National Council of Applied Economic Research
Opinion: Souryabrata Mohapatra.
A more equitable and sustainable strategy is needed – one that recognises the interconnected nature of climate, development, and consumption.
India, the world’s third-largest emitter of greenhouse gases, finds itself at the crossroads of development and environmental sustainability. The global approach to climate change, heavily focused on reducing carbon emissions through renewable energy adoption, overlooks India’s unique socio-economic and geographical challenges. This one-size-fits-all strategy is fundamentally flawed and could undermine the effectiveness of India’s climate efforts, as argued in the Economic Survey 2023-24.
The global strategy to combat climate change revolves around climate adaptation and mitigation, with an emphasis on renewable energy, energy efficiency, and cutting methane emissions. While these goals are attainable for developed countries, they are far more challenging for India. The country’s population exceeds 1.4 billion, and the demand for energy to fuel its development is immense. Despite this, India’s per capita emissions remain at around 2.8 tons of CO2 equivalent per year, compared to 8 tons in the EU and 16 tons in the US.
Renewable energy sources such as solar and wind are often seen as the ultimate solution to climate change. However, the transition to renewables is not without significant challenges. For instance, the production of solar panels and wind turbines requires substantial amounts of rare earth metals like lithium, cobalt, and nickel. These materials are primarily extracted from countries with poor labor and environmental standards. The extraction process is energy-intensive and environmentally destructive, leading to a paradox where the pursuit of clean energy contributes to environmental degradation.
Moreover, renewable energy sources are intermittent. Solar and wind power generation depends on weather conditions, necessitating substantial storage capacities to ensure a stable power supply. This storage requirement further exacerbates the environmental impact, as battery production involves additional mining and resource extraction.
India faces a unique set of challenges in its quest to reduce carbon emissions. The country’s heavy reliance on coal for industrial processes, power generation, and transportation makes transitioning to cleaner energy sources particularly difficult. Approximately 70% of India’s electricity comes from coal, highlighting the scale of the challenge.
The financial burden of this transition is another major hurdle. Developing countries like India require approximately $6 trillion by 2030 to meet their climate targets. However, only $100 billion was pledged by developed nations till 2020, with an actual provision of just $83.3 billion. This financing gap makes it nearly impossible for India to make the necessary investments in clean energy infrastructure and technology.
A critical flaw in the current climate strategy is its failure to address overconsumption in developed countries. High-income nations are responsible for the majority of global emissions, with the top 10% of emitters averaging 22 tons of CO2 per year, over 200 times the emissions of the bottom 10%. Despite this, the focus remains on technological solutions rather than addressing the root cause of the problem: excessive consumption.
For instance, the average American consumes 12,700 kWh of electricity annually, compared to just 185 kWh in Africa. This disparity underscores the need for a more holistic approach to climate action that includes lifestyle changes and reduced consumption in developed countries, alongside technological advancements.
India must advocate for a climate strategy that reflects its developmental needs and capabilities. This involves investing in clean energy technologies that are suited to its unique context, such as small-scale solar and wind projects, improving energy efficiency in industries, and promoting sustainable agricultural practices. Additionally, India should leverage its position as a leader in the Global South to push for more equitable climate policies that hold developed nations accountable for their historical emissions and current consumption patterns.
To truly address the climate crisis, the global community must adopt a more nuanced and equitable approach. This includes recognising the historical emissions of developed countries and providing adequate financial and technological support to developing nations. It also means shifting the focus from merely substituting fossil fuels with renewables to promoting sustainable consumption and lifestyle changes.
The current global approach to climate change is fundamentally flawed and insufficient to address the unique challenges faced by India. A more equitable and sustainable strategy is needed – one that recognises the interconnected nature of climate, development, and consumption and provides the necessary support for all nations to achieve their climate goals. India’s climate strategy must be rethought to ensure that it is not only effective but also just and inclusive, allowing the country to continue its development while contributing to global climate efforts.
Souryabrata Mohapatra is an associate fellow at NCAER in New Delhi.