India’s national policies have shifted substantially towards the global call for climate commitments.
India’s position in the global climate change debate is unique. While the background conditions—the low levels of historical and per-capita emissions and urgent developmental priorities—that inform India’s negotiating position remain unchanged, India as a nation has come a long way in the global negotiations starting from its position as a mere spectator to a climate leader, enhancing its national commitments to be in line with the climate action targets set during the Paris Agreement. Presently, the climate debate in India has become complex and multi-faceted in nature. For example, the nation has set ambitious renewable energy targets to be mainstreamed in the economy by the next decade. Through multi-stakeholder engagements, enhanced parliamentary sessions and debates, greater media coverage, business perspectives, civil society and philanthropy engagements etc., India’s climate policy has an urgency factor to it. With all the pro-climate action policies and initiatives, the Climate Change Performance Index (CCPI) in the year 2023 ranked India at the top amongst the G20 nations. This article aims to highlight recent government initiatives pivotal for India to be in line with its climate action targets and national commitments.
India at the COP-27 in Sharm-El Shiekh launched its “Long-Term Low Emission Development Strategy (LT-LEDs)” that outlines actions towards low carbon development pathways. It takes stock of the existing policies and highlights plan of action for Government of India (GOI) under seven identified priority areas. India updated its NDC targets in August 2022, to be in line with the “Net Zero” target by 2070 announced in the COP-26 in Glasgow. The updated NDCs include three quantified targets and five non-quantified targets. The quantified targets include:
• To reduce the emissions intensity of its GDP by 45% by 2030, from the 2005 level.
• To achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030.
• To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030.
India’s renewable energy share in the country has risen significantly in the last decade. The share of renewable power installed capacity crossed the 40% mark in 2022, which was targeted to be achieved in 2030 as per initial NDC communication. Government of India has implemented a variety of policy tools to boost the use of renewable energy, including regulatory measures designed to lower taxes, increase efficiency and customize research and development programs, to draw in international investments. Investment in renewable energy stood at record levels of more than US$14 billion in 2021/22, up 72% from the pre-pandemic period of 2019-2020. Corporates and financial institutions have shown a dedication to supporting renewable energy investment.
India’s updated NDCs are backed by amending the Energy Conservation Act and the Electricity Act of India. The Energy Conservation Act of 2001 was amended in 2022 to facilitate aggressive adoption of non-fossil fuel energy sources by heavy industries, the transportation industries, and major commercial and residential structures. This will be enforced by penalties on industrial polluters for carbon emissions. In order to increase competition and provide consumers with more options, the modified Electricity Bill proposed amendments that would lay the groundwork for the privatization of electricity distribution in the economy by increasing the involvement of private power companies in the distribution of electricity to end users.
India’s industries have also committed to reduce carbon emissions and be in line with the national targets. One of the main energy efficiency instruments for the Indian industries is the Perform Achieve and Trade (PAT), which covers nearly 25% of the energy use. India has functional market-based mechanisms to promote renewable energy and energy efficiency. It is also expected that a carbon-market mechanism will be announced soon in which the provision of the groundwork has been highlighted in the amended “Energy Conservation Act”. India launched the National Hydrogen Mission in 2021. The mission provides for inter linkages with policies promoting renewable energy. For example, renewable energy consumed to produce hydrogen is eligible for compliance with the renewable purchase obligations. The recently announced budget 2023 also pushed towards mainstreaming green hydrogen as solution for the hard-to abate sectors to decarbonize, by a promised outlay of INR 19,700 crore. With a constant temperature rise, space cooling has become a major energy demand for urban buildings. Government programs like the Energy Conservation Building Code (ECBC), the India Cooling Action Plan (ICAP), voluntary initiatives on green building guidelines, and a push for the adoption of thermal performance in building design and construction materials can aid in lowering the internal heat load and the need for space cooling in buildings. The phase II of the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-Scheme) is a GOI initiative towards financial support in various forms such as purchase incentives, interest subventions, tax benefits etc., to reduce the capital costs of buying an EV. Construction of EV charging stations along with a target of 20% ethanol blending by 2025 are some of the key government initiatives to enhance sustainable transportation in the country.
India’s adaptation strategies have been sectorial so far. The National Action Plan on Climate Change formulated in the year 2008, classifying eight missions still remains one of the key national adaptation policies. The Ministry of the Environment Forests and Climate Change (MoEFCC), has directed to revise the “State Action Plans on Climate Change (SAPCC)”, which will highlight key mitigation and adaptation strategies for the states and the Union Territories. This document will be crucial for vulnerability specific adaptation interventions and also develop India’s long term adaptation plan. The Prime Minister of India-launched “Mission LiFE” stresses on individual behaviour to change consumption pattern and leverage local cultures. This is key to enhance adaptive capacity and resilience in India.
Overall, India’s national policies have substantially shifted towards the global call for climate commitments and it is of not much surprise that India will have a far more decisive position in the upcoming climate change negotiations.
*Vibha Dhawan is the Director General of TERI (The Energy and Resources Institute).