Energy efficiency, value chain mobilization, and sustainable alternatives can help achieve net zero emissions, says Ravichandran Purushothaman, who serves as a working group member at the World Economic Forum.
The world economy is grappling with inflation exacerbated by the energy crisis. The 1970s and early 1990s were periods of oil shocks and rising inflation when the world was first in this situation. But it comes as a crushing blow to the world as it was overcoming the nightmare of the pandemic. Should this be a wake-up call for India? India can use this situation as a blueprint and lay the foundation for a cleaner, cheaper, more resilient and self-sufficient energy infrastructure.
Fortunately for India, the government began advocating a "net zero" emissions goal long before the energy crisis, not as a response to it but for the good of humanity. India pledged to cut greenhouse gas emissions by 45% from 2010 to 2030 to achieve net-zero emissions by 2070. At the COP26 conference in Glasgow, Prime Minister Narendra Modi unveiled the "Panchamrit" five-pronged strategy to combat climate change. One of the standout elements of the draft policy is the pledge to meet 50 per cent of its energy needs from renewable sources by 2030.
India's path towards 'net zero' will be challenging as India's GHG (Greenhouse Gas) emissions will peak by 2040. The abatement required to become net zero by 2070 would be exponentially greater than historical performance in this case. Despite several efforts by the government and industry players, India faces several near-term challenges.
Interventions to accelerate decarbonization of the Indian marketing industry:
Energy efficiency – Energy efficiency will play a major role for Indian industry, contributing 44 percent of BAU (business as usual) and 32 percent in the deep decarbonization scenario. To achieve the country's goal of improving energy intensity per unit of GDP, industry must invest in technologies, processes and end-mesh. This would require a rate of progress more than twice that of the past. For example, standards and labeling by the Bureau of Energy Efficiency (BEE), Energy Conservation Building Codes (ECBC) by the Ministry of Power, and promotion of electric vehicles:- National Electric Mobility Mission Plan (NEMMP), among others, aims to achieve energy efficiency goals. contribution to achieve.
2. Use of renewable and clean technologies- The government's push on green energy has opened the floodgates. The industry is poised to take advantage of the tremendous opportunities available in the energy transition sector. Advancements in technologies enable corporates to get green energy round the clock. RE deployment is expected to double (or even triple), and more than 30 percent of industrial emissions mitigation depends on EE measures. Renewable electricity is growing rapidly in India, with new capacity additions expected to double by 2026. There has been an unprecedented increase in the share of solar and wind in India's energy mix.
3. Circular Economy or Value Chain Mobilization- Circular is about 5Rs: Reduce, Repair, Resell, Refurbish and Recycle. Value chain emissions exceed a company's total carbon footprint. The transition may be based on a redesign of the supply chain. Innovation in logistics is a key enabler to drive circularity to optimize production volumes, extend the life cycle of products and prepare for end-of-life recycling.
4. Biomass, Hydrogen and other zero carbon fuels- Many futuristic technologies like Hydrogen, CCUS, Fuel Cell etc. are still nascent and high cost. India is one of the world's largest producers of modern bioenergy. Hydrogen has the potential to decarbonize transportation, heating systems, and industrial operations, which are currently challenging to decarbonize through renewable energy. On the one hand, these technologies need a huge push on the policy front, but industry leaders also need to come forward and demonstrate their commitment to embrace the new age fuel.
5. Carbon Capture Utilization and Storage (CCUS) – With CCUS, carbon can be captured from large point sources and energy facilities that burn fossil fuels or biomass. According to the IEA, CCUS's role in achieving net zero emissions is critical because, without it, options for tackling heavy industry emissions would be limited or non-existent.
The way forward - The International Energy Agency (IEA), in its report on achieving Net Zero for the heavy industry sectors, recommends: