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India’s quest to become a green superpower is largely dependent on successful implementation of its renewable energy expansion programme. In an ambitious plan, the government has set the goal to produce 500 GW of green energy by 2030. If successful it will put India ahead of many nations working to transition from fossil fuel to clean fuel. In this context, the government’s promise to install rooftop solar units will play an important role in reducing greenhouse gas emissions as it will considerably reduce demand for electricity. Additionally, the government should focus efforts on achieving the target of producing five million tonnes of hydrogen power by the end of the decade as this is an important step to put a curb on vehicular pollutants, one of the major sources of greenhouse gas emissions. On achieving these targets, India should then work towards a complete ban on the use of fossil fuel by the end of the century.
It’s a pity that despite several summits, many developed nations are still obstructing the creation of a global fund for investments required for the transition to green energy. In fact, in one instance America withdrew from a climate treaty alleging that it would have to spend more than any other country on the fund. It is important to note that the USA has one of the highest per capita carbon emissions. India’s plan to build adequate infrastructure to switch from fossil-based energy to green energy may face serious fund crunch as only few developed nations will extend financial help, leaving India with no alternative but to generate its own resources to overcome the hurdle. However, the country is hopeful of negating the obstacle by becoming an exporter of green energy by 2047 and attracting capital to help expand infrastructural facilities for green energy further. Moreover, the government is working to make the country an attractive renewable energy destination which will boost growth, create jobs and help build a shield against climate menace.
But with more than two decades to go before India becomes an exporter of clean energy, the country will have to depend on banks and other financial institutions to generate required funds. In this regard, all financial institutions should enhance renewable energy lending. The option of creating a dedicated fund for renewable energy projects should be thoroughly examined to encourage the green segment. Simultaneously, the government should consider making it mandatory for power distribution companies to procure some amount of energy from renewable energy sources to help generate funds. The government should also seek the help of the private sector to meet the huge burden of investment that India requires to set up necessary infrastructure for renewable energy, by extending incentives such as tax breaks. A public-private partnership (PPP) will be necessary to tackle paucity of funds and fulfill the dream of meeting 90 per cent of the country’s energy requirements from renewable sources by 2050.