Economies the world over have made rapid strides in development and industrialisation in recent years. These have, however, been accompanied by massive unanticipated challenges, especially in addressing climate change issues.
While policy interventions around clean energy are work in progress, it was becoming apparent that these interventions need to address energy efficiency too. This would also mean development of market instruments to achieve the objectives.
Normally, energy efficiency initiatives call for low capital investment, low risk leading to reductions in energy consumption and carbon emissions. The Paris Agreement 2016 calls for the reduction in Global Greenhouse Gases (GHGs) in order to limit the global temperature rise to 1.5 degrees Celsius.
Being one of the signatories, India has set a target of cutting emission intensity by 33-35 per cent from 2005 levels while generating 40 per cent of its electricity from non-fossil fuel sources by 2030. Therefore, it becomes imperative to act on energy efficiency issues on priority.