Developed countries must ramp up targets for climate finance
From the 1972 Stockholm conference on environment and development, India has been an active participant in the forefront of global initiatives to save the world from anthropogenic interventions. At the Glasgow climate conference, Prime Minister (PM) Narendra Modi announced ambitious climate goals. He proposed specific time-bound steps, which he called panchamrita. Modi’s panchamrita include: India will get its non-fossil fuel energy capacity to 500 gigawatts by 2030; India will meet 50% of its energy requirements till 2030 with renewable energy; India will reduce its projected carbon emission by one billion tonnes by 2030; India will reduce the carbon intensity of its economy by 45% by 2030; India will achieve netzero emission levels by 2070.
For achieving each of the milestones, massive efforts, based on a well-integrated national action plan and adequate financial resources, will be required. The National Action Plan for Climate Change (NAPCC, 2008), which has eight core missions, must be reworked to align with the PM’s vision of netzero emissions. As India evolves NAPCC and nationally-determined contributions (NDCs), it is well worth ensuring that under our quasifederal polity and vibrant democracy, participatory processes involving different stakeholders, especially states and panchayat raj institutions, are involved in formulating and implementing the plans.
Similarly, the cross-cutting and cumulative impact of different sectors of the economy must be factored in carefully while evolving the new national action plan. The most obvious example is the energy sector. With its vast, pervasive impact on development processes, energy and its sources are at the heart of the climate crisis. The deliberations centering around coal at the Glasgow meet, and the diluted compromise formulation that was evolved on the future of coal, exemplify the pivotal position of coal in the process of decarbonising the economies of the top polluters.
India has embarked on ambitious projects for stepping up energy generation from renewable sources, most notably solar and wind. While India is the third largest consumer of electricity, it is also the third largest producer of renewable energy. Moreover, with its abundant sunshine, it is estimated that India’s electricity needs can be met on an incredibly minuscule land area of less than 1% of the total area.
This estimate is undoubtedly theoretical, but it highlights the vast potential and possibilities. With increasing solar energy capacity, India is well placed to scale up production and green hydrogen ideal for decarbonising sectors such as iron and steel and refineries. Moreover, greening and regeneration of millions of hectares of degraded forest and other wastelands offers immense scope for implementing climate action for carbon sequestration with comparatively low level of investment and technology intervention while generating jobs. The targets of achieving the generation of 500 GW of non-fossil fuel energy by 2030 and net-zero emissions by 2070 are feasible provided the country gears itself to meet this enormous challenge and the flow of requisite finances is assured.
The Centre for Energy Finance has estimated that India requires close to $10 trillion for reaching its goal of net-zero by 2070. A huge investment is required for increasing power generation from renewable sources and creating required transmission and distribution infrastructure. Private capital from domestic and international institutions in bulk, along with public funds would have to be mobilised. Developed countries must ramp up challenging targets for climate finance. Financial institutions such as the Reserve Bank of India and Securities and Exchange Board of India must create an enabling ecosystem for facilitating the flow of funds critical to the transition to a green economy.
With time, the media attention on the climate crisis may decrease, but the climate challenge will not abate until global stakeholders live up to their commitments to act in the true spirit of common but differentiated responsibilities and capabilities.