The second edition of the India Energy Week, which kicked off on Tuesday, is bringing together 17 energy ministers from oil producing countries as well as OPEC functionaries and executives from oil and gas companies. Besides the volatile cost of crude and gas in a world torn by two wars, the Goa jamboree will also have to grapple with the decisions agreed at the recent COP28 climate summit in Dubai. Sustainable energy received a major boost when, after much haggling, the UN summit adopted a resolution to ‘transition away from fossil fuels’ for the first time. While phasing out oil and coal is key for reversing global warning, the issue has become a flashpoint between the rich and the developing countries.
India has pointed out that though it is all very well to dump fossil fuels and opt for greener options like solar and wind, who is going to pay for the transition? The rich nations, who have done their bit in dirtying the environment during and after the Industrial Revolution, can now afford to preach. But for those like India and Africa, who have arrived late and have large assets of fossil fuels, the Western-dictated transition looks unfair. Despite the brouhaha, India has committed itself to green energy goals—converting 30 percent of its passenger car fleet to electric vehicles by 2030 and targeting net zero emission by 2070.
The stamp of sustainable energy can also be seen in the recent interim budget. It has doubled the allocation for solar energy to `10,000 crore, and provisioned for rooftop ‘solarisation’ to give one crore households free electricity up to 300 units every month. It is easier said than done, as the logistics of accessing subsidies and fitting out millions of rooftops could hobble the scheme. While renewable energy growth has been impressive—increasing from about 10 percent in 2010 to over 20 percent by 2022—75 percent of our power generation continues to be coal-based. There are new coal-fired plants adding 27 GW in the pipeline and no plans to decommission any by 2030. It is true the transition to renewables is painful and costly. But India, a leader of the developing world, must lead by example. Slowing global warming by phasing out coal to reach a 50:50 mix of renewable and fossil-based energy by 2030 needs to be made an immediate goal.