The Economic Survey 2023-24, tabled in the Parliament today by Union Finance Minister Nirmala Sitharaman, showed that despite being one of the fastest-growing economies in the World, India’s annual per capita carbon emission is only about one-third of the global average. The country plans to achieve net zero carbon emissions by 2070 to support inclusive and sustainable economic growth.
The target for reducing emissions intensity relative to India's GDP has been raised to 45% by 2030, up from the previous 33-35% target from the 2005 level. Additionally, the goal for the share of non-fossil fuel-based energy in total electricity generation capacity has increased to 50% by 2030, from the earlier 40%, as per Economic Survey 2023-24.
As of May 31, 2024, non-fossil sources account for 45.4% of installed electricity capacity. India aims to create an additional carbon sink of 2.5 to 3.0 billion tonnes through increased tree and forest cover by 2030. So far, 1.97 billion tonnes of CO2 equivalent have been sequestered from 2005 to 2019, says the survey.
The eighth phase of the Perform Achieve and Trade (PAT) scheme, part of the National Mission on Enhanced Energy Efficiency, started in June 2023 and runs until 2025-26. This phase includes industries like Aluminium, Cement, Chlor-Alkali, Iron & Steel, Pulp & Paper, and Textile, with a goal to save 0.3370 million tonnes of oil equivalent (MTOE) in energy.
The National Action Plan on Climate Change (NAPCC) is designed to balance economic growth with environmental sustainability. It includes nine missions: solar energy, water management, energy efficiency, forests, sustainable housing, sustainable agriculture, protecting the Himalayan ecosystem, climate change knowledge, and a new focus on human health, says the survey.
Currently, India's energy use is characterised by three main factors: a high reliance on biomass, significant fossil fuel imports (primarily petroleum), and the use of domestic coal for electricity. The reliance on biomass is expected to decrease with the growth of solar rooftop installations, more widespread use of solar appliances, and increased use of LPG for cooking. Petroleum, which is 85% imported, is used across various sectors including transport, industry, residential, and commercial, presenting challenges due to fluctuating oil prices and limited natural gas availability.
India’s energy demand is projected to increase by 2 to 2.5 times by 2047 to support the needs and ambitions of its growing economy. Coal currently makes up about 70% of the country's total electricity generation. The government has introduced various clean coal initiatives, such as the Coal Gasification Mission. This mission aims to gasify 100 million tonnes of coal by 2030 through projects involving surface coal or lignite gasification.
The cost of producing green hydrogen primarily depends on the price of electrolysers and renewable energy.
Recycling renewable waste presents a significant challenge. By 2050, global solar photovoltaic (PV) waste is expected to reach 78 million tonnes. Solar PV panels typically last 25-30 years, after which they can either be sent to landfills or recycled. Disposing of panels in landfills is much cheaper than recycling but can result in harmful chemicals and heavy metals leaching into the soil. Recycling PV waste can also pose environmental and health risks due to toxic metals. To manage this issue, a comprehensive policy is needed. India’s amended E-Waste (Management) Rules, 2022, aim to address disposal practices, but the scale of the problem remains a major challenge, the survey adds.
