Industry Transition Dialogue and Transition towards Net Zero

In  News 

• Recently, India and Sweden hosted the Industry Transition Dialogue in Stockholm, as a part of their joint initiative i.e. Leadership for Industry Transition (LeadIT).
  • It was highlighted that the developed nations, with their historical experiences, must take lead in the global transition towards net-zero and low carbon industry.

About 

• The conference in Stockholm marks 50 years since the first United Nations Conference on the Human Environment held in Stockholm  on June 5-16, 1972.
• It was then the first global effort to view environmental challenges as a worldwide policy issue and define the core principles for its management.
• The Stockholm conference led to the creation of the UN Environment Programme that is now an influential global voice on the state of the environment. 

What is Net Zero?

• It  means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance.
• Importance:
  • The science shows clearly that in order to avert the worst impacts of climate change and preserve a livable planet, global temperature increase needs to be limited to 1.5°C above pre-industrial levels. 
  • Currently, the Earth is already about 1.1°C warmer than it was in the late 1800s, and emissions continue to rise. 
  • To keep global warming to no more than 1.5°C  – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

• How can net zero be achieved?
  • Transitioning to a net-zero world is one of the greatest challenges humankind has faced.
  •  It calls for nothing less than a complete transformation of how we produce, consume, and move about. 
  • The energy sector is the source of around three-quarters of greenhouse gas emissions today and holds the key to averting the worst effects of climate change.
  •  Replacing polluting coal, gas and oil-fired power with energy from renewable sources, such as wind or solar, would dramatically reduce carbon emissions.
• Global Efforts 
  •  A growing coalition of countries, cities, businesses and other institutions are pledging to get to net-zero emissions. 
  • More than 70 countries, including the biggest polluters – China, the United States, and the European Union – have set a net-zero target, covering about 76% of global emissions.
  •  Over 1,200 companies have put in place science-based targets in line with net zero, and more than 1000 cities, over 1000 educational institutions, and over 400 financial institutions have joined the Race to Zero, pledging to take rigorous, immediate action to halve global emissions by 2030.

• India’s goals

• Glasgow summit: At the recently concluded summit in Glasgow, Scotland, Prime Minister announced India’s national goals to significantly improve the proportion of renewable energy in its installed capacity and be net zero by 2070.
• Near-term and long-term climate targets: At COP26, India announced bold near-term and long-term climate targets.
• Other targets: The commitment of 500GW of renewable energy by 2030, which is more than twice the installed capacity of coal currently, should set the stage for a quick transformation of the energy sector.
• Updated Nationally Determined Contribution (NDC): As per the new NDC, 50% of electricity generation will come from renewable energy sources by 2030 and the target of achieving 450 GW non-fossil energy capacity has been increased to 500 GW by 2030.

Issues/ Challenges

• Failure of the developed countries: The continued failure of the developed countries to fulfil their long-standing commitments on finance and technology is expected to make even the current transitions a lot more difficult.
  • China, the U.S. and the European Union even after taking account of their net zero commitments and their enhanced emission reduction commitments for 2030; will emit more than 500 billion tonnes of carbon dioxide before net zero.
• Coal ‘phase-down as an alternative: There was no mention of a move away from fossil fuels; instead there was a last-minute change to reflect its dissent from a coal phase-out target.
• Injustice against developing nations: there hasn’t been as much focus on climate adaptation as mitigation and that is an injustice against developing nations.
• Environmental shocks: There are changes in cropping patterns; there are floods and a great need to make agriculture resilient to these shocks.
• Global carbon budget: limiting the increase in the world’s average temperature from pre-industrial levels to those agreed in the Paris Agreement requires global cumulative emissions of carbon dioxide to be capped at the global carbon budget.
• Non-effective: Neither the Paris Agreement nor climate science requires that net-zero be reached individually by countries by 2050.

Conclusion and Way Forward 

• The developed nations, with their historical experiences, must take lead in the global transition towards net-zero & low carbon industry.
• Developed countries should share technology and collaborate with developing countries and a fresh look must be taken at the global intellectual property rights regime.
• The developing world needs not just an industrial ‘transition’, but an industrial renaissance – a flowering of industries that will create jobs and prosperity along with a clean environment. 
  • India should invest in research and development, and become an export hub for green hydrogen and electrolysers in the coming years. 
  • The government can provide direction and remove barriers via subsidies and incentives.

•  The efforts and exchanges through such platforms have the potential to lead the world in the right direction. 
• The commitments and pledges now must translate into action in mitigation and adaptation that rides on climate finance and technology transfer.
• It is important to always keep in mind the principles and values of equity and common but differentiated responsibilities and respective capacities of the United Nations Framework Convention of Climate Change for climate action while we move ahead with the implementation of the Nationally Determined Contributions and Paris Agreement goals. 
• The national circumstances play an important role in devising the pertinent strategies and development stories for the nations.
• Developed countries must ramp up hard targets for climate finance over the coming years.

Source:TH