Disappointing COP29 Outcome
The COP29 climate conference in Azerbaijan yielded unsatisfactory results in the fight against climate change, with international negotiations stalled.
Global warming continues despite efforts, and countries have set different targets for energy transition to net-zero emissions (India by 2070, China by 2060, developed countries by 2050).
Challenges and Pressures for India
The European Union’s Carbon Border Adjustment Mechanism (CBAM) will impose penalties on imports from countries with lower carbon taxes starting in 2026.
International pressure is mounting for major economies, including India, to accept a 'peaking' of emissions by 2025, with China already agreeing to peak by 2030.
India faces a dual challenge of needing more electricity for development while transitioning to clean energy, with limited time to achieve both goals.
Energy Transition Costs and Solutions
India’s growing electricity demand is crucial to reaching net-zero emissions, with estimates showing the need for 21,000 Terawatt hours (TWh) by 2070.
The choice between renewables and nuclear energy is critical; nuclear power offers a cheaper and more land-efficient alternative to renewables, which require large amounts of land and higher costs.
Nuclear power must be ramped up, requiring government support and recognition as green energy to meet future energy demands.
Financial and Global Support Issues
Developed countries have committed $300 billion per year by 2035 for climate action, far below the $1.3 trillion requested by developing nations.
Finance from private sources will depend on higher tariffs and better management of state utilities.
Carbon trading rules were finalized at COP29, allowing rich countries to buy carbon entitlements from poorer nations, which could impact India’s growth if it cannot transition to clean energy in time.
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