{"id":43059,"date":"2024-10-21T12:50:02","date_gmt":"2024-10-21T07:20:02","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=43059"},"modified":"2025-05-05T22:46:34","modified_gmt":"2025-05-05T17:16:34","slug":"the-high-cost-of-indias-transition-from-coal-to-green-energy","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/the-high-cost-of-indias-transition-from-coal-to-green-energy\/","title":{"rendered":"The High Cost of India\u2019s Transition from Coal to Green Energy"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>Coal Resource in India<\/li>\n<li>Ensuring a Just Energy Transition in India<\/li>\n<li>International Support for Coal Phase-Down \u2013 Case Studies<\/li>\n<li>Findings from the Study of Coal-Dependent Districts in India<\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<p>A recent study by iForest (International Forum for Environment, Sustainability and Technology) reveals that India will need over $1 trillion (Rs 84 lakh crore) over the next 30 years for a just transition away from coal.\u00a0<\/p>\n<p>The study, the first of its kind, estimates the costs of phasing down coal mines and plants while ensuring socio-economic stability in coal-dependent regions.\u00a0<\/p>\n<h2><strong>Coal Resource in India<\/strong><\/h2>\n<ul>\n<li><strong>Statistics<\/strong>\n<ul>\n<li>According to the National Coal Inventory of 2023, the total estimated coal reserve (resource) of India is\u00a0<strong>378.21billion tonnes as of 01.04.2023.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Coal Production<\/strong>\n<ul>\n<li>The all India Production of coal during\u00a0<strong>2023-24\u00a0<\/strong>was\u00a0<strong>997.83\u00a0MT<\/strong> with a positive\u00a0growth of\u00a0<strong>11.71%.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Coal Import<\/strong>\n<ul>\n<li>As per the present Import policy, coal can be freely imported (under Open General Licence) by the consumers themselves considering their needs based on their commercial consideration.<\/li>\n<li>Coking Coal is being imported by Steel sector mainly to bridge the gap between the requirement and indigenous availability and to improve the quality.\u00a0<\/li>\n<li>Other sectors like Power sector, cement etc. and coal traders are importing non-coking coal.<\/li>\n<li>Total coal import during 2023-24 was 261 million tonnes.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Ensuring a Just Energy Transition in India<\/strong><\/h2>\n<ul>\n<li><strong>About Just Energy Transition and challenges associated<\/strong>\n<ul>\n<li>A &#8220;just&#8221; energy transition refers to an equitable and inclusive shift towards a low-carbon economy that takes into account the needs of workers and communities dependent on fossil fuels.\u00a0<\/li>\n<li>As the world&#8217;s second-largest coal producer, India employs a vast number of individuals in coal mining, thermal power plants, logistics, and related sectors.\u00a0\n<ul>\n<li>Public sector coal companies alone employ over 3.6 lakh workers, with many more in the private sector.<\/li>\n<\/ul>\n<\/li>\n<li>As India aims for net-zero emissions by 2070, growing its renewable energy capacity will be crucial.\u00a0<\/li>\n<li>However, ensuring that coal-dependent workers and regions are not left behind in this transition poses a major financial challenge.\u00a0<\/li>\n<li>Balancing economic stability with climate goals will require significant investment.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Costs associated with a just transition<\/strong>\n<ul>\n<li>A study on India&#8217;s just transition from coal, based on assessments of coal-dependent districts and international examples from South Africa, Germany, and Poland, identified eight key cost components.\u00a0<\/li>\n<li>These include:\u00a0\n<ul>\n<li>mine closures and site repurposing,\u00a0<\/li>\n<li>retiring coal plants and converting them to clean energy,\u00a0<\/li>\n<li>skilling workers for green jobs,\u00a0<\/li>\n<li>fostering new businesses,\u00a0<\/li>\n<li>community support,\u00a0<\/li>\n<li>green energy investments,\u00a0<\/li>\n<li>compensating states for revenue loss, and\u00a0<\/li>\n<li>planning costs.<\/li>\n<\/ul>\n<\/li>\n<li>Nearly 48% of the estimated $1 trillion required over the next 30 years will be needed for green investments\u00a0to replace coal-based energy infrastructure with cleaner alternatives.<\/li>\n<li><strong>Source of funds for this transition<\/strong><\/li>\n<li>Funding India\u2019s just transition away from coal will require a mix of public and private investments.\u00a0<\/li>\n<li>Public funding, through grants and subsidies, will primarily address &#8220;non-energy&#8221; costs such as community support, skilling coal workers for green jobs, and aiding new businesses.<\/li>\n<li>\u00a0India\u2019s $4 billion District Mineral Foundation funds, collected from miners, along with Corporate Social Responsibility (CSR) funds, can be used to support new businesses and coal-dependent communities.<\/li>\n<li>Private investments, on the other hand, are expected to cover most of the &#8220;energy costs,&#8221; focusing on developing clean energy projects and green infrastructure.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>International Support for Coal Phase-Down \u2013 Case Studies<\/strong><\/h2>\n<ul>\n<li><strong>South Africa\u2019s Just Energy Transition<\/strong>\n<ul>\n<li>South Africa\u2019s Just Energy Transition Investment Plan (JET-IP) will receive international financial support from countries such as the UK, France, Germany, the US, the EU, the Netherlands, and Denmark.\u00a0<\/li>\n<li>The plan requires $98 billion over two decades, with $8.5 billion to be provided between 2023-2027.\u00a0<\/li>\n<li>Most of the funds will go towards green energy investments, with financing through concessional loans, grants, and public-private partnerships.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Germany\u2019s Legislative Action on Coal Phase-Out<\/strong>\n<ul>\n<li>Germany has enacted legislation to phase out coal power by 2038, with over $55 billion allocated to close coal mines and power plants.\u00a0<\/li>\n<li>The funds will also be used to support coal-dependent regions by fostering economic development.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><strong>Findings from the Study of Coal-Dependent Districts in India<\/strong><\/h2>\n<ul>\n<li>The study focused on four coal-dependent districts: Korba (Chhattisgarh), Bokaro and Ramgarh (Jharkhand), and Angul (Odisha), to assess their reliance on coal and estimate the costs of a just transition.<\/li>\n<li>In Bokaro,\u00a0coal-based industries contribute 54% of the district&#8217;s domestic product, employing around 1,39,000 workers in coal mining, power plants, and related sectors like steel and cement.\u00a0<\/li>\n<li>The study estimates that a full coal phase-down in Bokaro will begin after 2040 and will require Rs 1.01 lakh crore over 30 years to rehabilitate workers, repurpose coal sites, and develop green energy infrastructure.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q.1. What are the major costs associated with India\u2019s transition from coal?<\/strong><\/h3>\n<p>India&#8217;s transition will require over $1 trillion, including costs for mine closures, worker reskilling, clean energy investments, and community support in coal-dependent regions.<\/p>\n<h3><strong>Q.2. How will India fund the transition away from coal?<\/strong><\/h3>\n<p>The transition will rely on a mix of public and private investments, with public funds supporting socio-economic initiatives and private investments covering energy costs for developing green infrastructure.<\/p>\n<p><strong>News:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-climate\/1-trillion-over-30-years-the-huge-cost-of-pivoting-away-from-coal-9630482\/\" target=\"_blank\" rel=\"nofollow noopener\">$1 trillion over 30 years: the huge cost of pivoting away from coal<\/a> | <a href=\"https:\/\/coal.gov.in\/en\/major-statistics\/coal-reserves\" target=\"_blank\" rel=\"nofollow noopener\">Ministry of Coal<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India requires over $1 trillion to transition from coal over 30 years. Learn about the financial and social challenges of moving away from coal while ensuring a just transition for coal-dependent communities.<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-43059","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-upsc-mains-current-affairs","7":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/43059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=43059"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/43059\/revisions"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=43059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=43059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=43059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}