Climate Conference COP29 – Outcomes and Implications

The recent climate conference COP29 held in Azerbaijan has brought into light the urgent challenges in the fight against global warming. As international negotiations stall, the world continues to heat up. Major economies have set different timelines for achieving net zero emissions. Developed nations aim for 2050, while China and India target 2060 and 2070, respectively. However, pressure is mounting for these countries to peak their emissions sooner, particularly in light of commitments made at the G-7 Summit.

Emission Targets and Global Pressure

Countries have accepted various deadlines for transitioning to net zero emissions. The European Union’s Carbon Border Adjustment Mechanism will impose tariffs on imports unless exporting countries raise their carbon taxes. The G-7’s call for major economies to peak emissions by 2025 places additional pressure on India and China. The incoming U.S. administration may disrupt international agreements, yet the need for action remains critical.

India’s Energy Needs and Development

India faces a dual challenge. It must grow economically while transitioning to cleaner energy. Currently, India’s electricity consumption is lower than the global average. The country requires substantial electricity to replace fossil fuels. However, the timeline for achieving net zero emissions may not be feasible without immediate action.

The Concept of Emission Peaking

Emission peaking refers to the point where emissions plateau before declining towards net zero. China has committed to peaking by 2030. India must not remain an outlier and may have a decade to cap its emissions. A compressed transition schedule necessitates reliance on existing technologies.

Electricity Demand Projections

A study by the Vivekananda International Foundation estimates that India’s electricity demand will reach 21,000 Terawatt hours by 2070. In comparison, the International Energy Agency predicts a demand of 3,400 Terawatt hours by 2040. This disparity raises concerns about energy deficits and sustainable growth.

Energy Transition Choices – Renewables vs Nuclear

India’s energy transition involves choosing between renewables and nuclear power. Current renewable costs do not fully account for storage and transmission. A report indicates that nuclear power is cheaper and requires less land than renewables. Nuclear power currently contributes only 3% to India’s energy mix, necessitating government support for expansion.

Financing the Energy Transition

At COP29, developed nations pledged $300 billion annually for climate finance. This is lower than the $1.3 trillion requested by developing countries. Many nations struggle to absorb loans, making it critical for multilateral banks to revise their statutes. Public awareness of potential tariff hikes is essential for securing investment.

The Role of Carbon Trading

COP29 established rules for carbon trading, allowing wealthier countries to purchase carbon entitlements from poorer nations. This raises concerns about equity in the global carbon budget. If India cannot diversify to cleaner energy by the peaking year, it risks needing carbon for continued growth.

Future Energy Landscape

The energy transition is a contest for limited carbon space. Major economies have already claimed portions of this space. India must establish its claim by enhancing its energy generation capacity to ensure future growth.

Questions for UPSC:

1. Examine the implications of the European Union’s Carbon Border Adjustment Mechanism for developing countries.
2. Discuss in the light of India’s energy transition, the challenges of balancing economic growth with environmental sustainability.
3. Critically discuss the role of nuclear power in achieving net zero emissions in India.
4. With suitable examples, analyse the impact of international climate finance commitments on developing nations’ energy policies.

Answer Hints:

1. Examine the implications of the European Union’s Carbon Border Adjustment Mechanism for developing countries.

1. CBAM will impose tariffs on imports from countries with lower carbon taxes, affecting trade competitiveness.
2. Developing countries may face economic strain as they adjust their carbon pricing to meet EU standards.
3. It could incentivize cleaner production methods but may also lead to increased costs for consumers.
4. Countries with limited resources may struggle to implement necessary changes, risking economic growth.
5. Potential retaliation from affected countries could escalate trade tensions and impact global markets.

2. Discuss in the light of India’s energy transition, the challenges of balancing economic growth with environmental sustainability.

1. India requires substantial energy to fuel economic growth while transitioning to cleaner sources.
2. Current electricity consumption is low compared to global standards, necessitating increased generation capacity.
3. Environmental regulations may hinder rapid industrial growth, creating a tension between development and sustainability.
4. Investment in renewable energy is essential but requires time and resources, complicating immediate growth needs.
5. Public support and political consensus are crucial for implementing sustainable practices without stifling growth.

3. Critically discuss the role of nuclear power in achieving net zero emissions in India.

1. Nuclear power is emission-free, providing a stable energy source crucial for meeting growing demands.
2. Currently, it contributes only 3% to India’s energy mix, indicating a need for expansion.
3. Nuclear energy is cost-effective compared to renewables when accounting for storage and transmission costs.
4. Government support and public-private partnerships are essential for scaling nuclear power infrastructure.
5. Perception of nuclear power as a green energy source is vital for attracting investment and public acceptance.

4. With suitable examples, analyse the impact of international climate finance commitments on developing nations’ energy policies.

1. Developed nations pledged $300 billion annually, far less than the $1.3 trillion requested by developing countries.
2. Insufficient funding limits the ability of developing nations to invest in clean energy technologies.
3. Countries like India may struggle to absorb loans without tariff increases, affecting energy affordability.
4. Examples like the Green Climate Fund illustrate challenges in accessing promised financial support for projects.
5. Climate finance commitments can influence national policies, but lack of adequate funding may lead to reliance on fossil fuels.