Sustainability
and sustainable development are probably the two most widely debated issues of
the century. Sustainable development aims to offer long-term solutions to
social, economic and environmental issues to meet the needs of present generation
without endangering the ability of future generations. Sustainability takes
into account how we might live in harmony with the natural world around us,
protecting it from damage and destruction. This document will address the
question of sustainability as defined by the World Summit on Social Development
in 2005 around the three pillars of sustainability – social development,
economic development and environmental protection.
Sustainability and climate
change: the social, economic and ecological costs
When
discussing sustainable development, climate change and extinction of animal and
plant species are the two core areas of concern. In this section, we will look
at some of the scientifically established impacts of the climate change and
also examine their possible causes. Many of the worst projected climate impacts
outlined in various global climate reports could still be avoided by holding
warming temperature below 2°C. But, this will require substantial
technological, economic, institutional and behavioral changes. A global study
of climate change in late 2014 reported that the concentration of carbon
dioxide, the main greenhouse gas, is about 397 parts per million (PPM) in the
atmosphere, above 350 PPM, the uppermost boundary for safe use. The World Bank
Group in 2014 reported that the projected rise in temperature without concerted
action would be 1.5 degrees in 2030s, 2 degrees in 2040s and 3 degrees in 2060
and 4 degrees in 2080s. The report also projects summer becoming hotter each
year across the globe. A team of 18 international experts have recently found
that the earth is in a less hospitable state as we have crossed four boundaries
of safe-use – climate change, species loss, land-use and pollution. In November
2014, the World Economic Forum reported that dramatic climate changes and
weather extremes are affecting millions of people around the world, damaging
crops and coastlines and putting water security at risk. There is substantial scientific
evidence to establish that close to 1.5 degree Celsius above pre-industrial
levels is locked-in to the Earth’s atmosphere. In Latin America and Caribbean,
there are visible erratic changes in precipitation patterns, agriculture
productivity and biodiversity. A rise in the atmospheric temperature is leading
to decline in yields of certain crops like soybean and wheat by over 50 percent
in Latin America and the Caribbean. Africa and the Middle East are extremely
vulnerable to temperature and precipitation changes. In these regions, the
water resources are depleting fast as temperature rise and heat waves
intensify. Experts foresee these two regions face a severe food and water
crisis as more than one-third of the population works in agriculture and 75
percent of the agriculture production is rain-fed. Crop yields could decline by
up to 30 percent at 2 degree temperature and almost 60 percent at 4 degree
temperature rise. Central Asia has reported unusual amount of glacier melting,
floods, diminishing water bodies and declined crop yields. Glacier loss in the
tropical lands is already affecting water supplies for 50 million people in
low-lands. The global sea levels are projected to rise up to 30 cm by 2100. This
would also put almost 90 percent of the global coral reefs at the risk of
extinction. The volume of glacier melting in Central Asia has been an
astonishing 35 percent between 1901 and 2000.
According to a World Health Organization estimate, by the 2090s, climate
change is likely to widen the area affected by drought, double the frequency of
extreme droughts and increase their average duration six-fold.
According
to the World Wildlife Fund, over 25 percent of all the species (both plants and
animals) on the planet are facing the threat of extinction. WWF scientists have
estimated that most species on the planet will have to move faster than 1000
meters per year if they are to keep within the climate zone which they need for
survival. Some of the most threatened species are the polar bear of North Pole,
sea turtles of South America, large whales of North America, the giant panda of
China, the apes of Indonesia, elephants of Africa, frogs and coral reef of
Australia and tigers of India.
Climate
change has also had a social impact which needs a more humanitarian approach. People
who live in poverty may have a difficult time coping with changes. They have
limited financial resources to cope with heat, relocate or evacuate or respond
to increases in the cost of food. Older adults may be among the least able to
cope with impacts of climate change. They are more vulnerable higher
temperatures, tropical storms, or extended droughts. Young children are another
sensitive age group, since their immune system and other bodily systems are
still developing and they rely on others to care for them in disaster
situations.
While
it has been well-established that climate change is inducing marine and land
animals to migrate, a new study published in the journal Nature Climate Change
in late 2014, suggests that people are migrating too. Researchers have found
that a large number of Pakistanis have migrated due to rising temperature,
erratic weather and flooding. According to UNFCCC estimates of the number of
people who will be obliged to move as a result of climate change and
environmental degradation by the year 2050 range from 25 million to one
billion.
The
Prime Minister of Tuvalu, an island between Hawaii and Australia, has called
climate change a ‘weapon of mass destruction’. Saltwater intrusion into the
country has made it difficult to grow traditional crops and rainfall is highly
unpredictable. The island country is likely to submerge under water by the end
of the century. The intergovernmental panel on climate change reported in a
2012 paper that forced migrations will grow in the years ahead. Maldives, one of
the world’s lowest lying countries has been termed the most climate-vulnerable
nation in South Asia by the Asian Development Bank. According to the World
Meteorological Organization, the 2010 Pakistani floods, one of the largest
displacement events of the last decade, drove millions from their homes powered
by the additional heat generated by industrial greenhouse gas emissions
thickening in the upper atmosphere.
A
World Bank Group commissioned Potsdam Institute for Climate Impact Research and
Climate Analytics report in 2013 has noted visible and substantial impacts of
the climate change on India's coastline, monsoon, agriculture, groundwater and
glaciers. Under 4°C warming, the west coast and southern India are projected to
shift to new, high-temperature climatic regimes with significant impacts on
agriculture. Evidence indicates that parts of South Asia have become drier
since the 1970s with an increase in the number of droughts. In 1987 and
2002-2003, droughts affected more than half of India’s crop area and led to a
huge fall in crop production. Even without climate change, 15% of India’s
groundwater resources are overexploited.
At 2.5 degrees Celsius warming, melting glaciers and the loss of snow
cover over the Himalayas are expected to threaten the stability and reliability
of northern India’s primarily glacier-fed rivers, particularly the Indus and
the Brahmaputra. The Indus and
Brahmaputra are expected to see increased flows in spring when the snows melt,
with flows reducing subsequently in late spring and summer. With India close to
the equator, the sub-continent would see much higher rises in sea levels than
higher latitudes. The rainfall patterns in India have also altered
significantly. Experts believe that a 2°C rise in the world’s average
temperatures will make India’s monsoon highly unpredictable. An abrupt change
in the monsoon could precipitate a major crisis, triggering more frequent droughts
as well as greater flooding in large parts of India. India’s northwest coast to
the south eastern coastal region could see higher than average rainfall.
India’s financial centre Mumbai has the world’s largest population exposed to
coastal flooding, with large parts of the city built on reclaimed land, below
the high-tide mark. The city witnesses the highest ever single-day rainfall of
994 mm and subsequent flooding in 2005 which claimed over 1000 lives. The World
Bank estimates suggest that while overall rice yields have increased, rising
temperatures with lower rainfall at the end of the growing season have caused a
significant loss in India’s rice production. Without climate change, average
rice yields could have been almost 6% higher (75 million tons in absolute
terms). Studies also show that wheat yields peaked in India around 2001 and
have not increased since despite increasing fertilizer applications.
Observations show that extremely high temperatures in northern India - above
34°C - have had a substantial negative effect on wheat yields, and rising
temperatures can only aggravate the situation.
A
report published by the World Health Organization in 2015 titled Health and Environment shows that air
pollution causes about 4.3 million deaths each year globally of which China
accounts for 1.5 million and India accounts for 1.3 million deaths. China and
India are home to over two-thirds global deaths due to air pollution. The deteriorating
air quality causes more than two million premature deaths each year in the
world. Lung cancer deaths have also increased significantly over the last ten
years. Around 30 percent of all lung cancer deaths are due to air pollution.
Globally,
the number of reported weather-related natural disasters has more than tripled
since the 1960s. Every year, these disasters result in over 60,000 deaths,
mainly in developing countries. The WHO has projected alarming health
situations as a result of climate change. Between 2030 and 2050, climate change
is expected to cause approximately 250,000 additional deaths per year, from
malnutrition, malaria, diarrhea and heat stress. The direct damage cost to
health is estimated to be between US$ 2-4 billion/year by 2030. Extreme high
air temperatures contribute directly to deaths from cardiovascular and
respiratory diseases. In the heat wave of summer 2003 in Europe, more than
70,000 excess deaths were recorded. Pollen and other aeroallergen levels are
also higher in extreme heat. These can trigger asthma, which affects around 300
million people. According to a study by the WHO, climate change is expected to
cause approximately 250,000 additional deaths per year between 2030 and 2050;
38,000 due to heat exposure in elderly people, 48,000 due to diarrhea, 60,000
due to malaria, and 95,000 due to childhood under nutrition.
An
unusually disturbing trend in health conditions and diseases has been reported
across the world as a result of climate change and altering atmospheric conditions.
For instance, a 3 degree Celsius rise in the temperature will put close to 30
million people exposed to the risk of Malaria globally. Studies suggest that
climate change could expose an additional 2 billion people to dengue
transmission by the 2080s. In Asia, the Balkans has been one the most adversely
affected. Central Asia is one of the worst affected regions in the world. The
Balkans have reported increase in heat-related deaths to about 1000 per million
and have become highly vulnerable to Dengue-transmitting mosquitoes. The
reemergence of malaria in Tajikistan, following its near eradication in 1950s,
is in all possibility a result of increase in mean temperatures. Since the
early 1990s, malaria has also reappeared in Uzbekistan, Turkmenistan, the
Kyrgyz Republic and Russia. Food and water-borne diseases such as cholera,
typhoid and dysentery have also been rising in Central Asia, aggravated by extreme
dry and wet situations.
By
2050, even with warming below 2 degrees, concentration of methane in Russia is
likely to grow by 20 to 30 percent. Methane is 34 times more powerful than
carbon dioxide at trapping heat. A sea level rise of 0.5 meters is affecting 1.8
million people by floods in Morocco. According to a 2015 report by the World
Health Organization, about 8 million people die every year in India due to air
pollution. India’s capital city, Delhi was reported by the WHO to be worse than
Beijing in air pollution, making it the world’s most polluted city.
Most
developed economies have put an end to fuel subsidies. Many developing
economies are also doing away with this subsidy which the World Bank calls ‘bad
economic policy, bad social policy and bad for the environment’. According to
the World Bank, globally, the richest 20 percent of households capture six
times more benefit from fossil fuel subsidies that the poorest 20 percent. This
money can instead be targeted to help the poor directly. According to the
International Energy Agency (IEA), globally, more than half a trillion dollars
is channeled towards subsidies for fossil fuels, dwarfing the $120 billion
invested in incentives for renewable. This puts the renewable energy sector in
a disadvantageous position and discourages further investments into the sector.
India, for instance, offers a very high subsidy of fossil fuels, but is in the
process of gradually cutting it down to bring down its fiscal deficit. The Modi
government recently announced a subsidy of Rs 63,000 crore on petroleum
products for the current financial year as against Rs 85,000 crore in the previous
financial year (India’s fiscal deficit is 4.1 percent of the GDP in 2015 which
is largely a result of energy imports). The petroleum subsidy would account for
3.5 percent of the government's total expenditure in the current financial year
as against 5.4 percent in the previous financial year. Though the developed
economies have gotten rid of fuel subsidies, the renewable sector has seen a
level-playing field only recently. For instance, from 1918 to 2009, fossil
fuels received $446.96 billion in cumulative subsidies in the United States, as
opposed to just $5.93 billion for renewables. The IEA estimates that the world needs to invest a trillion dollars a year to keep the average
temperature of the world's atmosphere from climbing by two degrees and doing
away with subsidies on fossil fuels will be the first step towards a
sustainable ecology. The benefits of such an investment would not be limited to
the climate – it is estimated that such an investment would result in $115
billion in fuel savings, for net benefit of $71
billion. Creating a
level-playing field for the conventional and renewable sources of energy would
be the next big challenge, given the historic advantage the fossil fuel
industry received.
Carbon
pricing is one of the simplest and ecologically quantifiable methods of approaching
sustainability. Worldwide, 27 billion tons of carbon dioxide is produced by
human activity annually. But large emitting nations and users of carbon
resources including the United States, China and Russia have been reluctant to
levy a nationwide carbon tax. A price on carbon creates incentives to invest in
renewable energy ad low-carbon growth. About 40 countries, including India,
have carbon markets or taxes. In India coal is used to power more than half of
the country’s electricity generation. In 2010, India introduced a nationwide
carbon tax of Rs 50 per metric ton on coal both produced and imported into
India. In 2014, the tax was increased to Rs 100 per metric ton. In the 2015-16 budget,
the NDA government increased the carbon tax further from Rs 100 to Rs 200 per
metric ton. Under the new global climate change agreement, there are pressures
on developing countries to do more to reduce their emissions. By one or the
other mechanism, the attempt expected is to put a price on the carbon content released
on burning fossil fuels such as petrol, diesel and coal. This pricing ensures
reduced use of the fuel and shifting industry and different economic sectors to
produce goods either more efficiently or shift to renewable energy by making
the latter more competitive. The awareness of carbon tax is growing. In June
2015, six large European oil and gas companies called for a tax for carbon
emissions. A carbon tax creates a simple economic model that naturally
encourages the use renewable energy. A carbon tax raises the price of fossil
fuels, with more taxes collected on fuels that generate more emissions. This
tax reduces demand for high-carbon emission fuels and increases demand for
renewable sources like solar, wind, nuclear and hydroelectric. To be effective,
the tax should also be applied to imported goods from countries that do not
assess a similar levy on the use of fossil fuels. Experiences from the United
States and European Union suggest that a carbon tax system is more effective in
emission cut than a cap-and-trade system. Carbon tax is one the best policy
measures to tackle the climate change issue and has repeatedly been raised at
almost all climate change negotiation summits.
Is
it possible to grow greener without necessarily growing slower? In this section
we will examine a few countries that have set an example that the much-needed
action on climate change does not have to come at the expense of economic
growth. With abundant natural resources and strong commitment to environmentalism,
Costa Rica is on the verge of becoming the first carbon neutral country in the
world. Though Costa Rica has been a drought-prone country with a small
population, it is largely powered by hydroelectric resources and small wind and
solar power plants. Close to 80 percent of the country’s energy requirements
are fulfilled by renewable energy resources. Moreover, Costa Rica pays
landowners $60-80 per hectare per year for forest protection and $200-300 per
hectare per year for forest restoration.
Germany
is another classic case in point. The country, as of May 2015, was producing
close to 74 percent of its electricity requirements through renewable sources. Impeccable
power grids, highly sophisticated wind and solar technology and efficient
weather forecasting systems have enabled Germany to achieve its challenging
target of reducing carbon emission by 80 percent. High renewable energy
capacity coupled with a new electricity price mechanism has the effect of
reducing output from conventional sources like coal and gas, and also causing
those other sources to export their power to neighboring countries instead of
trying to sell into the German market. For instance, when wind and solar plants
reach very high levels of generation on peak days, electricity market prices
decline in and sometimes even go to zero or negative value. Moreover, Germany
has a surplus coal capacity and the coal power plants have been designed for
flexible output. While this has increased the power tariff for consumers by 20
percent above global average, Germany continues to remain the strongest economy
in European Union.
China
uses coal to meet 67 percent of its energy needs –the share of coal is 30
percent in the global energy mix – so its share of pollutants other than carbon
dioxide is likely to be higher. But consumption of fossil fuels in China has
taken an interesting turn in the last couple of years. China’s economy grew by
7.4 percent in 2014 compared with the year earlier, but the amount of coal the
country burned for energy fell by 1.6 percent. Despite predictions that the
world’s economy grew by 3 percent last year, the amount of carbon dioxide
emitted by burning fossil fuels for energy was 32.3 billion tons—the same as in
2013. However, slowing the growth of CO2 emissions, in China and globally, will
not be enough to stop runaway climate change. It is imperative to move to
renewable resources of energy. China is among the world’s top polluters – it
accounts for 27 percent of the world’s total carbon dioxide emissions while the
share of US stands at 17 percent. In the agreement between the two countries,
China has agreed to make efforts to peak its carbon emissions by 2030, and also
conveyed that it intends to increase the share of renewables in its energy pie
to 20 percent, which are both positive outcomes. It is likely that there will
be pressure on India to do the same. In this context, global expectations from
US and China have suddenly risen after the two countries signed an agreement in
November 2014 to reduce greenhouse gas emissions and to work together to
overcome challenges towards reaching a global climate change agreement in Paris
in late 2015. However, the agreement does not make caps on carbon emissions
mandatory for China.
After
facing a food and fuel crisis in the 1990s, the Cuban government responded by
creating urban farms: agriculture went local, small scale and by necessity
organic. Food production became less oil-intensive, as every possible piece of
land was exploited. Though this model has only been partially successful, food
is still rationed in Cuba and the people continue to practice this economic
model.
River cleaning, e-
waste management and water conservation are some of the key initiatives that
have been undertaken in India by the government and non-government
organizations to mitigate climate risks. Prime Minister Narendra Modi launched
a series of campaigns, namely the clean India campaign (Swachha Bharat Abhiyan)
and constituted a separate Ganga river cleaning portfolio in the union cabinet
to clean one the largest and most polluted rivers in world. The growing number
of people joining the middle class as a result of economic growth is adding
thousands each year to the consumerist way of life. Urban, consumerist
societies add a lot more waste (both recyclable and non recyclable waste) in
the atmosphere which creates challenges for the climate. India’s financial
centre and the world’s most densely populated city Mumbai alone generates over
6000 tons of waste every day and the city municipal corporation has been
struggling to find open spaces to dispose this waste. Pune, a city with a
sizable middle class population, generates about 1400 metric tons of waste
every day; increasingly a logistical and ecological nightmare for the local
government. However, awareness of cleanliness, e-waste disposal and water
conservation is growing slowly but gradually in India, thanks to government
initiatives. Large-scale on-ground environmental campaigns are currently being
undertaken in urban centres like Pune, Delhi and Mumbai. Prime Minister’s
Swaccha Bharat Abhiyaan is increasingly attracting more hands of support to keep
the neighborhood clean and tidy. Extensive country-wide river cleaning
campaigns are being carried out to at least partially clean rivers before the
monsoon waves hit the Indian coast in 2015.
In
the last decade there has been a huge expansion in the energy sector in India
as it seeks to grow the economy. While 300 million people in the country are
still without electricity access and many more are living with poor quality
supply, the power sector has brought electricity to hundreds of millions of
people who were previously living without electricity supply. India’s
electricity consumption is projected to more than double by 2030 to 2000 TWh,
whereas the demand is projected to grow by over 30 percent by 2030. Coal is
playing an important role in India’s economic development, making it the third
largest consumer of coal and the fourth-largest energy–related carbon emitter. The
International Energy Agency in a report published in June 2015 titled Energy
and Climate Change – World Energy Outlook Special Report 2015 – reports that
India is on a ‘high-carbon development’ path. The report emphasizes that even a
rise of renewable energy in India would not easily spell the end of coal-fired
capacity which is likely to grow by 70 percent by 2030. A lot of depends upon
how rapidly and effectively India’s renewable energy policy, particularly the
Jawaharlal Nehru National Solar Mission rolls out. The average efficiency of
India’s existing coal-fired capacity is relatively low due to the use of poor
quality coal, as compared to high-quality Indonesian and Australian coal. The
absence of control technology in existing power plants is polluting the
atmosphere, mainly due to emission of sulphur dioxide, particles and nitrogen
oxides. A push towards higher efficiency coal would mean importing expensive
coal and developing newer technologies to curb emissions. The second big challenge
before India’s sustainable approach is its crude oil-import dependent growth
story. India is highly dependent on energy and resource imports: 75 percent of
its oil, 20 percent of its gas, and 10 percent of its coal are imported from
resource-rich nations. Total energy imports amount to US$173 billion,
accounting for 35 percent of its total imports. The IEA projects that India's
oil consumption in end-use sectors will grow by 1.4 million barrel per day
(mbpd) by 2022 and a further 1.6 mbpd to 2030. Net oil imports will more than
double by 2030 (to 6.2 mbpd) and the related import bill will rise to around
$270 billion. The projected growth in vehicle ownership will drive oil demand
growth, with average incomes in India reaching a level at which rapid increases
are expected in car ownership. India imported 189 million ton of crude oil at a
cost of $112 billion last financial year (2014-15). Prime Minister Narendra
Modi has set a target of reducing the country's energy import dependence by 10
percent from the existing 75 percent by 2022.
A
recent report by the World Bank and the Energy and Research Institute (TERI)
projects an increase in India’s carbon emission three times by 2030. With its
projected output between 4 billion to 5 billion tons of carbon dioxide each
year, India could be the second largest global emitter within the next decade.
IEA
and industry forecasts indicate that India will:
-
overtake China from 2020 to become the principal engine of growth in global energy demand, with Indian
demand growth out to 2035 (132 percent) being nearly double than that of China
(71 percent);
- double its coal consumption by 2035;
-
become the world's largest coal
importer by the early 2020s;
-
experience a 570 percent increase
in gas imports by 2035; and
-
experience a 370 percent increase
in nuclear power and a 540 percent
increase in renewable energy by 2035.
According
to the IEA, India’s net oil imports will more than double by 2030 and related
imports bill will rise to around $270 billion. While India’s per capita carbon
emission is relatively lower, the industries are the largest end users of
energy and therefore are the major emitters. Climate experts believe it is
unlikely that the carbon intensity of India’s industries will dramatically drop.
India has a robust plan of infrastructure development and building new cities
over next 20 years which would require massive electricity supply.
Despite domestic pressures, the new
government at the helm in India has undertaken a few initiatives to move
towards a sustainable future. Indian government has substantially increased the
excise duty on petrol and diesel, passing on only about one-third of the
benefit of declining prices to consumers. As a result, on petroleum products,
India has moved from a negative price to a positive price on carbon emissions.
According to calculations done by the World Bank, the effect of the recent
policy decisions has increased the carbon tax by nearly $60 per ton of CO2 in
the case of petrol and nearly $42 per ton in the case of diesel. This suggests
that there will be a net reduction of 11 million tons of CO2 emissions in less
than a year.
India
has jumped up to fifth place and ahead of Canada as a result of significant
policy, project and investment activity at both a national and state level to
boost investments into the renewable energy space. According to the Ministry of
Statistics and Pragramme Implementation data released in March 2015, the total
potential for renewable power generation in the country as on 31 March 2014 is
estimated at 147.61 GW. This includes wind power potential of 102.77 GW
(69.6%), SHP (small-hydro power) potential of 19.75 MW (13.38%), Biomass power
potential of 17.53 GW (11.88%) and 5 GW (3.39%) from bagasse-based cogeneration
in sugar mills. The untapped market potential
for overall renewable energy in India is 216.91 GW which shows huge growth
potential for renewable energy in India.
According
to the globally acceptable Renewable Purchase Obligation norms, one megawatt
hour of renewable energy mitigate close to one ton carbon dioxide. To meet its
commitment to cut 25 percent emission by 2020, India would need to achieve 90
GW renewable, hydro and nuclear energy capacity (approximately 25 percent in
the total energy mix) which is a very challenging target given the speed and
execution of projects in India.
India
has set a very ambitious 2022 energy target, and aims to quadruple renewable
capacity to 175 GW (100 GW from solar and 75 GW from wind and biomass). If
opened up, this is likely to create an immediate opportunity worth US$10.51
billion for the renewable market in India. What is working in favor of solar
energy is the fast-declining cost of power generation. The last few years have
seen a dramatic decline in solar power costs in India, from Rs. 20 per unit to
nearly Rs. 5.5 per unit. This has made the government perceive solar energy as
an economically viable choice for the country. The government envisages an
investment of around $100 billion in the sector over the next seven years. This
opens up the space for foreign investments, especially from China, Japan,
Germany and the US and encourages indigenous manufacturing of solar components.
The Economic Survey report released in February 2015 claimed that if the set
targets are met then India's renewable energy industry is likely to generate
business opportunities worth $160 billion in the next five years. Globally, the
renewable sector has generated large employment opportunities.
However, meeting the 2022 target will be
challenging. In particular, to meet India’s solar target would imply average
annual solar capacity additions of over 12 GW, a similar level has so far been
observed only in China. This would also mean mobilizing large-scale capital
investment, taking steps to ensure that projects are financially robust, land
availability and rapid regulatory approvals.
The
Indian wind energy sector has achieved a significant amount of maturity and is
home to some of the leading wind energy companies from around the world. India
is the world's fifth largest wind power generator. The Ministry of New and
Renewable Energy has set the target for Wind Power generation capacity by the
year 2022 at 60,000 MW. Though power generated through wind turbines is
offering affordable tariff to consumers, most of wind power generation in India
happens during the south west monsoon season and is highly weather dependent.
Also, large wind power plants are located away from the load centres which
increase the secondary costs.
The government of India has taken
several initiatives to promote renewable energy sector in the country. The
national power policy, 2006 introduced renewable
purchase obligation (RPO) that makes it obligatory for all
power distribution companies to procure a part of their electricity (between 5
to 10) from renewable sources either through direct purchase or purchase renewable energy certificates (REC)
in lieu. Under the REC scheme, power companies avail certificates from power
exchanges for unsold power and sell it to those distribution companies who fail
to meet RPO requirements. The policy also directs the state electricity boards
(SEBs) to sign purchase power agreements (PPAs) at preferential tariffs with
renewable project developers. In addition, the government provides tax and
subsidies to encourage investment into the sector.
However, the power regulatory bodies
in India- both at the centre and states- have been lax in enforcing RPO norms.
This not only hurt the renewable sector but dampened the demand for REC.
In June 2013, companies in renewable sector had accumulated over 2.1 million
REC worth Rs.12,000 crores ($2.2 billion). The biggest reason for this
non-compliance was the bad financial conditions of the state-owned power
utilities in India who have accumulated losses to the tune of Rs. 2.5 trillion
by March 2013. High cost of debt and lack of fresh investments are other
problems of the renewable sector. The solar sector within the renewable energy
space is worst hit as the cost of production is the highest. One unit of
electricity by solar powers costs Rs. 7-9 (although coming down) as compared to
Rs. 4.2-4.5 produced by wind power.
The
IEA projections strongly advocate use of fossil fuels to two-third (an increase
the renewable to one-third) in the total energy mix for a sustainable future. This,
according to IEA projections, could save 2 billion tons of CO2 emissions by 2035.
But this restriction on fossil fuels would not come easy. It would involve the
share of gas used in power generation rising from just over 20 percent to more
than 35 percent; coal with carbon capture and storage rising from almost zero
to just under 10 percent; renewable increasing from around 5 percent to just
over 20 percent; and nuclear power almost doubling from just under 10 percent.
For
every $1 of investment in cleaner technology that is avoided in the power
sector before 2020, an additional $4.30 would need to be spent after 2020 to
compensate for the increased emissions.
India,
like China, has to play a crucial role to achieve these targets. The average
Indian emits less than 25 percent carbon-dioxide (CO2) of what an average
Chinese does, and barely 8 percent when compared with the average American.
While India’s per capita emissions have doubled over this period, China’s have
tripled. Moreover, India’s figure for CO2 emitted per unit energy produced is
below global average, and nearly 20% below China’s. In spite of much superior
technology, US emits more CO2 per unit energy than India. But despite the
drastically low per capita emissions, India’s massive population means the
country stands third in the list of carbon emitters. The 12th
Five-Year Plan of the Indian Planning Commission estimates coal demand at 980
million tons, as opposed to 554 million tons for the 11th Plan. In a
recent interview to the Guardian, the permanent secretary at the coal ministry
said that India is looking to double the coal production by 2020 to reduce
reliance on imports. The Modi government has recently given environment
clearance to 41 new coal mining projects as a consequence of which a new mine
will be opened every month in India.
India
has, at several occasions, emphasized at an increasingly important role for
India to reduce carbon emissions. There are four key reasons for why India
should support cuts in carbon emissions – India has large coal deposits in the
country’s dense forests which are difficult to exploit; it is heavily dependent
on agriculture (over 60 percent of India’s workforce is dependent on
agriculture); it is heavily monsoon dependent (which is extremely sensitive to
climatic changes) and it has a long coastline (over 7,500 kilometer) which mean
sea rise is adversely affecting.
India
has set an ambitious target a producing 15 of percent its electricity from
renewable sources by 2020 by creating an installed capacity of 80 GW. It is
currently producing less than 10 percent. The states are trending towards the
renewable resources and exploring new technologies to minimize costs. The
central government’s decision to reintroduce the generation based incentives
(which was discontinued in April 2012) has revived interest in the renewable energy
sector.
Experts
recognize the importance of renewable energy but expect them to remain at about
eight to nine percent of the total energy mix for at least the next years due
to a number of challenges. In India, 30 percent of power is list in transmission
and distribution, a quarter of which is lost in electricity theft. One way in
which the government was dealing with losses was to bring in private sector
management.
According
to a recent report by the Council for Energy, Environment and Water, one of the
major concerns for the Indian renewable energy sector is project financing.
Even small project developers have struggled to raise capital in the last two
years. While there has been some improvement, the Indian banks still perceive
significant risks in the renewable energy sector and are hesitant to make
substantial investments in the sector. On the technology front, international
and bilateral leading institutions have been less risk averse and have
supported several projects, especially in solar energy. Land acquisition and
conversion of land for solar project development has also been a challenge.
Locating project sites with high solar irradiance close to solar grids is
another challenge. This is complicated further by lack of skilled manpower,
power shortages, transmission problems and poor grid infrastructure. At the
macro scale, high cost of installation and generation are the major challenges.
Lack of domestic technology advancements requires for immediate research and
development work in the renewable energy space. As renewable energy systems are
highly weather and climate dependent, balanced wind current patterns, solar
irradiance and rainfall patterns are critical for sustainable growth of the
renewable energy sector.
India’s relationship with sustainable solutions is
inseparable. Indian culture and sustainable ecology are deeply intertwined. The
Indus Valley is one of the world’s earliest urban civilizations. To the
surprise of many historians, the key feature of the largest cities in the Indus
valley - Kalibangan, Mohen-Jo-Daro, Harappa, Dholavira and Lothal – was
sanitation, sewerage pipes and waste water technologies. This history dates
back to 3000 BC. Archeologists have found extensive tools that the civilization
used for ritual bathing, cleanliness and personal hygiene.
Since the beginning of time, the people of this ancient
tradition worshipped nature or celestial objects, including the Sun, the Moon,
the planets, the rivers, the mountains, the wind, the animals, the trees and so
forth. It is the only culture in the world where this historic religious and
cultural practice is still vibrantly alive. Hinduism is popularly known as a
religion which worships over 300 million gods and goddesses. Each clan has its
own god, called the Kul Devata or Kul Devi (which literally means the clan god
or clan goddess) which is strongly relevant even to modern Indians during
marriage, birth and death rituals. The worship of each natural resource has a
scientific basis to it. For instance, there is a popular practice in Yoga of
saluting the Sun (also called the Surya Namaskar) which is oriented towards
activating the solar plexus of the solar heat in the human body. There are many
elaborate fire rituals in Hinduism which are aimed at creating a field of
strong, positive energy field in large habitations. Many of India’s scientific
numerological and mathematical inventions, including the famous mathematician
Srinivasa Ramanujan’s theorems, are ascribed to inner spiritual realizations.
Indian agricultural practices are a proof of its
sustainable approach to solutions. India has the oldest, uninterrupted history
of agricultural practices in the world. Though agricultural productivity,
efficiency and yield have become a cause of concern in the last four decades in
India, historically, Indians have been known to have a very deep-rooted
understanding of organic farming, fertilizers, soil fertility, monsoons and
choice of seasonal crops. There are still a few regions in India that continue
to produce over four crops a year without affecting the soil fertility and use
of organic manures.
