New Delhi, India – India is accelerating its transition to a green economy, prioritizing a delicate balance between economic growth and environmental sustainability. This shift involves transitioning from fossil fuels to renewable energy sources, aiming to create a sustainable and inclusive future.
Chandra Bhushan, CEO of iFOREST, emphasized the importance of understanding that a just transition is a developmental intervention aimed at achieving net zero while improving social, economic, and environmental conditions in fossil fuel-dependent regions. He shared insights on iFOREST’s mission, the role of private financing, and the need for a robust framework to guide India’s ambitious net-zero and energy independence targets.
iFOREST’s Research on Just Transition
iFOREST has been at the forefront of research on just transition since 2019. Their extensive research, including district-level reports, a state-level report (Maharashtra), and national-level studies, highlights the challenges and opportunities for a post-coal future.
The organization’s research underscores the need for fundamental changes in production, consumption, and economic operations to address the climate crisis. These changes, while disruptive, offer opportunities to build a green economy and create millions of green jobs.
Ensuring a Just Transition for Workers
India faces the challenge of transitioning over two million formal workers and millions more informal and induced workers in the fossil fuel sector. A just transition requires a comprehensive approach, encompassing:
- Restructuring the Economy: Developing new green businesses and supporting existing ones to become green.
- Repurposing Land and Infrastructure: Reusing land and infrastructure from the fossil fuel industry to maintain economic vitality in affected areas.
- Reskilling and Skilling the Workforce: Providing training and education for workers to adapt to new green industries.
- Resilient Communities: Building climate-resilient infrastructure and industries to support fossil fuel-affected communities.
- Substituting Revenue: Developing new revenue streams to replace lost revenue from fossil fuels and related sectors.
- Responsible Social and Environmental Investments: Avoiding past mistakes of resource extraction and pollution by adopting sustainable practices.
Financial Requirements and Private Financing
iFOREST’s latest estimates suggest that transitioning away from coal mining and thermal power plants will require investments exceeding a trillion dollars by 2050. While a significant portion can be funded by the market, approximately $400 billion will need public resources.
Private financing is crucial for building a new green economy. Concessional finance, blended finance, green bonds, government subsidies, and tax exemptions will be necessary to attract new investments in various sectors.
Balancing Economic Growth and Environmental Sustainability
Contrary to popular belief, green energy is becoming increasingly affordable. The declining costs of solar PV and battery storage make it a competitive option for India. By seizing this advantage, India can build globally competitive industries and achieve its economic growth goals while transitioning to green energy.
A Strong Framework for Net Zero and Energy Independence
India needs a comprehensive climate law to guide its transition to a net-zero economy and energy independence. Such a law would establish guiding principles, integrate climate objectives into existing policies, and create institutions for policy coordination.
iFOREST’s Role in Solutions
iFOREST aims to facilitate the transition to a green economy by generating new knowledge and solutions. Their focus on holistic integration of environmental sustainability and social justice ensures a just and equitable transition.
