India’s Shift to Renewable Energy by 2030: RBI Report
The Reserve Bank of India (RBI) has announced that fossil fuels will no longer dominate India’s electricity generation by the end of this decade. According to the latest report, renewable energy is expected to surpass 50% of global electricity generation.
The RBI highlighted that the transition to cleaner energy has accelerated, with significant increases in clean technology deployment and capital investment. The report states, The era of fossil fuels’ dominance is coming to an end, with renewables expected to cross 50% share of electricity generation globally by the end of this decade.
The RBI also pointed out the importance of increasing investments in low-carbon energy. Cleaner power generation can drive bulk of the aggressive emissions cuts that are urgently needed, enabling more time to tackle ‘hard-to-abate’ areas like steelmaking and aviation, where cost-competitive low-carbon solutions have yet to scale,
the report added.
For every dollar invested in fossil fuels, an average of three dollars needs to be allocated to renewable energy in the coming years. This is a substantial increase from the current ratio, where both sectors receive equal investment. Tripling renewable energy capacity by 2030 is seen as essential to meeting net-zero emission targets by mid-century.
The RBI projects that achieving a fully decarbonized global energy system by 2050 will cost an estimated USD 215 trillion. However, the report remains optimistic about ongoing efforts in greening the financial sector, stressing the importance of balancing public policy interventions and market-based competition to achieve this ambitious energy transition.
The central bank also noted significant improvements in financial inclusion as the world advances toward a more sustainable energy future.
Doubts Revealed
RBI -: RBI stands for Reserve Bank of India. It is the central bank of India, which means it controls the money supply and interest rates in the country.
fossil fuels -: Fossil fuels are natural fuels like coal, oil, and natural gas that come from the remains of ancient plants and animals. They are used to produce energy but can harm the environment.
renewable energy -: Renewable energy comes from natural sources that can be replenished, like sunlight, wind, and water. It is cleaner and better for the environment than fossil fuels.
low-carbon energy -: Low-carbon energy produces very little carbon dioxide, a gas that contributes to global warming. Examples include solar, wind, and hydroelectric power.
decarbonized -: Decarbonized means reducing or eliminating carbon dioxide emissions, which helps to fight climate change. It involves using cleaner energy sources.
USD 215 trillion -: USD 215 trillion is a very large amount of money, in US dollars. It is the estimated cost to make the world’s energy system completely clean and free of carbon emissions by 2050.