India Towards Net Zero:

• Decrease Reliance on Fossil Fuel: National Electricity Plan (2023) projects that non-fossil fuel capacity will increase to around 57.4% of the total electricity mix by the end of 2026-2027, growing to 68.4% by 2031-2032. 
  • Last Mile Connectivity: Development of off-grid and decentralised renewables under a framework for Promoting Decentralised Renewable Livelihood Applications.
• Deployment of  Solar Energy: Through the National Solar Mission, a set of policy measures are designed to encourage the rapid deployment of solar PV throughout the country. 
• • India saw a four-fold increase in renewables capacity between 2014 and 2022, much of this from solar photovoltaic.
• Electric Vehicles (EV): The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme positively supports EV development, which is a major opportunity and could enable India to advance on the decarbonisation of road transport.
  • The EV industry is expected to grow at a compound annual growth rate of 49% between 2022 and 2030, creating 50 million jobs by 2030.
  • In 2022, India witnessed record breaking levels of financial flows to the transition, driven by the doubling of investment in electrified transport.
• Improve Renewable Energy Capacity: The National Electricity Plan (2022-2032) has a projection of total capacity addition with the target of the country to achieve a non-fossil based installed capacity of around 500 GW by the year 2029-30. The government also signaled significant support for rapidly developing offshore wind. 

Way Forward:

• Ensuring NDC Targets are Fulfilled: India’s Nationally Determined Contributions (NDC) states that it will reduce the emissions intensity of its GDP by 45% by 2030. In the longer term it aspires to achieve net zero by 2070. Its overall approach to decarbonising the economy is set out in the Long-Term Low-Emission Development Strategy (LT-LEDS).
• Carbon Capture Technologies: The wide-scale deployment of:
  • Carbon Capture, Utilization, and Storage (CCUS) technology: It can help capture CO2 emissions from power plants or industrial sites and either reuse or store them underground so they don’t enter the atmosphere. 
  • Advanced Solvent Carbon Capture (ASCC) technology: It is designed to capture carbon dioxide emissions from post-combustion flue gasses, which are difficult to treat due to the low CO2 concentration and low-pressure characteristic of these sources. 
• Battery Manufacturing: India has the potential to develop its own manufacturing further, creating millions of jobs in the new industrial era.
  • India plans to develop 12 giga factories for manufacturing lithium-ion (Li-ion) batteries for both the domestic market and export.
  • Advanced Battery Energy Storage Systems (BESS) will make it possible for more efficient consumption of electricity from clean sources. 
• Solar and Wind Industry: India has the opportunity to be a showcase of an emerging economy decarbonising its power sector, with the potential to leapfrog into the new industrial era if it successfully attracts foreign public and private finance for its renewable energy plans.
• Leadership in Green Hydrogen: Hydrogen holds the promise as a cleaner energy alternative for transportation, power generation, steel production and other industrial applications.
  • With the National Green Hydrogen Mission, India aims to become a hub of green hydrogen production as well as exports with production capacity is expected to reach 5 Million Metric Tonnes per annum. 
• Circular Economy and Waste Management: Implement a circular economy approach to reduce waste and promote recycling and reuse. Modernize waste management systems to reduce emissions from landfills.

Conclusion:

A transition to clean energy is a huge economic opportunity for any country, especially India. As a developing economy with over 1.4 billion people, India’s decarbonization and net-zero ambitions are not just transformational for India but for the entire planet. 

News Source: The Economic Times

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