Lack of finance makes it difficult for poor countries to easily achieve renewable energy targets

- The expected discussion on the challenge of global warming was not seen in the G20 conference

Many small and middle-income countries in the world are under heavy debt burdens, unable to spend the money needed to meet their climate change targets as a result of the huge debt interest payments they have to make, making them slow to move towards non-polluting renewable energy. . Due to economic inequality, developing countries have to depend on imports for goods, grains and energy. This increases their debt burden and limits their ability to spend on development projects and climate change mitigation. Weather-related events such as floods, droughts, hurricanes have also hit developing countries economically. Due to lack of sufficient funds, developing countries have to raise debt from abroad to meet these events.

According to an estimate, developing countries have to spend 16.30 percent of their government revenue on debt servicing. Keeping this fact in mind, the G20 summit held in India recently was expected to make a big announcement about climate change. It was expected that there would be a firm decision especially from the developed countries to provide financial support to the developing countries but nothing special was seen in this regard. As the G20 plays an important role in coordinating the climate policies of major economies, a firm decision was expected. However, apart from the mention of a line to triple the capacity of renewable energy, the New Delhi declaration did not contain any other specific details.

Talking about India in terms of renewable energy capacity, till the end of last year, India's installed renewable energy capacity was 166 GW. Tripling this capacity by 2030 would mean bringing the capacity to 500 giga watts. India can add around 50 gigawatts per year considering the existing financial resources. After the G20 summit, the only question that has arisen is whether other countries including India will get the necessary funds to fight climate change.

Contrary to global trends, India's solar module imports from China fell by 76 percent in the first six months of the current year, indicating India's seriousness in prioritizing Make in India and renewable energy. India is moving towards self-sufficiency in the production of solar modules used in renewable energy.

According to a report, India's solar module production from China which was 9.80 GW in the first six months of 2022 has decreased to only 2.30 GW in the first six months of the current year. India's dependence on China for solar modules is steadily decreasing after 2022. Home production is increasing. As India becomes self-sufficient in module manufacturing, it is imperative for India to keep pace with the addition of solar power generation capacity. But the question of whether the provision of money is out of place.

Considering the strained financial resources of India, does it seem impossible for other countries of the world, especially developing countries, to add renewable energy capacity as per the target. Achieving the target of keeping global temperature rise below 1.50 degrees Celsius requires an annual investment of Rs 4.40 trillion in energy transition.

The Climate Science Panel of the United Nations has noted earlier that if global warming is to be limited, it is necessary to reduce gases like carbon dioxide by 43 percent by 2030. After a record reduction in global pollution during the corona period, it has now raised its head again and has gone up moderately to the pre-corona level. Whether the increase in coal consumption due to Russia's gas shortage will be temporary or permanent remains uncertain. If coal consumption is to be reduced, it is necessary for polluting countries to invest heavily in clean energy.

A rapid increase in renewable energy production is necessary to reduce coal-based power generation and other countries including India are insisting that the developed countries of the world come forward to provide the necessary funds for this. Developed countries have promised in the past to provide financial assistance to poor countries in the fight against pollution, but such assurances do not seem to be coming through.

It is a fact that despite the assurances given by many countries of the world, including China and India, to become pollution free, the reduction in coal consumption is not seen as it should be. The level of financial need of poor and developing countries is so high that it cannot be met by anyone except the economically gigantic countries. Earlier, the developed countries pledged 100 billion dollars in aid for energy transition, which is insufficient. While the challenges of climate change could not be met under India's presidency, let's expect some results in the context of clean energy in the next G20 summit to be held in Brazil.