India is one of the top five global economies vying to reach net zero.

World News

New Delhi: A report claims that while India’s starting position in the race to reach “Net-Zero” is not similar to the fiscal space of four economies—the US, EU, China, and Japan—it stands out in its ability to position itself effectively in the new industrial era.

Strategic Perspectives’ latest paper, “Competing in the New Zero-Carbon Industrial Era,” evaluates the use of zero-carbon technology in the five largest economies: the US, China, EU, India, and Japan.

It demonstrates how the net-zero transition strategies have considerably improved future economic growth, energy security, and competitiveness.

The paper also highlights a few encouraging advancements that demonstrate India is making progress towards zero-carbon technologies.

The report’s first finding is that “India is among few nations on course to fulfil its Nationally Determined Contributions target, but it will require USD 12.7 trillion in investments to achieve net zero emission by 2050. India continues to be among the major economies with the greatest growth rates, particularly now that China’s post-pandemic recovery has stalled and India has overtaken China as the fifth-largest economy in the world.

“India is improving its use of solar and wind energy for generating electricity, almost doubling its share from 2017 figures (5% to 9%),” it continued.

Third, 50 million jobs are anticipated to be created by the electric car industry by 2030, growing at a compound annual growth rate of 49% between 2022 and 2030. Fourth, business and investors are being encouraged by pro-transition regulations like the Energy Conservation Act.

According to the research, India received the most international public financial flows for the two previous years (USD 2.9 billion, with 66% going to solar energy).

The survey stated that while China and the EU continue to dominate the wind industry, the US and India are closely trailing behind in terms of manufacturing capabilities and may continue to acquire market share as their various domestic policies are put into practise.

The paper continues, “Given its different entry position on economic development, it is clear that India cannot be compared on an equal footing with the other economies.”

India is poised to gain from the transformation in the foreseeable future because of its aspirations to play a key role in the global net-zero supply chain.

The global green development pact, which would encompass climate financing, LIFE, a circular economy, speeding progress on SDGs, energy transitions, and energy security, is what India is likely to press for at this G20.

With its strong G20 chairmanship, India has the opportunity to seize the demographic dividend and announce its rise as a future economic superpower. India would continue its lead over the UK as the fifth largest economy in the world in 2023 with an economy worth USD 3.7 trillion.

Aarti Khosla, Director of Climate Trends, commented on India’s progress towards its environmental goals: “Coming ahead of the G20, the analysis is a comprehensive review of policies and sentiments towards sustainable and zero-carbon technology. India has made tremendous progress towards its environmental goals, demonstrating a dedication to expanding renewable energy sources, putting state EV laws into practise, and achieving successes in energy efficiency.

“As a nation that will see rapid industrial development over the coming decades, it is important to concentrate on innovation, research, and development as well as building an environment that encourages speedier investment while reducing reliance on China. Real energy transformation will depend on segmenting the industries where clean technology has the potential to change the game and on upskilling both the labour and the systems. To be able to assert its leadership and serve as the voice of the global south, the G20 presidency must balance its role as the leader of this growth and transition agenda with the challenging geopolitics, Khosla continued.

According to Vibhuti Garg, Director of South Asia at the Institute for Energy Economics and Financial Analysis (IEEFA), India has ambitious plans to increase the number of electric vehicles on the road and to promote green hydrogen as a clean energy alternative for the transportation sector and other sectors.

“India traditionally relied on imports of fossil fuels, and with the expansion of renewable energy, it now depends on imports for downstream supply chains. The emphasis is changing, and as a nation, we are establishing a sizable foundation for domestic production of modules, cells, wafers, battery storage, electrolysers, etc. We are also looking into key resource exploration and mining. In order to develop a supply chain that will increase the productivity of its products, India would need access to the greatest technology, but more significantly, affordable financing. If we are to meet our 2030 goals, the investments must more than triple from their current levels, according to Garg.

The new industrial era based on zero-carbon technologies has arrived, according to Linda Kalcher, Executive Director of Strategic Perspectives. In order to meet their domestic demand, China, the EU, and the US are vying for the largest portions of the expanding global markets.

Manufacturing zero-carbon technologies becomes a prerequisite for industrial growth, innovation, and competitiveness in a world where one must lead or risk being left behind. More quickly than some people may know, zero-carbon technologies have the potential to replace fossil fuels. Setting aggressive phase-out dates at COP28 and at home is therefore more than just an aim; it is a reflection of the way that the world’s major economies are moving. To make sure that all nations can participate in the technology race and finance a just energy transition, he continued, targeted financial help or new economic partnerships are essential.

The net-zero industrial competition between major economies is underway, according to Neil Makaroff, Director of Strategic Perspectives. The success of China’s industrial leadership in promoting growth and job creation led the US to introduce the IRA. Missing the net-zero transition train will certainly cause a country to fall behind in industrial development and keep a heavy reliance on expensive gas, oil, and coal. Europe cannot be complacent despite its rapid adoption of renewable energy sources, heat pumps, and electric vehicles.

“It is time to transform the European Green Deal into a significant reindustrialization strategy in order to maintain Europe’s position in the global race to net zero. In addition to securing Europe’s net-zero transition, building factories for solar panels, batteries, and heat pumps will also produce high-quality jobs, he continued.

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