India needs an estimated $900 billion for a just energy transition vis-a-vis coal mines and thermal power plants over the next 30 years, a report of independent non-profit environmental research and innovation organisation International Forum for Environment, Sustainability & Technology (iFOREST) has said.
India has set goals of net zero emissions by 2070 and energy independence by 2047. iFOREST said a framework for the just transition at the national and state levels is essential for it.
iFOREST report released on Thursday said $600 billion of the estimated cost will have to come as investments in new industries and infrastructure and $300 billion for grants/subsidies to support the transition of the coal industry, workers, and communities.
IFOREST derived the estimation based on the cost of transition in coal/lignite regions in Germany and Poland as well as the main coal-producing region of South Africa. It also factors in a study of four coal districts of India in Jharkhand, Chhattisgarh, and Odisha. The study assumes all existing mines and coal-based power plants will be phased down by 2050.
The key costs of the transition involve mine reclamation and repurposing, decommissioning of thermal power plants, labour support, economic diversification, etc.
Amitabh Kant, India’s G20 Sherpa, said that private financing will be crucial for the just transition. “Our ability to push for just transition gets impacted by our ability to leverage private financing.”
He called for the need for new financial instruments and revision of how multilateral institutions work to improve financing. “Wind and solar energy combined with pumped storage will be the key to lowering the cost of green hydrogen. These will pave the path towards an energy transition for India.”
iFOREST president and CEO Chandra Bhushan said India’s just transition framework should include all fossil fuel sectors and not just coal. He added India needs its own comprehensive decarbonisation strategy.
Read More at https://www.hindustantimes.com/india-news/india-needs-estimated-900-billion-for-just-energy-transition-iforest-101679628545063.html
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