Nordic-India connect for Green transition

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    • Recently, the Nordic countries have shown regard by offering their green technologies and expertise to India.

    About Green Technology

    • Clean or green technology is the improvement and application of equipment,  systems, and products utilized to save the natural environment and resources which minimize and decrease the adverse effect of human activities.
    • Goal:
      • The goal of green tech is to protect the environment, repair damage done to the environment in the past, and conserve the Earth’s natural resources.
    • Potential:
      • Although the market for green technology is relatively young, it has garnered a significant amount of investor interest due to increasing awareness about the impacts of climate change and the depletion of natural resources.

    Nordic-India partnership significance for Green Technology

    • Role of Nordic countries:
      • Over the last decades, Nordic countries have been pioneering green technologies. 
        • The Nordics have succeeded in building stable, secure, welfare-based societies that, to a large extent, manage to meet the needs and the wishes of their inhabitants.
    • Role of India:
      • Over the last decades, India has also been at the forefront of developing new green technologies and solutions such as hydrogen, offshore wind, batteries and carbon capture and storage solutions that are essential for the world to succeed in the green transition it needs.
    • Nordic-India Copenhagen Summit:
      • At the Nordic-India Summit held in Copenhagen in May 2022, the five Nordic Prime Ministers and India’s Prime Minister agreed to intensify cooperation on digitalisation, renewable energy, maritime industries, and the circular economy
      • India also expressed an interest in joint Nordic solutions that can support India’s green transition.
    • So, together, the Nordics and India can power the green transition the world needs.

    Significance of Green Technology for India

    • Climate Change resilient: 
      • Being a thermal energy-dependent country, India faces severe electricity shortages in many areas due to heatwaves (when demand increases) and coal shortages. 
      • Input of green technologies can transform the traditional energy system by making India more resilient against extreme weather conditions and less dependent on fossil fuels.
    • Decarbonization: 
      • It will also help decarbonise energy production, which is today the largest source of global greenhouse gas emissions.
    • New avenues: 
      • It will not only reduce carbon footprint and cost of energy but open up new avenues for cooperation between different regions and different countries.
    • Solar Power:
      • Solar power is one of the most successful green technologies and is now cheaper to deploy than fossil fuels in many countries.
      • India, in partnership with the United Kingdom has also announced the Green Grids Initiative — One Sun, One World, One Grid (GGI-OSOWOG) at the COP26 climate talks in Glasgow.
    • Setting an example:
      • It could set a model for how countries can help others to reduce their emissions and meet the goal of capping global warming at 1.5 degrees Celsius above pre-industrial norms.

    Challenges 

    • The global transition away from fossil fuels to renewable energy sources could trigger financial challenges for India and major developing countries such as Russia, Brazil, and China because of their high dependence on revenues from fossil fuels

    Way Ahead 

    • As India takes rapid strides into a green, digital, and innovative future, Nordic countries such as Finland and Norway stand ready to share experiences and be a part of India’s transition. 
      • Although they are significantly smaller than India population-wise and are located on the other side of the globe, they do have world-leading technologies and expertise to offer.

    Additional Information 

    Nordic countries

    • The Nordic countries are a geographical and cultural region in Northern Europe and the North Atlantic. 
      • It includes the sovereign states of Denmark, Finland, Iceland, Norway and Sweden; the autonomous territories of the Faroe Islands and Greenland; and the autonomous region of Åland.
    • The Nordic countries have much in common in their way of life, history, religion and social structure.
    • The Nordic countries cluster near the top in numerous metrics of national performance, including education, economic competitiveness, civil liberties, quality of life and human development.

     

    Cooperation with India 

    • Nordic’s renowned businesses are already operating in India and have made substantial investments. Its business community in India is also growing. 
      • There are now 240 Norwegian and Finnish companies in India.
      • The past year has seen a significant rise in trade and investments between Finland and India, and India has grown to become a priority country for Finland. 
      • This further increases the number of Nordic representations in India’s commercial capital and will contribute to strengthening India-Finnish ties
      • Trade between Norway and India has doubled in the last three years. 
        • The Norwegian Sovereign Wealth Fund is likely to become one of India’s largest single foreign investors (around $17.6 billion). 
      • The Norwegian government has also recently established a new Climate Investment Fund for investments in renewables abroad, and India has been defined as a focus country. 
    • FTA negotiations:
      • Both Norway and Finland have ongoing free trade agreement and investments negotiations (FTA) with India
        • Finland, as a member of the European Union (EU), is a part of the EU-India FTA negotiations.
        • Norway is negotiating through the European Free Trade Association.

    Mains Practise Question 

    [Q] What is  Green Technology? Discuss the relevance of the Nordic-India partnership for the green transition.