India’s carbon-reduction push in focus as it balances energy needs with sustainability
India, the world’s third-largest emitter of greenhouse gases after China and the US, is under mounting pressure to reduce its dependence on coal, a move expected to bring down carbon emissions.
But balancing the country’s growing energy needs with environmental demands is proving to be a major challenge.
“The increasing economic boost and energy needs, along with rapid urbanisation, have put the country in a tough spot,” said Kunal Sood, a social impact strategist, investor and founder of We The Planet, a global platform on climate change.
The International Energy Agency projected that India’s energy demand would outpace that of any other country in the next 20 years.
By 2030, it is expected to overtake the EU as the third-biggest energy consumer.
Although the share of renewable energy in India’s energy mix is increasing, coal still accounts for about 70 per cent of the country’s electricity generating capacity, according to the agency.
The fossil fuel plays a major role in global warming and contributes to deadly air pollution.
“As a large developing economy and due to increasing urbanisation in India, our demands are increasing and our emissions are increasing,” said Radha Goyal, deputy director of the Indian Pollution Control Association, a non-government organisation.
The country is deepening its reliance on renewable energy, particularly solar energy. Prime Minister Narendra Modi has set a renewable energy capacity target of 450 gigawatts by 2030, five times the current capacity.
However, India is under pressure to do much more to tackle the issue as diplomatic pressure mounts to make a pledge on net zero carbon emissions by 2050.
The government is debating whether to set a net zero target for its carbon emissions by 2050, according to Bloomberg.
Net zero refers to achieving a balance between greenhouse gas emissions that are produced and those that are removed from the atmosphere.
The matter also came into sharp focus during the visit of US Special Presidential Envoy for Climate John Kerry to India last week. Mr Kerry described India as a world leader in the use of renewable energy but said the world needs to reduce its dependence on coal.
“We need to phase out coal five times faster than we have been doing,” Mr Kerry told attendees of the South Asia Women in Energy Leadership Summit, which was held online.
He said India was already making progress on this front.
“It is already cheaper to build solar in India than anywhere else in the world,” he said.
“That kind of urgency is exactly what we need to confront global climate change.”
Any efforts to cut emissions will need to be supported by funding. The IEA estimates that India would need an additional $1.4 trillion over the next two decades to be on a “sustainable path”.
Mr Kerry said India was a “redhot investment opportunity” for renewable power and signalled that the US was willing to work with New Delhi to drive investment flows towards the sector.
Under President Joe Biden, the US is focused on tackling climate change and has rejoined the Paris Agreement.
India may not commit to a net zero target, given the pace at which its energy demands are set to rise over the coming years amid economic growth, Reuters reported.
The government has unveiled plans for India to become a $5tn economy by 2025.
“While the current government, especially Mr Modi, is setting high standards by promoting renewable power sources and investing in climate change and regenerative solutions, it is a long shot from what we need here and now, as a collective globally, to solve this dire issue,” said Mr Sood.
“We need to harness the power of both the public and private sector to co-create novel solutions that can help protect our world.”
The challenges that India faces in making a transition to cleaner energy sources were highlighted this month, when the country delayed its deadlines for coal-fired power plants to meet new emissions norms.
Thermal power plants had initially been given varying deadlines in different regions up until 2017 for the installation of flue-gas desulphurisation units to reduce sulphur dioxide emissions, which contribute to air pollution. That deadline was then extended to 2022.
Now, plants in densely populated urban areas must comply by 2022, according to the environment ministry.
Those in less polluted areas will have until the end of 2024 to comply or face shutdown.
Industry groups have long complained about the cost of meeting these pollution standards. In addition, despite widespread concerns about coal’s role in global warming, India plans to stage its biggest auction of coal mines.
The coal ministry announced last month that it would put 67 mines on the block.
A move to completely distance the country from coal would be “cost intensive”, according to Ms Goyal from the Indian Pollution Control Association.
“There are lot of policies that are coming up to tackle the air pollution problem and climate change, so we can follow the low carbon path,” she said.
“Right now, coal is the major source but India is trying to come up with more renewable energy sources.”
However, achieving net zero is “not very realistic” for the country, said Ms Goyal.
“We are at a stage where India’s energy demands are huge. Meeting all those demands with cleaner energy sources and making zero emissions, it is not very realistic, although India is trying its best,” she said.
Comments from the Indian government have also suggested that the country may not be ready for carbon neutrality.
Speaking at an online meeting organised by the IEA at the end of last month, India’s energy minister Raj Singh described net zero targets as “pie in the sky”.
He also said richer nations could not stop poorer countries from using fossil fuels.
India has highlighted that developed countries have a larger per capita carbon footprint than developing nations and that wealthier countries should also be doing more to address the problem.
Despite the hurdles, the renewable energy sector is optimistic about the transition to greener power in India, which is becoming more competitive due to low tariffs and the government’s efforts to encourage less polluting energy sources.
“Although India currently lags behind in achieving its targets, there is scope for more making up for the lag,” said Animesh Damani, managing partner at Artha Energy Resources, a Mumbai-based advisory company.
“If we look at the utility sector, the investment environment is amazing. We have witnessed large and sovereign wealth funds invest in the sector, and private equity funds have taken exposure.”
He said these investors had “a positive outlook towards India and continue to do so”.
Reducing the country’s enormous dependence on coal will require substantial investment and effort.
However, environmentalists and industry insiders said these are steps that must be taken.
“We cannot avoid the cost,” said Ashutosh Verma, founder of solar energy company Exalta India.
“The cost of not adopting ways to reduce our carbon footprint is way more expensive than making a change now.”
The cost of not adopting ways to reduce our carbon footprint is way more expensive than making a change now ASHUTOSH VERMA Founder of Exalta India