Tuesday, July 7, 2015

India's role and responsibility in Climate Change

Why sustainability?

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.

Climate change impacts on India

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.

Impact on the Health

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.


What can make the future sustainable?

Fossil fuels: Unsustainable for economy and ecology

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.

Mitigating carbon emission: A Direct Method

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.

Going green without slowing down economy

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.

India: Social challenges and initiatives

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.

India and the sustainability debate

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.

Renewable Energy for a sustainable future?

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.  

Renewable energy to mitigate carbon emissions

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 – the land and culture of sustainable solutions

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. 

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