Plan to end import leads to renewed coal push in India amid rising concerns

By Vivek Saini

India’s energy landscape is critical as the government embarks on an ambitious plan to eliminate coal imports by the fiscal year 2026. This initiative, aimed at bolstering energy security, hinges on increasing domestic coal production by auctioning new coal mines. However, environmental experts raise concerns about the long-term consequences of this strategy, highlighting the potential for increased air and water pollution, land degradation, and greenhouse gas emissions. With the world grappling with climate change, India’s coal push ignites a crucial debate: can energy independence come at the cost of environmental sustainability?

Short-term gain, long-term pain

The Indian government’s recent decision to auction 60 new coal mines has reignited debates about the environmental impact of coal mining. This move aims to boost domestic coal production and reduce import dependency, a longstanding issue for India’s energy sector​. However, the long-term environmental costs associated with this expansion are significant and multifaceted, raising critical concerns about the sustainability of such a strategy.

Environmental degradation and health concerns

Coal mining and combustion are significant sources of air pollution, releasing harmful pollutants such as sulfur dioxide (SO2), nitrogen oxides (NOx), and particulate matter (PM). These pollutants contribute to respiratory illnesses, cardiovascular diseases, and other serious health issues. Expanding coal mining activities is expected to exacerbate air quality problems in coal-rich regions, negatively impacting public health and environmental quality​​. According to the World Health Organization, air pollution from coal combustion is linked to increased rates of asthma, lung cancer, and other severe respiratory conditions​​.

Moreover, coal mining often leads to land degradation and deforestation. Clearing forests for mining operations destroys habitats, reduces biodiversity, and disrupts ecosystems. Soil erosion and water pollution from mining activities further degrade the environment, affecting local communities and wildlife. The contamination of rivers and groundwater with toxic substances from mining operations poses a severe threat to water resources, which are crucial for human consumption and agriculture​​. Reports indicate that regions surrounding coal mines often suffer from contaminated water supplies, making them unsafe for drinking and irrigation​​.

Climate Change

Burning coal is a significant carbon dioxide (CO2) emission source, significantly contributing to global warming and climate change. Despite international commitments to reduce greenhouse gas emissions, India’s continued reliance on coal undermines these efforts. The increased coal production will lead to higher CO2 emissions, making it challenging for India to meet its climate targets under the Paris Agreement​​. Experts argue that instead of expanding coal mining, India should focus on scaling up renewable energy sources like solar and wind, which have significantly lower environmental footprints​​. The International Energy Agency (IEA) has found that the combination of solar PV and battery storage is already cost-competitive with new coal plants in India, suggesting that renewable energy investments could provide a more sustainable alternative​​.

Long-term economic costs

While coal expansion may provide short-term economic benefits, such as job creation and energy security, the long-term financial costs are considerable. Health problems related to air pollution increase healthcare expenses and reduce labour productivity. Environmental degradation can lead to the loss of ecosystem services, such as clean water and fertile soil, which are crucial for sustainable development. Additionally, as global markets shift towards cleaner energy sources, investments in coal infrastructure may become stranded assets, leading to financial losses. The economic burden of addressing environmental damage and public health crises related to coal mining could outweigh the immediate financial gains from increased coal production​​.

Experts stress the urgent need to transition to cleaner energy sources to mitigate the environmental and economic risks associated with coal. Aarti Khosla, Director of Climate Trends, underscored that while the energy transition is gaining momentum, it must be accelerated to prevent the harmful impacts of coal reliance becoming irreversible. Professor Rahul Tongia from Brookings India also pointed out that increasing coal production contradicts India’s renewable energy ambitions and undermines global climate efforts​. Samantha Gross from the Brookings Institution further emphasised that coal, despite being a dominant energy source, is not sustainable in the long run due to its environmental and health impacts​.

Ignoring renewables in the rush for coal?

India has a vast potential for renewable energy, particularly solar and wind power. The International Energy Agency (IEA) notes that the combination of solar photovoltaic (PV) and battery storage is already competitive with new coal plants in India​​. However, despite this potential, the growth of renewable energy has been slower than expected. The World Economic Forum highlighted that while India aims to achieve 450 gigawatts of renewable energy capacity by 2030, the deployment pace needs to be significantly accelerated​​. Solar and wind energy resources are abundant and offer a cleaner alternative to coal. India’s location provides ample sunlight and wind, making it ideal for large-scale renewable energy projects. Investments in these sectors help reduce carbon emissions, create job opportunities, and drive technological innovation. However, the government’s current focus on coal expansion diverts resources and attention away from these promising sectors​​.

Renewable energy projects are becoming increasingly cost-effective. The cost of solar power has dropped dramatically over the past decade, making it one of India’s cheapest energy sources. According to the International Renewable Energy Agency (IRENA), the levelized cost of electricity from solar PV has fallen by 82% since 2010​​. In contrast, coal mining and coal-fired power plants require substantial ongoing investments in infrastructure, maintenance, and pollution control measures. Moreover, the renewable energy sector has the potential to generate millions of jobs. A report by the Council on Energy, Environment and Water (CEEW) and the National Renewable Energy Laboratory (NREL) states that achieving India’s renewable energy targets could create over 330,000 full-time jobs by 2030​​. 

References:
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2026605

https://www.weforum.org/agenda/2021/01/india-renewable-energy-clean-pandemic-climate-change-sustainability

https://interactive.carbonbrief.org/india-coal-mines

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2020/Jun/IRENA_Costs_2019_EN.pdf?la=en&hash=BFAAB4DD2A14EDA7329946F9C3BDA9CD806C1A8A#:~:text=The%20cost%20of%20electricity%20from,fifths%20over%20the%20last%20decade.

https://www.ceew.in/sites/default/files/CEEW-NRDC-SCGJ-indias-renewable-energy-sector-to-employ-one-million-people-by-2030-27jan22.doc.pdf

https://www.sciencedirect.com/science/article/pii/S2666759220300500#:~:text=People%20who%20are%20indirectly%20exposed,diversity%20of%20environmental%20air%20pollutants.

https://pib.gov.in/PressReleasePage.aspx?PRID=1987752

https://en.wikipedia.org/wiki/Environmental_effects_of_mining

https://www.iea.org/commentaries/india-s-clean-energy-transition-is-rapidly-underway-benefiting-the-entire-world

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