India Faces Criticism Over Energy Policy and Coal Usage
Critics are increasingly pointing fingers at India, accusing the country of not aligning its energy policy with global standards and contributing to climate change. However, these critics fail to acknowledge the challenges and human costs associated with transitioning to a carbon-free economy. Instead, they demand that India adhere to standards they themselves would never follow.
India recognizes the environmental impact of burning coal but also understands the need for power to lift millions of its citizens out of poverty. Approximately 75 million people in India live on less than $2 per day, and access to power is crucial for improving their quality of life. Power is also essential for addressing issues like malnutrition, healthcare, education, and increasing industrial and agricultural productivity. Currently, coal is the primary source of electricity generation in India, accounting for 75% of the country’s power. While India is investing in renewable energy sources, such as wind and solar power, these alternatives are still in the developing stage and cannot meet the country’s growing energy demand.
India possesses significant coal reserves, approximately 100 billion tonnes, and relies on coal for jobs and economic growth. The coal sector in India employs over four million people and contributes to various industries, including cement, brick, steel, fertilizers, and more. Around 800 districts in India are dependent on coal. Developed nations experienced similar situations in the past while driving their economic growth, but they are now pressuring India to abandon coal without acknowledging their own delayed transitions.
Germany, often touted as a green leader, will witness a surge in emissions due to increased coal usage. The country generates 27% of its electricity from coal and plans to shut down nuclear plants, increasing its reliance on coal and gas. Germany’s emissions will rise by 60 million tonnes annually as a result. This hypocrisy in criticizing India while overlooking their own actions is evident.
India is committed to decarbonizing its power sector and aims to build 450 gigawatts of renewable energy capacity by 2030. The country plans to rely on technologies like improved battery storage to make renewables more reliable. By 2030, India aims to have over 500 gigawatts of solar, wind, hydro, biomass, and nuclear plants, accounting for 64% of its generation capacity. While India will continue to rely on coal for electricity generation until 2030, it plans to phase out 2 gigawatts of coal-burning plants and eventually shut down 25 gigawatts of old plants.
Coal also plays a significant role in India’s tax revenues, contributing to both state and central governments. The coal industry pays various taxes, including royalty, Goods and Services Tax (GST), and other cess, accounting for 25% and 13% of state and central governments’ tax revenues, respectively. Additionally, electricity generated from coal contributes to energy tax revenues. Phasing out coal as targeted at the Conference of Parties (COP 26) in Glasgow would have severe implications for government tax revenues and the economy as a whole.
It is essential for the West to consider these factors and avoid hypocrisy when criticizing India. India acknowledges the need to phase out coal but must do it on its own terms, just like the Western nations.
