India’s Energy Efficiency Gains: A Step Towards Net Zero by 2070
India Outpaces Global Energy Efficiency Growth
India's energy efficiency, measured by the amount of energy required to perform a task, has improved by 1.9 percent between 2000 and 2023. This growth is significantly faster than the global average of 1.4 percent, according to a study published in the Reserve Bank of India's (RBI) monthly bulletin. While India still lags behind developed nations like the US and Germany, where energy efficiency improvements exceeded 2 percent, it has outperformed its BRICS counterparts, which recorded an average increase of 1.62 percent.
Finding multi-bagger stocks is essential for building wealth. Discover potential multi-baggers at Sovrenn Discovery.
Renewable Energy Expansion: The Need of the Hour
Despite substantially adding to its renewable energy capacity, India's solar and wind energy contributed only 2.1 percent to its primary energy consumption in 2022-23. However, there is a clear economic case for accelerating this transition. According to RBI researchers, solar and wind power tariffs have now fallen below those of new coal-fired power plants, debunking earlier concerns about the high costs of renewables. Expanding renewable energy capacity is imperative if India aims to achieve its net-zero target by 2070.
Investing has built enormous wealth for several HNI investors. Earn investing FREE OF CHARGE at Sovrenn Education.
The Carbon Emission Challenge
Between 2012 and 2022, India's carbon emissions increased by 706 million tonnes. However, economic growth alone contributed to over 1,000 million tonnes of additional emissions. The study highlights that improvements in energy intensity helped mitigate this surge, reducing emissions by 399 million tonnes. This underscores the role of efficiency improvements in decoupling economic expansion from carbon emissions.
The Road Ahead: Decarbonization and Green Hydrogen
The study suggests that India's emission factor effect will be increasingly crucial in reducing carbon output. As renewable energy sources replace fossil fuels and industries adopt green hydrogen, emission reductions will accelerate. To meet its 2070 net-zero target, India must continue instituting reforms that promote clean energy adoption, enhance energy efficiency, and reduce dependency on fossil fuels.
Conclusion: Policy and Market-Led Interventions Required
While India has made notable progress in energy efficiency, further institutional and policy-driven measures are necessary. Strengthening regulatory frameworks, incentivizing renewable energy investments, and fostering technological advancements in energy efficiency will be critical. By intensifying its focus on sustainability, India can effectively transition towards a cleaner and more energy-efficient future.
Also Read: Migration and Inflation: How Labour Movement is Shaping Price Trends in India
