India Should Look at Ways to Decarbonize Industry: World Bank

According to the World Bank, India is currently the world’s fourth-largest renewable energy market, and home to three per cent of the global solar manufacturing capabilities. In addition, in the past five years, India has consistently invested close to $10 billion every year into renewable energy and ranks among the world’s five emerging and mid-income economies with the largest public investment in renewable energies.

The right policies could help India accelerate its energy transition. In the power sector, the reform of DISCOMs is probably the most urgent. To encourage the deployment of new technologies, performance-based incentives can be used. Smart procurement policies and offtake agreements can further incentivize investments at scale, as recently demonstrated for e-buses being rolled out for green hydrogen. With the right policies, India’s energy transition is an investment opportunity and should be able to attract commercial financing.

India can encourage investments in green technologies to decarbonize its industrial sector to advance towards net zero. In the short term, industrial decarbonization should be driven by energy efficiency and electrification where possible. Over the medium term, green hydrogen and carbon capture, utilization, and storage technologies will play a critical role.

India is among the top 10 most climate-vulnerable countries globally. Planning for climate resilience is thus essential and it can provide investment opportunities as well. India launched a Cooling Action Plan in 2019, the first initiative of its kind globally. We estimate that the market for affordable cooling solutions in India represents a $1.6 trillion investment opportunity. Importantly, nature-based solutions such as passive design can generate cooling benefits and cut energy consumption. Considering the substantial health and productivity benefits, urban cooling investments generate triple dividends: economic, social, and environmental.

Further, mangroves, seagrass beds, and salt marshes have a substantive potential for carbon storage while protecting coastal communities from climate disasters, supporting fisheries, and promoting tourism and jobs. Investments in air quality management can yield significant health benefits, supporting productivity, while reducing emissions, the World Bank said.