1. Energy transition is a policy priority for both countries. It entails developing entirely new ecosystems for green energy. Italy has adopted a National Recovery Resilience plan, allocated 70 billion Euros for ecological transition and established a Ministry of Ecological transition. India too has ambitious goals for energy transition, and as of now, is the only large country to meet its climate change goals. It will add as much power capacity over the next 20 years as EU’s present consumption. India has also set ambitious targets to increase natural gas and renewable energy in its energy mix.
2. Sustainably-oriented innovation has three pillars for successful transition to a carbon neutral energy system.
- Sustainable Input: involves processes that do not deplete natural resources and foster efficient use of resources.
- Flexibility: required to maintain the energy system balance.
- Decentralisation: cost effective generation of renewable energy is shifting energy systems to smaller generation capacities.
3. Scope for India-Italy collaboration: India is a favoured destination for energy investments. It received over $7 billion FDI in the energy sector since 2014. Italian companies can invest in state of the art manufacturing lines and add value to the supply chain. It aims to be a global hub for cutting edge solar photovoltaic (PV) manufacturing. India is trying to innovate every part of the value chain and strategize collaborations with global innovators, and aspires to increase the share of natural gas in its energy mix from the current 6.5% to 15%. It seeks to increase its electrolyser manufacturing capacity and become a global hub.
4. For inclusive climate action: There is a need to ensure availability of cheap capital in less advanced economies to make green technology widespread. Sustainable recovery measures are prevalent in advanced economies due to easily available capital. It is important to protect those who will not immediately benefit from climate action, like workers in labour intensive sectors.