COP28: India needs to stand for affordable access to energy in Global South

At COP28, we must highlight that the key goal is to reduce emissions.

In the COP28 summit, apart from the main agenda items on Global Stocktake, operationalisation of Loss and Damage Fund etc, a fierce debate is certain on the need of accelerating the energy transition. A recent report published by UNEP ‘Emissions Gap Report 2023: Broken Record’ has already set the stage for this debate with projections that only  implementing the unconditional Nationally Determined Contributions (NDCs) announced so far would see the average surface temperature rise to 2.9°C above pre-industrial levels this century. Fully implementing conditional NDCs would lower this to 2.5°C. This is way beyond the higher limit of 2^o C set in the Paris Agreement. There would be intense pressure for phase out of coal, and tripling the renewable capacity by 2030.

India’s Track Record

India need not be at all defensive on its continued use of coal, and rather forcefully take forward its leadership role for projecting the perspective of Global South, so very well designed and articulated in its G20 Presidency. Several independent assessments have concluded that India is one of the, perhaps only, major economies whose climate actions are compliant with the Paris goal of 1.5°C. The Traffic Light Assessment Report commissioned by Climate Vulnerable Forum (published in October 2023) has found that, according to Fair Share pathways, India, Indonesia, UK and Switzerland alone are major economies currently on track to meet Paris Agreement Goals based on 2030 pledges. Further, the G7 countries with 12.7 percent global population have 11.7 tonnes per capita emissions, whereas CVF( group of 58 most climate vulnerable countries of Africa, Asia, Caribbean, Latin America and Pacific) have 17.6 percent global population but emit only 2.2 tonnes per capita.

As far as energy transition is concerned, India’s Presidency of G20 started with the Chair’s priority issues of addressing the technology gaps, universal access to energy and just transition, making available low cost finance for deploying new energy technologies, fuels for future (Green Hydrogen and Biofuels), energy security and diversified supply chains, and accelerating energy efficiency.

These found full endorsement of G20 energy delegates. Key outcomes in the area of energy transition as agreed in the G20 Summit Declaration include priority to universal access to pursue the target of tripling RE capacity by 2030, facilitating low cost finance for developing countries, working for harmonised standards for zero and low emission hydrogen, and voluntary action for doubling the rate of enhancing energy efficiency.

India’s priorities as stated at the G20 Virtual Leaders’ Summit held on November 22,include green credit for environmental protection, launching the Global Biofuels Alliance(GBA),  Mission LiFE, i.e. Lifestyle for Environment, which is a pro-planet approach; increasing renewable energy(RE) generation three times from present levels by 2030; commitment towards clean hydrogen; and recognition of  the need to take climate finance from billions to trillions.

Climate Finance Flows

At COP28, we must highlight that the key goal is to reduce emissions in accordance with the principle of ‘common but differentiated responsibilities’ rather than harping on a particular fuel as every country has its own natural resource endowment which would be the basis of its climate action pathway.

Developing countries have a very legitimate aspiration of development. For example, Sustainable development Goal no. 7 aims not only at universal access to modern energy but such access also has to be affordable, reliable and sustainable. We must highlight the economic and social disruptions faced by several countries, including three of our neighbouring countries, recently in their energy supply because they relied heavily on imported energy products which have real risk of severe price volatility and the risk of supply disruptions on account of geo-political events. That is why, India has taken leadership in promotion of local resources like solar and biofuels through ISA and GBA, for sustainability of energy supply.

‘Reliable’ energy supply requires meeting load all the times of a day and throughout the year.  Renewable Energy (RE) only cannot ensure this unless there is adequate energy storage capacity and power grids are built to connect RE rich areas with load centres. We may have seen a significant decline in the cost of electricity generated from solar photovoltaic cells or wind, but there are significant additional costs (impacting affordability) involved in storage systems and new transmission grids. And hence the critical importance of making available low cost finance to developing countries which don’t have resources, to divert from the pressing needs of meeting SDGs. These nations are in no position either to give huge subsidies to their citizens to expedite the energy transition.

Instead of enhancing these financial flows to the developing countries, a number of developed countries are giving huge incentives (for example the US Inflation Reduction Act) for their domestic energy industry. This will reverse the direction of flow of capital investment in new energy technologies, to developed countries instead of moving towards developing ones. And this will also make the phase down of coal or tripling the RE capacity more and more difficult.

Alok Kumar is former Chair of G20 Energy Transitions Working Group and former Union Power Secretary. Views are personal, and do not represent the stance of this publication.