India Taking Giant Strides To Become A Green Economy

India Taking Giant Strides To Become A Green Economy [Credit-X]

Economists and environmental experts admire that India is on the right track to a green economy. They believe India is cautious about becoming a green GDP [Gros Domestic Product].

According to Arunabha Ghosh, Founder & CEO of CEEW [Council on Energy, environment, and Water], green growth will continue to be a central pillar of India's overall development trajectory. He emphasized that it needs a consistent effort and outlined several new priorities in the FY 24 Budget.

Global Warming and India's National Action Plan

National Hydrogen Mission For Green Economy:

The government of India approved the National Green Hydrogen Mission in January 2023, aiming to make India a global hub for such technologies, production, utilization, and export. The NGH Mission will help in the long run to save India's exchequer, besides making it self-reliant in energy.

Launching the National Green Hydrgoen Mission is the biggest single-sector push on the green GDP agenda. The 19,744 crore allocation for green hydrogen can be used in parts as Viability Gap Funding [VGF]. 

VGF is generally used to create demand for green hydrogen via the SIGHT [ Strategic Interventions for Green Hydrogen Transition] fund. Mr. Gosh says to promote the manufacturing of electrolyzers, allocation under the PLI scheme should focus on indigenization, especially of higher-value components.

 The Petroleum Minister of India Mr. H S Puri stated about India's demand outlook for energy. He said the consumption is growing at three times the global average and will account for 25% in the next decades or so.

National Hydrogen Mission for Green Economy [Credit-ET Energy World]

Mr. Puri Highlighted green hydrogen will succeed in countries where there is local demand, there is local production, and local consumption as well. India stands out in all these sectors.

The Cabinet Minister said,

"Despite challenges, India didn't undermine its commitment to sustainability and adding .......India committed to an ambitious five-part "Panchamrit" pledge at COP26, held in 2021."

Reaching 500FW of non-fossil electricity capacity, generating half of all energy requirements from renewables, to reducing emissions by 1 billion tonnes by 2030. India is also gaming to cut the emissions intensity of GDP by 45% and finally to net-zero emissions by 2070.

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India Taking Giant Strides to Set up Renewable Energy [RE] Infrastructure:

We are witnessing a growth in the development of renewable energy sources. It becomes essential to have grid stability for energy system resilience. It might be one of the reasons why the Budget has focused significantly on energy storage and grid infrastructure.

India Taking Giant Strides to Set up Renewable Energy [RE] Infrastructure [Credit-X]

Rs. 20,700 crore allocation in the Budget is for evacuating and integrating 13GW of renewables from Ladakh. It would spur investments in a region with high RE potential but historically low investment.

This Budget also promises VGF for battery energy storage systems for 4000 MWh. However, the detailed framework for pumped-hydro storage is awaiting, but it clearly indicates a dominant source for energy storage.

We can see a simultaneous fillip to mobile storage manufacturing, and the transition to electric vehicles has been provided. Government efforts to exempt customs duty for capital goods to produce lithium-ion batteries will reduce the final price of batteries and eventually make EVs more affordable.

Encouraging for scrapping of old government vehicles will create demand for EVs and will benefit and encourage domestic manufacturing if incentives are designed correctly. It will be a giant leap from the green economic perspective. 

The 50-year interest-free loan-to-state in FY 2023-24 can include scrapping old vehicles. This might be an opportunity to get electric buses for public transport.

 Discussion on Climate Change/ Global Warming at The World Level

Renewable Energy[RE] Infrastructure in the Rural Sector: 

The Budget has also promoted two more areas of RE worth noting. The first is the biogas. The promotion of a circular economy is now a budgetary priority. The government plans to develop 200 compressed biogas plants worth Rs. 10,000 crore under the GOBARdhan scheme.

The collection and distribution mechanism of biomass gas would encourage a circular economy in the agricultural waste and transport sectors. More resources could be added to promote recycling and for critical minerals.

Renewable Energy[RE] Infrastructure in the Rural Sector [Credit-ET Energy World]

The second push has been towards sustainable agriculture. With the ambition to make 10 million farmers adopt natural framing and to help them set up 10, 000 bio-resources centers to provide for regenerative farming facilities.

The PM Pranam scheme, additionally, could push farmers towards alternative fertilizers and the more judicious use of chemical ones. However, the Budget promises India a global hub for millet, so more efforts are needed for value addition and consumer uptake of millet-based products globally.

As per Mr. Gosh, the promises in the FY24 Budget will derive investment in new sectors. It would outline how India's transformative targets for a green economy could be achieved timely and strategically. 

Thanks and Regards

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