IISD releases “Mapping India’s Energy Subsidies – 2020”

Report mentions that India‟s energy subsidies have declined by 35% in 2019

• Environment and Water (CCEW) and International Institute of Sustainable Development (IISD) recently released a report called “Mapping India‟s Energy Subsidies – 2020”
• The report says that India‟s energy subsidies have declined by 35% in 2019 as compared to 2017
• The study, Mapping India’s Energy Subsidies 2020, emphasizes that the health and economic crisis caused by Covid-19 will influence subsidy expenditure

Key highlights of the Mapping

• The report titled „Mapping India‟s Energy Subsidies 2020‟ said that there were already signs that support for renewable energy would increase again, but with the shocks from COVID-19 it is now critical to stay on track
• India‟s renewable energy subsidies fell 35 per cent between 2016-17 and 2018-19
• Policy decisions such as the solar safeguard duty and tariff caps on auctions meant that there was a slowdown in new capacity addition and as a result lower state subsidy outgo as well
• The resources post-COVID-19 would see an unprecedented crunch
• It presents a good opportunity for the government to rein in specific fossil fuel subsidies while creating more fiscal room for promoting renewable and other welfare schemes
• According to the report, in the past six years, India has shifted significant public resources toward clean energy
• Since 2014, fossil fuel subsidies have fallen by more than half, while subsidies for renewable energy and electric vehicles have increased more than three and a half times
• The report expects that long-term ambitions can still be maintained
• There are uncertain times ahead, and the first priority has to be health and helping people meet their essential needs
• The oil and gas subsidies, however, increased by 65 per cent in the same period
• The crash in world oil prices and the government‟s economic stimulus packages will be key factors shaping the energy sector in the upcoming months
• After the COVID-19 crisis, petroleum product subsidies will undoubtedly fall significantly in 2020 and other energy markets will be shaken
• Fossil fuels are already being taxed more to help plug holes in revenue
• Government stimulus needs to first help people cope, but stimulus for the energy sector must avoid new fossil fuel subsidies that lock in air pollution and greenhouse gas emissions for years to come

What is “International Institute for Sustainable Development (IISD)”?

• It is an independent think tank founded in 1990. The institute has offices in Winnipeg, Ottawa, New York City, and Geneva
• It has over 100 staff and associates working in over 30 countries
• As a registered charitable organization in Canada, IISD has 501 (c) (3) statuses in the U.S
• IISD receives core operating support from the Government of Canada, as provided through the International Development Research Centre (IDRC) and the Province of Manitoba
• IISD’s 2014-19 strategic plan is focused on six areas – Economic Law and Policy, Energy, Resilience, Water, Integrated Knowledge and Reporting Services
• IISD Reporting Services (IISD-RS) provides independent coverage of intergovernmental policy-making efforts related to the environment and sustainable development, including daily reporting, analysis and photos of international environment and development negotiations and events

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