India faces a daunting challenge of transitioning away from coal, with estimated costs exceeding $1 trillion. The study highlights the need for urgent action to address climate change and create a sustainable energy future.
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| India's coal phase-out will cost a staggering $1 trillion over the next 30 years, according to a new study. The transition will require significant investments in renewable energy and support for workers affected by the closure of coal mines and power plants. Image Courtesy: Unsplash |
Delhi, India - October 16, 2024:
A groundbreaking study by iForest has unveiled the staggering cost of India's transition away from coal: a whopping $1 trillion or ₹84 lakh crore over the next 30 years. This monumental figure represents the investment required to close coal mines and phase out coal-based thermal power plants, a cornerstone of the country's energy infrastructure.
The study, conducted in coal-dependent districts, provides a detailed breakdown of the transition costs. Green energy investments, including building new renewable energy plants and upgrading the electricity grid, account for 52% of the total cost. However, the remaining 48% is allocated to non-energy costs, such as supporting workers and communities affected by the transition and diversifying the economy to create green jobs.
India's reliance on coal is deep-rooted. Coal accounts for 55% of its commercial energy needs and over 70% of its electricity generation. The transition away from this energy source will have far-reaching implications for the country's economy, environment, and workforce.
While the study highlights the immense financial burden of this transition, it also underscores the urgency of action. Climate change poses a significant threat to India, and reducing its reliance on coal is a crucial step towards mitigating its impact. Moreover, the transition offers an opportunity to create a more sustainable and equitable energy future.
However, the transition will not be without its challenges. It will require significant investments, technological advancements, and policy reforms. The government will need to provide adequate support to workers and communities affected by the closure of coal mines and power plants. Additionally, it will need to incentivize investments in renewable energy and ensure a reliable and affordable electricity supply.
The study's findings serve as a stark reminder of the scale of the task ahead. India's transition away from coal is a complex and multifaceted challenge that will require a concerted effort from all stakeholders. By investing in a cleaner energy future, India can not only address the climate crisis but also create a more prosperous and sustainable economy for generations to come.