{"id":71895,"date":"2024-05-06T09:33:37","date_gmt":"2024-05-06T09:33:37","guid":{"rendered":"https:\/\/www.climatepolicyinitiative.org\/?p=71895"},"modified":"2026-04-24T07:38:11","modified_gmt":"2026-04-24T07:38:11","slug":"just-energy-transition-economic-implications-for-jharkhand","status":"publish","type":"post","link":"https:\/\/www.climatepolicyinitiative.org\/pt-br\/just-energy-transition-economic-implications-for-jharkhand\/","title":{"rendered":"Just Energy Transition: Economic Implications for Jharkhand"},"content":{"rendered":"\n

Various transitions have disrupted economies over the centuries. Think of the shift from horses and carts to cars or the replacement of manual laborers by machines with the automation of factories. While these brought the benefits of increased mobility and cost-effective production, they were not without their downsides.<\/p>\n\n\n\n

When horsepower was displaced by automobiles, cart makers and drivers lost their livelihoods, and associated companies such as blacksmiths lost revenue. Equitability and inclusivity have not historically been key considerations during such transitions.<\/p>\n\n\n\n

As we witness another major global shift \u2013 from fossil fuels to cleaner energy \u2013 large workforces across conventional electricity generation value chains stand to be affected. This time around, we have the opportunity to make the transition equitable, inclusive, and \u2018just\u2019.<\/strong><\/p>\n\n\n\n

India\u2019s dependence on conventional energy sources<\/h2>\n\n\n\n

Large-scale fossil-fuel-based power generation infrastructure has historically been the primary energizer of India\u2019s economy, with PSUs in this sphere acting as nation-builders. Domestic fossil fuels have also enabled the country\u2019s energy independence, ensuring access to electricity for millions, even in remote areas.<\/p>\n\n\n\n

The trends of coal production and investment in related infrastructure indicate that its consumption is set to see an upward trend in the near future despite the nation’s ambitious target of meeting 50 percent of energy requirements from renewable energy and non-fossil fuel capacity of 500 GW by 2030. However, achieving the country\u2019s goal of net-zero emissions by 2070 will require a significant change in the national energy mix. It is expected that Solid fossil fuel use may plateau by mid of the next decade and gradually decline thereafter.<\/p>\n\n\n\n

Shifting to clean energy will bring the benefits of climate change mitigation, cleaner air, and new growth industries, but will also pose economic challenges. These may be more pronounced in mineral-rich Indian states where many economic activities revolving around the mining and consumption of solid fossil fuels could be fundamentally altered. India\u2019s central and eastern states on the Gondwana belt are at the epicenter of this. Five resource-rich eastern states of Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, and West Bengal together account for around 85% of the country\u2019s solid fossil fuel production. They rely heavily on mining and downstream industries (mainly electricity generation) for economic output, employment, state revenues, and social welfare funding.<\/p>\n\n\n\n

Deep Dive in Jharkhand<\/h2>\n\n\n\n

Jharkhand is among those most likely to face adverse short-term impacts of a low-carbon transition, as assessed in CPI\u2019s recent Vulnerability Assessment<\/a>. A subsequent CPI study highlights the significant Economic Implication for Jharkhand<\/a> of the low-carbon transition, which could amount to INR 725.9 billion per year (USD 8.7 billion)<\/strong>. While this is a gross measure, the fiscal impacts for Jharkhand would include:<\/p>\n\n\n\n