| PYQ Relevance: Q) Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC CSE 2021) Q) Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above bjective? Explain. (UPSC CSE 2022) Q) Explain the purpose of the Green Grid Initiative launched at the World Leaders Summit of the COP26 UN Climate Change Conference in Glasgow in November 2021. When was this idea first floated in the International Solar Alliance (ISA)? (UPSC CSE 2021) |
Mentor’s Comment: At COP28, 63 countries pledged to reduce cooling emissions by 68% by 2050 through the Global Cooling Pledge. Hence, expanded commitments are necessary at COP29 to enhance participation in global cooling initiatives and strengthen partnerships across sectors.
Today’s editorial emphasizes the critical role of international cooperation in developing sustainable cooling technologies to combat climate change. It underscores the importance of collaboration among nations to develop clean technologies that not only address immediate cooling needs but also contribute to long-term sustainability goals.
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Let’s learn!
Why in the News?
The recent international agreements and initiatives, such as the Wilmington Declaration by the Quad nations and commitments made at COP28 focuses on the urgent need for sustainable cooling technologies in the context of global warming and climate change.
| Key Initiatives and Collaborations taken by countries: • Wilmington Declaration: Issued by the Quad nations (Australia, India, Japan, and the U.S.) on September 21, 2024. It focuses on sustainable energy solutions with an emphasis on high-efficiency cooling systems. • Montreal Protocol and Kigali Amendment: The Kigali Amendment, adopted in 2016, aims to phase down hydrofluorocarbons (HFCs), potent greenhouse gases commonly used in refrigeration and air conditioning. Initiatives like the Kigali • Cooling Efficiency Program (K-CEP) provide technical support and capacity building for countries, particularly those in the developing world. • U.S.-India Partnership: India has committed to significant investments in solar and cooling infrastructure in the Indo-Pacific region. Joint plans include expanding manufacturing capacities for energy-efficient air conditioners and ceiling fans. What were the key Commitments from COP28? • On Energy Transition Goals: Countries committed to double the global average annual rate of energy efficiency improvements by 2030. A goal was set to triple global renewable energy capacity to 11,000 GW by 2030. • On Global Stocktake (GST): The first GST assessed progress towards the Paris Agreement, emphasizing the need for significant reductions in fossil fuel consumption by 2050. • On Loss and Damage Fund: An agreement was reached to establish a Loss and Damage Fund with initial contributions of about $800 million to support vulnerable nations affected by climate change. • On Methane Emissions Reduction: Countries committed to reducing global methane emissions by 30% from 2020 levels by 2030, with new regulations introduced by several nations. While no complete fossil fuels phase-out was agreed upon, discussions included calls for the gradual elimination of inefficient fossil fuel subsidies. • On Sustainable Agriculture Initiatives: Nearly 160 nations signed a declaration to integrate food systems into their Nationally Determined Contributions (NDCs) by 2025. Around $12.8 billion was pledged to the Green Climate Fund to support developing nations in their climate efforts. |
Significance of Global Collaborations for Clean Technologies
- Accelerating Innovation: Countries can combine their scientific knowledge, leading to faster advancements in clean technologies.
- Collaborative efforts can attract funding and resources, speeding up the development of critical solutions.
- Addressing Global Challenges: Coordinated responses are essential for tackling climate change effectively, as seen with initiatives like the Global Cooling Pledge.
- International partnerships help establish common standards, facilitating trade and effective implementation of technologies.
- Economic Growth: Investing in clean technologies creates new industries and job opportunities, driving economic growth.
- Supporting Developing Economies: Involving diverse stakeholders ensures that solutions are accessible and meet the needs of vulnerable populations and their capacity building.
What role do emerging markets play in the global cleantech landscape?
- Growing Energy Demand: Emerging markets are expected to account for 90% of global energy demand growth by 2035, making them crucial for shaping future energy consumption.
- Decarbonization Efforts: These markets contribute about 75% of global carbon emissions, highlighting the need for sustainable practices to achieve climate goals.
- Innovation Hubs: Emerging economies are becoming centers for innovation in clean technologies, supported by initiatives that address barriers to investment.
- Renewables now make up around 75% of new power generation in emerging markets, presenting significant investment potential for clean energy projects.
- International Collaboration: Global cooperation is essential to help these markets transition to clean energy by aligning regulations and sharing best practices.
- Transitioning to renewable energy can alleviate energy poverty, providing access to electricity and clean cooking solutions for underserved Nations.
What are the challenges and opportunities associated with financing clean technology initiatives?
1) Challenges:
- High Cost of Capital: Clean energy projects in emerging markets often face financing costs that are significantly higher than in developed countries, sometimes up to seven times more expensive, which inflate risk premiums for investors.
- Limited Access to Funds: Emerging economies account for two-thirds of the global population but receive only one-fifth of clean energy investments. This disparity creates a funding gap that hinders the transition to sustainable energy systems.
- High Reliance on Public Financing: Many clean energy projects in developing countries rely heavily on public sources of finance. However, these sources are often insufficient to meet the growing investment needs, especially post-COVID-19, which has strained public finances further.
- Regulatory and Policy Barriers: Uncertain regulatory environments and lengthy procedures for project approvals can deter investment. For example, subsidies favoring fossil fuels and restrictions on foreign investment further complicate financing efforts.
2) Opportunities:
- Growing Demand for Clean Energy: The increasing global focus on sustainability and the urgent need to reduce carbon emissions create a favorable environment for investing in clean technologies. Emerging markets are positioned to lead this transition by leveraging their renewable resources.
- Innovative Financing Models: Blended finance approaches, which combine public and private funding, can help mitigate risks and attract investment in clean technologies. Development Finance Institutions (DFIs) can play a crucial role by providing guarantees or risk capital.
- Technological Advancements: Advances in clean technology are reducing costs and improving efficiency, making it easier to attract investment.
- For example, technologies like solar PV and wind power are becoming more financially viable, encouraging investment from both domestic and international sources.
- Carbon Markets: The establishment of domestic carbon markets provides new revenue streams for clean energy projects, enhancing their financial viability. This can attract both local and international investors looking for sustainable investment opportunities.
- International Collaboration: Global partnerships can facilitate knowledge sharing and provide access to capital for clean technology initiatives.
- For example, initiatives like the World Economic Forum‘s efforts to mobilize investment in emerging economies highlight the importance of collaborative approaches
Way Forward: While financing clean technology initiatives faces notable challenges, particularly in emerging markets. Addressing the barriers effectively could unlock substantial investments needed for a successful transition to clean energy systems globally. COP29 must build on the momentum of COP28 by expanding cooling commitments.
