India’s Green Leap: A Shift from Fossil Fuels to Clean Energy
Kartavya Desk Staff
Syllabus: Energy and Environment
Source: PIB
Context: The Asia-Pacific Climate Report from the Asian Development Bank (ADB) highlights India’s efforts and accomplishments in the major shift from fossil fuels to clean energy domain, which include key reforms and subsidy reallocations.
Key Findings in the Asia–Pacific Climate Report:
• Reduction in Fossil Fuel Subsidies: India’s reforms have led to an 85% reduction in fossil fuel subsidies, from $25 billion in 2013 to $3.5 billion in 2023.
• Taxation for Renewable Energy: India implemented a cess on coal production from 2010 to 2017, funding clean energy projects like the Green Energy Corridor and National Solar Mission.
• Targeted subsidy redirection: Tax hikes on petrol and diesel redirected funds toward renewable initiatives, with LPG access for rural communities also enhanced.
• Investment in Clean Energy: National programs, including the Green Hydrogen Mission and PM-KUSUM, aim to support green infrastructure, cut emissions, and improve energy access.
• Positive Impact on Climate Goals: The report emphasizes India’s progress toward its 2070 net-zero target, setting a model for other nations.
Positives of India’s Energy Transition:
• Significant Subsidy Reduction: Redirecting funds from fossil fuels to renewables represents a major shift towards sustainability.
• Rural Energy Access: Improved access to LPG and clean energy in rural areas supports both social welfare and environmental goals.
• Investment in New Energy Technologies: Programs in green hydrogen and solar energy showcase India’s commitment to next-generation energy solutions.
• Strengthened Renewable Energy Infrastructure: Projects like the Green Energy Corridor enhance transmission networks for renewable energy.
• Economic and Environmental Benefits: Reduced dependency on fossil fuels benefits both the economy and the environment by lowering emissions.
Limitations of India’s Energy Transition:
• Tax Reallocation Challenges: Funds from the coal cess were diverted to GST compensation post-2017, impacting clean energy funding.
• Dependency on Fossil Fuels: Despite reforms, fossil fuels still play a significant role in India’s energy mix, indicating slow progress in a complete shift.
• Limited Access to Subsidies: Disparities exist in accessing clean energy subsidies, especially in remote or underserved areas.
• High Cost of Technology Transition: Advanced clean energy technologies require significant investments and can be costly for initial rollout.
• Political and Fiscal Adjustments: Shifting subsidies and adjusting tax structures are complex processes with potential for political challenges.
Way Ahead:
• Strengthen Funding Mechanisms: Ensure stable funding for clean energy projects by revisiting cess allocations and reducing fiscal dependency on fossil fuel-based revenue.
• Scale Renewable Initiatives: Expand programs like PM-KUSUM to cover more regions and increase solar and wind energy capacity.
• Support Clean Energy R&D: Invest in research and development for technologies like green hydrogen and advanced battery storage to make them economically viable.
• Enhance Rural Access: Strengthen infrastructure for rural clean energy adoption, ensuring equitable access to sustainable resources.
• Policy Consistency: Maintain a steady and transparent policy framework to encourage private investments in clean energy.
Conclusion:
India’s shift from fossil fuels to clean energy demonstrates its strong commitment to sustainable growth. The ADB’s Asia-Pacific Climate Report highlights India’s progress in reducing fossil fuel subsidies and advancing renewables, positioning it as a leader in energy reform. With ongoing investment and inclusive policies, India is well-placed to achieve its 2070 net-zero goal.
Insta Links:
• Green-energy
• “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)