The Clean Energy Ministerial (CEM) is an international framework that promotes clean energy initiatives and policies. It provides a forum for global economies to collaborate and demonstrate best practices to enhance supply, expand access to and accelerate adoption of clean energy worldwide. CEM has been conducting energy summits annually to meet these objectives and continued the tradition by organising the 12th Clean Energy Ministerial (CEM12) in 2021 that was hosted by Chile from May 31, 2021 to June 6, 2021.
Following this, world economies have been focusing on cost-effective energy efficient industrial solutions and implementing innovative technologies to ensure a sustainable approach for future developments that could boost economic activities and growth.
Energy Efficiency Market in India
As per Ministry of Power data, the energy demand in India is estimated to increase to 1,500 MTOE (million tonnes of oil equivalent) by 2030, from 770 MTOE in 2012, on the back of rising incomes and economy. As per a press release by Energy Efficiency Services Ltd. (EESL), in February 2021, the Indian energy efficiency market is estimated at Rs. 74,000 crore (US$ 10.15 billion); this is anticipated to cause energy savings of up to 20% of the current energy consumption by leveraging technology and innovative business models.
According to Indian Energy Exchange, a trading company, sustainable development of the industrial ecosystem depends on boosting efficiency of industries including agriculture, cement, iron and steel, leading to the overall development of economy. For example,
The 12th Clean Energy Ministerial (CEM) Summit
At the 12th Clean Energy Ministerial (CEM) summit, India, along with the UK, introduced a roadmap to promote deep decarbonisation and improve energy efficiency of industries under the CEM’s ‘IDDI (Industrial Deep Decarbonization Initiative)’, which is co-ordinated by UNIDO, United Nations Industrial Development Organisation. The IDDI aims to promote green technologies and accelerate demand for low-carbon industrial materials. It is currently backed by Canada and Germany, with more countries set to join the initiative.
At the summit, Secretary, the Ministry of Power, Mr. Alok Kumar emphasised that India aims to reduce its intensity of emissions by 33-35% per unit of the GDP by 2030. This depends on the effective deployment of low-carbon technologies in energy-intensive industries such as steel, cement and petrochemicals. He explained that government policies have resulted in substantial energy savings on the demand-side.
Collaboration between India and the UK
Over the years, India and the UK have built an enduring alliance in various areas including climate change. Following this, in May 2021, the two countries jointly launched a ‘Roadmap 2030’ to collaborate and combat climate change by 2030.
Mr. Alok Sharma, President of COP26 (Climate Change Conference of the Parties) UK, said, "Accelerating the transition to clean energy is vital. To achieve the target by 2030, global innovation alliances in the fields of energy, transportation and industry are crucial. I am excited that both India and UK have collaborated in this significant area."
Key highlights of the ‘Roadmap 2030’ are as follows:
According to the statement, India and the UK have been encouraging other world economies and various corporations to focus on embraced climate change initiative for a sustainable future.
Companies that have made net zero commitments through the UN's 'Race to Zero' campaign include the following:
Key implementations of the India-UK initiative to promote industrial energy efficiency
Commitments by India
In June 2021, at the Innovating to Net Zero Summit, India launched the ‘Mission Innovation CleanTech Exchange 2.0’, a global initiative to create a incubators group across member countries to promote innovation in clean energy technologies.
Mission Innovation (MI) 2.0 is the second phase of the Mission's Global Innovation Plan, which was launched in conjunction with the Paris Agreement (2015). The mission aims to progress further on the climate change task of the Paris Agreement and net zero road, while making clean energy accessible, affordable and attractive for all worldwide.
Under this programme, mission members contribute > 90% of global public investment in clean energy to promote innovations and are committed to boost investments & collaborations to provide technologies needed to meet the requirement for climate change mission.
Mr. Harsh Vardhan, Minister of Science and Technology, said, "Mission Innovation (MI) has played a commendable role in organizing greater investment and public and private partnerships, thereby accelerating clean energy innovation. MI 2.0 emphasizes the importance of joint scientific efforts. To achieve the vision of an affordable and coherent clean energy system to enable countries respond to a sustainable future through innovation.
Initiatives by the Indian Government
Key initiatives taken by the Government of India are as follows:
In line with several government initiatives to promote energy-efficient solutions, key industry players in India are taking various measures to expand in this space and leveraging strategic partnerships to develop and implement industry-efficient solutions. For example, in June 2021, EESL collaborated with the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE) to implement efficient and clean energy solutions in the heating, ventilation, air conditioning and refrigeration (HVAC&R) industry. In April 2021, EESL and the Institute for Sustainable Communities (ISC) extended their partnership to increase industrial energy efficiency in India. As of FY21, the project has facilitated energy savings worth US$ 7.3 million by replacing inefficient motors. The collaboration is further aiming energy saving potential of 66.5 MkWh and an annual saving of US$ 62 million.
In addition, players are leveraging technology to adopt energy-efficient solutions. For example, in June 2021, Convergence Energy Services Limited (CESL), a wholly owned subsidiary of EESL, signed a MoU with CLASP (Collaborative Labelling and Appliance Standards Programme) to deploy energy-efficient technologies. In April 2021, Hero MotoCorp collaborated with Gogoro Inc, a Taiwan-based battery swapping platform, to boost the transition to smart, sustainable electric mobility in India.
With key developments in the energy efficiency space, India is progressing well on its path of sustainable journey. Moreover, India’s collaboration with the UK has helped transform the industrial energy efficiency across the country. The success of PAT scheme is an example and demonstration of changes brought by the collaboration of two countries that could help pool resources and enable faster implementation of energy-efficient solutions.
The ‘Roadmap 2030’ further demonstrates the strengthening of the India-UK alliance and sets the foundation for the two countries as well as world economies to benefit from the programme and offer cleaner, more affordable and resilient energy.