India, the world’s third largest oil consumer, on Tuesday said it is committed to energy transition but surviving the present and cushioning the vulnerable from price volatilities is essential before moving to clean and green energy. India has committed to net zero carbon emission by 2070 and has repeatedly emphasised that ‘dirty’ fuels like oil and coal, on which the economy is two-thirds dependent, will have to continue to be in use in the foreseeable future.
An immediate shift from low-priced coal and oil to expensive fuels of the future such as hydrogen will entail huge costs in a nation with low per capita income.
“Unless we survive the present, we will not be able to go into the world of clean and green energy,” Oil Minister Hardeep Singh Puri said at India Energy Week here. “While affordable traditional energy resources are essential for meeting the base load requirements, new sources of energy which are cleaner, sustainable, and innovative, are critical for combating the menace of climate change.”
Geopolitical situations last year led to a spike in prices of crude oil – raw material for petrol and diesel, and rates of natural gas – which is used to make CNG, electricity and fertilizer – shot up to record high. Countries in Europe switched back to coal-fired power plants as gas became unaffordable to many.
“We have to make sure our transition entails surviving the present and cushioning vulnerable from volatility,” he said, adding the transition has to be affordable and sustainable particularly for vulnerable sections.