IMGXYZ1175IMGZYXIndia’s National Action Plan on Climate Change reflects the recognition that its economic growth will hit a dead-end if it does not embrace sustainable growth as a goal, asserted Shyam Saran, the Prime Minister’s Special Envoy for Climate Change. In an engaging presentation moderated by William Chandler, Saran outlined India’s strategies for tackling the challenge of climate change while simultaneously promoting economic growth and poverty reduction.
Sustainable Growth and Energy Security
For India, climate change and security concerns have come together in a way that draws increasing attention to energy policy. If India is to achieve an 8-10% growth rate, which is necessary to eradicate poverty rapidly, the country has to overcome its rising energy constraints. Imports currently meet 70% of India’s oil requirements and this figure is likely to increase to 90% by 2030. Such dependence on foreign oil is neither secure nor sustainable.
Because India is still in the process of building its energy, transport and industrial infrastructure, it has the opportunity to invest in energy efficient technologies that can help the country “leapfrog” over the carbon-intensive phase of development and move toward an advanced low-carbon economy.
With regards to the current state of energy infrastructure and emissions, Saran objected to India being labeled as a “large emitter.” He argued that even though India is often cited as the third largest emitter in the world, its 4 percent contribution to global carbon dioxide (CO2) emissions is dwarfed by United States and China, each of which account for about 20 percent. India’s current emissions amount to just 1.8 tons of CO2 per capita while the United States emits 20 tons per capita.
India’s low per-capita emissions are, in part, a result of the fact that there are 400 million Indians who do not have access to commercial electricity today. Despite India’s growing energy needs as more of those citizens gain access to electricity, the prime minister has committed to remaining below the per capita emissions rate of developed countries, reiterating the country’s commitment to sustainable growth.
National Action Plan
The need to address both climate change and energy security has given rise to a Prime Ministerial directive called the National Action Plan (NAP) which identifies eight areas or “missions” for focused energy and climate policy interventions: solar energy, energy efficiency, sustainable habitat, water, Himalayan ecosystems, sustainable agriculture, strategic knowledge for climate change and a “Green India”. Each of the missions will proceed in what are known as Public, Private and People (PPP) partnerships, which bring together central and state governments, businesses, civil society and community organizations to create an effective and realistic strategy for the implementation of the eight missions.
- Solar Energy: India enjoys intense sunlight across the country during most of the year, making it a prime location for solar power. The potential for rapid expansion means that there is still room for significant cost reductions in solar energy. The government’s strategy is to scale up existing solar applications through supportive regulations and incentives. If the cost of solar power falls to the level of coal-fired power, market forces could help solar energy expand to reach the same scale as nuclear power—which is currently at 10,000 megawatts of capacity but could reach as high as 60,000 megawatts by 2030.
- Enhanced energy efficiency: Part of the impetus to conserve energy comes from the fact that Indians face some of the highest energy prices in the world – relative to median income, energy prices in India are a staggering 100 times greater than prices in the United States. India has therefore tried to decrease the energy requirements of its economic growth. Since 2004, the economy has grown by 9 percent but energy use has grown by just 4 percent and the ratio between the two is better than in the past. In one major initiative, the Indian government identified nine energy intensive sectors and set efficiency benchmarks for each sector, with an overall target of 20% greater efficiency by 2012. This target is enforced through mandatory energy audits, and the NAP plans to introduce trading of Energy Efficiency certificates to encourage higher standards.
India also launched an Energy Conservation Building Code (ECBC) in 2007 which encourages the design of 30% more energy efficient buildings. In an example of effective Indo-U.S. cooperation, USAID provided strong technical support in training Indian architects to use ECBC.
The Indian government has also undertaken efforts to increase energy efficiency at the level of individual consumers, including a major drive to popularize highly efficient compact fluorescent lamps (CFLs). The government hopes to increase sales of these bulbs by making them available for less than the market price, using the sale of carbon credits to fund this subsidy.
- Himalayan ecosystem: The NAP seeks to fill in gaps in knowledge about the ecology of the Himalayas by using India’s space capabilities for climate studies. This research is crucial for understanding and adapting to the retreat of Himalayan glaciers, which are the primary source of fresh water for much of the country.
- Sustainable agriculture: Several villages in South India have switched from high-input intensive agriculture—which uses large amounts of water, fertilizers and seeds—to a more diversified cropping pattern. If scaled up, this sustainable strategy could significantly lower greenhouse gas emissions from agriculture.
Successful India-U.S. Cooperation
As the world prepares to negotiate a successor to the Kyoto Protocol in Copenhagen this December, India’s main hope is that the new global regime will provide sufficient financial and technical support for mitigation and adaptation efforts in developing countries. India believes United States must be a key driver of this process not only because of its emissions-reduction responsibility but also because it is the chief source of technological innovation and creative entrepreneurship.
On the bilateral front, India and the U.S. have collaborated on many specific climate-related projects including the ‘Methane to Market’ partnership for the commercial utilization of coal-bed methane. India was also a partner in the U.S.-led Future Gen project to develop a zero-emission coal based thermal power plant. The U.S. was a leader in development of methane technology until low oil prices led to its neglect. India believes methanol can be used as a low-emission transportation fuel and is therefore ready to support the resumption of aggressive R&D on methane technology.
The positive experience of working together on energy and climate issues, including the Indo-U.S. Civil Nuclear Agreement, has enabled these two countries to plan a much more ambitious agenda for collaboration under President Obama’s Renewable Energy Initiative. While the Indian government is already taking significant domestic action, India needs the United States to lead the initiative to build a multilateral framework that is fair and equitable and helps India make the transition to a low-carbon economy.
Q&A
In the question and answer session, Saran addressed a number of international and multilateral issues, reiterating India’s willingness to engage in productive negotiations in Copenhagen as long as the U.S. takes a leadership role. He expressed hope that the negotiations might find a way to streamline and reform the Clean Development Mechanism (established under the Kyoto Protocol), which could be more effective if it were based on large-scale programs rather than specific projects.
Saran also stated his view that trade and competitiveness issues should be addressed in a separate sphere from climate issues, saying it would be “most unfortunate” if countries like the U.S. decided to place border adjustment taxes on goods produced under less stringent emissions regulations. Finally, Saran left the door open to future collaboration with China, Nepal, and Bhutan—particularly on climate issues affecting the Himalayan region—but he added that India must resolve many domestic challenges before focusing too heavily on reaching out to its neighbors.
Saran answered a range of audience questions relating to domestic energy issues as well, including practical questions relating to the implementation and monitoring of the National Action Plan. He said he was confident that the ambitious solar power initiative could be implemented effectively, beginning with property owned by the public sector, where as much as 50% of available roof space may someday be used for solar panels. Yet many details of the NAP missions are still in the works; at present, the Prime Minister’s office is holding a series of brainstorming sessions to seek input on the NAP from businesses, industry leaders, NGOs, academics, and science and technology experts.
A trading scheme for Energy Efficiency Certificates is also in the development stage. The government is looking for a way to incentivize efficiency without ignoring the fact that some plants and factories already have much greater energy efficiency than others. After ironing out these details, monitoring the progress of all these initiatives will pose the next big hurtle. For help with this, the Indian government plans to draw on local and regional networks, which has been a successful strategy in past monitoring efforts.
Finally, several questions addressed India’s future energy prospects, ranging from conventional fossil fuels to nuclear energy and renewables. Saran explained that India does not believe carbon capture and sequestration is an economically viable solution; instead, India hopes to continue collaborating with the U.S. on other technology to reduce coal emissions, such super-critical power plants. Cleaner coal is especially important, he said, because at least 50% of the country’s electricity needs will still be met by coal in the coming decades. Similarly, India will continue to rely heavily on petroleum in the next few decades, particularly because biofuels are an unlikely and unpopular substitute in a country with many people on the brink of starvation.
But even as fossil fuels continue to play an important role, nuclear power will provide an increasing share of India’s energy. Saran, as a key negotiator in the U.S.-India civil nuclear deal, expressed his hope for a rapid expansion of nuclear power. With the door opened for nuclear energy commerce, India hopes to reach 60,000 megawatts by 2030 and perhaps as much as 250,000 megawatts by 2050. On nuclear energy as well as on other low-carbon energy sources, Saran concluded, India looks forward to working with the U.S. to find solutions that benefit both countries.
