Issue of India's Economic Growth versus Emissions

Table of Contents

What is Decoupling?

It refers to the disassociation between economic growth and environmental degradation.
Types of Decoupling:
- Absolute Decoupling:
  - Economic growth occurs while emissions decrease.
  - This is the ideal scenario, achieving growth without increasing environmental harm.
- Relative Decoupling:
  - Both GDP and emissions grow, but GDP grows at a faster rate.
  - This represents progress but acknowledges that emissions continue to rise.
Significance of Decoupling: Allows nations to raise living standards and alleviate energy poverty without worsening climate change.
Historically, economic growth has often been linked to increased environmental degradation.
This growth is seen as a significant contributor to greenhouse gas (GHG) emissions.
In recent times, the urgent need to reduce emissions while maintaining economic growth has become a global priority.

Economic Survey (2023-24):
- GDP Growth Rate: 7% CAGR
- GHG Emissions Growth Rate: 4% CAGR
- However, the survey does not specify whether this represents absolute or relative decoupling.
Analysis of Decoupling (Sector-Wise and Economy-Wide):
- Using decoupling indicators from OECD (2002), the status of decoupling in India was examined:
  - Since the 1990s (post-trade liberalization), India has experienced steady economic growth.
  - Economy-Wide Decoupling:
    - GDP Growth Since 1990: Six-fold increase
    - GHG Emissions Growth Since 1990: Tripled
    - This indicates relative decoupling.
  - Sector-Wise Decoupling:
    - Major contributors to GHG emissions are agriculture and manufacturing
    - Decoupling in these sectors is assessed by comparing the growth of Gross Value Added (GVA) to the growth of emissions.

India has not yet peaked its emissions, so emissions are expected to rise with economic growth.
Achieving absolute decoupling is a long-term challenge but essential for meeting climate commitments.
Efforts Required: Policies promoting:
- Renewable Energy
- Emission Mitigation
- Sustainable Development