This week the Department for Promotion of Industry & Internal Trade (DPIIT) wrote to stakeholder ministries to “identify PSUs” and points of contact to “take forward the initiative”, ET has learnt.
This means such PSUs would commit to sourcing a certain proportion of their material requirement/technology from near zero to zero carbon suppliers/value chain participants.
The seven ‘hard to abate’ sectors identified under the First Movers Coalition – sectors that account for 30% of global emissions – are aluminium, aviation, chemicals, concrete, shipping, steel and trucking. These sectors have been chosen because their decarbonisation is essential for the planet to achieve the 1.5-degree temperature goal. But their transition to a low-carbon technology is challenging given significant price differential and commercial scalability gap.
Accordingly, communication was sent out on January 9 to the ministries of steel, chemicals and fertilisers and mines, among others. ET has learnt that the parent ministries will now write to top PSUs on the issue, nudging them to join the coalition.
The ‘First Movers Coalition’ (FMC) is a World Economic Forum initiative co-launched with US President Joe Biden at the COP26 as a public-private partnership mission to ‘clean up’ sectors with high carbon emissions.
Several nations, including the UK, Sweden, Norway, Japan, Italy, Singapore and India, and 50 global corporations are part of the coalition. The countries have resolved to help create new and early markets for ‘clean technology’ to replace carbon heavy ones and back them with both policy and private sector engagement.India has also been in the steering committee of FMC since its inception. The commerce minister is on the advisory board of FMC and the Confederation of Indian Industry is the Indian industry partner for the initiative. CII has written to 45 companies and some of them are learnt to have given in principle approval for their participation in the coalition.
DPIIT pointed out that to “jump start” the market, FMC members must commit to purchasing a proportion of the industrial materials and long-distance transportation from only suppliers who use near zero to zero-carbon solutions, despite the premium cost. In addition, the FMC members must also pledge to work towards addressing roadblocks and ensure that low-carbon technologies are in place on a commercial scale by 2030 so that 2050 net zero goal can be achieved.