India’s Economic Survey 2024-25, presented in Parliament, emphasizes the nation’s commitment to sustainable development while acknowledging the ongoing necessity of coal and other fossil fuels for energy reliability in the medium term. The survey highlights the importance of adaptation strategies to protect economic growth amid diminishing global financial support for climate initiatives in developing countries.
Balancing Economic Growth and Climate Adaptation
The survey underscores India’s dedication to achieving developed nation status by 2047, with a focus on inclusive and sustainable development. Given the decreasing financial commitments from developed countries, India plans to prioritize adaptation efforts to safeguard its economic progress. The survey notes that the limited international funding may necessitate a reassessment of climate targets, as domestic resources become increasingly pivotal in addressing climate challenges.
Coal’s Continued Role in India’s Energy Landscape
Despite global shifts towards renewable energy, the survey indicates that coal and other fossil fuels will remain central to India’s energy strategy in the near term. This reliance is attributed to the current challenges in harnessing renewable energy sources and the need for a stable energy supply. The survey cautions against the premature decommissioning of thermal power sources without viable technological alternatives, citing lessons from developed economies.
Challenges in Renewable Energy Transition
The transition to renewable energy presents several challenges for India. The survey emphasizes the need for substantial investments in grid infrastructure and the secure sourcing of critical minerals essential for renewable technologies and battery storage systems. It also highlights the importance of research and development in advanced technologies, such as Advanced Ultra Super Critical (AUSC) power plants, to enhance efficiency and reduce emissions from thermal power generation.
Financial Constraints and International Commitments
The survey critiques the modest international financial commitments towards climate action, noting that the proposed $300 billion annual mobilization target by 2035 falls significantly short of the estimated $5.1-6.8 trillion required by 2030. This shortfall reflects a misalignment with the Paris Agreement’s objectives and underscores the reluctance of affluent nations to fulfill their equitable share of responsibility in emission reduction. Consequently, India has predominantly relied on domestic resources for climate action, with the public sector playing a central role.
Strategic Investments for Sustainable Development
To align with its net-zero emissions goal by 2070, India plans to implement innovative strategies and robust action plans addressing climate change challenges. The survey advocates for prioritizing investments in extensive grid infrastructure improvements and ensuring the secure sourcing of critical minerals necessary for the renewable energy transition. Additionally, it calls for exploring carbon dioxide removal technologies and carbon capture utilization and storage to mitigate emissions from ongoing fossil fuel use.
Conclusion
India’s Economic Survey 2024-25 outlines a balanced approach to sustaining economic growth while addressing climate change challenges. By focusing on adaptation strategies, maintaining a diversified energy mix, and investing in technological advancements, India aims to navigate the complexities of sustainable development amid evolving global dynamics.
