If we want to make clean energy available to the grassroots, we have to take the financial system to the last man.
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Today, globalization has expanded the economy to such an extent that it has greatly increased the demand for energy in developing countries around the world. In fact, the demand for energy in the development process of countries that do not want to have very stable relations with developed countries has increased tremendously. Mankind has been and continues to be constantly striving to balance the benefits of the present with the needs of the times. Naturally, the importance of energy is increasing day by day. However, the big question remains, what needs to be done to achieve this goal of minimizing energy consumption along with efficient energy generation?
According to many experts in the energy sector, there are two different streams of opinion on how the economic development process may affect energy efficiency. One of the prevailing views is that if any economy is considered to be growing rapidly, its ability to buy energy-efficient goods and services is increasing. Which naturally increases the amount of carbon emissions. If we look at the same thing from a different perspective, we will see that a viable - progressive economic system can also increase investment in the field of renewable energy. Not only that, if the income of the people increases, even if the price of an energy efficient item is high, the mentality of buying it or investing in such items can also be triggered.
In addition, foreign direct investment could lead to further expansion of energy-efficient manufacturing technologies in the domestic market. In fact, it is important for local entrepreneurs. This will create a strong competition among local entrepreneurs to invest more and more in the creative use of energy efficient technology. And that is why it will be possible for local entrepreneurs to make efforts to sustain the competition created by foreign entrepreneurs. Obviously, the outline of this article is the World Bank's definition of financial inclusion. Based on that.
The definition states, "Varied financial transactions, including but not limited to personal savings, bank loans & borrowing, and variety of insurance are are are acquired as liabilities by an individual or professional. There are many financial products and service options available to every individual and professional today that can meet these needs. These products are responsible and stand the test of eternity.” Importantly, to achieve the 7th goal layer down by the United Nations Sustainable Development Goals (SDGs) in 2015 (the 7th updated goal is low-cost and clean energy generation/solution), economic inclusion is considered to be the driving force behind that goal. . In terms of the dependence of energy-efficient processes, the role of economic inclusion at both the micro and large levels will be crucial.
Considering the rural community in India, access to banking services, availability of credit, proper and planned insurance system and access to foreign direct investment using modern facilities and arrangements for financial transactions are important aspects of financial inclusion. Taking this into account, economic inclusion can encourage even technologically backward communities to use energy-efficient technology for production and other purposes. Apart from this, the role of financial institutions in rural areas is or can be important in creating awareness about energy efficient system.
The Deendayal Upadhyay Gram Jyoti Yojana (DDUGJY) launched by the Central Government in 2015 is a scheme setting new standards. The scheme shows inclusiveness and availability in terms of clean and affordable energy. Considering this, this plan is the embodiment of the 7th of the goals set for sustainable development. A study of the state-of-the-art information available in India reveals the need for economic inclusion for energy efficiency. According to the CRISIL CRISIL survey, the percentage of households getting electricity connection under Deendayal Upadhyay Gramjyoti Yojana is positive.
Public sector financial institutions are working hard to bring about a radical change in energy efficiency in their organizational structure, as well as to develop financial resources for energy-efficient projects to a certain extent.
This was due to the instructions given by the government from time to time and the resources made available. This may make it possible for public sector financial institutions to provide subsidies for technical services such as energy efficiency audits, or to provide low-interest loans. On the other hand, private sector financial institutions are also showing commitment to sustainability and are also implementing initiatives to provide credit for renewable energy generation. However, it is becoming difficult for these financial institutions to reach the level of commercial viability or to raise the necessary financial support. In fact, with the exception of the United States, there are very few private financial institutions in the world that are committed to energy efficiency.
Economic growth is mainly related to the performance of the capital market and foreign direct investment in that country. Nevertheless, economic inclusion can also boost energy efficiency in rural India. In fact, if we want to provide clean energy to the grassroots, we need to change the cash flow of our current policy objectives, and we need to focus on developing a grassroots financial system.
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