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The Global Climate Crisis and India: Perspectives, Solutions and the Way Ahead

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The Global Climate Crisis and India: Perspectives, Solutions and the Way Ahead THE GLOBAL CLIMATE CRISIS AND INDIA: PERSPECTIVES, SOLUTIONS AND THE WAY AHEAD A Follow Up Report To The Climate Leaders’ Dialogue Hosted By ReNew Power Private Limited On 22nd January, 2020 Hotel Cresta Sun | Davos, Switzerland On The Sidelines of World Economic Forum Annual Meeting 2020 Participants at ReNew Power’s Climate Leaders’ Dialogue with Vaishali and Sumant Sinha at the Hotel Cresta Sun, Davos A glimpse of delegates discussing the agenda Participants Michael Spence Sanjiv Sahai Gurdeep Singh Jerome Pecresse Economist, 2001 Nobel Secretary to the Chairman, NTPC CEO, GE Renewables Prize Winner Govt. of India, Ministry of Power Robert Johnson Kristen Panerali Vikram Gandhi Dipender Saluja President, Institute Head – Electricity Senior Lecturer, Managing for New Economic Industry, World Harvard Business Director, Capricorn Thinking Economic Forum School Investment Group Shiv Khemka John Defterios Justin Worland Meagan Fallone Vice Chairman, Emerging Markets Energy & Environment CEO, SUN Group Editor, CNN journalist, TIME Barefoot College Barbara Ann Bernard Chris Canavan Amit Nayyar Kevin Michael Esvelt Founder & CEO, Partner, Lion’s Head President, Paytm MIT Media Labs Wincrest Capital Global Partners Hosted By Vaishali Nigam Sinha Sumant Sinha Founding Chair, Chairman & Managing ReNew Foundation Director, ReNew Power FOREWORD Climate change, or what has now snowballed into an emergency, is perhaps the biggest modern day challenge that humanity faces today. As we continue to pump tonnes of carbon into the environment, with every passing day, the crisis is only getting aggravated. Nearly 5 years since the Paris Agreement, the climate movement is in fragile health, with several countries still not meeting their emission reduction targets or simply not showing as much intent as required in the form of policies and programmes. The shocking withdrawal of USA has jeopardized any tangible future progress and the credibility of the Paris Agreement is under threat. It is disturbing as we are well aware of the grim consequences, and it’s not just about the environment any more. We are risking lives and livelihoods. If we are unable to prevent the increase in global temperature, entire cities might soon get wiped out from the world map. We have very little time to get our acts right and secure the planet for the future generations. In the current scenario, India has emerged as a crucial entity, given its sheer size and the volume of carbon emissions. The continued success of the climate action programme hinges on India’s progress towards a less carbon economy. Thankfully, India has 4 fared much better than some of the developed nations with the Government showing a strong commitment to sustainable growth. India has seen a massive expansion in its renewables capacity on the back of a favourable policy environment and several nationwide programmes have been launched to ensure that economic growth is not at the expense of the environment. However, even if we do manage to meet our aggressive renewable energy targets, due to the huge projected rise in demand, coal will continue to be an important input, implying a rise in carbon levels, given the lack of other options. This is a very big challenge for India’s policymakers and needs urgent attention. At ReNew Power, we are glad to be playing a part in India’s transition to clean energy as the nation’s largest renewables energy company. However, going beyond business, we have always tried to be at the forefront of the climate action agenda, utilizing platforms such as WEF to mobilize different stakeholders, share knowledge and opinion, discuss strategies and chart a practical course of action. Earlier this year, during the Annual Meet at Davos, we organized our second thought leadership roundtable to discuss the current climate crisis and explore solutions for the same. We were fortunate to host a diverse mix of participants including top policymakers, business leaders, academia and representatives from media and civil society. We had an engaging hour long session that threw up various perspectives, an honest assessment of where we are, what various stakeholders should do and some lesser known aspects linked to the climate situation. The discussions mainly revolved around four distinct themes and we have compiled a follow up report that delves deeper into those themes and also includes a broad set of recommendations in each area. I sincerely hope that this report will provide valuable food for thought for governments, businesses and individuals as we collectively work towards building net zero emission economies. The report should also be able to provide a framework for immediate action that is needed to revitalize the climate movement, and also a long term vision. I will be happy to receive any suggestions or comments that may be forthcoming once you have gone through the report. The climate time bomb is ticking we need to pull up our socks now and take corrective actions before it is too late. Each of us has roles to play in this massive drama and we must work in a coordinated manner to ensure a happy ending. Best Sumant Sinha Chairman & Managing Director, ReNew Power 5 6 TABLE OF CONTENTS 1. Executive Summary 8 2. Chapter 1 - The Global Climate Crisis – 15 Time To Walk The Talk 3. Chapter 2 - Climate Change Mitigation: 23 The Push And Pull For The Private Sector 4. Chapter 3 - Balancing Growth With 31 Climate Commitments – A Look Into India’s Story 5. Chapter 4 - Climate Action 37 And The Youth – Time To Pass The Baton? 6. References 42 7 Executive Summary The climate crisis is real and upon us and is developing into a bigger threat every passing day. It is now clear that if we do not get our act together and rein in climate change, the consequences could be disastrous for both our environment and us humans. As global temperature levels continue to rise, we are seeing extreme weather patterns playing havoc with human and ecological systems with women and children bearing the brunt. There is no denying that awareness levels have risen with climate action making it to the agenda of several global conferences, but sadly we are yet to see nations walk their talk. Countries are far from meeting their commitments to cut back carbon emissions and the targets set at the COP 21 at Paris are in serious jeopardy. While the withdrawal of the US dealt a severe blow to the climate movement, all eyes are now set on India, with the world expecting India to step up as a climate leader and set an example for other developing countries in terms of progressing towards a less carbon economy. It is against this sombre backdrop that ReNew Power organized a Climate Leaders’ Dialogue on the side-lines of the World Economic Forum’s 2020 Annual Meeting at Davos. The meeting saw participation from a wide mix of delegates including business leaders, investors, economists, policymakers, academia, environmental journalists and representatives from civil society. The objective was to discuss the current situation and chart out an actionable agenda to breathe life into climate action. Over an absorbing hour or so, the participants critically analysed various aspects of the climate crisis and agreed that the lack of urgency shown by countries to reduce greenhouse gas emissions was highly disturbing. They shared valuable insights and experiences and discussed the way forward to avert a global climate crisis. There were broadly four strands of discussion – each of which have been blown up to a separate chapter in this follow up report. Chapter 1 begins with a statistical representation of the grim current situation, globally and in India, with carbon emissions continuing unabated. It underlines how the current rate of increase in temperature is likely to impact lives and livelihoods on a massive scale if not checked in time. It highlights the disappointing pace at which the climate action agenda has moved after the ambitious goals set in Paris at COP 21. Developed nations have failed to meet their commitments and developing nations have used this as a shield to justify their inaction – the result being a deadlock leaving us far short of where we should have been in our pursuit of net zero carbon economies. To meet goals set for 2030, global reduction targets need to increase three to six fold. This can only be possible if there is a strong coalition of governments, businesses and civil society working in a coordinated fashion. After the damp squib that was the COP 25 in Madrid, the forthcoming COP 26 at Glasgow is perhaps the last chance for the global community to bury its differences and frame an actionable strategy to work towards decarbonizing economies, before it is too late. Governments must show real intent to curb carbon emissions through a concrete plan, legal sanction and adequate financing. They must be backed by the private sector adopting sustainable practices in their operations. It is important to look beyond the power sector and focus on reducing carbon intensity of sectors like steel, cement and transportation. It is also important to fund the decarbonisation efforts in developing countries and multilateral lending 8 institutions must make this their priority. Investors and asset managers form a very important potential pressure group–they must actively integrate climate risk in their decision-making. The world is now looking at India to play an increasingly larger role in shepherding the climate action movement. The Indian Government has rightly focused on sustainable growth and adopted several policies and programmes to progressively reduce carbon levels. The COP 26 at Glasgow should see India playing a central and assertive role as the uncrowned leader of the emerging nations bloc. It is the right platform for India to share its success stories, particularly how the Government has nurtured and backed what is now a vibrant renewables sector, so that it can be a role model for other developing nations.
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