Chief Economic Adviser V Anantha Nageswaran, speaking at the Bengal Chamber of Commerce and Industry in Kolkata on September 19, 2025, pointed out important choices India must make in shifting to cleaner energy. He stressed that while India aims for sustainability, it cannot let this slow down economic growth or harm finances, especially as the country works towards becoming a developed nation by 2047. This comes amid global talks on climate change and India's push for more renewable energy.
What is Energy Transition and Why is It Important for India?
Energy transition means changing from using dirty fuels like coal and oil to cleaner ones like solar, wind, and hydro to reduce pollution and fight climate change.
For India, it's key because the country wants to reach net-zero emissions by 2070, meaning it won't add more greenhouse gases than it removes, while growing its economy to become developed by 2047.
India has already hit goals like 40% of power from non-fossil sources in 2021 and reduced emission intensity by 33% from 2005 levels by 2019, showing good progress but needing more to meet 50% renewable power by 2030.
What are the Critical Trade-offs Flagged by CEA Nageswaran?
Trade-offs are tough choices where picking one thing means giving up something else, like balancing green goals with keeping jobs and money flowing.
He said energy transition can't stop India's growth, as developing countries like India need energy to lift people out of poverty, but quick changes could hurt finances if not planned well.
For example, closing coal plants too soon could leave banks with unpaid loans, as these plants are big assets worth a lot of money.
What Causes India's Rising Energy Needs and How Does It Link to Economic Growth?
As people's incomes grow, they use more electricity for homes, cars, and factories, so India's energy use will keep going up in the coming years.
The economy has grown at 7% yearly from 2005 to 2019, but emissions only at 4%, meaning India is getting better at growing without polluting as much.
Still, with low land per person compared to other big countries, finding space for big solar or wind farms is hard, adding to the challenges.
Why Should India Diversify Its Renewable Energy Sources?
Diversifying means not relying only on solar and wind, which don't work all the time—like at night or without wind—but adding hydro (water power) and nuclear for steady supply.
Nuclear power is clean and reliable, and the 2025 Budget allows private firms to join, plus changes in laws to limit company risks if accidents happen, making it easier for foreign help.
This helps avoid problems like needing expensive batteries to store solar power, and uses India's resources like thorium for nuclear fuel.
What are the Fiscal and Banking Risks in Energy Transition?
Fiscal risks mean government money problems, like losing Rs 7.5 lakh crore in taxes from fuel and coal if they switch too fast to green energy without new income sources.
Banking risks come from loans to coal plants becoming bad if plants close early, leading to "stranded assets" where money is stuck in useless things.
CEA said these must be handled carefully to keep the economy stable, as banks need to be strong to lend for new green projects.
What is the Difference Between Climate Mitigation and Adaptation, and Why Prioritize Adaptation?
Mitigation is cutting emissions, like using less coal, while adaptation is preparing for changes, like building walls against rising seas or better water saving.
Nageswaran said adaptation is more practical now because the global 1.5-degree warming limit is hard to reach, and India can't afford Western-style high-energy living.
Ideas include improving buses and trains, fixing last-mile travel gaps, and old ways like rainwater collection to live sustainably without big costs.
How Does India's Performance Compare Globally in Energy Transition?
India ranks well among G20 in cutting emissions but has low per-person emissions—one-third the world average—and its total emissions are 75% from energy, 13% from farms.
The country has added 15 GW solar in a year, aiming for 30 GW more through home solar plans, and 5 million tonnes green hydrogen by 2030.
But it depends on imports for key minerals like lithium and cobalt, mostly from China, so needs better global deals for supplies.
What Role Should Developed Countries Play in Helping India?
They should give cheap loans, grants, and share tech as promised in global agreements like Paris Accord, since they used most of the world's carbon budget over 200 years.
Nageswaran called tech a "public good" for all, to help poorer countries catch up without repeating old polluting ways.
This includes joint research on new energies like tidal or geothermal, and avoiding unfair taxes on India's exports for being carbon-heavy.
What are the Broader Recommendations for India's Energy Mix?
Keep using clean coal tech like gasification while building renewables, as coal is 70% of power now and needed for steady supply.
Boost efficiency with programs like labeling appliances and trading energy savings, reducing overall demand.
Focus on recycling minerals from waste and buying overseas mines for lithium or cobalt to secure supplies.
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