Climate Change

Climate Change | 22 Mar 1800-1930

India has a chance to deliver economic growth that is environmentally sustainable and socially inclusive, rather than following the fossil-fuel development path pursued by advanced economies. India can take a different development path, relying on lower-carbon sources of energy and new technologies to deliver economic growth, greater energy self-reliance and improved standards of living. The energy transition can provide opportunities for balanced and sustainable economic development that could deliver a better quality of life for all.

According to recent estimates by the ILO, India could lose the productivity equivalent of 30 million jobs by 2030 due to global warming, with agriculture and construction sectors being hit the hardest. Climate change is also causing unpredictable changes to the weather, thereby directly affecting agricultural productivity which accounts for 16 percent of the Indian GDP.

Policy steps and measures that are taken at this moment will determine how India as an economy is able to tide over the challenges created by climate change. India has already taken steps to reduce its dependence on traditional energy sources and transition to a cleaner future proof energy regime. But to achieve the target of net-zero emissions by 2050, huge investments are required. These investments are needed to scale up renewable energy production and create an adequate distribution infrastructure that reaches far and wide

India has to aim to leverage country’s landmass, increasing solar installation and decreasing renewable power generation costs to produce low-cost green hydrogen that could earn dollars in export market.

The set of policy measures to tackle the economic effects of climate change can include pricing policies that force industries and individuals to reduce carbon emissions through taxation and provide subsidies to incentivise the mitigation of carbon emissions. There also has to be dedicated investment by the government to create capacity for renewable energy generation. The second set of steps can include financial measures by the central bank like providing support to activities that target green finance and encouraging banks and other financial institutions to lend a certain minimum amount to Green energy and other climate-friendly sectors.

Areas of discussion:

Fiscal measures to make the process of a gradual transition to clean energy? Is Green Bond the answer? Hydrogen has been touted as a fuel of the future. How to bring down the cost of green hydrogen? How to achieve targets of net-zero emissions by 2050? How to improve supplychains and reduce the cost of LNG – production, storage, dispensing and transportation? How to achieve decarbonisation by switching to usage of low-carbon energy sources? How to seize new opportunities for innovation and for Make in India?