Why in the News?

The recently held G-20 summit at Delhi decided upon tripling renewable energy capacity and voluntary doubling of the rate of energy efficiency improvement by 2030, as a part of the Delhi Declaration.

Inequality matrix:

1. Any energy transition initiative should be based on 2 aspects:
   1. internalising cost i.e., those who emit greenhouse gases have to pay the social and environmental costs. 
   2. climate justice i.e., compensation has to be provided for those who are harmed. 
2. Richer countries or richer classes within a country have to pay for the energy transition as a mitigation effort as, those who contribute to climate change are not the ones who are affected by it.
3. India’s stance on climate change efforts is largely framed through the lens of foreign policy and common but differentiated responsibilities (CBDR) approach in international negotiations.
   1. This allows developing countries in the global south to prioritise economic growth and development over climate mitigation.
   2. Focusing on economic growth has naturally taken precedence over climate concerns, which shall evade concerns of climate justice within India, expanding inequality across levels class, caste and region.
4. Climate change and energy transition disproportionately affect the poor:
   1. Agrarian crisis and allied economic activities have been induced by climate-elated problems and droughts
   2. They impact agricultural productivity, thus compounding farmers’ income loss.
   3. Rising temperature in the ocean ecosystem have impacted fish stocks hurting fishing communities.
5. Thus addressing both environmental and socio-economic inequalities simultaneously becomes essential for sustainable and equitable development.
6. Less equitable societies have the potential to
   1. Have higher emission outputs per unit of economic activity.
   2. Impede the societal responses required to address climate change.
   3. The cost of carbon emissions, in terms of societal impact, becomes significantly higher

Greening development:

1. India’s energy consumption data:
   1. As of 2021, coal was the major contributor to the total energy supply in India (56%), followed by crude oil (33.4%).
   2. The industrial sector was the largest consumer of energy, using more than half, i.e., 51% of the total final energy consumption, it was followed by
      1. Transport (11%)
      2. Residential (10%)
      3. Agriculture (3.6%) sectors
   3. The above data indicates that manufacturing is far more energy- and carbon-intensive than agriculture and services.
   4. Also, any rise in energy price is likely to lead to a contraction of manufacturing, which will be negative for India given its already low manufacturing level. 
2. A holistic approach that considers economic, social, and regional inequalities has to be adopted for climate change mitigation.
   1. Renewable energy adoption has to be done without exacerbating existing disparities.
   2. It should focus on
      1. Protecting livelihoods
      2. Offering alternative job opportunities
      3. Not adversely impacting vulnerable communities
   3. To ensure an equitable and sustainable transition, inequality reduction and green investment have ot be targeted simultaneously.
   4. Regions heavily reliant on coal production may lose revenues and livelihoods due to energy transitition.
      1. Coal, the cheapest source of energy, is located in the poorer regions in eastern and central India 
      2. While renewable energy hubs are located in the relatively wealthy southern and western India.
      3. This regional divide in economic inequality due to the energy source divide in India has to be addressed via
         1. Transfer funds to States dependent on coal
         2. State-specific programmes for reskilling development
         3. Local rehabilitation needs have to be addressed
3. Sub-national governments should play a significant role in addressing climate concerns, as their priorities can differ significantly from those of the Union government.
   1. Sub-national responses have to be examined to understand how State entities are vital in tackling the challenge of climate inequality mitigation.
   2. Intricate interactions between fiscal federalism and climate mitigation have to be understood for policy alignment and cooperation across the levels of government.