Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.(UPSC CSE Mains 2022 - General Studies Paper 3)
India at the COP 26th meeting of the United Nations Convention on Climate Change (UNFCCC) committed to the 5-point agenda programme. One of them is to meet 50% of its energy requirements from renewable energy by 2030.
To reach the above commitments India has already achieved few targets:
- India has overachieved its commitment made at COP 21- Paris Summit by already meeting 40% of its power capacity from non-fossil fuels.
- India is also one of the world’s largest producers of modern bioenergy.
- Today, India is the world''s third largest producer of renewable energy, with 40% of its installed electricity capacity coming from non-fossil fuel sources.
- India''s massive UJALA LED bulb campaign is reducing emissions by 40 million tonnes annually.
However, there are a few challenges in achieving the target:
- To meet the above target India will need massive funding. BlombergNEF (BNEF) report says that only to meet wind and solar energy targets India will need $223 Billion.
- In the short-term rising interest rates, a depreciating rupee and high-inflation create challenges for the financing of renewables.
- Even, to complete the targets Indian government needs to cut down its taxes for almost 2 lakh crores by 2030 which will effect the other sectors like education, health and infrastructure.
Fossil fuel subsidies by the Union government have fallen 742% since 2014 but the subsidies on coal, oil and gas increased by nine times in 2021-22. Still, the Fossil fuel subsidies in India nine times higher than renewable energy. So, there is no complete shift to subsidies on renewable energy sources.
Although, the shift of subsidies from fossil fuels to renewables will help in subsidies for E- vehicles and raising taxes on fossil fuels will help in achieving the above objective because giving subsidies to renewable sources will make it look cheaper and this will also work against the fossil-fueled incumbents that are preventing new renewable energy entrants access to the market. For example, giving subsidies for E- vehicles and raising taxes on fossil fuels will help in achieving levels needed by 2030 as it will contain global warming to the Paris goal of 1.5-2C.
Read More:
https://www.outlookindia.com/national/india-on-track-to-attain-more-than-50-of-its-energy-requirements-from-non-fossil-sources-by-2030-report-news-229566
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