Economic Survey on Climate Action and Energy Policy

The Economic Survey once again prioritizes climate action as a crucial metric for policymaking across socioeconomic sectors, highlighting India's superior mitigation efforts compared to developed nations. However, it warns against relying heavily on China for India's energy transition ambitions.

Fossil Fuels and Energy Security

• Continued investments in hydrocarbons are deemed necessary for India’s energy security.
• The Survey argues against shutting down coal plants without viable technological alternatives for stable energy supply.
• The Group of Seven countries have ceased taxpayer funding for fossil fuel projects overseas, but India opposes curbing investments in hydrocarbons at international platforms like the Group of Twenty and COP.

Technological Advancements and Recommendations

• The Survey suggests investing in advanced ultra supercritical power plants and battery storage to ensure reliable renewable energy supply.
• Emphasizes a mission-mode approach for developing carbon capture, utilization, and storage technology.

India’s Emission Profile

India is the third-largest emitter of CO2 globally, after China and the US, but stresses its emissions are minimal compared to these countries.

Dependence on China

• Highlights the risk of relying on China for raw and finished materials in green energy sectors.
• Emphasizes the need to mitigate geopolitical vulnerabilities by reducing dependence on external sources for critical imports.
• Notes that China dominates over 80% of the solar panel manufacturing stages, which could lead to supply disruptions.

Climate Commitments and Future Goals

• The Survey reiterates the Panchamrit commitments made at COP26.
• Stresses the importance of building resilience against climate-induced setbacks, especially with declining global financial support for climate action in developing countries.