Last year, the 26th United Nations Conference of the Parties on Climate Change (COP26) was held in Glasgow. At the summit, India vowed to achieve net-zero emissions by 2070, reduce carbon emissions by one billion tonnes by 2030 and increase the contribution of renewables in the energy mix to 50% during the summit.
India’s efforts to reduce emissions are projected to help the country in the long run, with new technology in energy efficiency, carbon reduction and green fuels attracting billions of dollars in investment across industries.
Furthermore, as a developing country in terms of energy consumption, its per capita energy consumption is predicted to increase three to four times in the long run. A defined strategy would be necessary to accomplish the net-zero goal by 2070.
It requires urgent government involvement as well as major CAPEX/investments in GHG-emitting sectors such as power, industry and transportation. According to International Energy Agency’s data, these sectors together release 90% of CO2.
The strategies presented during the COP26 summit include increased generation and usage of renewable energy sources for incremental energy demands and restricting and cutting down emissions from conventional sources of energy.
COP26’s ambitious targets bring up huge investment possibilities across segments, including 500 GW of renewables by 2030, greater EV penetration, 20% ethanol blending in fuel, improved energy efficiency and improved carbon absorption via more green cover and sophisticated technology.
This would be a challenging task and will require significant regulatory interventions to ensure investments across the sectors are viable to sustain even after 2030.
CO2 emissions account for 76% of total GHG emissions in India, with coal being the primary source. By 2030, India would need to increase non-fossil fuel power generating capacity by five times, demanding $450–500 billion in expenditures, including investments in transmission infrastructure and storage capacities.
Similarly, increasing reliance on renewables for energy sourcing will demand increasing reliance over time to attain net-zero, which will have to be raised over time. To achieve the desired emission intensity (a multiple of GHG emissions per unit of GDP), GHG emissions must rise at a slower rate than GDP.
A developing country like India, which is one of the fastest-growing economies in the world, cannot afford a Gross Zero with no carbon emissions. Therefore, carbon sequestration at the same pace as GHG emissions is required to reach net-zero emissions by 2070.
According to the NITI Aayog research on carbon sequestration, to attain net-zero levels in 2070, a consistent rate of sequestration (1–3 %) will be required after 2030. This requires a significant investment, estimated at ₹115–135 billion every year.
India is one of the world’s fastest-growing economies, it must maintain a balance between reducing carbon emissions and meeting rising energy demands. As the country moves closer to becoming a developed economy in the coming years, per capita energy consumption is expected to rise many times.
Government measures must guarantee that the country’s ever-increasing energy demands are not affected while attempting to remove the tag of one of the world’s most polluting nations.