Economic Survey 2024-25 on Climate Action and Fossil Fuels
Why in the news
The Economic Survey 2024-25 set out a two-track energy approach: keep investing in fossil fuels for security while pushing clean energy. It also warned against depending on China for green technology.
Key facts
- The Survey argues against early retirement of coal-fired power plants; supply security should come before cutting fossil use.
- Suggested investments: ultra supercritical plants, more efficient coal technology, battery storage and CCUS (carbon capture, utilisation and storage).
- China holds over 80% of global solar module supply chains.
- India should build indigenous clean energy technology to avoid geopolitical vulnerability.
- Shrinking foreign climate finance makes self-reliance in green technology vital.
Background
India’s climate pledges at COP26 are known as Panchamrit, and they centre on a low-carbon growth path. The Survey reminds that these goals must be met despite tighter climate finance.
Transport angle
- Backs public transport over private EV manufacturing; EV output stays import-intensive.
- Land is scarce, so efficient public transport suits sustainable mobility.
- Way forward: indigenise EV technology step by step and source raw materials locally.
Exam angle
- Climate pledge framework named in the Survey: Panchamrit, announced at COP26.
- Country with over 80% of global solar module supply chains: China.