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Source: The post is based on the article “Talk about coal – India must consider energy transition partnerships” published in Business Standard on 8th December 2022.
Syllabus: GS 3 – Infrastructure
Relevance: Just Energy Transition Partnerships and India
News: The Indian government has refused to accept JETPs and phase out its coal dependence due to the concerned stakeholders involved and the need of coal-based energy for the growth of the nation.
What is Just Energy Transition Partnerships (JETPs)?
It is a major option for large developing economies that want to shift from coal dependence.
A JETP for the South African coal sector was announced last year at the CoP-26 with an $8.5-billion initial commitment from foreign governments and donors to pay for the costs of its coal phase-down.
Indonesia has also announced setting up a JETP for its own coal sector that will mobilise global financing of $20 billion.
What is the stand of the Indian government?
The Indian government is not ready to accept JETP for its coal sector. Instead, the focus of the government is on funding renewable energy.
This is because renewable energy is a mature sector in the country and it is easy to get private finance from the global market. The constraints with renewable energies in India are regulatory and technological not financial.
What can be the course of action?
It is not clear why India is stepping away from JETP because it would provide India with the required finance to bail-out the coal dependent power sector.
Therefore, the government should come up with a mechanism that estimates the costs and benefits of a JETP and come up with a clear financing proposal that will ensure an equitable transition away from coal power in India.