India unlikely to accept IEA's call to stop new fossil fuel investments

India is unlikely to accept the radical recommendation of the International Energy Agency (IEA) to drop new investments in fossil fuels, soon.  “We do not think the report by IEA has been vetted by the member countries as a position document”, said a senior source in the government. 
 

This week, IEA director general Fatih Birol issued a document, "Net Zero by 2050: A roadmap for the global energy sector”. It suggests there should be no investment in new fossil fuel supply projects from as early as this year. Of particular worry for India is its injunction that there should be no further investment for “new unabated coal plants”. It also says sales of new internal combustion engine passenger cars should be halted by 2035. The report has surprised the media, as IEA, despite its recent efforts to promote renewables, was seen as a club of oil and gas producing countries. It has come just when European nations have got renewed support from President Joe Biden’s team in the USA to push for countries to adopt a net zero carbon emissions target by the year 2050. 

Officials at both the ministries of power and coal have expressed surprise at the conclusions reached by IEA. “The ministry of coal has not received this document”, said Anil Jain, secretary of the ministry of coal.

A source in the ministry of power said, the document should not be given more importance than as an academic input into the global negotiations. “There are formal procedures through which countries express their commitment to international goals. The IEA as a forum of member countries should have taken the pains to reach out to them for acceptance”, the source said. 

India has auctioned its first tranche of 19 coal mines for unrestricted commercial use in 2020. It has begun the process for the second tranche this year, offering 67 mines. At the auction coal minister Pralhad Joshi said, “commercial coal mining will bring in new investments, create huge employment opportunities and boost socio-economic development in coal-bearing states. A market-based coal economy will help the nation become Aatmanirbhar  (self reliant) in coal”. Next door, the petroleum and natural gas ministry has held similar rounds of bidding for oil and gas exploration blocks over the past few years. Eleven blocks with an area of 19,789 sq. km were awarded in October 2020 in the fifth round and more are in the works. Work on all of these would have to stop immediately, if the IEA pathway is adopted.