Switching to Renewable Energy can aid Post-Covid Economic Recovery

Posted on 02 Oct 2020

Covid-19 has been a bolt from the blue for lives, livelihoods and has caused substantial economic slowdown across the world. The pandemic devastating as it has been in many ways has perhaps had some positive effects on environment – cleaner air, bluer skies, reduced emissions, more attention on public health and well-being, etc.

Sumant Sinha, Chairman and Managing Director, ReNew Power in an article published on the World Economic Forum website argues that nations need to direct investments towards a green and healthy recovery, as insurance against future disasters. Sinha states that renewable energy can revitalize the economy by creating “green” jobs, ensuring energy security and strengthening resilience. He points out that Europe has set the early benchmarks for a global green recovery.

Various countries are doling out stimulus packages to reboot their economies. India too had rolled out Aatmanirbhar package of ₹20 lakh crore to push reforms in many sectors. Countries are coming to terms with the fact that it cannot be business as usual with high carbon emissions and unsustainable growth as was the norm in pre-Covid days. Industries have begun their operations in a calibrated way with new SOPs and guidelines as prescribed by the Ministry of Home Affairs.

As mankind moves forward to sustain lives and livelihoods it is highly important that global economy measures should adhere to a green, equitable and resilient future. The pandemic has strengthened the case for accelerating the transition to clean energy. As governments and industries work to build back economy, sustainability must occupy a central place in the scheme of things. Leadership will play a vital role in steering this forward by making renewables and clean technologies to have a larger role in rebuilding the economy.

It is important to note that every million dollars invested in renewables will create at least 25 jobs, while each million invested in efficiency would create about 10 jobs. International Renewable Energy Agency estimates that transforming energy systems based on renewables could boost the global GDP by $98 trillion by 2050 and create over 60 million new jobs globally in renewables and energy efficiency.

India reportedly witnessed over 100 million job losses during the lockdown period and it is estimated that 1.3 million full-time jobs can be created by achieving 160 GW from renewables by 2022.

Countries like India and China can save substantially on their huge annual coal and oil import bills. Critics argue that even if 50% of the renewable target is achieved, it can replace the coal imported by India from Australia, Indonesia and South Africa. Thus, the country can save close to $100 billion in the coming decade.

Coal has always been associated with pollution and it is to be noted that India is a signatory to the Paris Agreement which mandates it to cut down emissions. Moreover, with renewables emerging as a cost-effective alternative to coal, there is a tendency to stop dependence on coal and switch to renewables. Also, the government should cut subsidies on fossil fuel especially when oil prices are plunging and which will aid the cause for renewables.

The outbreak of coronavirus has put the spotlight back on clean air and good health. World Health Organisation (WHO) estimates that more than 4 million premature deaths happen every year due to air pollution. WHO states climate change as the primary reason for infectious diseases and has raised concerns that future pandemics may occur due to this.

Renewables will help in reducing greenhouse gas emissions and safeguard the human race from life-threatening diseases. It will also contribute to equitable and inclusive growth by improving access to clean energy. This will significantly improve living standards besides providing access to humankind for basic amenities like healthcare, food and water.

Europe is seen as a leader in setting an example for a global green recovery. It has set aside 25% of its €850 billion recovery package for building energy-efficient infrastructure. European countries are also investing in renewables and clean technology which promote low-carbon mobility besides fostering sustainable land use and preserving biodiversity. Examples include France’s $11 billion bailouts for Air France with a pre-condition on Air France halving its domestic emission levels by 2024, or Denmark spending $4 billion on green renovations to social housing, and the United Kingdom setting up $44 billion clean growth fund for R&D in green technologies.

The onus is now on other governments to follow Europe’s path and adopt policy and investment response in ushering in a sustainable recovery. As stakeholders adopt clean business practices, decarbonize their portfolios and shift towards renewables, this would be a reality. Furthermore, civil society should also step in to lend support to such initiatives.

The vision of the United Nation’s Sustainable Development Goals and Agenda 2030 vision is an equitable, healthy and resilient future. Countries’ recovery plans need to be aligned to this vision which can have a direct bearing in curbing carbon footprint and leaving beautiful and bountiful earth for future generations.

(The author is a Delhi-based journalist. He can be reached at prasad.n@indoen.com)