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New Report: CEEW-IISD Release Report on Assessing Green Industrial Policy: The India Experience
24 Apr 2014

Council on Energy, Environment and Water (CEEW), and International Insitute for Sustainable Development (IISD) recently released a detailed report on India’s Green Industrial Policy.

For much of the last decade (2000-2010), the Indian economy witnessed growth rates in excess of 8 per cent in terms of overall GDP and nearly 6 per cent in GDP per capita terms (WDI, 2011).

The burgeoning Indian economy is being primed to grow at an average rate 8 to 9 per cent consistently over the next two decades. Two elements that will be crucial in determining the fate of the economy will be the performance of the manufacturing sector and the availability of energy to cater to the needs of the growing aspirations of the population.

Renewable energy straddles both these elements and has the potential to give a much needed impetus to both. It then becomes imperative for policymakers to be cognizant of the role it has played and reflect on the success of extant policies and their relevance in the years ahead. India’s renewable energy aspirations and actions are driven by multiple objectives including greater energy access, energy security, responding to local environment challenges and addressing climate change risks. The analysis in this study should be read in that context, namely how these different drivers have resulted in the evolution of policy regarding renewable energy. And the policies, in turn, should be evaluated in terms of whether they have delivered results in line with the premises on which they were initially formulated.

Section 1 of the report provides the rationale and the motivation behind the pursuit of a ‘green industrial policy’ in India. We then go on to document the current status of the solar- PV and wind sectors in India with an emphasis on key players and trends.

Section 2 outlines the key policies used to stimulate the RE sector in India – both project development and domestic manufacturing of RE related goods and services. Policies are split into overarching, direct and indirect policies.

Section 3 seek to highlight the impact of various policies on specific outcomes that were chosen for the study, including: Energy access and security; competitiveness of domestic firms; increased competition in the global market; impact on employment generation; impact on the local environment and GHG emissions and lastly, technology advancement made by the local industry.

Section 4 reflects on the lessons of interest for policy makers and to what extent key policies have worked. The paper provides a broad overview of the state of affairs of the RE sector in India with a focus on solar-PV and wind, and seeks to draw lessons from a work very much in progress.

The report has been written by Karthik Ganesan, Poulami Choudhury, Rajeev Palakshappa, Rishabh Jain, and Sanyukta Raje.

The complete report can be read here: Assessing Green Industrial Policy-The India Experience.

You can also read Germany's Green Industrial Policy: Stable Policies - Turbulent Markets.
For a comprehensive list of IISD’s publications, click here.

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