Date: 11/05/2023

Relevance: GS-3: Economic Development, Biodiversity, and Environment.

Key Phrases: Decarbonisation, Renewable Energy, Energy Efficiency, Circular Economy, Carbon Capture and Storage, Central Electricity Regulatory Commission.

Context:

• Decarbonisation is a global developmental trend with socio-political and economic implications.
• Implementation of decarbonisation measures can result in winners and losers.
• Examples include job losses in sectors like automobile, coal mining, coal-based power generation, and oil and gas.
• The decision-making process for optimised and equitable decarbonisation needs to be professionalized.

What is Decarbonisation?

• Decarbonization refers to the process of reducing or eliminating carbon dioxide (CO2) emissions and other greenhouse gas emissions from various sectors of the economy, such as energy, transportation, industry, and agriculture.
• The goal of decarbonization is to mitigate climate change and limit global warming by transitioning to low-carbon or carbon-neutral technologies and practices.

To achieve decarbonization, several strategies and technologies are employed:

• Renewable Energy: Increasing the deployment of renewable energy sources, such as solar, wind, hydroelectric, and geothermal power, which do not emit CO2 during electricity generation.
• Energy Efficiency: Improving energy efficiency across various sectors to reduce energy consumption and associated emissions.
• Electrification: Shifting from fossil fuel-powered technologies to electric-based systems, such as electric vehicles and electric heating/cooling, which rely on a decarbonized electricity grid.
• Carbon Capture and Storage (CCS): Capturing CO2 emissions from power plants and industrial facilities and storing them underground to prevent their release into the atmosphere.
• Bioenergy and Biofuels: Utilizing bioenergy derived from organic matter and biofuels as alternatives to fossil fuels. However, it is important to ensure sustainable practices in bioenergy production to prevent negative environmental impacts.
• Circular Economy: Adopting a circular economy approach that minimizes waste, maximizes resource efficiency, and promotes recycling and reuse, thus reducing emissions associated with the production and disposal of goods.

Institutional Challenges in the Decision-Making Process For Decarbonisation in India

• Fragmented Decision-Making:
  • Decarbonisation involves multiple sectors and requires coordination among various ministries and government agencies.
  • However, decision-making authority is often dispersed across different entities, leading to fragmented approaches and delayed implementation.
  • This lack of centralized decision-making hampers effective policy formulation and implementation.
• Lack of Clear Mandates:
  • The division of responsibilities and mandates related to decarbonisation among ministries and agencies is often unclear or overlapping.
  • This ambiguity can result in confusion, conflicts of interest, and delays in decision-making processes.
  • Clear mandates and roles need to be defined to ensure effective coordination and accountability.
• Limited Expertise:
  • Decarbonisation requires technical expertise in areas such as renewable energy, energy efficiency, and low-carbon technologies.
  • However, the lack of specialized knowledge and capacity within regulatory bodies and decision-making institutions can limit their ability to make informed decisions and effectively address the complex challenges of decarbonisation.
• Inadequate Stakeholder Engagement:
  • Effective decarbonisation policies should involve and consider the perspectives of various stakeholders, including industry representatives, civil society organizations, academia, and affected communities.
  • However, there is often limited engagement with these stakeholders, leading to a lack of inclusivity and potential resistance to proposed measures.

What Policy Measures Can be Taken?

• Centralized Coordination:
  • Establish a dedicated central authority or ministry responsible for coordinating decarbonisation efforts across sectors.
  • This central authority should have the mandate to develop a cohesive strategy, set targets, and monitor progress.
  • It can provide the necessary guidance, oversight, and coordination to ensure a unified approach to decarbonisation.
• Integration of Ministries:
  • Bring together key ministries involved in decarbonisation, such as the Ministry of Environment, Forests, and Climate Change, Ministry of Power, Ministry of Renewable Energy, Ministry of Coal, and Ministry of Petroleum and Natural Gas, under the umbrella of a single, mega-ministry of energy.
  • This integration would streamline decision-making, foster collaboration, and facilitate a more holistic approach to decarbonisation.
• The Need for Comprehensive Regulatory Arrangements:
  • Presently, the mandate for dealing with decarbonisation is split across multiple ministries and state governments.
  • The Ministry of Environment, Forests, and Climate Change (MOEFCC) is the nodal ministry, but other ministries also have responsibilities.
  • The existing cross-ministerial arrangement is functional but lacks plenary powers for effective implementation.
• Rationalization of Responsibilities:
  • Streamline the distribution of responsibilities by consolidating the mandates of various ministries and state governments related to decarbonisation.
  • This would eliminate duplication, reduce administrative burden, and ensure a clear division of roles and responsibilities among different entities involved in the process.
• Stakeholder Engagement:
  • Promote meaningful engagement with stakeholders, including industry representatives, civil society organizations, academia, and affected communities.
  • Establish mechanisms for regular consultation, public hearings, and feedback collection to incorporate diverse perspectives and ensure that decarbonisation policies address the concerns and needs of all stakeholders.
• Monitoring and Reporting:
  • Develop robust monitoring, reporting, and evaluation mechanisms to track the progress of decarbonisation initiatives.
  • Regular assessment of policy outcomes, data collection, and transparent reporting would facilitate evidence-based decision-making, identify gaps, and enable corrective measures to achieve optimized outcomes.
• Creation of a Mega-Ministry of Energy:
  • Broadband key supply-side ministries related to carbon mitigation under a single ministry.
  • Include conventional and non-conventional electricity, renewable energy, coal mining, and petroleum and natural gas.
  • Facilitate coordinated decision-making and deep industrial restructuring while minimizing job losses and promoting the creation of new jobs.
• International Collaboration:
  • Foster international collaboration and partnerships to leverage best practices, technological advancements, and financial resources.
  • Engage with international organizations, research institutions, and countries at the forefront of decarbonisation to exchange knowledge, share experiences, and access financial and technical support.
• Adopt a cooperative federalism approach, drawing inspiration from models like NITI Aayog and the GST Council.

Conclusion:

• Deeper professionalization and continuity of leadership are crucial for effective decarbonisation decision-making.
• Simplifying regulatory arrangements and establishing high-powered entities will enhance coordination and efficiency.
• A just and efficient transition to a low-carbon economy is possible with sustained care at the highest levels of leadership.

Source: ORF-Online

Mains Question:

Q. Evaluate the existing regulatory framework for decarbonisation in India, considering the split mandates across multiple ministries and state governments. Propose a comprehensive regulatory arrangement to promote optimized and equitable decarbonisation.(250 Words).