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India’s Climate Policy to Cut 4 Billion Tonnes of CO2 by 2030
Context:
A recent report by the Council on Energy, Environment and Water (CEEW) indicates that India’s climate policies are projected to reduce CO₂ emissions by 4 billion tonnes between 2020 and 2030. This would exceed India’s COP26 commitment to cut emissions by 1 billion tonnes by 2030.
Key Findings of the CEEW Study:
- Power Sector Transformation: Policies encouraging renewable energy are expected to lower coal-based power generation by 24% by 2030, avoiding the need for 80 GW of additional coal plants. Currently, coal accounts for about 71% of India’s electricity.
- Renewable Energy Growth: Solar and wind power are projected to supply 26% of India’s electricity by 2030 and 43% by 2050, up from just 3% in 2015. This shift will help reduce India’s heavy reliance on coal, which currently contributes nearly half of the country’s CO₂ emissions.
Advantages from the India’s Climate Policy to reduce coal dependency:
- Energy Security: Less dependency on fossil fuel imports strengthens India’s energy resilience.
- Health Benefits: Reduced coal use improves air quality and public health.
- Economic Growth: Renewables and EV infrastructure can boost job creation and innovation.
- Sustainable Cities: Increased energy efficiency and EVs support cleaner urban areas.
Challenges faced in transformation to renewable:
- Funding Needs: High upfront costs for renewables and EV infrastructure.
- Infrastructure Development: Scaling up EV charging and renewable storage is complex.
- Demand Management: Rising air conditioning demand could offset efficiency gains.
- Carbon Trading: Establishing a robust carbon market needs strong policy and regulatory support.
- Coal-dependent Regions: Managing economic impacts on coal communities is critical.
Sectoral Impact of India’s Climate Policies:
Transport Sector
- Electric Vehicle (EV) Growth: Policies like the FAME schemes are driving EV adoption. By 2030, EVs could make up 19% of two-wheeler sales and 11% of four-wheeler sales, potentially reducing oil and gas demand by 13% this decade.
- Future Projections: By 2050, EVs could cover over 65% of two- and four-wheeler sales, cutting oil and gas demand in transport by 55% compared to a no-policy scenario.
Residential Sector
- Energy Efficiency in Appliances: The Standards and Labelling programme, started in 2006, has led to energy efficiency improvements in air conditioning and cooling.
- LED Adoption: The UJALA programme has distributed 367 million LED bulbs since 2015. By 2030, residential lighting electricity use could drop by 48%, reaching a 59% reduction by 2050.
Air Conditioning Demand
- Projected Growth: Residential electricity use for air conditioning is expected to double by 2030 and increase tenfold by 2050 due to rising temperatures, incomes, and lower electricity costs from renewable energy.
Future Actions Needed:
- Scale Up Renewable Investments: Increase funding in solar, wind, and other renewable sources.
- Strengthen Carbon Credit Trading: Develop a robust domestic carbon trading market.
- Focus on Energy Efficiency: Enhance efficiency in sectors like industry, transport, and buildings to reduce overall energy demand.
Conclusion:
- Building on Existing Policies: Continued investment in renewables, strengthening the Carbon Credit Trading Scheme, and boosting energy efficiency in industries, transport, and buildings are key to accelerating progress toward the 2070 net-zero target.
- COP29 Priorities: Arunabha Ghosh, CEO of CEEW, emphasises the need for more climate financing to support India and other developing nations, helping deepen renewable markets without restrictive conditions.
