THE CONTEXT: India’s Economic Survey 2023-24 makes a notable claim regarding decoupling. It states that between 2005 and 2019, India’s GDP grew at a compound annual growth rate (CAGR) of about 7%, while emissions increased at a CAGR of only 4%. This suggests that India has achieved relative decoupling, where economic growth outpaces the increase in emissions. India has reduced its emission intensity by 33% from 2005 levels, reaching its 2030 Nationally Determined Contribution (NDC) target 11 years ahead of schedule.
TYPES OF DECOUPLING:
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- Absolute Decoupling: Absolute decoupling occurs when economic growth continues while environmental pressures decrease in absolute terms. As GDP rises, resource consumption or environmental impacts, such as greenhouse gas emissions, decline or remain stable.
- Relative Decoupling: It refers to a situation where both economic output and environmental pressures increase, but environmental pressures grow slower than the economy. In other words, the ecological intensity per unit of economic output declines, but the overall environmental impact still rises.
COMPARISON BETWEEN ABSOLUTE AND RELATIVE DECOUPLING:
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- Environmental Impact: Absolute decoupling reduces overall environmental pressures, while relative decoupling only slows the rate of increase.
- Sustainability: Absolute decoupling aligns more with long-term sustainability goals, allowing economic growth without increasing environmental harm.
- Difficulty: Relative decoupling is more commonly observed and straightforward, while absolute decoupling remains elusive for most economies.
- Policy Implications: Achieving absolute decoupling requires more aggressive policies and technological innovations than relative decoupling.
- Long-term Viability: In the context of planetary boundaries, relative decoupling is insufficient to maintain a growth-oriented economy sustainably. Only permanent absolute decoupling can lead to truly sustainable growth.
SIGNIFICANCE OF DECOUPLING:
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- Path to Sustainable Growth and Development: Decoupling fosters resource efficiency, reduces dependency on finite natural resources, and mitigates climate change impacts. Countries like Germany have demonstrated that it is possible to grow economically while reducing emissions through energy efficiency and renewable energy investments.
- Response to Degrowth Arguments: While degrowth emphasizes reducing environmental harm, it often overlooks the developmental needs of low-income countries. Proponents of green growth argue that technological innovation, efficient resource use, and policy interventions can enable continued economic expansion without exacerbating environmental degradation.
- Balancing Economic Growth with Environmental Concerns: Effective environmental regulations can enhance resource use efficiency and stimulate economic performance. Investment in green technologies such as solar power, wind energy, and waste-to-energy systems can decouple growth from emissions.
INDIA’S DECOUPLING CLAIM: ANALYSIS
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- Methodology Used in the Economic Survey: The survey utilizes OECD (2002) decoupling indicators to assess economy-wide and sectoral trends. These indicators compare GDP and emissions growth rates to determine whether decoupling is absolute (declining emissions with GDP growth) or relative (emissions rising but at a slower rate than GDP).
- Economy-Wide Decoupling Status Since 1990: As of May 2024, renewable energy accounts for 45.4% of India’s installed electricity generation capacity. Between 2005 and 2019, India added a carbon sink of approximately 1.97 billion tonnes through afforestation and forest conservation efforts. As per Climate Action Tracker, India is the only G20 country on track to limit global warming to below 2°C.
- Sector-Wise Analysis (Focus on Agriculture and Manufacturing): Agriculture accounts for nearly 18% of India’s total GHG emissions, primarily from methane emissions due to livestock rearing and rice cultivation. Manufacturing is another major contributor, accounting for over one-fifth of total GHG emissions from energy-intensive industries like steel, cement, and chemicals.
THE WAY FORWARD:
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- Accelerating Renewable Energy Transition: Expand initiatives like the National Solar Mission, which aims for 280 GW of solar capacity by 2030. Promote decentralized renewable energy solutions in rural areas to enhance energy access and reduce dependency on fossil fuels.
- Enhancing Energy Efficiency Across Sectors: Strengthen the Perform, Achieve, Trade (PAT) scheme under the National Mission on Enhanced Energy Efficiency (NMEEE) to incentivize industries to adopt energy-efficient technologies. Implement stricter building codes like the Energy Conservation Building Code (ECBC) to ensure energy-efficient construction. Promote mass rapid transit systems in urban areas to reduce vehicular emissions.
- Promoting Circular Economy Practices: Encourage recycling and reuse of materials across industries, particularly in high-emission sectors like construction and manufacturing. Implement Extended Producer Responsibility (EPR) policies for sectors such as electronics and plastics.
- Strengthening Climate Policies and Carbon Pricing: Use revenues from carbon pricing to fund renewable energy projects and climate adaptation measures. Mandate stricter pollution control measures for industries under the Air (Prevention and Control of Pollution) Act, 1981.
- Investing in Research, Innovation, and Technology: Develop advanced battery storage systems for renewable energy integration. Invest in green hydrogen technology as a clean alternative for heavy industries like steel and cement. Foster innovation in carbon capture, utilization, and storage (CCUS) technologies to mitigate industrial emissions.
THE CONCLUSION:
While India’s relative decoupling of economic growth from GHG emissions marks a significant step toward sustainability, the goal of absolute decoupling remains distant and complex. Achieving this will require continued efforts in renewable energy, technological innovation, and policy reforms to ensure long-term economic and environmental resilience.
UPSC PAST YEAR QUESTION:
Q. Discuss global warming and mention its effects on the global climate. Explain the control measures to bring down the level of greenhouse gases that cause global warming in the light of the Kyoto Protocol, 1997. 2022
MAINS PRACTICE QUESTION:
Q. Economic growth and environmental sustainability often seem at odds with each other, particularly in developing economies. Critically analyze India’s claim of decoupling economic growth from greenhouse gas (GHG) emissions.
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