1. India’s Clean Energy Rise Needs Climate Finance Expansion
UPSC Syllabus Relevance:
- GS-III: Conservation, Environmental pollution and degradation, Infrastructure (Energy).
- GS-II: International cooperation on climate change, government policies.
Key Arguments and Analysis:
- India’s Achievement and Stature: The article begins by recognizing India’s significant strides in the renewable energy sector, positioning it as a global leader (e.g., becoming the third-largest contributor to global solar capacity additions). This progress is vital for the nation’s climate commitments and its economic growth, with the sector already employing over a million people.
- The Critical Financial Constraint: The core issue highlighted is the massive financing gap. India requires an estimated $1.5 trillion to over $2.5 trillion by 2030 to meet its ambitious climate targets (expanding renewables, modernizing grids, storage, etc.). This requirement is currently not being met.
- Problem of Concentration: The limited climate finance that is available is heavily concentrated. Financial instruments like green bonds (which account for over 80% of green debt) primarily benefit large, established corporations. This leaves vulnerable entities like Micro, Small, and Medium Enterprises (MSMEs), local infrastructure projects, and agri-tech innovators struggling to access capital due to perceived high risks and lack of concessional funding.
- Way Forward for Diversification: To bridge this gap and ensure an inclusive energy transition, the editorial advocates for:
- Blended Finance Models: Using public funds (catalytic role) to de-risk projects and attract private capital.
- Unlocking Domestic Capital: Creating mechanisms to channel institutional funds, such as those from pension funds and insurers, into green projects.
- Innovative Instruments: Transparently and equitably implementing new market mechanisms, such as the Carbon Credit Trading Scheme, to generate fresh funding streams.
- Focus on Adaptation: Increasing focus on financing for climate adaptation and loss-and-damage measures, which are crucial for protecting vulnerable communities.
2. Treat Employment as a National Priority
UPSC Syllabus Relevance:
- GS-III: Indian Economy and issues relating to employment, mobilization of resources, and inclusive growth.
- GS-II: Government Policies and Interventions for development.
Key Arguments and Analysis:
- The Disconnect: The editorial underscores the significant disconnect between India’s high GDP growth rate and the persistent, severe shortage of formal, high-quality jobs. The job crisis is presented as a structural issue that cannot be treated as a secondary outcome of growth but must be tackled head-on.
- The Need for Formalisation: The primary challenge is the failure of the economy to absorb the vast young population into the formal sector, where better wages, job security, and social benefits exist. The focus must shift from merely reporting employment numbers to ensuring the quality of employment.
- Policy Imperative: The authors stress the necessity of declaring employment generation as a national priority. This requires a coordinated, single-minded effort by the central and state governments.
- Harmonized Policy Framework: The solution lies in a synchronized policy approach:
- Manufacturing and Services Boost: Incentivizing sectors that are labor-intensive and have high potential for formal job creation.
- Ease of Doing Business: Moving beyond central-level reforms to aggressively implement ease-of-doing-business reforms at the state level, as investment and job creation are essentially local phenomena.
- Skill Development Alignment: Reorienting skill development programs to align precisely with the demands of modern industries, especially in technology and advanced manufacturing.
- Consequence of Inaction: Failure to address this issue risks demographic dividend turning into a demographic disaster, leading to social unrest and political instability.
Practice Mains Question
GS-III: Indian Economy
Despite high GDP growth rates, the shortage of formal employment remains a critical challenge for the Indian economy. Discuss why employment generation must be treated as a “national priority” and what measures, particularly in policy harmonization and state-level intervention, are necessary to convert India’s demographic dividend into a sustainable economic asset. (15 Marks, 250 Words)
