Identifying Specific Policy Options with the Aim of Reducing Carbon Intensity in India
Government of India has announced the National Action Plan on Climate Change (NAPCC) and its constituent eight missions prepared under the aegis of the Prime Minister’s Council and furthermore, an ‘Expert Group on Low Carbon Strategies for Inclusive Growth’ chaired by Dr. Kirit Parikh, has been set up to provide technical and policy options to reduce 20-25% emission intensity by 2020. Various other countries are aggressively pursuing low carbon growth plans, and by rapidly disseminating the lessons globally learned in implementing low carbon growth plans and particularly from UK/EU experience and applying them to the challenges faced in India, India may be able to leapfrog these experiences and accelerate the implementation of policies that are a deviation from the business as a usual scenario. Under this context, the aim of this study project was to provide practical recommendations on low carbon policy options to support the ‘Expert Group on Low Carbon Strategies for Inclusive Growth’ appointed by the Planning Commission to reduce India’s emission intensity. The study aims to provide practical recommendations for the policy landscape in India, specifically in three key domains identified by stakeholders: Renewable Energy Certificates (RECs), Green/Energy Efficient Buildings and Low Carbon Institutional Framework. The study ‘Identifying specific policy options with the aim of reducing carbon intensity in India’ is undertaken by AEA, Emergent Ventures India and IRADe, and is supported by the British High Commission.
Key Recommendations:
Renewable Energy Certificates (RECs):
- Ensuring policy certainty and regulatory compliance by demonstrating a national policy commitment for RECs by setting appropriate targets that aligns with the national level targets of renewable energy generation.
- Setting uniform RPO targets across states in India , set Minimum Price guarantee for RECs and strengthening the penalty mechanism
Green and energy efficient building standards:
- lopers to overcome barriers related to capital intensity, high cost and general reluctance to move from existing practice. Central financial assistance could be provided to city municipalities and other local bodies to finance these incentives.
- Reduce the knowledge gaps and promote greater sharing of information amongst technical experts and developers to incorporate Green building/ energy efficiency techniques in building design and construction.
- Stricter regulatory provisions and mandating standards for making designers and contractors for rapid adoption of techniques and technologies for green and energy efficient buildings.
Low carbon governance and institutional framework:
- A special unit such as the Low Carbon Growth Unit (LCGU) could be set up in planning commission to focus expressly on delivery of those aspects of the 5-Year Plan with climate elements linked to the NAPCC.
- A new dedicated committee was established by the Prime Minister, under the PM Council, to track the progress of the NAPCC Missions with clear recommendations of what improvements can be made.
Improving the institutional framework to support private sector action