Ananta Insights
Carbon Countdown Newsletter
Welcome to this edition of the Ananta Carbon Countdown newsletter!
In this issue, we highlight India’s entry into the International Energy Efficiency Hub and its ongoing collaboration with the US on clean energy and critical minerals. We also delve into key insights from Climate Week NYC 2024 and the recent RE-Invest expo, alongside updates on significant domestic and international initiatives aimed at enhancing India’s sustainability efforts.
Let us dive in!
India joins the International Energy Efficiency Hub
The Cabinet has approved India’s entry into the International Energy Efficiency Hub to accelerate the country’s clean energy transition. The Hub, which includes major economies and energy stakeholders, focuses on knowledge sharing, technology transfer, and best practices to enhance energy efficiency worldwide. The Bureau of Energy Efficiency (BEE) has been designated to manage India’s participation at the Hub.
Sixteen countries including Argentina, Australia, Brazil, Canada, China, Denmark, the European Commission, France, Germany, Japan, Korea, Luxembourg, Russia, Saudi Arabia, the United States and the United Kingdom are members of the Hub. This effort is expected to leverage global resources and align with the nation’s broader sustainability goals.
Strengthened India-US Partnership on Clean Energy and Critical Minerals
Clean Energy Cooperation: President Biden and Prime Minister Modi launched the US-India Roadmap to Build Safe and Secure Global Clean Energy Supply Chains. This initiative aims to accelerate clean energy technology manufacturing in both countries, starting with raising $1 billion in financing for projects in renewable energy, energy storage, grid technology, and zero-emission vehicles.
The roadmap aims to strengthen US-India ties on clean energy, create jobs, boost global deployment, and drive global climate action. It also expands technical and policy support for manufacturing and fosters collaboration with third countries, particularly in Africa. It positions both countries as focal points in building sustainable and secure clean energy supply chains globally.
On September 16, U.S. Energy Secretary Jennifer Granholm and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri convened to review progress under the U.S.-India Strategic Clean Energy Partnership (SCEP) in Washington DC. The ministers highlighted advancements in clean energy innovation, including the formal launch of the Renewable Energy Technology Action Platform (RETAP) and collaborative efforts on sustainable aviation fuel, electrification of transport, and carbon capture technologies. The future of these partnerships hangs in the balance of the November 5th verdict.
Critical Minerals Pact: In a major move, India and the US have solidified their alliance by signing a MoU to boost cooperation in the critical minerals sector. This agreement focuses on diversifying and securing the supply chains for essential minerals like lithium, cobalt, and nickel, and reducing dependence on Chinese supplies. Both countries, like the world, also depend on China for major mineral processing. The pact will include equipment identification, services, policies, and best practices to promote mutually beneficial commercial development. India also joined the US-led minerals security finance network that facilitates information exchange and co-financing in this sector. These developments signify a deepening of the strategic partnership between India and the US.
Limited Progress Ahead of COP29: Key Insights from Climate Week NYC 2024
As the world gears up for COP29 in Baku, Climate Week NYC 2024 and the UN Summit of the Future delivered little progress on pressing climate issues. The discussions were repetitive, failing to move beyond established ideas and falling short on the much-needed climate finance targets to replace the expiring $100 billion pledge.
This year’s talks, however, saw a more realistic tone, with focus shifting from achieving the 1.5 degrees Celsius goal to more practical actions aimed at staying below 2 degrees. Sustainability reporting emerged as a central theme, with new compliance requirements posing challenges for businesses as they adapt to stricter standards. Despite their decline in recent years, voluntary carbon markets took center stage this time underscoring the need for reforms to ensure credibility and transparency in carbon credits.
Financial discussions highlighted the urgency of unlocking investment for clean energy in developing countries, emphasizing the role of innovative financing methods to bridge the existing funding gaps. Discussions also emphasized the need for climate justice that supports vulnerable communities during the transition. Geopolitical tensions and uncertainties, including the upcoming US election and conflicts in the Middle East, continue to be significant causes of concern.
The UNGA also adopted the Pact for the Future, an ambitious declaration aimed at enhancing the UN’s relevance and effectiveness in tackling global challenges. Despite opposition from Russia and Iran, the pact was pushed forward to accelerate progress towards the UN SDGs and the Paris Agreement on climate change.
From Coal to Clean: The UK’s Journey to Net Zero
The UK has become the first G7 nation to fully phase out coal power with the closure of its last coal plant, the Ratcliffe Power Station, marking the end of 142 years of coal-fired power generation. This historic move aligns with the country’s goal to achieve net zero by 2050. Simultaneously, the UK government has announced a £1.5 billion budget for the next renewable energy auction as part of this transition.
The UK has experienced two major phases of coal reduction. The first wave in the 1990s saw coal’s share in electricity drop from around 65% to 35%, driven by mine closures and the rise of natural gas as a cheaper alternative. A second wave about a decade ago was policy-driven, with the UK’s higher carbon pricing making coal less viable, while renewables like wind and bioenergy rapidly expanded.
Even though coal now accounts for only 1% of the country’s energy mix, the move is a poignant end to an era that once defined Britain’s industrial might, marking a significant shift towards a future driven by clean energy.
Solar Surge: Capacity Growth and International Collaborations
India’s solar sector has seen significant growth in 2024, with 14.9 GW of new solar capacity added in the first half of the year, marking a 282% year-over-year increase. Open access solar capacity also surged by 153%, with 3.6 GW added in H1 2024. The MNRE, under the PM Surya Ghar initiative, is proposing a payment security and financial assistance mechanism to encourage solar project development. It will entail two models, the Renewable Energy Services Company (RESCO) model and the Utility-Led Aggregation model. It is noteworthy that India’s solar PV module manufacturing capacity has dramatically expanded from 2.3 GW to 67 GW over the past decade under the ‘Make in India’ initiative.
On the international front, the International Solar Alliance (ISA) launched a $100 million Global Solar Facility fund to develop decentralized solar power capacities in Africa. To enhance energy access in Africa, ISA is in discussions with Africa50 to serve as the investment manager for a $200 million solar facility for the continent. ISA also co-launched a multi-donor trust fund with the Multilateral Investment Guarantee Agency (MIGA) to facilitate solar energy adoption in sub-Saharan Africa.
RE-Invest 2024: Key Highlights and Commitments
The Global Renewable Energy Investment Meet and Expo (RE-Invest 2024) recently concluded in Gujarat. Union Minister Pralhad Joshi announced that a total of ₹32.45 lakh crore in the form of Shapath Patra has been pledged by 2030 for the renewable energy sector, underscoring India’s commitment to scale up its green energy initiatives. Developers have committed an additional 570 GW, simultaneously, manufacturers have committed additional manufacturing capacities of 340 GW in solar modules, 240 GW in solar cells, 22 GW in wind turbines and 10 GW in electrolysers.
Some notable commitments include, the Reliance Industries (RIL) commitment to set up 1 lakh Mw additional renewable capacity by 2030. Similarly, the Renewable Energy Corporation (REC) signed multiple MoUs worth ₹1.12 lakh crore, aimed at funding RE projects across the country. Additionally, the Gujarat Urja Vikas Nigam Limited (GUVNL) launched a Green Financing Fund, further enhancing financial support for renewable initiatives.
International Initiatives Tracker: India’s Global Energy Network
In recent weeks, India has made significant strides in international energy and climate cooperation:
- India-Japan: India signed its first-ever green ammonia export agreement with Japan, marking a significant step in India’s ambitions to become a leader in the green energy markets. Singapore-based Sembcorp Industries will produce green ammonia in India using renewable energy. Kyushu Electric Power Co. plans to use this ammonia in their thermal plants in Japan. Sojitz Corporation will connect the producer and offtaker, while NYK Line will handle its maritime transport to Japan.
- India-IPEF: In a major development, India under the Indo-Pacific Economic Framework (IPEF) signed the Clean Economy Agreement, Fair Economy Agreement, and IPEF Overarching Agreement for a clean and fair economy. Among other efforts, these agreements aim to enhance energy security, foster innovation to reduce dependence on fossil fuels and promote technical cooperation. They will also facilitate investments and project financing.
- India-UAE: India and the UAE inked key LNG and nuclear pacts during the UAE Crown Prince’s visit. Aimed at strengthening energy ties, the third long-term LNG supply deal between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL) will supply 1 mmt LNG per annum. The two sides inked a civil nuclear energy agreement to propel energy security.
- India-Sri Lanka: To strengthen energy ties and boost Sri Lanka’s power generation capabilities, India handed over its first payment of the USD 11 million grant to Sri Lanka. The project aims to install hybrid renewable energy systems in the Sri Lankan islands of Delft, Nainativu and Analaitivu. The two nations also signed an agreement for power generation that will develop storage infrastructure, regasification and LNG supply for a combined cycle power plant.
- India-EU: India partnered with the EU during the International Conference on Green Hydrogen and signed a key ammonia import deal, bolstering India’s commitment to green transition.
- India-Nepal-Bangladesh: They signed a tripartite agreement to facilitate cross-border electricity trade, aiming to enhance energy cooperation and regional power exchange. Under the agreement, Nepal will supply its surplus electricity to Bangladesh via India from June 15 to November 15 every year.
- India-Nepal: Nepal is set to export 1,000 MW of electricity to India. India also signed an MoU for the development of the 900 MW Upper Karnali Hydro Project in Nepal. Further strengthening ties, India and Nepal signed a B2B framework pact to bolster petroleum infrastructure. This includes the construction of new pipelines and terminals to connect demand centers.
- India-Germany: Both countries launched the India-Germany Platform for Investments in Renewable Energies Worldwide at the RE-Invest 2024 expo and meet. In a bid to support India’s 500 GW by 2030 target, the initiative aims to expand finance channels and diversify partnerships for renewable energy expansion.
- India-Australia: Both countries launched the Climate Smart Agritech Initiative to support businesses focused on sustainable agriculture to boost innovation in climate-resilient technologies and enhance food security.
- India-Singapore: Prime Minister Modi and his Singaporean counterpart, Lawrence Wong, identified six pillars for cooperation, emphasizing clean energy, digital innovation, and sustainability as key areas of focus during the recent bilateral engagement. Both sides emphasized the potential of green ammonia and hydrogen as further areas of collaboration.
The recent flurry of international collaborations in the energy and climate sectors indicates a strategic pivot toward enhancing India’s global leadership in sustainable development. By focusing on partnerships across diverse regions, India is actively building a network to support its clean energy ambitions.
Domestic Initiatives Tracker: India’s Latest Efforts
India has recently launched various domestic initiatives aimed at enhancing its energy landscape and sustainability efforts. From green steel production and advanced weather forecasting with Mission Mausam to major pushes in electric mobility and renewable energy, these initiatives reflect a diverse approach.
- Green Steel: The Ministry of Steel is set to launch a mission for green steel, focusing on sustainable initiatives to reduce carbon emissions. Modeled on the National Green Hydrogen Mission, the government will dedicate roughly ₹3,000 crore to the mission and increase green steel share in government procurement.
- Mission Mausam: The government approved a ₹2,000 crore initiative aimed at India’s weather and climate-related science, research, and services. Mission Mausam aims to advance weather forecasting capabilities and improve climate resilience.
- Hydro Scheme: A new ₹12,461 crore scheme has been approved to develop 31,350 MW of hydroelectric projects in hilly and remote areas and enable infrastructure for these projects.
- PM E-Drive Scheme: The government has introduced the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, replacing the FAME policy, with a budget of ₹10,900 crore to accelerate electric vehicle (EV) adoption. This initiative focuses on promoting battery-powered two-wheelers, three-wheelers, public transport vehicles, and electric buses, with incentives aimed at boosting EV production and infrastructure in India.
- PM E-Bus Sewa: The Union Cabinet approved the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme with a budget of ₹3,435.33 crore, aimed at supporting the deployment of over 38,000 electric buses from FY 2024-25 to FY 2028-29. This initiative addresses the high capital costs and revenue challenges faced by Public Transport Authorities (PTAs) by encouraging a Public-Private Partnership (PPP) model, reducing financial barriers to e-bus adoption and promoting sustainable urban mobility.
- EV Push: A fresh set of guidelines have been introduced to enhance EV charging infrastructure across India, this includes a new revenue-sharing model between government and private players to make installation more viable.
- Power Sector Blueprint: The government has outlined a ₹9.15 lakh crore investment blueprint to expand India’s transmission network from 4.85 lakh circuit kilometers in 2024 to 6.48 lakh circuit kilometers by 2032. This ambitious plan, part of the revised National Electricity Plan, aims to strengthen the central and state transmission systems to meet the projected power demand of 458 GW by 2032.
Wait, what?
In an interesting development, Italy and Switzerland are now redrawing national boundaries at locations like Plateau Rosa, the Carrel refuge, and Gobba di Rollin due to the impact of melting glaciers. As climate change accelerates ice melt, geographical markers that once clearly defined national boundaries are shifting. As a result, the changing landscape has prompted both nations to rework parts of their border reflecting the tangible impact of global warming on political
intangibles.
Check these out
Boosting Your Bottom Line Through Decarbonization| Boston Consulting Group
Unlocking India’s RE and Green Hydrogen Potential |CEEW
Advancing India’s climate strategy | S&P Global
Looking Ahead to Combat Climate Change | Nautilus
Energy Transition: China Has Broken the ‘Critical Minerals’ Market | Bloomberg
The Climate Dictionary | United Nations Development Programme
Thank you for taking the time to read our newsletter this month. Stay tuned for our next edition, where we will continue to explore climate and energy issues.