Editorial of the Day (18th May): Hurdles on path to Green

Editorial of the Day (18th May): Hurdles on Path to Green

Unveiling the roadblocks hindering our progress towards a sustainable future. This editorial explores the key challenges on the path to a greener world.

Table of Contents

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.