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Hurdles on Path to Green

Context

  • 2023 was the warmest year on record, highlighting the urgency of climate action.
  • India is the third-largest carbon emitter, with sectors like power, steel, cement, chemicals, fertilisers, and refineries under scrutiny.

Government Initiatives

The government supports a shift to green energy through various schemes:

  • PLI scheme for renewable energy manufacturing
  • Viability gap funding for offshore wind and battery storage
  • FAME scheme for electric vehicles
  • National Green Hydrogen Mission
  • Amendments to the Energy Conservation bill
  • Green bonds

Transition Risks and Challenges

  • Entities face transition risks like policy, regulatory, technology, market, reputation, and legal issues during the green transformation.
  • Technological risk is a major challenge for entities adopting green technology voluntarily.
  • Huge investments are needed for the transition, estimated at Rs 11-12 lakh crore in renewable energy and Rs 5-6 lakh crore in transmission infrastructure and storage until 2030.

Renewable Energy and the Need for Storage

  • Non-fossil fuel-based installed capacity is projected to rise from 41% in 2022-23 to 59% by 2029-30, achieving the government’s climate goal.
  • Round-the-clock supply from renewable energy sources is crucial, requiring hybrid projects (wind and solar) and energy storage systems.

Decarbonizing Hard-to-Abate Sectors

  • Cement: Carbon capture utilisation and storage (CCUS) is essential to reduce emissions in cement manufacturing, which releases a tonne of carbon dioxide per tonne of cement produced.
    • NITI Aayog estimates the cement sector needs 2 million tonnes per annum CCUS capacity by 2030, with a capital cost of Rs 1,600-1,800 crore.
  • Steel: The industry aims to reduce its carbon footprint by 25-30% by 2030 through technological interventions.
  • Green Hydrogen: Planned usage in refining, chemical, and fertiliser sectors, with an estimated capex of Rs 8-9 lakh crore.

Voluntary Steps and Government Support

  • Many entities are taking voluntary steps towards green technology, but government support is crucial for a faster transition.
  • Support could include policy interventions, subsidies, duty exemptions, or tax benefits.

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About the Author

Sakshi Gupta is a content writer to empower students aiming for UPSC, PSC, and other competitive exams. Her objective is to provide clear, concise, and informative content that caters to your exam preparation needs. She has over five years of work experience in Ed-tech sector. She strive to make her content not only informative but also engaging, keeping you motivated throughout your journey!