World would rely on oil & gas in the near term despite climate change concerns

Posted on 01 Apr 2024

“I would lecture you on climate change,” Mohammed Irfan Ali, the Indian origin President of Guyana said authoritatively in an interview with Stephen Shakur, a reporter from the British Broadcasting Corporation (BBC). President Ali was speaking about his government’s plans for Guyana’s newly discovered oil reserves.

The BBC reporter had questioned the president about Guyana’s commitment to climate change, something which many nations in the world are trying to mitigate post the 2015 Paris Agreement.

The president stressed that earth has in the last 50 years lost about 65% of its biodiversity but Guyana has been able to keep intact its forest cover while calling out west’s hypocrisy.

Notably, a few years ago, Piyush Goyal, India’s then power minister had criticised the western world for its double standards when it came to addressing climate change. The minister said that there was a gap in what the west said and what it did on climate change.

Western nations relied on coal to develop their economies until shale gas became affordable, the minister had said in an event organised by the World Bank's International Finance Corporation, Exim Bank, NSE and Institute of International Finance in New Delhi.

Oil reserves have been discovered in Guyana at a time when nations across the world are planning to move away from fossil fuel usage to promote greener climate and this has gathered some steam post the Paris agreement.

Earlier in 2023, India’s Prime Minister Narendra Modi had urged countries to bring down their carbon footprint significantly while calling on richer nations to help poorer ones to combat the climate change.

More than 50% of the world’s energy mix comes from oil and gas. If nations stick to their Paris commitments then still about 35% of the energy use would come from the same fuel sources with no discontinuation looking possible in near future.

Prime Minister Modi, in a recent interaction with Microsoft co-founder and philanthropist Bill Gates said that climate change gained momentum in India following the G-20 summits. The Prime Minister stressed on developing the concept of a green gross domestic product. He added that nature and climate friendly innovations and environment-friendly lifestyle adoptions will give rich dividends.

Leaving aside the diatribes, man-made climate change is something to ponder about as the misuse of flora and fauna is bringing about drastic consequences to the environment.

The large quantity of greenhouse gases released into the atmosphere are detrimental for human survival in future. Gases such as carbon dioxide (CO2) and methane (CH4) increase global temperatures and this has been happening at alarming levels unabated.

Reducing these poisonous emissions means that we need to reshape everything that we do, the way we power our economy, grow our food, the way we travel and live, the products that we consume, and so on and India isn’t alone facing this, it is crossing geographical barriers.

India ranks seventh in the Climate Change Performance Index (CCPI) and is on track to meet a benchmark of carbon emissions below 2⁰ celsius. While this is positive news there’s a caveat, the country is over-dependent on coal besides oil and gas as it strives to meet its national goals.

As a result, we see greenhouse gas emissions and atmospheric pollution, especially in big cities. The Indian government is keener on ‘phase-down’ in the short term than on ‘phase-out’ of fossil fuels, according to climate experts. There should be transformative adaptation and disaster risk management besides adoption of ecosystem based solutions for realisation of sustainable goals.

A quicker than expected phase out of coal, lesser reliance on gas and larger expansion towards renewable energy sources will help India achieve net zero by around 2050, say climate experts.

Encouragingly, India is swiftly revolutionizing the operations of small and medium enterprises by implementing inventive strategies to reduce demand backed by the support of government policies. The various production linked incentive (PLI) schemes have been encouraging for investors looking to pump money in business and environmental initiatives.

India, albeit not completely transitioning into a green energy market, is actively exploring mitigation technologies including carbon capture that can effectively remove greenhouse gases like carbon dioxide right from the emission sources. With its endeavours India is becoming a role model that nations are keen to emulate.

One crucial focus should be on demand reduction that involves minimising energy usage across various services and technologies. Initiatives such as designing energy-efficient buildings, services and appliances, leveraging artificial intelligence to lower energy consumption, etc. would augur well for promoting energy efficiency and sustainability.

Transport has been identified as the second largest emitter of greenhouse gas as per the International Energy Agency estimates. There’s an urgent need to phase out fossil fuel vehicles and switch to electric and hydrogen-powered ones. Encouraging walking and cycling wherever possible will also be beneficial, point out climate experts and this would help mitigate extreme climate conditions like severe flooding, drought, etc.

The India Meteorological Department has declared heatwave conditions in certain regions of western Rajasthan, however, many other places in India are suffering from humid heat waves which are expected to increase in the summer months.

A better understanding of the hidden risks to environment and business would be crucial in building resilience against climate-related challenges. Nations shouldn’t work in silos, there must be a collective effort to overcome the challenges as we all have lots at stake.

Globally, think-tanks need to act together in finding a workable solution and mitigate the negative effects that shape our climate. As nations adopt higher emission cuts, by transitioning from use of fossil fuels to clean energy sources, halting deforestation, afforestation of areas where trees have been cut and using land sustainably climate goals can be met.

We would then reach the point where the release of greenhouse gases into the atmosphere is balanced with the capture and storage of these gases in our soil, forests and water bodies, and help build a sustainable future for a better tomorrow.

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