Hurdles on the path to Green Growth

The recent heatwave and confirmation from the World Meteorological Organisation that 2023 was the warmest year on record underscore the urgent need to address climate change. This has intensified focus on reducing carbon emissions in major sectors like power and industry, particularly in high-emitting countries like India.

India's Green Energy Initiatives

• Government Support: The Indian government is promoting green energy through initiatives such as the Production Linked Incentive (PLI) scheme for solar modules, viability gap funding for offshore wind and battery storage projects, and the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme.
• National Green Hydrogen Mission: This mission, along with amendments to the Energy Conservation Bill and the launch of green bonds, highlights India’s commitment to reducing carbon emissions.
• Voluntary Steps and Risks: While the shift to green technology isn't mandatory yet, many entities are voluntarily transitioning, facing transition risks such as technological, policy, regulatory, market, reputation, and legal challenges.

Investment and Infrastructure Needs

• Renewable Energy Investments: To meet the target of 50% non-fossil power by 2030, India needs an estimated Rs 11-12 lakh crore investment in renewable energy (RE) and Rs 5-6 lakh crore in transmission and storage infrastructure.
• Round-the-Clock Supply: Achieving a reliable supply from RE sources requires hybrid projects (wind and solar) and energy storage systems to mitigate intermittent generation issues.
• Hard-to-Abate Sectors: For sectors like steel and cement, carbon capture utilization and storage (CCUS) is essential to significantly reduce emissions, necessitating substantial investments and technological advancements.

Sector-Specific Challenges and Solutions

• Cement Industry: Cement production is highly carbon-intensive, with clinker production being the major emission source. CCUS can reduce emissions by 60-70%, with the cement sector needing a two million tonnes per annum CCUS capacity by 2030.
• Steel Industry: With domestic steel production heavily reliant on coal, reducing the carbon footprint by 25-30% by 2030 through technological interventions is critical, aligned with India’s 2070 net-zero target.
• Green Hydrogen: The National Green Hydrogen Mission aims to integrate green hydrogen into refining, chemical, and fertilizer sectors, requiring Rs 8-9 lakh crore in capital expenditure. Indian companies are initiating pilots and plans for green hydrogen and ammonia production facilities.

Mains Question:

Discuss the significance of India's green energy initiatives in the context of global climate change.