Neither our planet nor any country in it can decarbonise while wasting large amounts of energy in appliances, buildings, vehicles and industries. Prime Minister Narendra Modi’s ambitious panchamrit (five elements of the ambrosia) commitment at Glasgow for the 26th Conference of Parties (CoP26) to the UN Framework Convention on Climate Change proposed a five-fold strategy for India to play its part in helping the world get closer to 1.5 degrees Celsius -- a commitment that balances India’s sustainable growth priorities against responsible international commitments. India’s Updated First Nationally Determined Contribution (NDC) Under the Paris Agreement has set a target to reduce ‘Emissions Intensity of its GDP by 45 per cent by 2030, from 2005 level’ and to achieve about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. To achieve this, India seeks transfer of technology and low-cost international finance, including from the Green Climate Fund (GCF).
Several Indian companies have declared their intent to be ‘net zero’ over different time horizons. A select few have joined the Science-Based Target (SBTi) route to cut their emissions. Amongst emerging economies, India leads in the number of SBTi commitments, with 79 Indian companies joining the initiative as of April 2022. Many Indian corporate houses, such as Aditya Birla group, Mahindra & Mahindra, JSW, Vedanta, Adani Transmission and Dalmia Cement, among others, have set decarbonisation targets internally to become carbon neutral by 2050 or before. Reliance Industries has set a target of ‘net zero’ by 2035. Infosys became a carbon-neutral company in 2020, three decades ahead of the deadline set in the Paris agreement. Infosys is the first Indian signatory to the RE100 global campaign and is transitioning to renewable energy for all its electricity needs.
As many as 100 companies voluntarily have disclosed information for 2021-22 according to the Business Responsibility and Sustainability Reporting (BRSR) standards, recommended by Indian markets regulator Sebi. From 2022-23, BRSR will become mandatory for top 1,000 Indian companies.
Considering all this development and positive momentum, there can’t be a better time for a ‘Call for Action’ (CfA). This is a call to Indian companies and businesses to promote and embrace energy-efficient, low-carbon and ‘net zero’-enabling technologies to achieve 100 GW of electricity savings from energy efficiency, which would contribute to the 500 GW from non-fossil fuel sources target by 2030.
Many companies joining the CfA are stressing on energy efficiency to begin decarbonising the Indian economy and have urged for a 10x increase in the extremely modest current budget allocations at Central, state and city levels and a massive capacity-building and awareness campaign to unleash its full potential.
While 10x may look like a significant bump but, considering that there will be a capex savings of Rs800,000 crore by avoiding 100 GW of power generation, a 1 per cent allocation equivalent to Rs8,000 crore has the potential to usher in a culture of energy efficiency, create millions of green jobs and send a signal to the private sector that India means business and is ready to become a leader in energy efficiency. The CfA should be centred around the four-pronged approach:
Many Indian corporate houses, such as Aditya Birla group, Mahindra & Mahindra, JSW, Vedanta, Adani Transmission and Dalmia Cement, among others, have set decarbonisation targets internally to become carbon neutral by 2050 or before
• Reduce, reuse and recycle: Encouraging consumers to opt for green and energy-efficient solutions such as buying five-star rated appliances, switching to electric- or hydrogen-powered vehicles, extending the life of present equipment and recover components for use in new products, etc;
• Lifestyle for the Environment (LiFE): Calling individuals, communities and businesses to drive climate-friendly behaviours;
• Digitalisation and data-driven approach: Opting for IoT-enabled energy management, cloud-based data analytics and controls and in buildings, infrastructure and industries; and
• Engage, engage, engage: Need to connect with a diverse workforce to find representation from all communities to promote sustainability through education and partnerships.
A broader focus on bringing down the energy intensity across business, industries and large consumption centres like offices, hospitals, hotels, airports, data centres will play a critical role and are required to shift to energy-efficient technologies and appliances, while offering support to data-driven, evidence-based policies.
For instance, Apollo Hospitals, India’s largest private healthcare services provider, with 71 hospitals across 55 specialities, has signed up with Smart Joules, a leading energy efficiency company for energy savings of 300 million KWh, carbon emissions reduction of 290,000 tonnes and energy cost savings of about Rs225 crore over a 10-year period.
While renewable energy will decarbonise the power sector from the supply side, India must build a culture of energy efficiency to start reducing its energy requirements from the demand side, without compromising on our aspirations, reflected in the increasing use or adoption of appliances, buildings, industries, agriculture, transportation, etc, to become a leader in clean energy technologies. The CfA by Indian corporates will accelerate the country’s mission to clean energy.