India’s G20 Presidency: LiFE lessons for global markets

Source– The post is based on the article “India’s G20 Presidency: LiFE lessons for global markets” published in The Indian Express on 3rd February 2023.

Syllabus: GS3- Environment

Relevance– Sustainable development

News– The world is facing its first truly global energy crisis, with turbulent markets and sharp price spikes. It is creating difficulties for citizens, businesses and governments.

What is LiFE initiative?

It demonstrates India’s leadership on global issues by promoting sustainable lifestyles and consumption choices worldwide.

LiFE initiative was launched in October 2022 to nudge individual and collective action to protect the environment.

This includes making informed personal choices such as using public transport more, buying electric vehicles, adopting energy-efficient appliances in homes.

What is the importance of LiFE initiative?

LiFE initiative could help lower energy costs, carbon dioxide emissions, air pollution and inequalities in energy consumption. The programme could potentially help put developing and advanced economies alike onto a more sustainable path.

Reducing emissions– IEA analysis shows that if all countries adopt the measures recommended by LiFE, it would reduce global carbon dioxide emissions by more than 2 billion tonnes by 2030.

This will be one-fifth of the emissions reductions needed this decade to put the world on a path to net zero emissions. The measures would also save consumers globally around $440 billion in annual energy bills.

Doesn’t negate the strong policies action– Strong policy actions for expanding clean energy technologies. We need to do many things at once to tackle the world’s environmental challenges while ensuring secure and affordable energy supplies for all.

That is why LiFE’s recommendations become important.

Industries like steel and cement can learn from LiFE by adopting approaches that use resources more efficiently. Increasing the volume of recycled steel can reduce the amount of steel production that needs to be decarbonised.

Combines individual accountability and policy actions– We all need to make the right choices when it comes to the environment and sustainability. These choices should be supported by appropriate infrastructure, incentives or information.

For example, public transport must become more efficient and readily accessible to encourage citizens for its use. Urban planning needs to be optimised so individuals can live closer to work and amenities that reduce commute times and encourage walking and cycling.

Sustainable development– It’s important that the environment should not be prioritised at the expense of India’s broader development agenda. This requires a range of measures. LiFE’s recommendations can help support this.

Global relevance– LiFE shouldn’t be seen as only relevant to India and developing economies. Its lessons are applicable globally. It could make the biggest difference in advanced economies.

The global energy crisis has led to renewed interest in behaviour change and energy efficiency, particularly in advanced economies.

How India’s G20 Presidency represents a unique opportunity to globalise the LiFE initiative?

It provides a knowledge-sharing platform for other leading economies to realise the impact of LiFE’s recommendations on climate change, air pollution and unaffordable energy bills.

G20 makes up nearly 80 per cent of global energy demand. Meaningful changes by its members can make a big difference.