Being sustainable after Covid-19

As per 2020’s Environmental Performance Index (EPI), Scandinavian countries continue to lead the global effort towards sustainability. India, despite the current dispensation’s proclaimed ambitions to lead the sustainability movement, was positioned at the 168th rank amongst 180 countries. Though a multitude of factors affect these rankings, the adoption of eco-institutionalism to incorporate long term ecological vision in short term economic planning has played a definitive part in helping Scandinavian countries stay at the top. It is understandably difficult for developing countries like India to balance economic and ecological imperatives in their national priorities. However, if we are to stay true to our stated policy of becoming a world leader in sustainability, we must not allow our situation to become our excuse but translate them into our opportunities.

During the crash of 2008, global emissions decreased by 1% only to rise by a ghastly 5% during the recovery period beginning in 2010. As of now, it has been estimated that the pandemic induced reduction in greenhouse gases (GHG) emissions would amount to a 5-8% reduction. However, if the post-2008 financial crisis recovery is anything to go by, the post-Covid-19 recovery may upset the grand strategic plans adopted during the Paris Agreement.

Underlying the decision to have national lockdowns, was an evidence-driven study produced by Imperial College (London). This illustrated how even in the post-truth world, institutional decision making continues to rely on data more than hysteria or political aspirations of the ruling dispensation.

Unfortunately, the recent spate of events in the energy sector shows the avolition of our government to use data and evidence in policy formulation. Offshore wind has registered a 49% decline in financing, creating the need to increase solar power capacity addition. However, by providing a customs duty exemption on solar imports from China for projects allocated before 1st August, the government is repressing investment opportunities worth Rs.50,000 Crore for domestic manufacturers.

According to the IEA, 40% of renewable energy (RE) capacity addition projects for 2022 RE commitments have been allotted to states with below-average rating DISCOMS. To make these 40% capacity additions projects tenable for 2022 targets focus should be laid on installing prepaid smart meters. Smart meters can help in reducing collection inefficiency with DISCOMS and further improve demand data which will help in better management of grid and reduce AT&C losses.

It is well established that coal will remain a part of India’s energy mix to cushion the production variability impact of RE. By opening coal mining to the private sector and deregulating quality control of procured coal, India risks increasing emissions intensity of its GDP. Instead incentivizing widespread installation of Carbon Capture Utilization Storage (CCUS) technology by introducing regulatory framework which provides tax credits to power plants and increasing the rate of biomass cofiring could improve coal power fleets performance.

It is estimated that until 2030, an annual drop of 6-7% would be required in the global carbon emissions to limit our exposure to climate anomalies. If developing countries continue to avoid prioritizing their short-term needs over their long-term needs, things may escalate to a point of no return.

We need to adopt ecological institutionalism to explore norms and policies opined by leading global experts and punch above weight by planning over a longer time horizon in a limited resource endowment.

The shift to long-term policy planning would require standardising data on environmental monitoring and institutionalization of climate risk assessment. Creating a social laboratory of alternatives in economic and sustainable policy-making, the government could explore ideas such as a social impact stock exchange for developmental organizations and NGOs to standardize impact data and funnel funding into high-impact green initiatives. Green investments will not just create more jobs but also help with quicker and sustained recovery of the economy post-Covid. Beyond tangible capital returns, green investments could also limit future climate risk exposure by nurturing a more resilient economy.

(The writer is a student at Jindal School of International Affairs)