Subject: Conservation & Mitigation

Why in the news?

India aims to produce 5 million metric tonnes of green hydrogen annually by 2030 to lead in the sector and reduce emissions, but the high costs of financing may hinder this goal.

Hydrogen fuel comes in three types: Grey hydrogen (produced from natural gas), Blue hydrogen (Grey hydrogen with carbon capture), and Green hydrogen (produced using renewable energy through electrolysis, with no emissions). What are the key financial barriers to scaling green hydrogen production? High Production Costs: The cost of producing green hydrogen is significantly higher ($5.30-$6.70 per kg) compared to traditional grey/blue hydrogen ($1.9-$2.4 per kg). This price disparity makes green hydrogen economically uncompetitive and deters investment and offtake. High Weighted Average Cost of Capital (WACC): In emerging markets like India, higher perceived risks increase borrowing costs. This results in a high WACC, which heavily influences the Levelised Cost of Electricity (LCOE) and the overall cost of green hydrogen production. High Electrolyzer Costs: The current costs of electrolyzers, ranging from $500-1,400/kW for alkaline and $1,100-1,800/kW for proton exchange membrane systems, further strain the financial viability of green hydrogen projects. Scaling Challenge: Green hydrogen production costs can only decrease with scaled production, but scaling up requires financial viability. The market faces a catch-22 situation: without economies of scale, production remains expensive, and without lowering costs, scaling is unfeasible.

How can innovative financing mechanisms be developed?

• Blended Finance Models: Combining public and private capital can help lower risks and make investments in green hydrogen more attractive. Government-backed financial instruments or concessional loans can reduce borrowing costs, lowering WACC.
• Green Bonds and Climate Financing: The issuance of green bonds to raise capital for renewable energy projects can provide long-term funding at lower costs. These bonds can appeal to investors with an interest in sustainable investments.
• Private-Public Partnerships (PPP): Collaborations between government and private sectors can help mitigate risks and ensure the financing of green hydrogen projects. To attract private investors, governments can provide financial support through incentives, subsidies, or tax breaks.
• Carbon Credits and Offtake Agreements: Green hydrogen projects could leverage carbon credits or long-term offtake agreements to secure steady revenue streams, which would increase investor confidence and help finance production scale-up.

What role do policy frameworks play in facilitating investment in green hydrogen?

• Incentives and Subsidies: Government policies offering subsidies, tax incentives, or feed-in tariffs can help offset the high initial costs of green hydrogen production and encourage private investment.
• Long-Term Policy Clarity: Clear, stable, and long-term policy frameworks provide certainty to investors, reducing perceived risks and lowering the cost of capital. Such policies could include long-term targets for green hydrogen production, financing support, and infrastructure development.
• Regulatory Support for Innovation: Governments can encourage innovation by providing regulatory frameworks that support new technologies, such as electrolyzers and advanced hydrogen storage solutions, ensuring the rapid scaling of green hydrogen.
• Market Creation and Demand-Driven Initiatives: Policies that create demand for green hydrogen, such as mandatory usage targets for industries like steel, transportation, or chemicals, can drive off-take agreements and ensure market stability.

Mains PYQ: 

Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (2021)

Why in the News?

In 2015, Beijing had an annual average Air Quality Index (AQI) of 144, comparable to Delhi’s current average of 155 in 2024. However, Beijing has since achieved a one-third reduction in its pollution levels, with the most notable decline occurring between 2013 and 2017.

Why discuss Beijing in the context of Delhi?

The comparison between Beijing and Delhi is significant due to their shared status as capitals of emerging economies facing severe air pollution challenges.  

• Similar Pollution Levels: In 2015, Beijing had an average AQI of 144, comparable to Delhi’s current average of 155 for 2024. This similarity highlights the potential for improvement in Delhi, as Beijing has successfully reduced its pollution levels significantly since then.

• Common Sources of Pollution: Both cities experience high pollution from similar sources, including vehicular emissions, coal combustion, and industrial activities. The regional contributions to air quality issues are also significant in both cases, particularly during winter months.
• Need for Collective Action: Just as Beijing required a coordinated effort across its region to combat pollution, Delhi must engage neighboring areas in a collective strategy to effectively address its air quality crisis.

What did Beijing do and how did it achieve it?

• Phased and Strategic Planning: Implemented a 20-year anti-pollution programme in three phases (1998-2017) with local government autonomy and public participation to ensure gradual and sustainable progress.
  • 1998-2008: Initial groundwork.
  • 2009-2012: Strengthening regulations.
  • 2013-2017: Aggressive measures termed the “war against air pollution.
• Energy Sector Transition: Shifted from coal to cleaner energy by renovating power plants, eliminating coal boilers, and replacing residential coal heating, reducing major emissions.
• Transportation Reforms: Upgraded public transport infrastructure, introduced emission controls in vehicles, and phased out polluting vehicles with subsidies, reducing transportation-based pollutants.
• Regional Collaboration and Investment: Partnered with five neighboring provinces for coordinated pollution control and increased financial investment sixfold to implement targeted measures effectively.

• Financial Investment: A sixfold increase in investment over four years supported these initiatives, allowing for significant infrastructure improvements and regulatory enforcement.

As a result of these efforts, major pollutants like sulfur dioxide and PM2.5 saw significant reductions (e.g., PM2.5 decreased by 59% between 2013-2017).

 

What can Delhi learn from the Beijing experience?

• Integrated Public Transport System: Establishing an efficient bus-metro system to reduce reliance on private vehicles is essential. Upgrading the bus fleet and enhancing last-mile connectivity can significantly improve public transport accessibility.
• Energy Transition: Similar to Beijing’s shift away from coal, Delhi should diversify its energy sources by promoting renewable energy options like solar power while reducing dependence on coal-fired plants.
• Regional Coordination: Pollution control efforts should extend beyond city limits to include neighboring regions, fostering collaboration similar to Beijing’s regional initiatives.
• Public Advocacy for Clean Air: Encouraging citizen engagement in demanding accountability from the government can build political will for implementing necessary changes.
• Political Will and Consistency: Addressing air pollution requires sustained political commitment and a long-term action plan rather than ad hoc measures that fail to tackle root causes.

Way forward: 

• Strengthen Policy Implementation and Regional Collaboration: Formulate and enforce a comprehensive, long-term pollution control policy with coordinated efforts involving Delhi and its neighboring states to address regional pollution sources effectively.
• Promote Sustainable Infrastructure and Public Engagement: Invest in renewable energy, green public transport, and urban planning while fostering public participation and advocacy for clean air to ensure accountability and sustained progress.

Mains PYQ:

Q Mumbai, Delhi and Kolkata are the three Mega cities of the country but the air pollution is much more serious probelm in Delhi as compared to the other two. Why is this so? (UPSC IAS/2015)

Why in the News?

The growing reliance on space technologies for climate monitoring highlights urgent environmental concerns, including orbital debris and system interference, necessitating swift international regulations to ensure sustainable space exploration practices.

How do Rockets affect the environment?

• Emissions from Launches: Every rocket launch releases significant amounts of carbon dioxide, black carbon, and water vapour into the atmosphere. Black carbon is particularly concerning as it absorbs sunlight much more effectively than carbon dioxide, exacerbating global warming.
• Ozone Layer Depletion: Rocket propellants, especially those containing chlorine-based chemicals, contribute to the depletion of the ozone layer at high altitudes. This increases ground-level exposure to ultraviolet radiation and disrupts atmospheric circulation, negatively impacting global climate.
• Satellite Ash: When satellites re-enter the atmosphere at the end of their missions, they burn up and release metallic ash into the middle layers of the atmosphere, which can harm the atmosphere and potentially alter climate patterns.
• Manufacturing Footprint: The production of satellites involves energy-intensive processes that have large carbon footprints due to the extraction and processing of metals and composite materials.
• Space Mining Potential: Future activities such as space mining could lead to increased industrial activity both in space and on Earth, further contributing to environmental impacts.

What are the Barriers to space sustainability?

• Lack of Regulation: Current space activities operate outside international sustainability frameworks like the Paris Agreement. There are no clear guidelines for emissions from rockets and satellites, allowing unchecked growth that contributes to global warming.
• Overcrowding in Low Earth Orbit (LEO): The increasing number of satellites and debris threatens to overcrowd LEO, making future missions more expensive and complicating access to space as a shared resource.
• Need for International Cooperation: Effective regulation requires collaboration through international bodies like the Committee on the Peaceful Use of Outer Space (COPUOS) to create enforceable standards for emissions and debris management.
• Outdated Treaties: Existing frameworks such as the Outer Space Treaty lack binding provisions that address environmental impacts, limiting their effectiveness in promoting responsible space use.

What would be the innovative solutions?

• Reusable Rockets: Developing reusable rockets can significantly reduce manufacturing waste and lower costs by allowing components to be used in multiple missions. However, these rockets may be heavier, increasing fuel consumption, and require costly refurbishments.
• Cleaner Fuels: Transitioning to cleaner fuels such as liquid hydrogen or biofuels can minimize harmful emissions during launches. However, current hydrogen production methods often rely on non-renewable energy sources, undermining its environmental benefits.
• Biodegradable Satellites: Designing satellites with biodegradable materials that disintegrate upon re-entry could help prevent long-term debris accumulation. However, these materials currently lack durability for space conditions and face high development costs.
• Autonomous Debris Removal (ADR): Technologies like robotic arms and laser systems show promise for cleaning up orbital debris but require significant investment and legal clarity before implementation.
• Global Traffic Monitoring System: Establishing a real-time monitoring system for satellites and debris could reduce collision risks and optimize orbital use. However, data-sharing concerns due to security and commercial interests hinder its development.

Way forward: 

• Establish Binding International Frameworks: Governments should collaborate through COPUOS and other international platforms to create enforceable regulations for emissions, debris mitigation, and sustainable practices in space exploration.
• Promote Innovation Through Incentives: Public and private entities should prioritize funding for green technologies, such as cleaner fuels, biodegradable satellites, and debris removal systems. Financial incentives like subsidies, tax benefits, or penalties can accelerate the adoption of sustainable practices in the space sector.

Mains PYQ:

Q  Why is Indian Regional Navigational Satellite System (IRNSS) needed? How does it help in navigation?  (UPSC IAS/2018)