Climate Change and India: Presentation to India-EU Round Table Prodipto Ghosh, Ph.D Distinguished Fellow The Energy & Resources Institute 19 September 2007 I. What is anthropogenic climate change? Suite of gases (CO2, CH4, N2O, etc,) emitted from various economic activities: Fossil fuel use, wet paddy cultivation, cattle raising, fertilizer use, etc. Growing (but not mature) forests absorb (“sequester”) CO2, the major GHG Increasing concentrations of these gases in the atmosphere have same effect as a greenhouse, hence “Greenhouse gases” (GHGs). The resulting increase in temperature may impact many climate parameters 2 Country CO2 (tons) per capita Energy (kgoe) per $ GDP (PPP in yr 2000) India 1.2 5.5 China 3.2 4.4 France 6.2 5.9 Germany 9.8 6.2 Japan 9.6 6.4 UK 9.4 7.3 USA 19.9 5.2 Source: The World Bank. World average of per capita CO2 is 4.3 tons 3 Projections of Future Changes in Climate Across all scenarios, average warming is 0.2°C per decade Committed warming averages 0.1°C per decade for next two decades 4 The UN Framework Convention on Climate Change, 1992 The UNFCCC set forth certain principles for addressing climate change by a global effort, in particular, that of “common but differentiated responsibilities” of countries; that development is the foremost concern of developing countries, etc. It also gave a “soft target” for industrialized countries (Annex I Parties) to return to 1990 levels of GHG emissions by 2000 All major countries, inc. US, EU, India, China, have ratified the Convention 5 Kyoto Protocol, 1997: Legally binding Protocol setting out: Targets for GHG reductions by individual industrialized countries during “first commitment period”, 2008-2012, totaling 5.2% below their aggregate 1990 emissions; actual percentages vary by Party 3 “cooperative implementation mechanisms” setting up a global market in carbon credits: Clean Development Mechanism, applicable to developing countries, operational since 2000 US, Australia have not ratified; EU, China, India, Brazil are Parties (Total 161 Parties) 6 II. Climate Change Impacts, Mitigation, and Adaptation Difference between natural climate variability and anthropogenic climate change Summary of IPCC 4th Assessment Report on Impacts Monitored changes in India’s key climate parameters India’s energy policies and their GHG effect India’s response to natural variability Suggested way forward 7 Likely Impacts of Climate Change Difference between natural climate variability and anthropogenic climate change 9 Variation of all-India surface air temperatures Trends in annual mean, maximum and minimum temperatures and diurnal temperature range during the 20th century. 10 All India Summer Monsoon Rainfall (1871-2003) Source: IITM homogeneous monthly rainfall data base 11 Current knowledge about future impacts: ASIA Glacier melt in the Himalayas is projected to increase flooding, rock avalanches from destabilized slopes, and affect water resources within the next two to three decades. This will be followed by decreased river flows as the glaciers recede. Freshwater availability in Central, South, East and Southeast Asia particularly in large river basins is projected to decrease due to climate change which, along with population growth and increasing demand arising from higher standards of living, could adversely affect more than a billion people by the 2050s. Coastal areas, especially heavily-populated mega-delta regions in South, East and Southeast Asia, will be at greatest risk due to increased flooding from the sea and in some mega-deltas flooding from the rivers. 12 Current knowledge about future impacts: ASIA Climate change is projected to impinge on sustainable development of most developing countries of Asia as it compounds the pressures on natural resources and the environment associated with rapid urbanisation, industrialisation, and economic development. It is projected that crop yields could increase up to 20% in East and Southeast Asia while it could decrease up to 30% in Central and South Asia by the mid-21st century. Taken together and considering the influence of rapid population growth and urbanization, the risk of hunger is projected to remain very high in several developing countries. Endemic morbidity and mortality due to diarrhoeal disease primarily associated with floods and droughts are expected to rise in East, South and Southeast Asia due to projected changes in hydrological cycle associated with global warming. Increases in coastal water temperature would exacerbate the abundance and/or toxicity of cholera in South Asia. 13 Current knowledge about responding to climate change Some adaptation is occurring now, to observed and projected future climate change, but on a very limited basis. Adaptation will be necessary to address impacts resulting from warming which is already unavoidable due to past emissions. A wide array of adaptation options is available, but more extensive adaptation than is currently occurring is required to reduce vulnerability to future climate change. There are barriers, limits and costs, but these are not fully understood. Vulnerability to climate change can be exacerbated by the presence of other stresses, esp. poverty Future vulnerability depends not only on climate change but also on development pathway. 14 Current knowledge about responding to climate change Impacts of climate change will vary regionally but, they are very likely to impose net annual costs which will increase over time as global temperatures increase While there has been significant improvement in scientific understanding of climate change in the past 20 years, there remains considerable uncertainty about the nature, timing, spatial distribution, and severity of particular impacts. In particular, none of the global climate models can be validated with respect to changes in rainfall over the Indian land-mass Systematic observation and research needs 15 III. Myths about India and Climate Change Myth 1: India is an energy profligate Myth 2: India does not take climate impacts seriously Myth 3: India’s development path is unsustainable Myth 4: Abatement of GHG emissions is lowcost 16 Response to Myth 1: India’s current energy policies and their outcomes (partial list): Improving energy efficiency Promoting hydro and renewable energy Power sector reforms Promotion of clean coal technologies Energy and infrastructure development Coal washing Cleaner and lesser carbon intensive fuel for transport Environmental quality management (EIA appraisal for significant development projects) 17 India’s Energy Policies: Scenarios simulated by MARKAL (2001-2036) Baseline: Base year 2001 GDP growth rate 8% Official demographic projections IPCC emissions factors 8% social discount rate Scenarios: S1: Cleaner fuels for power generation S2: Electricity for all by 2012 decentralized renewable options efficient cook stoves S3: 20% increase in share of public road transport Greater use of CNG in buses, taxis, 3-W vehicles S4: S1+S2+S3 S5: Baseline with average annual GDP growth rate 6.7% 18 CO2 emissions MMT 3500 3000 2500 2000 1500 1000 500 2001 2006 2011 2016 2021 2026 2031 Year BASELINE S1 S2 S3 S4 S5 19 Source: TERI, 2006 India’s actual carbon intensity performance Compounded Annual Growth Rates (CAGR) of Indian GHG emissions during 1985 to 2005 8 7 CAGR (%) 6 5 CAGR (CO2) CAGR (CH4) CAGR (N2O) 4 3 2 1 0 1985 1990 1994 2000 2005 Source: MoEF, 2007 20 Decreasing Energy Intensity Behind India’s Sustainable Development 0.31 0.29 0.27 0.25 0.23 0.21 0.19 0.17 2003 2002 2001 2000 1999 1995 1990 1985 1980 1975 0.15 1971 TPES (kgoe)/GDP ($2000 PPP) Ene rgy inte ns ity of GDP (k goe /$ 2000 PPP) bas e d on IEA data 21 Source: Plg. Comm. 2006 Indian industry and energy efficiency Major energy using sectors – steel cement, aluminum, etc. have become more energy efficient over the past 20 years The following graphs depict changes in average energy intensities; incremental changes are much sharper. The newer plants are among the most energy efficient globally 22 Source: BEE, 2007 23 Source: BEE, 2007 24 Source: BEE, 2007 25 Response to Myth 2: India’s actions on climate variability: The most effective response strategy for anthropogenic climate change is poverty alleviation Specific areas of concern include: - Agriculture - Water resources - Health and sanitation - Coastal Zones - Forests - Extreme weather events 26 7 Major Components of Adaptation Crop improvement & research (22) Drought proofing & flood control (19) Health improvement and prevention of disease (19) Risk financing (6) Disaster management (6) Forest conservation (12) Poverty alleviation and livelihood preservation (30) (Figures in brackets indicate number of Schemes identified under each category) 27 Percentage of Adaptation Expenditure to Total Fiscal Expenditure and GDP Value of Expenditure 12 10 8 Expenditure on adaptation as % of total Govt. expenditure 6 Expenditure on adaptation as % of GDP 4 2 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Year Source: MoEF, 2007 28 Relative expenditures on major Adaptation schemes by thematic area Crop Improvement & Research 7.93% Crop Improvement & Research Drought Proofing Drought Proofing 15.97% Health Risk Financing Health 13.77% Poverty Alleiviation and Livelihood preservation 59.34% Disaster Management Forestry Risk Financing 1.63% Disaster Management 0.38% Poverty Alleiviation and Livelihood preservation Forestry 0.97% Source: MoEF, 2007 29 IV. Response to Myth 3: Sustainability of Production and Consumption Patterns Relevance Select Indicators: - Energy inputs per unit of output energy delivered through food - Waste generation and recycling - Energy & emissions per unit of passenger transportation movement 30 Energy inputs per unit of output energy delivered through food The energy inputs and resultant emissions in the cycle of growing the food, transporting, processing, packaging and preserving it till it reaches the table vary significantly between India, China, and developed countries. This reflects not poverty, but lifestyle choices. CO2 emission from food sector--from Field (production) to Table (processed food)-excluding cooking Production related CO2 emission (tonne CO2/million kcal of food energy) Processing related CO2 emissions (tonne CO2/million kcal of food energy) Total CO2 emissions (tonne CO2/million kcal of food energy) ton CO2/m kcal of food energy 2.50 2.25 2.00 1.7 1.75 1.8 1.9 2.0 2.2 1.50 1.25 1.00 0.75 0.50 0.25 0.1 0.1 0.00 India China United Kingdom Germany Netherlands Australia United States Source: TERI analysis (various data sources) 32 Waste generation and recycling Consumption patterns also have a direct impact on the wastes that a society generates. In developed societies not only is there higher waste generation but also relatively lower recycling. Can we move to a lifestyle that entails lower packaging and higher recycling and hence lower usage of plastics, glass and paper? What may it imply for GHG emissions? Municipal solid waste Average rate of recycling (%) (excl. re-use) 70 80 53 47.3 60 30 40 20 0 US Germany Japan India GHG emissions from waste (gm/’000$GDPppp) 25 23 20 15 10 10 8 4 5 0 USA UK Germany India 34 Source: TERI Analysis, based on National Communications of different countries Energy & emissions per unit of transportation movement Sustainable mobility: shift from personalized modes of transportation to public modes of transportation, greater reliance on clean fuels and cleaner technologies, a shift towards IT based societies have major implications for GHG emissions. Estimated CO2 emissions from passenger transport (gm/passenger-km) 250 193 200 150 118 100 50 16 0 India EU (15 countries) USA Source: TERI Analysis, various data sources 36 Response to Myth 4: MARKAL model estimates of costs of GHG abatement Cumulative incremental investment requirements 100% Cumulative incremental investment requirements (Billion US$) 2530 2400 80% 1800 60% 1394 1200 40% 717 600 20% 341 153 0 0% -2.5% -3.9% -6.0% -7.9% -9.7% 2026 2031 2036 -600 Change in cumulative CO2 emissions from baseline (%) 3000 -20% 2016 2021 Year SMEs Pow er Renew able Res & Com Emissions Red Total Biodiesel The total incremental cost for reduction of GHG in India by 9.7% from baseline in 2036 is $ 2.53 Trillion! 37 Cumulative incremental investment requirements and GDP of different countries in 2004 12000 10704 GDP (Billion US$) 10000 8000 6000 4932 4000 1953 1903 2000 1415 1591 581 US A Ja pa n an y Ge rm na Ch i UK Fr an ce In di a 0 GDP at 2000 prices Cumulative incremental investment requirements: 38 Comparison with 2004 GDP levels Change in discounted energy system cost (2001-36)… Change in discounted system cost 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 0% 2% 4% 6% 8% 10% 12% -0.5% Redcution of CO2 emissions from baseline Reduction of GHG emissions by 9.7% from baseline by 2036 would involve economic loss of $ 180 Billion 39 India’s Broad Approach to International negotiations of a global climate change regime India is not a significant contributor to climate change in the past, at present, or likely to be in the near future, as revealed by actual empirical data, and modeling results on future carbon intensities However, India is among the worst sufferers of climate change caused by industrialized countries! India has taken a number of policies and measures to address both mitigation and adaptation and is preparing a national action plan on climate change 40 India’s broad approach… India can only consider international commitments to control GHG emissions on the basis of global convergence to equal per capita rights, otherwise our poverty alleviation efforts will be severely affected, and the world will be permanently divided into “the rich man in his castle, the poor man at his gate”! Technology and financial transfers for addressing climate change, both GHG abatement and adaptation to impacts must be ensured under any future international climate change regime. 41 42