Net Zero Carbon Emission
Context:
- India ranks third in the world for emissions despite having very low per-person emissions (1.8 tonnes of CO2e).
- India claims to have zero emissions by 2070. This objective can only be reached with quick action during this decade, maybe assisted by India’s recent takeover of the G20 leadership.
- And achieving net-zero might benefit India by bringing down energy prices, enhancing energy security, and encouraging the growth of innovative businesses.
Current Indian Situation:
- If things keep going as they are, India’s emissions would rise from 2.9 GtCO2e yearly to 11.8 GtCO2e in 2070.
- According to a recent McKinsey report, India will need to invest $7.2 trillion in green initiatives in order to successfully decarbonize to 1.9 GtCO2e by 2070.
- This “line of sight” (LoS) scenario is based on previously stated restrictions and predicted technological adoption.
Investments in technology connected to decarbonization that will help lower GHG emissions:
- According to a “accelerated scenario” that would reduce emissions to just 0.4 GtCO2e by that year, or practically net zero, further decarbonization would require $12 trillion in overall green expenditures by 2050.
- India could produce 287 gigatonnes (GT) of carbon space for the planet, or roughly half of the global carbon budget, in order to have an equal chance of limiting global warming to 1.5 degrees Celsius.
- Decarbonization will have a significant impact on a variety of things, including how we produce materials, grow food, travel, dispose of rubbish, and use land.
- India might lessen its carbon footprint and develop a growth engine that transitions smoothly to net zero.
- For instance, if India shifted to an energy and material system that depends predominantly on renewable (and hydrogen) sources, it might save $3 trillion in foreign currency by 2070. (largely crude oil and coking coal). The vast majority of the abatement programmes are profitable despite the extent of the investment.
- This is explained by the peculiar geographic location of India. Till 2050, India won’t have completed all of its structures, infrastructure, and industrial capacity. Either we can make investments in the technologies of today, or we can consider the future.
- India will need to move swiftly this decade in the areas of regulation, technology development, and technology adoption if it is to make the right investments.
- India has already carried out similar actions. The effective legislation, strong institutions, and industrial skills developed in the preceding 10 years have given India the basis to grow four to five times in this decade in terms of renewable energy.
Moving toward decarbonization requires the following actions:
Describe the nation’s intentions for decarbonization during the following ten, five, and twenty-five years:
- If we don’t set up and support such a policy, more fossil fuel-driven infrastructure will be created, tying India to higher emissions for decades.
- Without decarbonization strategies, it’s likely that companies won’t invest enough in increasing capacity out of concern that they’ll fall behind later. This would lead to shortages, inflation, and a higher reliance on imports, or, to put it another way, a chaotic transition.
- The overall cost could occasionally be higher because being green requires a larger initial investment. However, if legislation is in place to support carbon prices or blend standards, the economics may be feasible.
- Collaboration between the steel, hydrogen, and electricity industries is required in order to uphold such policies.
- Investment decisions might be made quickly with the aid of a national decarbonization strategy.
Second, a national land use plan:
- India stands the risk of running out of land to achieve its dual goals of growth and decarbonization.
- Forests and renewable energy, for instance, need an additional 18 million hectares of land, according to McKinsey.
- In order to produce more renewable energy, India would need to enhance the density of its forests, urbanise vertically, increase agricultural productivity, and make the most of its underutilised land.
- This strengthens the case for setting up a central agency to draught land-use legislation with the states.
Third, hasten compliance with rules governing the carbon market:
- Pricing carbon creates demand signals that speed up the reduction of emissions, especially in sectors where doing so is challenging.
- Let’s utilise steel as an example, whose demand is anticipated to more than eightfold by the year 2070. Right now, it seems likely that a sizable amount of the extra capacity will be installed using high-emission coal.
- More expensive green steel can compete with steel with high emissions when carbon emissions are priced.
Investing funds in domains of technology that are only emerging:
- Businesses might strive to get an advantage by investing in prospects including recycling, hydrogen, biomass, electrolysers, rare earths, battery components, and battery production.
- Some of these opportunities would take time to materialise. In the interim, businesses might make investments in the chances brought about by the decarbonization of other countries, including exporting green hydrogen derivatives like ammonia.
- India must therefore use innovation, realism, drive, and a sense of urgency to start down the path to net zero in a planned manner. In order to set the basis, build momentum, and properly build India for future generations, we must act during this decade.
