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Abstract<\/span><\/strong><\/span><\/p>\n In a developing country, a low-carbon society is a combined concept, capable of developing a sustainable model for economic development, lifestyle advances, climate change effects mitigation through transfer of technology, use of renewable energy, financing, and finally capacity building, all of which contribute to the overall sustainability of the environment. Protection of environment, as well as other socioeconomic security, will receive equal attention in such a society. This article aims to understand the transition of South Asian nations to a low carbon economy by banking carbon to achieve Net zero.<\/span><\/p>\n <\/span><\/p>\n Introduction: Overview of South Asian Countries – Understanding Regional Demography<\/span><\/strong><\/span><\/p>\n Crude oil, coal, and natural gas account for roughly<\/span>eighty four percent of global energy consumption<\/a>. The rise in population and demand caused by the advent of industrialisation has strained the economy of a developing economy by putting a strain on the supply of natural resources. \u2018Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka\u2019 are the eight countries that constitute South Asia. South Asia’s urban population increased by 130 million over the years and\u00a0is expected to increase to nearly<\/span>250 million by 2030<\/a> which will further lead to an increase in energy demand of up to sixty six percent by 2040, according to the<\/span>Paris-based International Energy Agency (\u201cIEA<\/strong>\u201d)<\/a>. Coal will account for nearly forty percent of the increase as it replaces cleaner-burning natural gas in the energy mix. This puts the Paris Climate Agreement’s goal of limiting average global temperature rise to 2 degrees Celsius above preindustrial levels in jeopardy.<\/span><\/span><\/p>\n On October 31, 2021, global leaders gathered in Glasgow to start \u2018<\/span>COP26<\/a>\u2019, hoping to take steps toward achieving ambitious global climate goals. One of these objectives is to achieve net-zero emissions by 2050. It is said that South Asia’s energy transition will be essential to making this happen. Governments can help accelerate the transition from a high – to a low-carbon path by investing in catalytic green infrastructure, providing R&D incentives and carbon price signals, and ensuring a just transition.<\/span><\/span><\/p>\n <\/span><\/p>\n South Asia\u2019s Transition to a Low Carbon Economy: A Vision<\/span><\/strong><\/span><\/p>\n A. Afghanistan: move towards renewable energy technologies<\/span><\/strong><\/span><\/p>\n The<\/span>Afghanistan National Renewable Energy Policy (\u201cANREP<\/strong>\u201d)<\/a> aims to increase the deployment of renewable energy technologies, with a goal of reaching<\/span>ten percent of the country’s total energy by 2032<\/a>, and to\u00a0encourage private sector investment to boost renewable energy competitiveness and local industry development, as well as facilitating coordination among government bodies and local communities for the growth and sustainability of the renewable energy sector It is also responsible for promoting international cooperation in renewable energy. The ANREP focuses on\u00a0climate change\u00a0by reducing greenhouse gas emissions through the promotion of alternative energies.\u00a0Furthermore, the ANREP specifies\u00a0Afghanistan’s ability.<\/span><\/span><\/p>\n B. India: \u2018Panchamrit\u2019 strategy to achieve low-carbon goals<\/span><\/strong><\/span><\/p>\n India\u2019s<\/span>COP26 announcement<\/a> that by 2070 it intends to achieve net-zero emissions and to meet fifty percent of its electricity needs with renewable energy sources by 2030, is a pivotal event in the global fight against climate change. India is pioneering a new economic development model that could avoid the carbon-intensive approaches that many countries have previously pursued \u2013 and serve as a model for other developing economies. Prime Minister Modi further at the conference presented the five nectar elements \u2018<\/span>panchamrit\u2019<\/span><\/a> strategy to deal with the carbon issue and highlighted that India aims to reduce the total projected carbon emissions by one billion tonnes from now till 2030, adding that\u00a0by 2030, India will reduce the carbon intensity of its economy by more than forty five percent.<\/span><\/span><\/p>\n C. Maldives: Island country aims to achieve net-zero<\/span><\/strong><\/span><\/p>\n The Maldives has set a<\/span>net-zero target for 2030<\/a>, which is one of the most ambitious for an island nation. To help meet this goal, the<\/span>Accelerating Private Investments in Renewable Energy<\/a> or The “ASPIRE” project funded two rounds of competitive bidding for solar Photovoltaic Independent Power Producers (“PV IPPs<\/strong>“) totalling 6.5 megawatts (“MW<\/strong>“) in the Greater Mal\u00e9 area.<\/span><\/span><\/p>\n D. Nepal: incorporating GRID and transitioning to low-carbon technologies<\/span><\/strong><\/span><\/p>\n The Nepal government has set the goal of becoming a climate-resilient nation, and it has incorporated the<\/span>Green, Resilient, and Inclusive Development (\u201cGRID<\/strong>\u201d)<\/a> agenda into its development policies and plans. The government is currently focusing on promoting electrification and shifting to low-carbon technologies in the residential transportation, industrial, and commercial sectors.<\/span><\/span><\/p>\n E. Pakistan: replacement of coal with hydropower<\/span><\/strong><\/span><\/p>\n Pakistan<\/span>estimates<\/a> that the cost of the energy transition will be around USD 101 billion by 2030, with an additional USD 65 billion by 2040 due to the completion of in-progress RE projects, additional hydropower, transmission, and the<\/span>goal of phasing out coal and replacing it with hydropower<\/a>.<\/span><\/span><\/p>\n F. Sri Lanka: Carbon neutrality<\/span><\/strong><\/span><\/p>\n Finally, despite its highly vulnerable status,<\/span>Sri Lanka commits to increasing thirty two percent forest cover by 2030<\/a> and reducing greenhouse emissions by fourteen percent from power (electricity generation), transportation, industry, waste, forestry, and agriculture from 2021 to 2030. Sri Lanka has committed to additional measures in order to meet this lofty goal. To achieve seventy percent renewable energy in electricity generation by 2030 and<\/span>carbon neutrality<\/a> in electricity generation by 2050.<\/span><\/span><\/p>\n To achieve the aforementioned goals, the country has focused on a few strategies, including the adoption of the<\/span>‘<\/span>Colombo Declaration on Sustainable Nitrogen Management<\/a>‘, with the goal of halving nitrogen waste by 2030. Prohibiting the use of agrochemicals and chemical fertilisers, Organic farming and fertiliser are being promoted. Prohibiting single-use plastics and promoting e-mobility Circular economy promotion. Sri Lanka anticipates achieving its<\/span>Carbon Neutrality by 2060<\/a>.<\/span><\/span><\/p>\n <\/strong><\/p>\n How can Government help reduce Greenhouse emissions with an aim to minimize the Impact of Climate Disasters and promote Long Term Goals?<\/strong><\/span><\/p>\n Recently an Indian Cabinet Minister<\/span>said,<\/span><\/a> \u2018Swachh Bharat Mission, Pradhan Mantri Awas Yojana, Smart Cities, Pradhan Mantri Jan Dhan Yojana, Deen Dayal Upadhyay Gram Jyoti Yojana, and Pradhan Mantri Ujjwala Yojana\u2019, among others, are all contributing to the achievement of the Sustainable Development Goals. Furthermore, both the union and state governments are working to sustain economic growth by introducing and implementing various policies and measures pertaining to sustainable development, climate change, energy efficiency, and air pollution, laying emphasis on the<\/span>initiatives<\/a> taken by the Government of India in promoting a sustainable green economy. Certain regulatory and tax benefits are also being offered by the Indian government to consumers who buy battery-operated vehicles like electric cars, e-rickshaws and are further incentivising investment in the renewable energy sector. The government is encouraging domestic manufacturers to produce and manufacture eco-friendly goods and products.<\/span><\/span><\/p>\n One major concern that the South Asian governments are keen on addressing is job creation. Since South Asia<\/span>largely depends on petroleum and coal for job generation<\/a> and is one of the largest employment pools in South Asia, replacing the same with green technology is going to be a challenge. Any investor, while investing in the sector has to convince the economy as to the simultaneous employment generation that would occur as a result of the investment. Employment generation directly affects the poverty quotient of the economy. When an industry is set up, there is growth and development in the adjacent areas too. This is relevant because large portions of the South Asian region are trapped in poverty and any sort of investment is appreciated when it can impact this issue.\u00a0<\/span><\/span><\/p>\n The governments are proactive however the impact has been slow owing to various other geopolitical factors that affect the market.<\/span><\/p>\n Infrastructure plays an important role in terms of development. Growth in any sector requires sufficient infrastructural groundwork to build its base on. When it comes to climatic changes, effects, pro-climate investment, infrastructure plays a very important role. In recent times, we have gathered from the news how<\/span>Tesla a green technology company is facing issues with compliance with import laws<\/a> and taxes in entering the Indian market which is a leading investment base in south-east Asia. South Asian motor companies like Suzuki, Tata, Hyundai, Mahindra, and alike are all investing in green energy automobiles to compete with the global demand and supply of eco-efficient technology.<\/span><\/span><\/p>\n A carbon tax places a direct price on carbon by imposing a tax on greenhouse gas emissions or, more typically, on the\u00a0carbon content of fossil fuels. It is different from an ETS in that the emission reduction outcome of a carbon tax is not pre-defined, but the<\/span>carbon price<\/a> is. With a carbon tax, the governments are allowed to collect taxes from all individuals and corporates on the usage, consumption, production, import-export, or the distribution of non-renewable energy sources and\/or fossil fuels.<\/span><\/span><\/p>\n This is a direct fiscal policy for the governments to generate revenue in direct proportion to the carbon emissions within their jurisdiction which reduces the burden on the treasury to tackle climate change alone. It further acts as a deterrent factor to large corporates with significant emission rates to cut down on the same lest they would be paying heavy taxes which therefore gradually promotes a clean, energy-efficient, and renewable energy-dependent cluster of countries.<\/span><\/p>\n As a result of pressure from various stakeholders, investors and financiers throughout the region are accelerating the incorporation of sustainability into their investment strategies.\u00a0 In recognition of the value of sustainability, SEA investors’ attitudes toward sustainable investing have begun to shift over the last 18 months. Mindsets are in turn starting to generate results –<\/span>USD 9 billion was deployed towards green opportunities in the region in 2020<\/a>. \u201cGreen fundraising and capital deployment are picking up in the region, but we have a long way to go. Less than one percent of the estimated USD 2 trillion needed has been deployed to green businesses and infrastructure assets last year,\u201d said<\/span>Dr. Steve Howard<\/a>, Chief Sustainability Officer of Temasek<\/strong>. \u201cThe road to Net Zero will have transition costs, but in return, there will be significant opportunities, both economic and social, if the private, public and philanthropic sectors work together to unlock the region\u2019s full potential<\/em>.\u201d<\/span><\/span><\/p>\n A. India has announced a<\/span>net-zero target by the year 2070<\/a> and targets 500 GW non-fossil fuel energy. India has committed to a reduction of one billion tonnes carbon emissions by the year 2030, and to lower forty-five percent carbon intensity of its economy. India has plans to establish fifty percent of the country\u2019s installed capacity through renewables tonnes carbon emissions by the year 2030. The Glasgow Climate Pact calls for the “phase-down” of unabated coal power from plants that do not require\u00a0carbon-capture technology to be accelerated. India\u00a0has the world’s cheapest solar and second-cheapest onshore wind \u2014 the country’s least expensive sources of bulk power generation at the moment.<\/span><\/span><\/p>\n B. Both<\/span>Pakistan<\/a> and<\/span>Bangladesh<\/a> have cancelled all coal power plants that are not currently under construction.<\/span><\/span><\/p>\n C. China in September 2020, announced its intent to become<\/span>carbon neutral by 2060<\/a>, a significant follow-up to its previous pledge to reduce carbon emissions by 2030.<\/span><\/span><\/p>\n D. Indonesia has the advantage of the<\/span>Pacific Ring of Fire<\/a>, a zone crammed\u00a0with tectonic and volcanic activity This is the potential of the world\u2019s greatest<\/span>geothermal power<\/a>, with the resource making up almost half (forty six percent) of installed renewables. Solar and wind combined stream behind at only five percent of the total.<\/span><\/span>\u00a0<\/span><\/p>\n It must, however, be<\/span>recognized<\/a> that for their crucial energy demands, many developing countries are compelled to rely on coal as a cheap and reliable resource, coal also generates employments and to ensure a balanced transition, reducing reliance on coal will necessitate significant funding and a phased strategy. When it comes to power consumption, there has been a massive shift in demand in the last decade from thermal power plants (that rely on coal as a primary source of energy) to hydroelectric power, wind, and solar power. Governments have become more conscious of climate change and its effects. However, most of the South Asian countries are developing at a fast rate or are entering the stages of development and industrialization. This directly impacts the need for energy resources and considering the cost of establishing renewable energy plants, the South Asian countries are by and large dependent on non-renewable\/conventional energy like petroleum and coal. This is the scenario where investment in green and clean infrastructure is desperately needed to occupy the space in the future. It is, therefore, significant that India, along with \u2018Indonesia, the Philippines, and South Africa\u2019 signed up as the first recipients of a multibillion-dollar pilot program designed at fast-tracking their shift from coal influence to clean energy through the Accelerating Coal Transition Programme of the<\/span>Climate Investment Funds<\/a> (\u201cCIF<\/strong>\u201d) established in 2008 to mobilize resources and promote investments for low carbon, climate-resilient development in select middle income and developing countries.\u00a0\u00a0<\/span><\/span><\/p>\n However, this is just the beginning, and we have a very long way to go. It is estimated that<\/span>2 trillion USD investments over the next decade are required to build out SEA\u2019s infrastructure<\/a> for a sustainable transition. Governments cannot do this alone 40 percent of infrastructure investments in Asia need to come from the private sector. It should also be noted that it should not be the responsibility of South Asian countries alone to tackle the effects of climate change. A lot of developed countries have achieved higher growth rates at the expense of South Asian countries, and they should be required to step up as push comes to shove. Neither should private individuals\/corporates be exempted from their liabilities. This means that the developed countries are required to invest in the poorer (in terms of western developed nations) South Asian countries with limited access to resources in promoting green infrastructure or infrastructure that complement the energy revolution like India boasts of cheapest solar power plants and alike.<\/span><\/span><\/p>\n Investments not only in the generation but also<\/span>storage<\/a> and safe distribution of green energy to the end consumers are required. If consumers are not able to afford green energy, then production or storage will be useless and likewise, if a storage facility is not available, the production and cost to the consumers will only increase which will, in turn, make the shift.<\/span><\/span><\/p>\n <\/strong><\/p>\n For Nature-by Nature: Exploring Nature-based Solutions (\u201cNbS\u201d) to ease the \u201cLow Carbon\u201d transition<\/strong><\/span><\/p>\n The World Bank in 2008 coined the term<\/span>Nature-based Solutions<\/a> (\u201cNbS<\/strong>\u201d) and in the following year the term was adopted by the International Union for the Conservation of Nature (\u201cIUCN<\/strong>\u201d). The IUCN defines Nature-based Solutions as:<\/span><\/span><\/p>\n \u201cActions to protect, sustainably manage, and restore natural and modified ecosystems in ways that address societal challenges effectively and adaptively, to provide both human well-being and biodiversity benefits. They are underpinned by benefits that flow from healthy ecosystems and target major challenges like climate change, disaster risk reduction, food and water security, health and are critical to economic development.<\/em>\u201d<\/span><\/p>\n Nature-based solutions either increase carbon storage, for instance by afforestation, or reduce greenhouse gas emissions by limiting deforestation. In three ways, these ‘natural climate solutions’ seek to reduce greenhouse gas concentrations in the atmosphere. One strategy is to reduce carbon emissions by protecting ecosystems and, as a result, reducing carbon release; this includes efforts to limit deforestation. Another solution is to restore ecosystems, such as wetlands, so that they can sequester carbon. The third step is to improve land management for timber, crops, and grazing in order to reduce carbon, methane, and nitrous oxide emissions while trapping carbon.<\/span><\/p>\n\n
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