Current Affairs 6 November 2024

General Studies Paper 3: India’s Green Leap: A Shift from Fossil Fuels to Clean Energy

Syllabus: Energy and Environment
Source: PIB

Context:

The Asia-Pacific Climate Report by the Asian Development Bank (ADB) highlights India’s substantial progress in transitioning from fossil fuels to clean energy. The report commends the country’s reforms and subsidy reallocations, which have catalyzed this shift toward a greener energy future.

Key Findings in the Asia-Pacific Climate Report:

• Reduction in Fossil Fuel Subsidies: India has reduced its fossil fuel subsidies by 85%, from $25 billion in 2013 to $3.5 billion in 2023, indicating a shift in funding priorities.
• Taxation for Renewable Energy: From 2010 to 2017, India imposed a cess on coal production to fund renewable energy initiatives such as the Green Energy Corridor and the National Solar Mission.
• Targeted Subsidy Redirection: Higher taxes on petrol and diesel have been used to fund renewable energy programs, including enhanced LPG access for rural communities.
• Investment in Clean Energy: Programs like the Green Hydrogen Mission and PM-KUSUM are designed to boost infrastructure for green energy, reduce emissions, and ensure better energy access.
• Positive Climate Impact: India’s ongoing efforts are contributing to its goal of achieving net-zero emissions by 2070, setting a strong example for other nations.

Positives of India’s Energy Transition:

• Significant Subsidy Reduction: The shift of funds from fossil fuels to renewable energy marks a critical step towards sustainable growth.
• Improved Rural Energy Access: Enhanced access to LPG and clean energy in rural areas supports social welfare and environmental goals.
• Commitment to New Energy Technologies: Programs focusing on green hydrogen and solar energy underline India’s focus on next-generation solutions.
• Stronger Renewable Energy Infrastructure: Initiatives like the Green Energy Corridor are enhancing transmission networks, facilitating better integration of renewable energy.
• Economic and Environmental Benefits: The move away from fossil fuels contributes to a cleaner environment while boosting economic sustainability through reduced emissions.

Limitations of India’s Energy Transition:

• Challenges in Tax Reallocation: Post-2017, funds from the coal cess were diverted for GST compensation, reducing clean energy funding.
• Continued Fossil Fuel Dependency: Despite reforms, fossil fuels still account for a substantial portion of India’s energy mix, indicating slow progress in fully transitioning.
• Unequal Access to Subsidies: There are disparities in access to clean energy subsidies, particularly in remote and underserved regions.
• High Cost of Technological Transition: The initial investment required for advanced clean energy technologies can be prohibitive.
• Political and Fiscal Challenges: Shifting subsidies and adjusting tax structures involve complex political and fiscal challenges that can affect the pace of implementation.

Way Forward:

• Strengthen Funding Mechanisms: To ensure the continued success of clean energy projects, India should revisit cess allocations and reduce fiscal reliance on fossil fuel revenue.
• Scale Renewable Initiatives: Expanding programs like PM-KUSUM to more regions will help increase India’s capacity for solar and wind energy.
• Support Clean Energy R&D: More investment in research and development for technologies such as green hydrogen and advanced battery storage will make them more economically viable.
• Enhance Rural Access: Infrastructure development for clean energy in rural areas is crucial to ensure equitable access to sustainable energy resources.
• Policy Consistency: Maintaining a stable and transparent policy framework is essential to encourage private sector investments in renewable energy.

Conclusion:

India’s transition from fossil fuels to clean energy demonstrates the country’s commitment to sustainable growth. The ADB’s Asia-Pacific Climate Report underscores India’s strides in reducing fossil fuel subsidies and advancing renewable energy, positioning the country as a leader in energy reform. With ongoing investments and inclusive policies, India is well on track to meet its ambitious net-zero target by 2070.

Previous Year Questions

“Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)”. Comment on the progress made in India in this regard. (UPSC-2018)