Navigating Transition Risks in India's Green Transformation
Key Ideas
  • India faces significant transition risks in shifting to green technology, with a focus on reducing carbon emissions in high-polluting sectors.
  • Government initiatives like the PLI scheme, National Green Hydrogen Mission, and renewable energy funding aim to support the transition to sustainable practices.
  • The need for massive investments in renewable energy, transmission infrastructure, and storage capabilities is projected to be around Rs 16-18 lakh crore by 2030.
  • Hard-to-abate sectors like cement and steel are exploring carbon capture technologies to reduce emissions and align with climate targets and carbon tax policies.
The article discusses India's green transformation journey amidst risks posed by climate change and the need to mitigate carbon emissions in high-polluting sectors. The World Meteorological Organisation's confirmation of 2023 as the warmest year on record has highlighted the urgency of climate action. The Indian government has introduced various initiatives like the PLI scheme, National Green Hydrogen Mission, and renewable energy funding to promote green technology adoption. While voluntary steps are being taken by entities, significant investments of around Rs 16-18 lakh crore are forecasted until 2030 to achieve climate goals. The article emphasizes the importance of round-the-clock renewable energy supply and the use of hybrid projects with energy storage. Additionally, hard-to-abate sectors like cement and steel are exploring carbon capture solutions to reduce emissions. The government's support through policy interventions and incentives will play a crucial role in accelerating the technology transition in these sectors. The article underscores the shift towards green hydrogen and the need for investments in sectors like refining, chemicals, and transport. Overall, the sentiment is positive towards India's efforts in transitioning to sustainable practices with a focus on reducing carbon emissions.
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