Each country must navigate its unique circumstances while contributing to a broader global goal. Success will depend on a pragmatic, balanced approach that leverages both traditional and renewable energy sources, alongside innovations in climate technology and policy frameworks.
By Anil Trigunayat
Recent estimates reveal that emerging economies must commit an annual expenditure of US$2.2-2.8 billion on clean energy to kickstart their journey towards a sustainable energy transition and low-carbon economic growth.
Such a significant investment reflects the monumental task facing the developing world and raises the question: Where will global emerging markets stand in 50 years? Will they be struggling to sustain growing economies while pursuing decarbonisation, or thriving as key actors in the global energy transition? And whether they will have access to clean technologies and green finance.
Consider India: its energy demand is skyrocketing, and with a booming population and rapid industrial growth, the country requires a reliable energy supply to fuel development and ensure domestic stability and security. As of now, this supply is largely made up of coal and oil, with India positioned as the third-largest global importer of crude oil.
International Energy Agency (IEA) research has further confirmed this reliance on traditional resources, as more than 80% of India’s energy needs are met by three fuels: coal and oil, with solid biomass a distant third.
In the context of the energy transition, dependence on oil and coal is untenable. Coal is considered the ‘dirtiest’ fossil fuel, with few effective and affordable pathways to decarbonisation, necessitating its replacement.
Oil is also a heavy-carbon emitter and despite progress in the decarbonisation of its production and transportation, it cannot remain the dominant resource at the heart of India’s energy mix if the country is to make real progress on climate and sustainability goals. As such, India, like many other emerging markets, is looking to transform its energy system and rapidly increase the use of low-carbon and renewable solutions, all while providing a stable and affordable energy supply for its citizens.
This is a significant challenge, but the solution lies in adopting a pragmatic approach to the energy transition and striking a balance between the reliable resources that can support growth and development, and the renewable solutions that can accelerate the journey to net zero. After all, while India’s move away from oil and coal is a necessity, a complete departure from all fossil fuels is unrealistic, unachievable, and could cause domestic and economic instability that jeopardises the long-term success of the energy transition.
On the renewable front, India has recognised the critical importance of expanding capacity and investing in leading renewable energy solutions, including wind, solar and hydro. Facilitated by supportive and targeted policies from the Indian government, and benefiting from a less developed industrial base, the country has rapidly and vigorously advanced green energy development. India had jumped from less than 20GW of solar power in 2010 to a staggering 96GW of solar, wind, biomass, and small hydro by May 2021.
Including larger hydropower, renewable energy now makes up 37% of the nation’s power capacity. Recently India celebrated the unique achievement of 200GW of non-fossil fuel installed capacity.
PM Modi reminded that India had decided to build its future on the basis of renewables like Solar Power, Wind Power, Nuclear and Hydro Power, as there was dearth of reserves of oil-gas. The Prime Minister said India is the first G20 nation to achieve the climate commitments set in Paris, that too 9 years before the deadline. He outlined the nation’s goals to achieve the target of 500 GW of renewable energy by 2030 and said that the government has turned the green transition into a people’s movement.
Yet, for all the progress made in growing green energy capacity and consumption across India, the intermittency and transportation challenges that often plague such modern resources suggest that our ever-increasing energy needs cannot be met with a renewables-only energy mix.
Instead, to reduce energy poverty and drive the economic development that is needed to sustain India’s ascension, decision-makers will need to use every tool at their disposal and enable pragmatic policymaking and private sector enterprise which can maximise the qualities of existing resources, while expanding the reach and impact of new solutions.
Prime Minister Narendra Modi has echoed this very message, celebrating the recent announcement that the country had achieved a new record for natural gas production in 2023-2024. “Our self-reliance in the field of energy is very important in achieving the resolve of a developed India. This record is proof of our commitment in this direction,” he stated.
While renewable energy growth is critical, a singular focus on it overlooks the need for energy diversity in the short to medium term. Natural gas has emerged as a crucial transitional fuel, offering a low-carbon alternative to coal and helping maintain the reliability of energy supply as renewables expand. Moreover, climate technologies that decarbonise existing resources are transforming energy production and transportation, bridging the gap between the traditional and the new.
However, this transition is not just about energy resources. It is equally about innovation, inclusivity, and international collaboration. The focus must extend beyond any single technology or fuel and instead embrace a diverse array of solutions, from expanding renewable capacity to enhancing efficiency through digitalisation to innovations in synthetic fuels, and hydrogen development. These efforts must be underpinned by strategic partnerships that connect the capabilities and needs of different regions.
Crucially, to make significant progress on decarbonisation, global cooperation is essential. Emerging markets, such as India, cannot bear the full burden of transition alone. Cross-border collaboration will be instrumental in mobilising the resources, expertise, and financing required to fast-track energy transitions while ensuring that no country is left behind in the global race toward net zero.
Collaborative efforts between the Global North and South will be critical to unlocking the potential of climate technology, driving investment in green infrastructure, and ensuring that the energy transition is inclusive. India and UAE are comprehensive strategic partners .
Platforms like ADIPEC, the global energy event that takes place in Abu Dhabi, will play a vital role in advancing these collaborations. This year’s ADIPEC is broadening its focus, highlighting the importance of equitable energy access, particularly for the Global South.
By bringing together industry leaders, governments, and innovators from Asia, Africa, and Latin America, ADIPEC is providing a much-needed stage to address the specific challenges faced by emerging economies and build the financial and regulatory frameworks that can help bridge the gap between the Global North and South.
The value of cross-border and sector dialogue at events like ADIPEC cannot be underestimated. They offer a unique opportunity for countries to exchange ideas, share technological innovations, and create pathways for investment in cutting-edge climate solutions.
Achieving a global consensus on the energy transition will not be easy. While progress has been made, such as through the UAE Consensus at COP28, and going forward to COP 29 in Baku requires continued commitment from all stakeholders.
Emerging markets have much to offer in this transition, as shown by India’s growing success in balancing energy security with environmental responsibility. But sustained progress will require not only national efforts but also a robust international framework for cooperation.
The energy transition is not a one-size-fits-all process. Each country must navigate its unique circumstances while contributing to a broader global goal. Success will depend on a pragmatic, balanced approach that leverages both traditional and renewable energy sources, alongside innovations in climate technology and policy frameworks.
The decisions made today will not only shape the energy landscape of tomorrow but also determine whether the global energy transition is both inclusive and just.
(The author is a former Ambassador and IFS officer-retired; Views are personal)
Source: Economic Times Government
