Just transition, Just Finance report released by environmental think-tank iForest | Current Affairs | Vision IAS
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Just transition, Just Finance report released by environmental think-tank iForest

Posted 16 Oct 2024

2 min read

The primary studies by the think-tank were carried out in coal dependent districts (Korba, Angul, Bokaro and Ramgarh) to understand and calculate the costs of transition, cost components and factors.

  • In the study, just energy transition is defined as a development approach that aims to shift from fossil fuels to green energy while ensuring economic growth, protecting affected workers and communities, and enhancing energy security.

Key Findings

  • Currently, coal accounts for about 55% of India’s commercial energy requirements and coal-based thermal power plants produce more than 70 per cent of electricity.
  • India will require more than a trillion dollars  at current rates, to transition away from coal mining and thermal power plants in the next 30 years.
  • The transition costs are split into two main categories i.e. green energy costs (52%) for infrastructure development and non-energy costs (48%) for supporting affected workers and communities.

Recommendations

  • District Mineral Foundation (DMF) and Corporate Social Responsibility (CSR) funds are important resources to initiate just transition measures at the district level.
  • International financing will be necessary to implement just transition measures comprehensively as recognised by India’s Long-Term Low-Carbon Development Strategy (LT-LCDC).
  • Other financial measures include private investments and grants and subsidies from public sources.

Coal in India

  • Status: World’s second largest coal producer and 5th largest country in terms of coal deposits.
  • Type of coal: About 80% of coal deposits are bituminous type and are of non-coking grade.
  • States with highest coal reserves : Odisha, Jharkhand, Chhattisgarh.
  • Characteristics of coal: High in ash content but low in sulfur content with high ash fusion temperature.
  • Tags :
  • clean energy
  • Just Transition
  • Energy transition
  • Just Finance
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