India@G20: Unlocking Green Hydrogen Potential
In December this year, India will take over the Presidency of the G20 for one year – unarguably at the most challenging time in recent history. The IMF recently predicted that global growth will slow to 2.7 per cent in 2023 and has gloomily warned that the “worst is yet to come”. But unprecedented challenges also lead to unprecedented opportunities and innovative solutions. And that is what India must seize during its Presidency.
Historically too, the G20 has been at its effective best when steering the world to recover from crises, whether it be the Asian economic crisis in 1999 or the global financial crisis in 2008.
Energy challenges in 2023
The challenges for 2023, however, are more daunting. The war in Ukraine is leading to a severe energy crisis in Europe, as the price of natural gas is rising. And yet, as mentioned by the International Energy Institute (IEA) in its latest world energy report, the turbulence in the global energy market has the “potential to hasten the transition to a more sustainable and secure energy system”.
This is because countries are looking long term, and there has been considerable expansion and deployment of renewable energy technologies worldwide. India has an advantage in green energy, having abundant renewable resources. Therefore, the Presidency of the G20 will provide an unparalleled opportunity for India to take the lead and provide a blueprint for global action on the green energy transition.
Focus on Green Hydrogen
Within renewables itself, India is further focusing on green hydrogen. The widespread adoption and use of green hydrogen, especially across hard-to-abate sectors, is being considered as a potential solution for mitigating the effects of climate change and ensuring development without “carbonisation”. To underscore its importance, India has already identified Green Hydrogen as one of the priority areas of the G20 2023 agenda.
It aims to initiate international dialogue and cooperation for new products, services, technologies, and sustainable financing for green hydrogen. It will also showcase India as a global hub for the production and export of green hydrogen.
However, large-scale global action and energy transitions are only possible with the concerted efforts of both governments and industry. It is thus time for the B20 India working group to work side-by-side with governments, recommend workable policy frameworks and take the vision of the Indian government on green hydrogen to businesses across the world, and provide them a platform for collaboration with India.
Over the past two years, the PHD Chamber of Commerce and Industry (PHDCCI) has already taken the lead in promoting Green Hydrogen opportunities for India amongst the international business community through knowledge exchange and International Climate Summits. Taking the journey forward, PHDCCI recently signed an MoU with GreenStat Norway for a Centre of Excellence to scale up energy transformation in India by bringing together international expertise, skills and technology.
What is unique about this partnership is that we will focus on niche opportunities - energy transformation in the MSME sector. This will lead to added employment through capacity building, restructuring and skilling and lead to profound structural changes in how the economy will function and behaviour change in general in how we will utilise energy in the near future. It will lead to a more inclusive, affordable and secure energy system.
We are sitting in a critical decade which will decide what kind of planet we will hand over to our children. And, as announced by our Prime Minister from the ramparts of Red Fort, we are ready to take the lead towards a greener and healthier planet and achieve net zero growth by 2070.
(About the author: Saket Dalmia is President, PHD Chamber)
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