India’s economy 10% more energy efficient than G20 average: IEA

• International Energy Agency (IEA) recently released the report titled “Life Lessons From India”
• Report examines how India has integrated several policies in its energy transition strategy that are aligned with LiFE initiative.
• Key highlights
  • Annual global CO2 emissions will fall by 2 billion tonnes in 2030 on adoption of LiFE (Lifestyle for Environment) measures.
  • LiFE measures can also help lower inequalities in energy consumption and emissions between countries. The reductions the measures could deliver in per capita carbon dioxide emissions in advanced economies by 2030 are three to four times greater than in emerging market and developing economies, it says.
  • LiFE measures would save consumers globally around $440 billion in 2030.
  • India’s economy is already 10 percent more energy efficient than both global and G20 average.
  • India took less time to go from half to full electricity access than other major economies.
  • Around 60% of emissions saving by LiFE measures could be directly influenced or mandated by governments.
  • India’s example shows the importance of behavioural change and consumption choices in driving energy transitions.

India’s initiatives

India has embarked on a dynamic new phase in its energy transformation, which spans three broad areas.

1. Firstly, it has launched important initiatives to bring down the prices and increase the supply of clean energy. These include a target of non-fossil fuel sources contributing to 50 per cent of India’s power generation capacity by 2030; a National Green Hydrogen Mission with the ambition of establishing annual renewable hydrogen production of 5 million tonnes (Mt) by 2030; and biofuel mandates that target 30 per cent blending of ethanol in petrol by 2030.
2. Secondly, India seeks to domesticate parts of the global supply chains that will be critical to its new energy economy. This includes the Production Linked Incentive (PLI) scheme that promotes the domestic manufacturing of solar PV, advanced batteries and electric vehicles.
3. Thirdly, the government has focused on demand-side measures, including taking the first steps towards the creation of a national carbon market, an energy efficiency trading scheme for industries, incentivising the purchase of electric vehicles, bulk procurement of electric buses for public transport, standards and labelling of appliances, and most recently, the Lifestyles for Environment (LiFE) initiative that aims to nudge behaviours and individual consumption choices towards cleaner alternatives.

Challenges

These measures have immense potential but need global support.

• The IEA estimates that India will need $145 billion per year until 2030 in clean energy investment to put it on a path towards net-zero emissions by 2070.
• This is triple the current level of annual clean energy investment in India.

About LiFE mission

• LiFE mission was launched by Prime Minister of India at COP 26 in 2021 to bring individual behaviours at forefront of global climate action narrative.
• LiFE envisions replacing the prevalent ‘use-and-dispose’ economy with a circular economy.
• Mission plans to create and nurture a global network of individuals, namely ‘Pro-Planet People’ (P3), who will have a shared commitment to adopt and promote environmentally friendly lifestyles.
• LiFE Mission is being piloted by NITI Aayog and implemented by Ministry of Environment, Forest and Climate Change.
• Tenure: 2022 to 2027.

International Energy Agency

• Created in 1974 to help co-ordinate a collective response to major disruptions in supply of oil.
• Headquarters in Paris, France.
• India is an associate member.