Achieving the 2070 net-zero target could boost India's GDP (UPSC Current Affairs)

Relevance: GS3 - Conservation, environmental pollution, and degradation, environmental impact assessment; GS2 - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

(Source: The Hindu)

Click here for Daily Current Affairs

Why in the news?

• According to the "Getting India to Net Zero" report released in New Delhi by former Australian prime minister Kevin Rudd and others, India will need an economy-wide investment of $10.1 trillion from now on to reach its net-zero emissions objective by 2070.
• At the COP26 climate change conference in Glasgow, India's Prime Minister Narendra Modi declared that India would attain net-zero emissions by 2070.

What does the ‘Getting India to Net Zero’ report say?

• The Getting India to Net Zero report contains new research and modeling and finds that policies to initiate the clean energy transition will be critical in determining when India achieves net zero emissions and how much it could benefit from it.
• It could boost India's economy by 4.7% above the projected baseline growth in GDP terms by 2036, amounting to a total of $371 billion, and could create 15 Million jobs by 2047.
• Greater advantages will result from reaching net zero by 2050, increasing India's GDP by up to 7.3%, and generating 20 million new jobs by 2032.
• Getting India, China, and Indonesia to Net Zero is the goal of the independent commission.
• According to the study, achieving net zero emissions by 2070 would need an economy-wide investment of $10.1 trillion from now; Achieving net zero by 2050 would require $13.5 trillion investment.

How will it benefit India?

• Improved the trade balance: Reduced demand for fossil fuels will improve the trade balance by $236 billion, which has had a positive economic impact.
• Increase GDP: According to the analysis, India could increase yearly GDP by up to 7.3% ($470 billion) and
• Employment: It would roughly add 20 million employment by 2032 if it achieves net zero by 2050 in comparison to present practises.
• Achieving net zero emissions by the middle of the century: Maximising realistic policy choices to decarbonize India's economy and energy grid might result in the country having net zero emissions by the middle of the century.
• Prevent death related to air pollution: According to research by the Lancet Commission on Pollution and Health, air pollution is thought to have contributed to 1.6 million fatalities in India in 2019 — the highest number anywhere in the world. The particulate matter 2.5 (PM2.5) pollution was to blame for the majority of these fatalities. The second leading cause of death in the nation was household air pollution.
• Global Leadership: India has the potential to become a worldwide manufacturing base for the net-zero economy as well as a paradigm for robust, healthy economic growth.
• India can demonstrate its initiatives and inspire other nations to adopt them, cooperate, and invest when it hosts the G20 in 2023.

Challenges

• Transfer of finance and technology: The transfer of money and technology to poor nations is essential in this task as is the acceptance and understanding that the West historically bears responsibility for emissions and climate change.
• Developed country's targets must be increased: Over the next few years, developed country's targets for climate finance must be increased.
• Equity: To achieve this at the expense of some of these countries' development would be unfair. Therefore, the issue of equity must be taken into account.
• Coal-fired power plants: To get India to net zero emissions sooner, it will be especially beneficial to stop producing new coal as soon as possible by 2023 and switch from unabated coal power by 2040. However, the majority of electricity is produced by coal-fired thermal power plants, which provide about 75% of all electricity.
• Oil and Gas: Indian corporations must reconcile these obligations with the difficulties of meeting rising fuel demand.

Way forward

• Transition to a green economy: On the domestic front, financial regulators such as the RBI and SEBI must establish an enabling ecosystem for financing India's transition to a green economy.
• Private Finance: Given the magnitude of the investments necessary, private money from domestic and international institutions should account for the majority of investment. At the same time, public funds should act as a catalyst by de-risking investments in existing and emerging clean technology. Additional funding would free up available funds to address the detrimental effects of climate measures like carbon levies.
• Change in lifestyles: If we cannot alter our way of life, we will be unable to alter the planet on which we live.
• Popularisation of schemes: Sustainable patterns of living practiced by certain indigenous groups should be included in school curricula, and India's adaptation efforts through programs such as the Jal Jeevan mission, Swachh Bharat mission, and mission Ujwala should be popularised globally.

Conclusion

• India's route to net zero may generate new employment, guarantee livelihoods, and enhance health if approached with comprehensive, all-encompassing planning, in a way that draws more investment and assures a just transition for those who are most dependent on fossil fuels.

Some Important FAQs

MCQs

Question: With reference to Nationally Determined Contribution(NDC), consider the following statements:

1. Nationally Determined Contribution is a strategy for reducing emissions and preparing for the effects of climate change.
2. The Paris Agreement requires each Party to establish an NDC and to revise it every five years.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2