Renewable Energy to Responsible Energy: a Call to Action
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Renewable Energy to Responsible Energy: A Call to Action Horizontal Orientation ( to be used when the width of the given space is more than its height) LOGO Usage guidelines To provide immediate Vertical Orientation (to be used when the height brand recognition, Teri’s of the given space is more than its width) logo should be used in all the collaterals whether print or e-media. Preferably the logos should be place on top left corner in any media. To ensure the legibility, the logo shouldn't be less than 1” wide and 72px wide in electronic media. Seal (to be used where there is less space available) Core partners Expert partners Supported by Renewable energy to responsible energy: A call to action An invitation to collaborate towards a just and regenerative future Foreword ..................................................................................................... 3 SECTION 3 | How are market actors in the RE sector responding to environmental and social impacts? ............. 49 Abbreviations .............................................................................................. 4 How key market actors have been responding to the presence of these Introduction ................................................................................................. 5 impacts including developers, investors, financiers and large procurers of RE. Why is a just and regenerative RE sector important for India? ...................... 7 3.1 RE developer responses to ESG responsibilities 3.2 Leveraging corporate governance and market-based mechanisms About this report and the Renewable Energy to Responsible Energy Initiative ... 8 to embed good environmental and social practices in the RE sector in India 3.3 The role of industry associations 3.4 Sustainable procurement of renewable energy SECTION 1 | The RE landscape in India ...................................................... 9 A broad overview of the renewable energy (RE) sector in India - current SECTION 4 | Implications and way forward towards footprint and growth trajectory, government policy goals and other drivers, a just and regenerative RE sector ................................. 60 keystone market actors and how the sector is currently governed. The case for deeper collective inquiry into the barriers to, and opportunities 1.1 The landscape for key technologies for, establishing and embedding business models and practices that support 1.2 The RE financing landscape a just and regenerative future, and a call to action. 1.3 The role of corporate procurement 1.4 Governance of the RE sector 4.1 What does this tell us? 1.5 The role of the judiciary 4.2 What can we do now? 1.6 Role of civil society in upholding accountability Acknowledgements ..................................................................................... 70 SECTION 2 | Environmental and social impacts of RE ................................ 23 About the partners ..................................................................................... 71 The environmental and social impacts emerging within the value chains of five RE technologies: solar, on- and off-shore wind, small hydro power, lithium-ion storage and hydrogen. 2.1 Adverse environmental and social impacts in the RE value chain 2.2 Using the finitude, fragility and fairness framework 2.3 Solar 2.4 On-shore wind 2.5 Off-shore wind 2.6 Small Hydro Power (SHP) 2.7 Lithium-ion battery storage 2.8 Hydrogen Renewable energy to responsible energy: A call to action | 2 Foreword India has set ambitious targets for renewable energy (RE) capacity and has demonstrated strong growth in the deployment of RE technologies. The sector is key to the reduction of carbon dioxide emissions and delivers a range of other benefits spanning energy security, opportunities for greater energy access, jobs and livelihood opportunities, as well as reduced or no pollution from electricity generation, among others. Though these benefits are substantial, virtually no sector is yet universally sustainable in its impact. As the RE sector continues to grow and evolve, it will need to be increasingly mindful of the need to ensure that adverse impacts on the environment, communities and human rights do not arise from its value chain and operations. This is particularly so as the relative positive and adverse impacts across RE value chains will only amplify as deployment scales. Now, in 2021, the sector has the opportunity to take proactive action - a step that is essential to avoid and mitigate risks to its progress. It is also critical in enabling sustainable growth for itself and for serving as a model for other growth sectors. We believe this is the moment for the RE sector in India to take steps to better understand its impacts more holistically and commit to mitigating action. The collective challenges we face require all sectors to take urgent and ambitious action towards a just and regenerative future. Now is the time for the renewable energy sector in India to transform itself into a responsible energy sector and take the lead in initiating the action towards the transition. Signed Date: 26th February 2021 Chris Jochnick Dr. Sally Uren OBE Dr. Ajay Mathur Om Prakash (O.P.) Agarwal Ravi Singh President & CEO Chief Executive Director General CEO Secretary General & CEO Landesa Forum for the Future TERI WRI India WWF-India Foreword | 3 Abbreviations ADB: Asian Development Bank MWh: Megawatt Hour APTEL: Appellate Tribunal for Electricity (India) NAPCC: National Action Plan on Climate Change (India) BU: Business Units NBFC: Non-Banking Finance Company CERC: Central Electricity Regulatory Commission (India) NCEEF: National Clean Energy and Environment Fund (India) CSR: Corporate Social Responsibility NGT: National Green Tribunal (India) DISCOM: Distribution Company NIWE: National Institute of Wind Energy (India) EIA: Environmental Impact Assessment NTPC: National Thermal Power Corporation Limited (India) ESG: Environmental, social and governance OHS: Occupational Health and Safety ESIA: Environmental and Social Impact Assessment PSU: Public Sector Undertaking ESMS: Environmental and Social Management System RBI: Reserve Bank of India FDI: Foreign Direct Investment R&D: Research and Development GW: Gigawatt RE: Renewable Energy IEA: International Energy Agency REC: Renewable Energy Certificate IFC: International Finance Corporation RPO: Renewable Purchase Obligations INR: Indian Rupee SDG: Sustainable Development Goals IOCL: Indian Oil Corporation Limited SEBI: Securities and Exchange Board of India IREDA: Indian Renewable Energy Development Agency Limited SHP: Small Hydro Power IPP: Independent power producer SIA: Social Impact Assessment MNRE: Ministry of New and Renewable Energy (India) SPPD: Solar Power Park Developer MoEFCC: Ministry of Environment, Forests and Climate Change (India) TPDDL: Tata Power Delhi Distribution Limited MW: Megawatt TWh: Terawatt hour Abbreviations | 4 Introduction The rapid rise of renewable energy (RE) to meet we may see over a 1000% rise in global demand to reduce emissions from energy is met in a way growing demand and displace fossil fuel sources for minerals used in energy storage technologies that is regenerative and just. Avoiding adverse is a keystone element of our transition to a low essential for RE and related technologies like electric impacts will be critical in ensuring that the sector carbon economy. At the same time, a renewable vehicles such as aluminium, cobalt, iron, lead, lithium, operates in an environmentally and socially energy system has the potential to expand access to manganese and nickel.16 Similarly, a 300% rise in responsible manner and thus avoids damaging affordable, clean energy for all, create jobs and help global demand is forecast for key minerals used in investor confidence in ways that may ultimately economies and societies to thrive in the long term. solar panels - including aluminium, copper, indium, hamper the uptake and growth of RE in India. iron, lead, molybdenum, nickel, silver, and zinc.17 Moving towards a benchmark of operating in ways That energy markets are mostly moving in the right that have just and regenerative effects is not only direction is highly encouraging. Clean sources like The effects of such pressure are already beginning critical for the RE sector, but a necessary way solar and wind are being installed at a rate that is to surface, both in terms of environmental health, forward for all. The RE sector has the potential to twice as fast as that of fossil fuel power stations.14 as well as in social inequities and human rights shape new approaches in this direction. In figure that The share of RE in global electricity generation abuses.18 It is also becoming clear that the different follows, we lay out the principles underpinning the increased to nearly 28% in the first quarter of stages of the RE value chain are not immune from concept of a just and regenerative future. 2020, from 26% in the same quarter of 2019.15 labour rights risks.19 This welcomed trajectory continues to be driven by reductions in costs, an increase in RE procurement Against this backdrop, although awareness and mandates, as well as a rise in scale of production in management practices are growing, the Indian - many parts of the world. and global - RE sector’s current response is best While the growth of described as nascent. As this report highlights, not RE is enabling the transition While the growth of RE is enabling the transition enough attention is being given to environmental towards a low carbon