India stands at the crossroads of sustainable development with the power of greener energy systems. This is not about environmental responsibility; it is an economic imperative with the potential to shape the nation’s future.
To make this possible, carbon projects are the need of the hour that assess the situation and improve the rate of adoption. It would aim at causing a multiplier effect that helps create more solar energy, electric vehicle adoption and thereby reduce the need for conventional power.
Combating climate change demands a drastic reduction in greenhouse gas emissions. Here, renewables offer a clean alternative to fossil fuels, mitigating the environmental impact of energy production.
Where India stands
As a bridge between the rest of the world and the Global South, India presents a fantastic opportunity to the world. Through seamless global energy transition, we can pave the way to a rapid net zero transition.
In 2015, Prime Minister Modi committed India to the global decarbonisation effort under the Paris Agreement. Further, this was reinforced by India’s commitment to net-zero by 2070 at Glasgow in 2021. India has also proposed a five-point strategy (Panchamrit), which includes meeting 50% of its yearly energy demand, which is 500 GW, from renewable resources by 2030.
As India aspires to increase its manufacturing, this can be done by increasing its renewable energy capacity. With a stable government, there have been sound policies that mandates solar rooftops for suitable buildings, decentralizing power generation and reducing grid dependence.
Conversations on accelerating global energy transitions again picked up pace at the COP28. India, however, refrained from signing the COP28 Declaration on Climate & Health. As a country, we have approached the decisions surrounding climate agreements in a particularly nuanced manner. A crucial aspect of India’s journey hereon is working towards its development needs while transitioning on a large scale towards renewable energy.
The renewable energy opportunity
We are currently the world’s third-largest economy in terms of energy needs. As of 2022, the energy import bill has reached USD 185 billion, signalling the urgency for sustainable energy solutions. To reach net zero emissions by 2070, the IEA estimates that $160 billion per year is needed, on average, across India’s energy economy between now and 2030.
To address these challenges head-on, some important mechanisms that can be adopted include pump storage, solar, green hydrogen, and repowering of windmills across good quality sites.
India can leapfrog ahead with pump storage that addresses the intermittency of solar and wind power by storing excess renewable energy during low demand periods for later use.
Green hydrogen could represent the final stretch in achieving net-zero goals for various industries in the country. It can create 50 Megawatts Tons of electricity that is required to meet the net-zero goals of 2030. This will help power the grid with a clean source of power, reduce the cost of power and dependency on grey electricity sources. This is also a fantastic opportunity to reduce the burden of costly energy imports on the economy.
The rise of clean energy
There is an increase in the new grid which might not be completely stable but ensures that all of India is electrified. The road to clean energy transition which would move away from fossil fuels to cleaner alternatives is the need of the hour. There are apprehensions about how this energy transition would be funded or how historical polluters would be taking cognizance of the situation.
This is where ProClime, India’s largest private-sector climate company, can deploy these projects and make clean, green energy a reality. With carbon projects, we fuel employment and sustainable development, carbon markets help industries meet their net zero goals and climate investments to push towards green development.
Growth of climate financing
The clean energy future, fuelled by green innovation and the ammunition to combat climate change, is a sustainable one. India’s climate investments will make way for substantial infrastructure in the form of energy expansion, updated electricity grids, and the establishment of large-scale battery facilities, to store clean energy – is therefore the need of the hour.
The Reserve Bank of India is pushing for action, recommending at least 2.5% of GDP be invested in green energy projects every year until 2030. India needs substantial amounts of climate finance by 2050 to achieve its ambitious sustainability goals. An estimated US$10.1 trillion will be required to get to net-zero by 2070.
Despite having publicly committed to mobilize $100 billion per year by 2020 in support for vulnerable countries coping with climate change, western governments have repeatedly cited their own domestic fiscal pressures and expressed their inability to fund the climate transitions of developing countries. India therefore needs to find climate finance within.
Public-private partnerships and blended finance can not only help bridge the gap between available financing and India’s needs. But it can also unlock significantly higher private investment and reduce overdependence on debt as the primary financing instrument. Collaboration leverages private capital and expertise to accelerate the development and deployment of clean energy technologies. While international support is crucial, fostering domestic mechanisms like carbon pricing and blended finance models are essential for long-term sustainability.
With the new policy that ensures that every household can be lit up with solar. The world’s largest solar park in Kutch demonstrates this commitment to India being a world manufacturing hub with clean energy.
Why go green?
Our heavy reliance on fossil fuel imports exposes us to price fluctuations and geopolitical issues. Renewable energy through solar and wind offers energy independence and cost-effectiveness. Solar and wind power prices have drastically fallen, making them competitive with fossil fuels. Additionally, transitioning away from expensive fuel imports further lowers energy costs. But the most compelling reason is environmental sustainability and the cost of going green is cheaper.
India can emerge as a green superpower with a holistic climate strategy. This will help India maximize access to affordable, timely capital for the projects, technologies, and enterprises it needs to speed up its green energy transition.
Kavin Kumar Kandasamy, CEO ProClime
