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India’s development needs cannot be ignored; as it has to grow and diversify to clean energy sources, this would mean higher costs and a longer transition time.

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The meeting took place at a time of transition in American politics. While international climate negotiations remain deadlocked, nature is moving inexorably towards a hotter planet.

The fight against global warming requires reducing emissions. Developed countries have adopted the year 2050, China 2060 and India 2070 as the deadline for energy transition to net zero emissions by 2070.

There are two developments that will shorten the transition time. The European Union's (EU) Carbon Border Adjustment Mechanism (CBAM), which will be effective from 2026, will result in punitive tariffs on imports if the carbon tax in exporting countries is not raised to EU levels.

The second is the increasing pressure to accept the "peak" of emissions. The G-7 summit in Hiroshima last year and in Puglia in June 2024 called on "major economies" to adopt a peak in emissions by 2025. This was a reference to China and India, as the EU and the United States had already adopted a "peak".

Global Emission Reduction Targets

Commitments of developed countries: The goal of developed countries is to achieve net zero emissions by 2050.

Commitments by China and India: China has committed to net zero emissions by 2060 and India by 2070.

Developments shortening the timeline: However, two developments are shortening the transition timeline, namely the EU's Carbon Boundary Adjustment Mechanism (CBAM) and the push to adopt an emissions 'peak'.

Pressure to reach emissions cap: The G-7 summit in Hiroshima and Puglia in 2024 called on major economies, including China and India, to adopt an emissions peak by 2025, with the EU and US already committed.

What is Peaking?

A carbon peak is the point at which carbon dioxide emissions stop increasing, reach a peak, and then begin to decline. It means decoupling carbon emissions from economic growth, which is key to reducing greenhouse gas emissions and achieving carbon neutrality.

Challenges for India’s Energy Transition

Development vs. emissions targets: India faces a dual challenge: meeting growing energy demand while reducing emissions.

India's electricity consumption is a third of the global average and, unlike developed countries, it needs to diversify its energy sources while growing its economy.

Transition Time and Technology Constraints: A shorter timeline for peak emissions means India has to rely on existing technologies.

Emerging technologies such as small modular reactors and hydrogen may take more than a decade to become commercially viable.

Need for rapid electricity generation: To sustain future growth, India needs to rapidly increase electricity generation before emissions are curbed.

Countries like China have already imposed sanctions on 200 GW of new coal-fired power plants that India needs to power.

Nuclear power and challenges

Comparing energy sources: Renewable energy and nuclear energy are emission-free options, but nuclear energy may be a more cost-effective and space-efficient solution.

Cost: The cost of renewable energy (₹4.95 to 7.5 per unit) is higher than the cost of nuclear energy (₹3.80 per unit).

Land: Renewable energy requires more land (412,033 km2) compared to nuclear energy (183,565 km2).

Tech giants choose nuclear power: That's why Microsoft and other tech giants are turning to nuclear power, the only source of clean, solid energy at scale.

Financial challenges in the energy transition: At COP29, developed countries pledged $300 billion annually by 2035, far short of the $1.3 trillion requested by developing countries. A large part of these funds will be non-concessional loans, which many developing countries cannot afford.

Conclusion

India needs to accelerate its energy transition to ensure its future growth while balancing the need to reduce emissions. With global pressure mounting, the country must act decisively to claim its share of the remaining carbon space.

Source:

THE HINDU