Chile’s lesson for India’s coal conundrum, Pg8

Key Highlights:

• India ranked 23rd in the Climate Change Performance Index at COP30 due to slow progress in phasing out coal.
• Coal constitutes over half of India's energy use, while renewables make up a minority share.
• Chile reduced its coal share in electricity generation from 43.6% to 17.5% between 2016-2024, with renewables now exceeding 60%.
• TERI suggests India could phase out coal power entirely by 2050 to meet its net-zero goals.

Detailed Insights:

• India doubled its clean energy capacity during 2021-25, but coal still contributed 75% of electricity generation in 2024.
• Chile's transition was driven by a carbon tax, stringent emission standards, competitive auctions for renewables, and energy storage systems.
• A coal phaseout is a "no regrets" policy, averting climate change damage that could sap 3%-10% of India’s GDP by 2100.
• Decarbonisation requires removing old plants, cancelling new approvals, and replacing coal with firm renewable power backed by storage.
• Market reforms like carbon pricing, removal of coal subsidies, and clean dispatch rules are crucial to disincentivize coal.
• A dedicated transition fund, such as the “Green Energy Transition India Fund”, is essential to support workers through reskilling.
• Financing the transition requires a blended model of public and private capital, with government support for community welfare.

Key Concepts Involved:

• Decarbonisation: Reducing carbon dioxide emissions from energy sources and other sectors.
• Net-Zero: Achieving a balance between emissions produced and emissions taken out of the atmosphere.
• Carbon Pricing: Putting a price on carbon emissions to incentivize reduction.