Coal mining in India. Coal-fired plants contribute 60 percent of India’s energy capacity and are a large source of the air pollution that is taking a toll on people’s health and their livelihoods. Photo credit: The Hindu

By Chaitanya Kumar
NEW DELHI, Mar 19 2015 (IPS)

In November last year, India’s power minister Piyush Goyal announced that he plans to double coal production in India by the end of this decade and, in an effort to enhance production, the Indian government has started a process of auctioning coal blocks.

Coupled with the auctions is the disinvestment of Coal India Limited (CIL), the world’s largest coal mining company, and both actions can provide short-term reprieve to India’s energy and fiscal deficit woes.

However, there are four reasons why investors and the government should be wary of investing in coal for the long run (10-15 years).

The first stems from the fact that it is rapidly becoming clear to big business and governments around the world that a large proportion of coal and other fossil fuels should be left in the ground. The second is that coal consumption is declining in many parts of the world, with economics increasingly in favour of alternate sources of energy, such as wind and solar.“A systematic effort is now under way to dilute environmental, land and forest laws … The latest land ordinance passed by the [Indian] government has done away with two key pillars of the process of land acquisition: social impact assessment and community consent”

Reasons three and four have to do with growing resistance from tribal and grassroots communities, and the fact that India will be forced to take some form of action as air pollution becomes increasingly dangerous.

Despite its plans for coal production, the Indian government has been giving the right indicators on its pursuit of renewable energy, but this ambition – though welcome – is being counterbalanced by the country’s continued lust for more coal.

Call it an addiction that is hard to let go or sustained pressure from big corporations and their existing investments in coal, the Indian government has turned its eye on the vast domestic reserves in the country.

Growing resistance from tribal and grassroots communities

A systematic effort is now under way to dilute environmental, land and forest laws in the country. The latest land ordinance passed by the government has done away with two key pillars of the process of land acquisition: social impact assessment and community consent. The ordinance is facing stiff resistance from opposition parties and the general masses of India.

Any project, either private or under a public private partnership (PPP), previously required the consent of 80 percent of the community that the project impacted but no such consent is now required.

Social impact assessments that factors in effects on the environment and human health, among others, were mandatory for projects and while such assessments were shoddy in the past, doing away with them completely sets a poor precedent for industrial practices and gives even less of a reason for companies to clean up their acts.

A lack of social impact assessment also adds to the ambiguity that exists in offering the right compensation as part of the rehabilitation and resettlement plan embedded in the land ordinance.

In the context of coal, the efforts of the government to re-allocate 204 coal blocks and begin mining will be met by stiff resistance from impacted communities. “There is a fear that we will witness greater state violence on people as they begin resisting projects that have immediate impacts on their lives and livelihoods”, says Sreedhar, a former geologist who now runs a network of activists called Mines, Minerals & People.

The Mahan coal block, forcefully pursued by the Essar company, is a case in point where local communities have been resisting open cast mining for several years. The mine is located in what is one of the last remaining tracts of dense forests in central India. Mahan has subsequently been withdrawn from the auctions, a victory celebrated by the local communities.

Foreign investors are especially wary of pumping money into projects that can see resistance from local communities. The high profile cases bauxite mining plans by British resources giant Vedanta in ‘sacred’ hills in eastern India and the plans of South Korea’s POSCO steel-making multinational to open a plant in the eastern state of Odisha have become strong deterrents for big money to enter India.

While the government’s efforts at allaying fears may work, there is a difference in rhetoric and on-the-ground reality because it will not be easy to simply wish away people’s concerns.

Visible resistance has taken shape in the state of Chhattisgarh where twenty tribal gram sabhas in the Hasdeo Arand coal field area of the state passed a formal resolution under the forest rights act against coal mining in their traditional forest land.

“There has to be an assessment of India’s energy needs alongside an evaluation of the forests that we stand to lose from coal mining. Allocation of coal blocks in dense forests is imprudent,” says Alok Shukla, an activist from Chhattisgarh who is mobilising tribal communities to uphold their forest rights.

These struggles might only intensify as government efforts are aggressively under way to further dilute tribal rights and open up inviolate forests for coal mining.

Air pollution is becoming hazardous and India will be forced to act

As the pressure to act on air pollution builds, India will have to enforce strict emission norms on coal plants and their operators. Installing flue-gas desulphurisation scrubbers should be mandatory on any new plant that is set to operate in coming years. These devices are very effective in limiting dangerous pollutants from escaping into the atmosphere but come at a heavy cost for investors and coal power generators. 

But why would the government work towards increasing operational costs for power plants in the pipeline? Here’s why – air pollution is killing Indians every year and is now the fifth largest contributor of deaths in the country. The fact that 13 of the world’s 20 most polluted cities are in India is a cause for great alarm. A study has indicated that one in three children have shown a reduction in lung function in Delhi.

The World Health Organisation (WHO) report, which makes this claim, advises that fine particles of less than 2.5 micrometres in diameter (PM2.5) should not exceed 10 micrograms per cubic metre. Delhi tops the list at 153 micrograms of PM2.5 per cubic metre and it is only getting worse.

In Delhi, for instance, coal roughly contributes 30 percent of recorded air pollution (particulate matter) and the numbers are higher in the coal clusters of the country. Coal-fired plants contribute 60 percent of India’s energy capacity and are a large source of the air pollution that is taking a toll on people’s health and their livelihoods.

A recent report on coal pollution in India by Urban Emissions and Conservation Action Trust reveals a shocking statistic – in another 15 years between 186,500 and 229,500 people may die premature deaths annually as a result of a spike in air pollution caused by coal-fired power plants.

In dealing with air pollution, curbing the effects of harmful pollutants like nitrous and sulphur oxides from coal power plants is critical and there is growing pressure on the central government to introduce strict emission standards. India is the only major coal-powered nation that does not have any concentration standards for these pollutants, a requirement that should soon be in place.

Both domestic and international pressure can move India to clean up its air. The government cannot afford to have an ‘airpocalypse’ on its hands.

All is not well with the coal industry in India  

Undaunted, Narendra Taneja, energy cell convenor of India’s ruling Bharatiya Janata Party, has claimed that coal and gas will remain the mainstay of the country’s economy for the next 50-60 years.

The impossibility of this claim becomes apparent when we look at the actual reserves of extractable coal. Only one-fifth of the coal reserves of CIL are extractable and if the ambitious doubling of domestic production happens, the known reserves are expected to last for less than two decades.

Coal mines that expire before the lifetime of new coal plants scream for greater economic prudence from investors.

India’s ambitious renewable energy expansion plans need to be complemented by a phase-out plan of coal. The world needs stronger political leadership from India as it tries to tackle the twin challenges of poverty and climate change.

Edited by Phil Harris   

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

Excerpt:

By Roberto Savio
ROME, Nov 21 2014 (IPS)

Less than a week after everybody celebrated the historical agreement on Nov. 17 between the United States and China on reduction of CO₂ emissions, a very cold shower has come from India.

Indian Power Minister Piyush Goyal has declared: “India’s development imperatives cannot be sacrificed at the altar of potential climate change many years in the future. The West will have to recognise we have the needs of the poor”.

This is also a blow to the Asia policy of U.S. President Barack Obama, who came back home from signing the CO₂ emissions agreement in Beijing, touting his success on establishing U.S. policy in the region.

Roberto Savio

But, more importantly, will give plenty of ammunition to the Republican Congress, which has been fighting climate control on the grounds that the United States cannot engage on climate control unless other major polluters make similar commitments. This was always directed to China, which had refuse to make any such commitment until President Xi, to the surprise of everybody, did so by signing an agreement with Obama.

India is a major polluter, not at the level of China, which has now reached 9,900 metric tons of CO₂, against the 6,826 of the United States. But India is coming up fast. “The incestuous relations between energy corporations and governments are out of the public's eye. It is yet further proof that, even when nothing less than survival is at stake for islands and coastlines, agriculture and the poor, governments are unable – or unwilling – to see beyond their immediate existence”

Goyal has promised that India’s use of domestic coal will rise from 565 million tons last year to more than a billion tons by 2019, and he is selling licences for coal mining at a great speed. The country has increased its coal-fired plants by 73 percent in just the last five years. In addition, Indian coal is of poor quality, polluting twice as much as coal in the West.

Nevertheless, newly-elected Indian Prime Minister Narendra Modi has announced that he will embark on a major programme of renewable sources of energy, and there is an apparent paradox in the fact that many of the climate scientists who form the Intergovernmental Panel on Climate Control (IPCC) are from India. Its Director-General is an Indian, Dr. Rajendra K. Pachauri, who is also chief executive of the Energy Resources Institute in New Delhi.

The IPCC’s last report was much more dramatic than previous ones, stating conclusively that climate change is due to the action of man, and providing an extensive review of the damage that the agricultural sector is bound to face, especially in poor countries like India. At least 37 million people would be displaced by rising seas.

Indian towns are by far the most polluted in the world, surpassing several times each year the worst polluted day in China.

But what is more worrying is that governments are reacting too slowly. It would take a very major effort, which is not now on the cards, to keep temperature from rising by more than 2 degrees Centigrade, and therefore to start to reduce emissions by 2020. Emissions in 2014 are expected to be the highest ever, at 40 billion tonnes, compared with 32 billion in 2010.

The consensus is that to limit warming of the planet to no more 2 degrees Centigrade above pre-industrial levels, governments would have to restrict emissions from additional fossil fuel burning to about 1 trillion tons of carbon dioxide.

But, according to the IPCC report, energy companies have booked coal and petroleum reserves equal to several times that amount, and they are spending some 600 billion dollars a year to find more. In other words, governments are directly subsidising the consumption of fossil fuel.

By contrast, less than 400 billion dollars a year are spent to reduce emissions, a figure that is smaller than the revenue of one just one U.S. oil company, ExxonMobil.

The last meeting of the G20 in Brisbane earlier this month gave unexpected attention to climate, but the G20 alone is spending 88 billion dollars a year in subsidies for fossil fuel exploration, which is double that which the top 20 private companies are spending to look for new oil, gas and coal.

The G20 spends 101 billion dollars to support clean energy in a clear attempt to make everybody happy but, according to the International Energy Agency, if G20 governments directed half of their subsidies, or 49 billion dollars a year, to investment for redistributing energy from new sources, we could achieve universal energy access as soon as 2030.

Another good example of the total lack of coherence from Western governments is that they have pledged an amount of 10 billion dollars for a Green Climate Fund, whose task is to support developing countries in mitigating and adapting to climate change. That amount is two-thirds of what those countries have been asking for and, since its creation in 1999, the fund has still to become operational.

And it was only after the last G20 meeting that the United States pledged three billion dollars and Japan 1.5 billion, bringing the total so far to 7 billion dollars – one-third is still missing.

And now we have the upcoming Climate Conference in Lima, in December, where opinion is that governments will once again fail to reach a comprehensive agreement on climate change – and the amount of time left for the planet will reduce even further.

Besides the fight to be expected from the Republican Congress in the United States, there will be also be opposition from countries that depend on fossil fuels, such as Russia, Australia, India, Venezuela, Iran, Saudi Arabia and the Gulf countries.

So, governments show a total lack of consensus and responsibility. If a referendum could be held asking citizens if they would prefer to pay 800 billion dollars less in taxes to avoid subsidising pollution, there are few doubts what the result would be. And there would be same result if they were asked if they would prefer to invest those 800 billion dollars in clean energy or continue to pollute.

But the incestuous relations between energy corporations and governments are out of the public’s eye. It is yet further proof that, even when nothing less than survival is at stake for islands and coastlines, agriculture and the poor, governments are unable – or unwilling – to see beyond their immediate existence. We are direly in need of global governance for this kind of globalisation. (END/IPS COLUMNIST SERVICE)

(Edited by Phil Harris)

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