18 Apr 2024 IPEF Clean Energy Economic Forum
THIS ARTICLE COVERS ‘DAILY CURRENT AFFAIRS’ AND THE TOPIC DETAILS OF ”IPEF Clean Energy Economic Forum”. THIS TOPIC IS RELEVANT IN THE “International Relation” SECTION OF THE UPSC CSE EXAM.
Why in the news?
The Department of Commerce recently announced that the Indo-Pacific Economic Framework for Prosperity (IPEF) will host its first clean economy investor forum in Singapore on June 5th and 6th, 2024. The department has also invited applications from domestic climate and tech entrepreneurs to participate in the meeting.
What is the Indo-Pacific Economic Framework for Prosperity (IPEF)?
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- The Indo-Pacific Economic Framework for Prosperity (IPEF), initiated in 2022, aims to foster collaboration among countries in the region for resilient, sustainable, and inclusive economic growth, promoting cooperation, stability, and prosperity.
- It comprises 14 countries: Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the United States and Vietnam.
- The IPEF comprises four pillars of cooperation: Trade, Supply Chain, Clean Economy, and Fair Economy.
- It is not a free trade agreement (FTA) between the member countries.
- The IPEF provides a platform for countries in the region to collaborate on advancing resilient, sustainable, and inclusive economic growth. Further, it aims to contribute to regional cooperation, stability and prosperity.
About IPEF Clean Energy Economic Forum:
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- The IPEF Clean Economy Investor Forum brings together the region’s top investors, philanthropies, financial institutions, innovative companies, start-ups and entrepreneurs.
- The forum focuses on catalyzing investments in sustainable infrastructure, climate technology, and renewable energy projects.
- The forum will provide opportunities for the Indian industry in two distinct tracks, e.g., the Climate Tech Track and the Infrastructure Track.
- The Infrastructure Track emphasizes investment-ready sustainable projects spanning energy (solar, wind, hydrogen), transportation (EVs, charging stations), and waste management.
- Through its Climate Tech and Infrastructure Tracks, the forum will highlight leading climate tech firms and sustainable infrastructure projects to global investors.
- Top climate tech companies from India seeking investment opportunities will also attend the meeting.
The Department of Commerce is the nodal agency for the IPEF engagements, and the IPEF Clean Economy Investor Forum is managed by Invest India, India’s National Investment Promotion Agency.
Government of India’s Initiatives for Promoting Clean Energy in India:
Clean energy addresses the world’s various environmental, economic, and social challenges. Clean energy sources such as solar, wind, hydroelectric, and biomass produce minimal or no greenhouse gas emissions during power generation. By replacing fossil fuels, which are major contributors to air and water pollution and climate change, clean energy helps mitigate environmental degradation and reduce the impact of global warming.
Since pledging to be a net zero emitter by 2070 at COP 26 in Glasgow, India has introduced policies and regulatory actions to develop technologies. These initiatives aim to help India to achieve its ambitious climate target, reflecting its commitment to environmental sustainability. Some targets are:
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- Reducing emission intensity of GDP by 45% by 2030, compared to 2005.
- Raising the share of non-fossil fuel-based generation capacity to 50% by 2030.
- Reduce projected carbon emissions by 1 bn tonnes by 2030.
- 20% ethanol blending by 2025.
- 500 GW of non-fossil fuel-based capacity by 2030.
- 5 MMTPA green H2 production by 2030.
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Several companies in India have announced their net zero goals and plans to reduce their carbon footprint through technology. These clean energy drivers primarily focus on renewables, battery storage, electric vehicles, carbon capture, green hydrogen, and biofuels.
The Government of India has undertaken several initiatives to promote renewable energy. These initiatives reflect India’s commitment to achieving its renewable energy targets, reducing greenhouse gas emissions, and transitioning towards a more sustainable and cleaner future. Here are some key initiatives:
- National Solar Mission (NSM): Launched in 2010, the NSM aims to promote solar energy development in India. This mission includes various incentives, such as subsidies, tax benefits, and generation-based incentives, to attract investments in solar power generation.
- PM-KUSUM: PM Kisan Urja Suraksha Evam Utthan Mahabhiyan (KUSUM) is a farmer-oriented solar power scheme that will allow the setting up of grid-connected solar plants in rural areas and off-grid solar pumps. Under the scheme, the government plans to incentivize farmers to run solar farms and water pumps and use barren land to generate power for extra income up to Rs 60,000 per acre annually.
- Clean Energy Financing: The government has established institutions like the Indian Renewable Energy Development Agency (IREDA) to provide financial assistance and loans for renewable energy projects. Additionally, initiatives like the Green Climate Fund (GCF) aim to mobilize funds for India’s climate-resilient and low-carbon development projects.
- Electric Vehicle (EV) Promotion: To reduce vehicular emissions and promote clean transportation, the Indian government has launched schemes such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. This initiative provides subsidies and incentives for adopting electric and hybrid vehicles.
- Energy Efficiency Programs: The government has implemented various energy efficiency programs to reduce energy consumption and promote sustainable practices. This includes the Perform, Achieve, and Trade (PAT) scheme, which aims to improve energy efficiency in energy-intensive industries through regulatory mechanisms and incentives.
- Renewable Purchase Obligations (RPO): Under the Electricity Act 2003, state electricity regulatory commissions enforce RPOs on distribution companies and open-access consumers. These companies are mandated to procure a specific percentage of their power from renewable sources.
- Tax Incentives: The government provides tax benefits, including accelerated depreciation and income tax exemptions, to promote investments in renewable energy projects.
India actively participates in international collaborations and agreements related to clean energy and climate change, such as the Paris Agreement. These collaborations facilitate technology transfer, capacity building, and financial assistance for clean energy projects in India. However, policy implementation, infrastructure development, and financing challenges remain critical for achieving ambitious clean energy targets.
Download Yojna daily current affairs eng med 18th April 2024
Prelims Practice Question:
Q. Consider the following statements about the Clean Energy Economic Forum:
- It is the initiative of the World Economic Forum.
- India is not part of this forum.
- The forum only focuses on reducing CO2 emissions.
Which of the above statements is correct?
A. Only one
B. Only two
C. All three
D. None of the above
ANSWER: D
MAINS PRACTICE QUESTION:
Q. What are the most effective strategies for overcoming the technological, financial, and policy barriers to significantly increase the global adoption of clean energy sources, such as solar and wind power, to ensure a sustainable and environmentally friendly future?
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