Why in the News?

With Donald Trump’s win in the U.S. and ongoing conflicts in West Asia, India faces a significant challenge at COP29: it must reduce carbon emissions fairly, sustain economic growth, and attract climate funding for essential investments.

Primary Challenges Facing India’s Renewable Energy Transition

• Policy Instability: Frequent changes in policies create uncertainty for investors, hindering long-term planning and investment in renewable energy projects.
• Financial Constraints: India requires substantial investment—estimated at about $10 trillion by 2070—for its energy transition, yet access to affordable financing remains a significant barrier.
• Infrastructure Limitations: The existing energy infrastructure is often inadequate to support the rapid deployment of renewable technologies, particularly in rural areas where access to clean energy is limited.
• Dependence on Fossil Fuels: Coal remains a dominant source of energy, accounting for approximately 73% of total power generation. This reliance complicates the shift towards renewables.
• Geographical Disparities: There are uneven resources and infrastructure across regions, affecting the adoption and efficiency of renewable technologies.
• Environmental and Social Concerns: Rapid expansion of renewable energy can lead to land use conflicts, impacting agriculture and local ecosystems. Additionally, there are concerns about job losses in traditional energy sectors during the transition.

How India Can Secure Financing for Its Green Transition?

• International Collaboration: Engaging with global partners through initiatives like the International Solar Alliance can attract foreign investments and technology transfers.
• Innovative Financing Models: Implementing operational expenditure (opex) models rather than capital expenditure (capex) can lower upfront costs for consumers. For example, community solar projects can allow shared ownership and reduce individual financial burdens.
• Public-Private Partnerships (PPPs): Encouraging collaborations between government entities and private investors can mobilize resources for large-scale renewable projects while sharing risks.
• Targeted Subsidies: Redirecting subsidies from fossil fuels to clean energy technologies can create a more favorable financial environment for renewable investments. This includes enhancing support for green technologies through tax incentives and grants.

Strategies That Can Be Implemented (Way Forward)

• Decentralized Energy Systems: Promoting distributed renewable energy sources (like rooftop solar) can empower local communities and reduce dependence on centralized power systems. Innovative business models such as community solar can enhance accessibility.
• Digital Integration: Leveraging digital technologies to manage energy distribution more efficiently can optimize resource use and enhance system resilience. Investments in smart meters and AI-driven energy management systems are essential.
• Circular Economy Initiatives: Developing a circular economy framework for managing waste from renewable technologies can improve resource efficiency and reduce environmental impacts. This includes recycling materials from solar panels and batteries.
• Focus on Supply Chains: Positioning India within global clean energy supply chains rather than adopting protectionist policies can enhance competitiveness and attract investments. Collaborating with other countries on technology development is crucial.
• Public Awareness Campaigns: Educating consumers about the benefits of renewable technologies and encouraging adoption through financial incentives can drive demand for green solutions

Mains PYQ:

Q Discuss global warming and mention its effects on the global climate. Explain the control measures to bring down the level of greenhouse gases which cause global warming, in the light of the Kyoto Protocol, 1997. (UPSC IAS/2022)

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