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Source– The post is based on the article “Our DPI success could guide an energy transition too” published in the “mint” on 30th August 2023.
Syllabus: GS3 – Environment
News– During its G20 presidency, India has forcefully promoted digital public infrastructure (DPI) as a modern solution to many of the challenges faced by developed and developing countries alike.
How has India been able to promote DPI in the G20 forum?
One of the contributing factors to this achievement is the widespread adoption and utilisation of the Digital Public Infrastructure within the nation.
India has created digital identity for over 1.3 billion individuals. More than 9 billion digital transactions are occurring every month.
It has captured the attention of other nations dealing with similar challenges.
Promotion of DPI required coordinated and persistent diplomatic efforts. This was aided by the fact that several countries in diverse international scenarios perceived India as an impartial mediator.
How India has potential to promote its leadership role in the area of climate change and sustainable energy?
India stands out as a significant emitter of greenhouse gases. But, it has ambitious growth goals that necessitate a diverse energy portfolio. Consequently, the choices it makes carry substantial weight.
The solutions proposed by India have the potential to find traction in numerous other countries within the Global South.
India’s determined actions can serve as a safeguard against the potential scenario of other nations refraining from taking necessary measures. This aligns with the responsibilities that come with global leadership.
What is the way forward for India to show leadership in the area of climate change and sustainable energy?
The effective strategy employed by India should work on functional systems and products that could be efficiently scaled up to tackle challenges.
There is a need for devising indigenous solutions and extending them to the international arena. A notable advancement in this path has been India’s expensive renewable energy program.
India should find out trustworthy solutions to finance the energy transition that can be both evaluated and implemented on a global scale.
Research suggests that India might necessitate $7.2 trillion of green investments by 2050.
The transformation of the steel sector alone would require an additional $16.4 billion annually.
To realise the nation’s aspirations in renewable energy investments in the power sector must surge fivefold.
The world possesses enough private capital to support India’s energy transition. To tap into it, India must rapidly construct a portfolio of products, mechanisms, and business models tailored to its unique transition requirements.
A variety of strategies for managing risks, like currency hedging tools, insurance products, and payment guarantee offerings, are necessary in numerous sectors of the economy.
Policy mechanisms such as carbon trading as outlined in the Paris Agreement hold significant potential on a large scale. These mechanisms could bridge the funding gap for crucial technologies like battery storage.
India might explore locally-appropriate financial arrangements under the Just Energy Transition Programme to accelerate the process of transitioning its power grid to renewable sources.
These efforts will demand extensive and rigorous collaboration among Indian thinkers both inside and outside of the government.
A domestic discourse on energy transition finance models will be necessary. This endeavour should be accompanied by a significant diplomatic campaign to share concepts internationally.
