COP28: 8 steps the world and India must take to ‘triple renewables, double energy efficiency’

India has already taken some steps. “We (India) multiplied our solar capacity by about 35 times in the past seven to eight years and our renewable energy capacity is around 43 per cent of total installed capacity and we have a target of adding about 50 GW every year,” union power and renewable energy minister, RK Singh said recently. On the other hand, as per IRENA's (International Renewable Energy Agency) 1.5 degrees Celsius Scenario report, the majority of expansions in offshore wind are expected in four key markets (China, EU-27, the United States and India), accounting for more than 60 percent of offshore wind deployment by 2030.

2. Reduce energy consumption across the economy: To align with IRENA's 1.5 degrees Celsius Scenario, the world needs to double the global annual rate of energy intensity improvement by 2030. Which means using more efficient technologies and changing consumer behaviour. The changes also need to be made in all sectors of the economy, including transportation, buildings, and industry.

For example, it would mean shifting from private cars to public transportation, from airplanes and trucks to trains, and adopting circular economy principles. The world would also have to improve building insulation, use heat pumps, and install efficient electric motors. Energy efficiency is crucial for decarbonising end-use sectors like buildings and transportation. This can only be achieved by using efficient technologies, electrifying end-use sectors, and deploying decentralised energy.

3. Upgrade and expand infrastructure: Wind and solar power are rapidly expanding, but other renewable sources like hydropower and biomass are also needed. As variable renewable energy sources become the main source of power, countries need to prepare their power grids for increased electrification. This requires upgrading power grids and modernising power system operations.

To this end, India is already looking to upgrade and expand power grids, change grid operations and management, invest in energy storage and introduce other flexible sources like green hydrogen. The National Green Hydrogen Mission was approved by the Union Cabinet on January 4, 2022, to enable the country’s energy transition. It can be utilised for long-duration storage of renewable energy, replace fossil fuels in industry, clean transportation, and potentially also be used for decentralised power generation, aviation, and marine transport.

4. Encourage enabling policies: Governments have to play a critical role in tripling renewable energy capacity and achieving the 1.5 degrees Celsius goal. They need to go beyond creating an enabling environment for private investment and take a more active role in shaping and guiding the energy transition.

Comprehensive and coordinated policies are needed to accelerate renewable energy adoption. This includes ambitious public investments, cross-cutting transition policies, technology-specific deployment policies, aligned planning for infrastructure and workforce development, just transition policies, and a holistic global policy framework.

5. Ensure just and equitable benefits to the community: Scaling up renewable energy can bring widespread benefits to communities around the world, including job creation, energy access, improved public health, and increased welfare. The energy transition can create millions of new jobs around the world by 2030, but it may also lead to challenges in areas like finance, labour, and the energy sector itself.

Therefore, policies are needed to equitably distribute the benefits of the energy transition and raise public awareness of its advantages. In India, labour-market interventions, such as employment services and measures to facilitate labour mobility, and community benefit schemes, such as shared ownership of renewable assets and industry sponsorship of critical infrastructure, can help address challenges and boost support for local energy transitions.

6. Focus on finance: Investment in renewable energy is rising, but it is still focused on a few technologies and concentrated in a few countries.

Renewable energy investment needs to increase significantly. Public funding is crucial for less mature technologies and areas with limited private investment. A comprehensive risk definition, intermediary funding mechanisms, and innovative financing models are also essential for effective capital mobilisation.

The Reserve Bank of India says the country should seek to deploy green financing equalling at least 2.5 per cent of gross domestic product each year until 2030. But flows of green finance are only about a quarter of what is needed now. So what can be done? Experts say India should define what it considers to be "green" economic activities and finance. It can also put in place a green taxonomy, like the one in the European Union and China. The government should allocate more direct spending to green activities, and consider creating a green financial institution or green bank.

7. Build supply chain efficiency: Renewable energy supply chains are complex and require careful management to ensure a smooth transition away from fossil fuels. So, policymakers globally must address supply chain vulnerabilities and production gaps, promote sustainable practices, foster international collaboration, and balance local value creation and regional supply chain investment with reducing trade barriers.

8. Enhance international cooperation: International cooperation is crucial to achieving global renewable energy and energy efficiency targets by 2030. Enhanced North-South and South-South collaboration is essential to accelerate the energy transition and ensure its benefits are shared equitably.

This includes mobilising capital, supporting affected communities, fostering international knowledge sharing on renewable energy research and innovation, and developing regional power grids.