Fighting Climate Change

As the global average temperature surpasses 1.5°C of warming, the urgency to combat climate change intensifies. Among other polluting fossil fuels such as oil and gas, coal is the dirtiest of them all. It is responsible for over 0.3°C of the 1°C increase in global average temperatures, making it the single largest source of global temperature increase.

The G7 countries – UK, US, Canada, France, Germany, Italy, and Japan have recently agreed on phasing out the unabated use of coal-fired power plants by 2030-2035. “Stamping an end date on the coal era is precisely the kind of leadership we need from the world’s wealthiest countries. This decision provides a beacon of hope for the rest of the world, showing the transition away from coal can happen much faster than many thought possible,” said Jennifer Layke, the global director of energy at World Resources Institute, in a statement.

But coal being a cheaper fossil fuel is a major source of energy for most developing economies across the world. Coal is mainly used for generating electricity, and can be replaced by either nuclear power or by natural gas, or by renewable energy. All are cleaner in terms of CO2 emissions when compared to coal, but they require upfront-investments that are high. Substituting coal with renewables is also not feasible at the moment due to its intermittent nature and need for energy storage.

For India, reliance on coal is deeply rooted in its energy infrastructure. As of 2021, coal accounted for 72% of the country’s electricity generation. Coal’s advantages are well known: it is abundant, cheap, easy to transport, and can be stored for long periods. These attributes make coal a reliable energy source, especially in a country like India with growing energy demands and economic aspirations. However, the environmental costs of coal are enormous. Coal combustion is one of the largest source of CO2 emissions, contributing significantly to global warming. Additionally, coal mining and burning lead to air and water pollution, affecting the health of many.

Substituting Coal: How Easy is it?

Substituting coal with cleaner energy sources is not straightforward. Coal mining and related industries provide employment to millions of people in India. Transitioning away from coal could lead to significant economic disruption, unless alternative employment opportunities are created.

While the cost of renewable energy has decreased significantly, the initial investment required for large-scale renewable energy projects and grid integration is substantial. For a developing country like India, balancing these costs with the need for economic growth is challenging.

Strategies to Reduce Coal Dependence

Although it seems difficult to transition away from coal, it is not impossible. India can look at repurposing existing coal plants, keeping them on standby to only use when there is a need for more energy. Retrofitting coal-fired power plants with carbon-capture utilization and storage systems can lead to continuous output with less carbon footprint. Meanwhile, less-efficient coal plants can be shut down before the end of their technical lifetimes, to cut down their emissions.

Coal public sector units (PSUs) in India are also taking active steps in offsetting their carbon emissions by implementing renewables in their operations. As of 26 may 2023, coal/ignite PSUs have installed solar power of about 1,656 MW and wind power of 51 MW. By 2030, a total of 5,570 MW of renewable energy is planned to be installed. 

Investing in carbon capture technology and renewables will not be enough. Developed economies have many obstacles to shift away from fossil fuels such as coal. Developed economies should focus on investing in R&D to find coal alternatives. Other than this the research can also look at limiting CO2 emissions from burning coal or the possibility of removing CO2 completely from the atmosphere. This will pave way for the developed economies to engage in finding meaningful approaches for developing economies’ transition away from coal.

It is equally important for developing economies to be receptive to hold open discussions with the developed countries in finding ways to lower CO2 emissions.

Lessons from Greece

Greece offers a compelling case study for India in transitioning away from coal. By 2028, Greece has plans to completely end all energy production from coal, which in 2022 stood at only 9%, brought down significantly from 25% in 2016. 

The Greek roadmap plans to invest billions of dollars into coal-dependent areas in the country to spur economic development, while helping absorb job losses in the coal sector. The plan leverages the strengths of local, national ,and international stakeholders in creating alternative energy hubs, replacing coal-dependent regions in the country such as Western Macedonia, which currently produces 80% of the country’s coal.

Not just in clean energy transition, there are more learnings that the two countries can leverage for a sustainable future. With this in mind, we are hosting the Horasis India Meeting between 15-16 September 2024 in Athens, Greece. The meeting will bring together senior business leaders from India, Greece, and the world to explore and foster cooperation and sustainable growth.

Photo Caption: A coal plant in Indonesia. Substituting coal with cleaner energy sources is not straightforward.