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Source: The post Green Industrial strategy has been created based on the article “No alternative to green industrial strategy” published in “Business standard” on 23rd December 2023.
UPSC Syllabus Topic: GS paper3- Economy- changes in industrial policy and their effects on industrial growth.
News: The article discusses the need for a comprehensive Green Industrial Strategy. It emphasized the importance of sustainable development, innovation, and securing significant investment.
What is the Green Industrial strategy?
A Green Industrial Strategy is a coordinated approach to economic growth that emphasizes sustainability and innovation.
It aims to secure substantial funding, estimated at $5-7 trillion yearly globally, to meet environmental goals and promote sustainable development.
This strategy involves reorienting industries towards green technologies and practices, ensuring long-term investment in clean growth, and fostering inter-sectoral collaborations. It’s exemplified by Germany’s transition to a circular economy in its steel industry, driven by supportive public policies.
What are the benefits of a Green Industrial strategy?
Promoting Sustainable Development: It aims to meet the 2030 Sustainable Development Goals, requiring substantial investment in sustainable initiatives.
Economic Growth: Green industries are poised to be engines of growth, potentially worth over $10 trillion globally by 2050. It can drive innovation and create new industries and jobs in renewable energy, sustainable agriculture, and other green sectors.
Enhancing Competitiveness: By investing in green technologies and industries, countries can maintain and advance their competitive standing globally.
Energy Security: Shifting away from fossil fuels to renewable energy sources reduces dependency on imported fuels and enhances national security.
What are the issues with Green Industrial strategy?
Financing Gap: Achieving the Sustainable Development Goals requires an immense investment of $5-7 trillion per year, presenting a significant funding challenge.
Long-term Uncertainty: Investors need confidence in the stability of policies over decades, which is currently hindered by political and policy fluctuations.
Coordination Across Sectors: Effective strategy requires robust collaboration across different supply chains, which is complex and difficult to manage.
Need for a Just Transition: Ensuring the transition is fair to all workers and sectors is vital but challenging, requiring careful planning and execution.
What are India’s initiatives in green industrial strategy?
Renewable Energy Production: Increasing renewable energy with the aim to achieve 500 GW capacity by 2030.
Innovation and Infrastructure: Launched E20 fuel and emphasized biofuels, with development of waterways for greener transport logistics.
Green Credits and Policies: Implementing green credit, PM KUSUM Yojana, and vehicle scrapping policy to encourage sustainable practices.
Ethanol Blending and Incentives: Achieving 10% ethanol blending in petrol 5 months early, with a goal of 20% by 2025-26.
Way forward
To tackle worldwide climate and economic challenges, countries should adopt mission-driven industrial strategies centered on green innovation and sustainability across all sectors. This involves fostering public-private partnerships and channeling investments towards ambitious objectives. Ultimately, this approach unlocks a $10 trillion green industry potential, fostering economic growth, environmental sustainability, and an equitable transition for everyone.
Question for practice:
Discuss the potential benefits and challenges associated with the implementation of a Green Industrial Strategy.
