Why India is rebuffing a coal-to-clean deal with rich nations
More than a year ago, leaders of the G7 group of big wealthy countries announced they were working on a series of deals to move emerging economies away from fossil fuels, particularly coal.
With South Africa’s Just Energy Transition Partnership (JETP) already underway, they said at the summit in Germany that they were negotiating with Indonesia, Vietnam and India.
Since then, Indonesia and Vietnam have signed JETP deals — but not India. Experts familiar with the issue said that no Indian deal is expected in the near future.
Swati D’Souza, an energy analyst with the Institute for Energy Economics and Financial Analysis (IEEFA) said that for a number of reasons, “there is considerable resistance within India [to the JETP]”.
Those reasons include the JETP’s emphasis on phasing out coal, which is the mainstay of India’s energy mix, and the relatively small amount of financing involved, as well as the debt nature of that finance.
There is also scepticism about adding a new and parallel negotiation on climate funding, when old ones haven’t come to much, says D’Souza.
At the UN climate talks, India has repeatedly but unsuccesfully urged wealthy countries like the G7 to fulfil their promise to provide $100 billion a year in funding for developing countries to help tackle and adapt to climate change.
Ultimately, the JETP is seen as a political statement that will be played as a win for G7 countries seeking to show they are helping developing nations wean off fossil fuels.
But it won't necessarily be seen as a win for India, especially ahead of national elections next year. “If India has to make a political declaration, what are the returns for it?” asks D’Souza.
A key obstacle appears to be the JETP’s emphasis on coal. The deals with South Africa, Indonesia and Vietnam focused on transitioning energy systems away from coal power towards renewables.
At the UN climate talks, India has repeatedly but unsuccesfully urged wealthy countries like the G7 to fulfil their promise to provide $100 billion a year in funding for developing countries to help tackle and adapt to climate change.
Ultimately, the JETP is seen as a political statement that will be played as a win for G7 countries seeking to show they are helping developing nations wean off fossil fuels.
But it won't necessarily be seen as a win for India, especially ahead of national elections next year. “If India has to make a political declaration, what are the returns for it?” asks D’Souza.
A key obstacle appears to be the JETP’s emphasis on coal. The deals with South Africa, Indonesia and Vietnam focused on transitioning energy systems away from coal power towards renewables.
But India has long resisted deadlines for ending use of this fossil fuel - famously changing the phrase “phaseout” of coal to “phasedown” at the Cop26 talks at Glasgow.
...
https://www.climatechangenews.com/2023/09/13/why-india-is-rebuffing-a-coal-to-clean-deal-with-rich-nations/