Energy experts sign collective 'statement of priorities' on managing a fair transition away from coal in India
22 representatives from research groups, civil society organisations, and consultancy organisations have signed a collective statement of priorities that calls for a state-led deliberative planning process to avoid major disruptions and losses, address historical injustices, and build a resilient energy future.
A collective statement signed by 22 energy experts urges the governments to establish a deliberative planning process to assess the economic, social, political and environmental costs and opportunities of India’s transition away from coal. Proactive planning and interventions are essential to avoid major disruptions, minimise losers and losses, address historical injustices and build a resilient future, they say.
Coal and its dependent sectors have been an engine of development in India, contributing to livelihood development, public financing for infrastructure, and social welfare services. However, coal use has also led to problems such as climate change, environmental pollution, and adverse health impacts in coal-producing regions. “[The coal industry] has arguably not done enough to address the legacy of unequal development performance, as is evident in the poor environmental conditions, low level of economic and human development in coal-bearing regions,” the statement reads.
India may not halt coal combustion anytime soon, but the share of coal in India’s energy mix is likely to reduce gradually, opening up the possibility of widespread political and economic disruption in coal-dependent areas. Driven largely by economics and climate considerations, India’s energy sector is experiencing a shift towards renewable energy, backed by ambitious government policies. Future investments in coal-fired electricity generation now run the risk of becoming stranded assets, requiring the government to revisit existing plans for coal capacity in the early stages of construction. “While electricity generation from variable renewable energy is already cost-competitive in many situations, emerging technologies and solutions are likely to help mitigate its challenges of variability and make it more dependable and dispatchable in the coming years,” experts say. The actual pace of the phase-out of coal will be driven by prevailing political and economic considerations, they add, with the fastest transition taking place in the electricity sector.
A transition to clean energy resources could be a catalyst for future growth. But one critical concern is that the benefits of India’s renewable energy transition may not be spatially distributed to compensate the coal-dependent regions. The clean energy industry promises to offer jobs, but may require different skillsets, and may not be able to offer employment at the required scale in coal-dependent regions. “A priority is to plan for the current generation of coal dependent workers and communities, and provide alternative non-coal options to the next generation,” the statement says. The formal workforce is often organised, and therefore has the ability to bargain for compensation, whereas the informal workforce – often invisible or unrecognised – needs more support to find alternative, healthier livelihoods. “This will require proactive interventions for skill training, resource deployment to enable livelihood options, and local enterprises,” say the experts. Managing this long-term transition will require the state to unwind those lock-ins to the coal economy, and “plan an alternative, inclusive and sustainable development trajectory around new energy sources” while “acknowledging potential trade-offs between various environmental, social and economic goals.”
Building multi-level, multi-actor alliances to manage and facilitate the energy transition is critical, the experts emphasize. “The multi-dimensional nature of this transition requires an institutional arrangement that has representation from different tiers of governance – Centre, state, district and local.” Tapping into this opportunity, they add, will require a greater role for the state in proactive planning and coordination. “To address the limits of a single top-down solution framework, planning must include all interest groups, including local communities, in a transparent process that acknowledges and factors in the necessary trade-offs.”
The full text of the collective statement on managing a fair transition away from coal can be accessed on the CPR website.
Signatories
The following participants (listed in alphabetical order), who joined the roundtables convened by PEG & CPR, have contributed to preparing the statement and endorse it in their individual capacity. Affiliations are listed purely for identification of the individuals, and do not imply institutional endorsement or linkages. For any comments or clarifications on the statement, please contact Ashok Sreenivas (ashok@prayaspune.org) and Ashwini K. Swain (ashwini@cprindia.org).
1. Abhinav Sengupta, PWC
2. Ajit Pandit, Idam Infrastructure Advisory
3. Anish De, KPMG
4. Ashish Fernandes, Climate Risk Horizons (CRH)
5. Ashok Sreenivas, Prayas (Energy Group) (PEG)
6. Ashwini K. Swain, Centre for Policy Research (CPR)
7. Chandra Bhushan, International Forum for Environment, Sustainability & Technology (iFOREST)
8. Daljit Singh, Centre for Social and Economic Progress (CSEP)
9. Gareth A. S. Edwards, University of East Anglia (UEA)
10. Joe Athialy, Centre for Financial Accountability (CFA)
11. Karthik Ganesan, Council on Energy, Environment and Water (CEEW)
12. Nandikesh Sivalingam, Center for Research on Energy and Clean Air (CREA)
13. Navroz K. Dubash, Centre for Policy Research (CPR)
14. Partha Bhattacharyya, formerly with Coal India Limited (CIL)
15. Priyavrat Bhati, Center for Study of Science, Technology and Policy (CSTEP)
16. Rahul Tongia, Centre for Social and Economic Progress (CSEP)
17. Rohit Chandra, Indian Institute of Technology, Delhi (IIT-D)
18. Sandeep Pai, Centre for Strategic and International Studies (CSIS)
19. Shantanu Dixit, Prayas (Energy Group) (PEG)
20. Shripad Dharmadhikary, Manthan Adhyayan Kendra
21. Srestha Banerjee, International Forum for Environment, Sustainability & Technology (iFOREST)
22. Swati D’souza, National Foundation for India (NFI)
About Us
The Centre for Policy Research has been one of India’s leading public policy think tanks since 1973. CPR is a non-profit, non-partisan independent institution dedicated to conducting research that contributes to the production of high quality scholarship, better policies, and a more robust public discourse about the structures and processes that shape life in India. The CPR Initiative on Climate, Energy and Environment (CPR-ICEE) aims to stimulate an informed debate on the laws, policies and institutions shaping climate, energy and environmental governance in India. Our research focuses on improved understanding of climate, development and environmental challenges, and pathways to improved outcomes, in four key areas: climate policy and institutions, the political economy of electricity in India, low-carbon energy demand patterns in urban areas, and air quality governance. For live updates on our work, follow us on Twitter, or email us at climate.initiative.cpr@gmail.com.
Prayas (Energy Group) or PEG, is a non-governmental organisation working towards furthering public interest in the energy sector through analysis-based advocacy. It has been active in this field for more than 25 years. During this period, it has made significant contributions to promoting public interest in India’s energy sector, and has established its credibility among various actors in the sector through its comprehensive and analytically sound approach to issues. PEG’s contributions to the energy sector may be categorised as a) providing innovative policy analysis and solutions, b) exposing and providing early warning regarding gross inefficiencies, c) institutionalising transparency, accountability and public participation and d) strengthening civil society participation in the energy sector. You can follow our work on our website (www.prayaspune.org/peg), LinkedIn (www.linkedin.com/showcase/prayas-energy-group) or Twitter (@prayasenergy).