The Peninsula Foundation

Tag: Solar Energy

  • China’s Role in reducing the Global Carbon Footprint: The 2060 Promise and Geopolitics on the Climate Front

    China’s Role in reducing the Global Carbon Footprint: The 2060 Promise and Geopolitics on the Climate Front

    Introduction

    The devastating role carbon plays in climate change cannot be underestimated. The rise in global surface temperatures, air pollution, and sea levels are visible effects of a rapidly changing environment. China, the world’s second most populous country, is also the largest emitter of greenhouse gases[i]. According to the CAIT database, in 2020, China emitted what amounted to 27% of the total greenhouse gas emissions in the world[ii]. Under President Xi Jinping, China has moved to position itself as an “ecological civilization”, striving to advance its role in global climate protection[iii]. China’s endeavours received acclaim when it became one of the first major countries to ratify the Paris Agreement in 2015, pledging to attain peak emissions by 2030 and net zero carbon emissions by 2060. This article aims to delineate China’s strategies and motivations for addressing carbon emissions and contrast these with the measures implemented by Western and developing countries to diminish their carbon footprint.

    China’s Image and Geopolitics in the Climate Sector

    Considering China’s position on the world stage as one of the largest and fastest-growing economies in the world, it has faced international pressure to take accountability for its contribution to climate change. China has previously argued that as a developing country, it should not have to share the same responsibilities of curbing climate change that developed countries, whose emissions went “unchecked for decades”, have[iv]. Nonetheless, they have pledged to lead by example in the climate sector. A large part of President Xi’s campaign to amplify China’s climate ambitions may come from appeasing the West while also setting up leadership in the clean energy sector to better cement its role as a superpower. According to a New York Times article, their promise to contribute to climate protection could be used to soothe the international audience and to counterbalance the worldwide anger that China faces over their oppression of the Uyghur Muslims in the Xinjiang province and their territorial conflicts in the South China Sea and Taiwan[v]. President Xi’s pledge at the UN to reach peak emissions before 2030 may have been an attempt to depict China as a pioneering nation striving to achieve net zero carbon emissions, serving as an alternative powerful entity for countries to turn to in lieu of the United States. This holds particular significance, as the USA remained mute about taking accountability for its own carbon emissions and withdrew from the Paris Agreement during Donald Trump’s presidency[vi]. This also shows China’s readiness to employ the consequences of climate change on its geopolitical agenda[vii].

    The future actions of China may significantly influence the climate policies of both developing and developed nations, potentially establishing China as a preeminent global force in climate change mitigation.

    China has endeavoured to shape its image in the climate sector. In 2015, despite being classified as a developing country, China refrained from requesting climate finance from developed countries and instead pledged $ 3.1 billion in funding to assist other developing countries in tackling climate change[viii]. As per the World Bank’s Country Climate and Development Report for China, China is poised to transform “climate action into economic opportunity.”[ix] By transitioning to a net zero carbon emissions economy, China can generate employment opportunities while safeguarding its non-renewable resources from depletion. China’s economy is also uniquely structured to seize the technological and reputational benefits of early climate action[x]. The future actions of China may significantly influence the climate policies of both developing and developed nations, potentially establishing China as a preeminent global force in climate change mitigation. Nonetheless, if China fails to fulfil its commitment to attain net zero carbon emissions by 2060, it may suffer substantial reputational damage, particularly given its current status as a pioneer in “advancing low carbon energy supply”[xi].

    Domestic Versus International Efforts in the Clean Energy Race

    However, domestic and international factors could affect China’s goal to peak emissions and the deadlines it has set for itself. A global event that may have affected their efforts to peak carbon emissions was the COVID-19 pandemic, in which the rise in carbon emissions from industries and vehicles was interrupted[xii]. However, after the pandemic, China’s economy saw swift growth, and in 2021, China’s carbon emissions were 4% higher than in the previous year[xiii]. Not only is China back on track to peak carbon emissions by 2030, but the International Energy Agency and World Energy Outlook 2023 also found that “China’s fossil fuel use will peak in 2024 before entering structural decline.”[xiv]

    Although China’s industrial sector is heavily reliant on coal and fossil fuels, it also boasts the world’s largest production of electric vehicles and is a leader in manufacturing solar panels and wind turbines[xv]. In contrast, developed countries, particularly the US, which withdrew from the Paris Agreement in 2017 during the Trump presidency, appear to be making less of an effort towards environmental protection.

    Developing countries, while not entirely possessed of the immense sprawl of China’s economy and population, are nonetheless not at the level of transitioning to clean energy that China is. India, too, has pledged to be carbon neutral by 2070 and to have emissions peak by 2030. Given its increasing economic growth rate, India must decrease its carbon intensity at the same pace. India lags behind China when it comes to manufacturing solar panels and other renewable energy sources. India’s central government is preparing to push energy modernization to “align with global energy transition trends.”[xvi] According to the Economic Times, particular emphasis has been laid on renewable energy sources like solar capacity and e-vehicles in the 2024-25 budget.[xvii]

    China and International Cooperation for Climate Protection

    With China producing sufficient solar capacity in 2022 to lead the rest of the world considerably and the deployment of solar power expected to rise until 2028, it is essential that the West does not make the mistake of isolating China

    Given that China has emerged as the leading manufacturer of electric vehicles (EVs), it remains to be seen whether developed and developing countries will leverage their supply chains to combat their own climate crises. While opportunities are plentiful for Western businesses to integrate with China’s cutting-edge alternatives for traditional energy sources, the United States has adopted a hardline stance towards China[xviii]. The US has imposed 100 per cent tariffs on Chinese-made e-vehicles, and solar cells face tariffs at 50 per cent.[xix] Simultaneously, rivalry and competition between the two countries on the climate front may help combat the climate dilemma and ever-increasing carbon emissions by avoiding the collective action problem. However, this will depend heavily on smooth cooperation and effective communication between Chinese authorities and developed nations within the EU and the USA[xxi]. Empowering domestic groups within countries can raise awareness of climate crises. A poll conducted in China revealed that 46% of the youth considered climate change the “most serious global issue.”[xxii] According to a survey conducted by the United Nations, 80% of people worldwide say they want climate action[vii]. With China producing sufficient solar capacity in 2022 to lead the rest of the world considerably and the deployment of solar power expected to rise until 2028, it is essential that the West does not make the mistake of isolating China[xxiii].

    Conclusion

    China has a significant advantage in its renewable energy sector. Western countries and other developing economies rely heavily on China’s green exports to address climate change urgently. China’s stringent measures to curb emissions from its coal-based industries and the growing output from its alternative energy sources reflect its proactive stance in becoming a global leader in addressing climate change — a position that surpasses other nations’ efforts. While it is debatable whether China’s commitment to reduce its carbon emissions was a political strategy to appease Europe, it is undeniable that tackling climate change is a pressing issue. With the public’s overwhelming support for implementing change in the climate sector, governments worldwide must prioritise their citizens’ needs and cooperate to develop policies that ensure a sustainable future for our planet.

     

    Notes:

    [i] Saurav Anand, “Solar Capacity, EVs, and Nuclear SMRs to Get Budget Boost for Energy Security – ET EnergyWorld,” ETEnergyworld.com, July 11, 2024, https://energy.economictimes.indiatimes.com/news/renewable/solar-capacity-evs-and-nuclear-smrs-to-get-budget-boost-for-energy-security/111648384?action=profile_completion&utm_source=Mailer&utm_medium=newsletter&utm_campaign=etenergy_news_2024-07-11&dt=2024-07-11&em=c2FuYS5zYXByYTIyMUBnbWFpbC5jb20.

    [ii]Saurav Anand, “Solar Capacity, EVs, and Nuclear Smrs to Get Budget Boost for Energy Security – ET EnergyWorld,” ETEnergyworld.com, July 11, 2024, https://energy.economictimes.indiatimes.com/news/renewable/solar-capacity-evs-and-nuclear-smrs-to-get-budget-boost-for-energy-security/111648384?action=profile_completion&utm_source=Mailer&utm_medium=newsletter&utm_campaign=etenergy_news_2024-07-11&dt=2024-07-11&em=c2FuYS5zYXByYTIyMUBnbWFpbC5jb20.

    [iii]Shameem Prashantham and Lola Woetzel, “To Create a Greener Future, the West Can’t Ignore China,” Harvard Business Review, April 10, 2024, https://hbr.org/2024/05/to-create-a-greener-future-the-west-cant-ignore-china.

    [iv]“Fact Sheet: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices,” The White House, May 14, 2024, https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/14/fact-sheet-president-biden-takes-action-to-protect-american-workers-and-businesses-from-chinas-unfair-trade-practices/?utm_source=dailybrief&utm_medium=email&utm_campaign=DailyBrief2024May14&utm_term=DailyNewsBrief.

    [v]Noah J. Gordon et al., “Why US-China Rivalry Can Actually Help Fight Climate Change,” Internationale Politik Quarterly, March 24, 2023, https://ip-quarterly.com/en/why-us-china-rivalry-can-actually-help-fight-climate-change.

    [vi] Simon Evans Hongqiao Liu, “The Carbon Brief Profile: China,” Carbon Brief, November 30, 2023, https://interactive.carbonbrief.org/the-carbon-brief-profile-china/.

    [vii]“Climatechange,” United Nations, accessed July 18, 2024, https://www.un.org/en/climatechange#:~:text=The%20world’s%20largest%20standalone%20public,to%20tackle%20the%20climate%20crisis.

    [viii]Martin Jacques, “China Will Reach Climate Goal While West Falls Short,” Global Times, accessed July 19, 2024, https://www.globaltimes.cn/page/202402/1306788.shtml#:~:text=There%20has%20been%20constant%20low,than%202050%20for%20carbon%20zero.

    [ix] Steven Lee Myers, “China’s Pledge to Be Carbon Neutral by 2060: What It Means,” The New York Times, September 23, 2020

    [x] Simon Evans, Hongqiao Liu et al, “The Carbon Brief Profile: China,” Carbon Brief, November 30, 2023, https://interactive.carbonbrief.org/the-carbon-brief-profile-china/.

    [xi] China | nationally determined contribution (NDC), accessed July 17, 2024, https://www.climatewatchdata.org/ndcs/country/CHN?document=revised_first_ndc.

    [xii] Simon Evans, Hongqiao Liu et al, “The Carbon Brief Profile: China,” Carbon Brief, November 30, 2023, https://interactive.carbonbrief.org/the-carbon-brief-profile-china/.

    [xiii] Steven Lee Myers, “China’s Pledge to Be Carbon Neutral by 2060: What It Means,” The New York Times, September 23, 2020,https://www.nytimes.com/2020/09/23/world/asia/china-climate-change.html.

    [xiv] Steven Lee Myers, “China’s Pledge to Be Carbon Neutral by 2060: What It Means,” The New York Times, September 23, 2020, https://www.nytimes.com/2020/09/23/world/asia/china-climate-change.html.

    [xv] Simon Evans, Hongqiao Liu et al, “The Carbon Brief Profile: China,” Carbon Brief, November 30, 2023, https://interactive.carbonbrief.org/the-carbon-brief-profile-china/.

    [xvi] Matt McGrath, “Climate Change: China Aims for ‘Carbon Neutrality by 2060,’” BBC News, September 22, 2020, https://www.bbc.com/news/science-environment-54256826.

    [xvii] Simon Evans, Hongqiao Liu et al, “The Carbon Brief Profile: China,” Carbon Brief, November 30, 2023, https://interactive.carbonbrief.org/the-carbon-brief-profile-china/.

    [xviii] World Bank Group, “China Country Climate and Development Report,” Open Knowledge Repository, October 2022, https://openknowledge.worldbank.org/entities/publication/ef01c04f-4417-51b6-8107-b688061a879e.

    [xix] World Bank Group, “China Country Climate and Development Report,” Open Knowledge Repository, October 2022, https://openknowledge.worldbank.org/entities/publication/ef01c04f-4417-51b6-8107-b688061a879e.

    [xx] World Bank Group, “China Country Climate and Development Report,” Open Knowledge Repository, October 2022, https://openknowledge.worldbank.org/entities/publication/ef01c04f-4417-51b6-8107-b688061a879e.

    [xxi] Steven Lee Myers, “China’s Pledge to Be Carbon Neutral by 2060: What It Means,” The New York Times, September 23, 2020.

    [xxii]  Steven Lee Myers, “China’s Pledge to Be Carbon Neutral by 2060: What It Means,” The New York Times, September 23, 2020.

    [xxiii] Simon Evans, Hongqiao Liu et al, “The Carbon Brief Profile: China,” Carbon Brief, November 30, 2023, https://interactive.carbonbrief.org/the-carbon-brief-profile-china/.

     

    Feature Image: wionews.com  China leads the charge: Beijing develops two-thirds of global wind and solar projects.

     

  • Technology, Politics and China’s Quest for Energy Dominance

    Technology, Politics and China’s Quest for Energy Dominance

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    Abstract:

    This paper will empirically investigate the role of technology in international politics through a case study of China’s development of renewable energy infrastructure (solar PV and wind energy) and its impact on international politics. This paper looks at how technology helps shape a state’s identity using renewable energy technology as an explanatory variable. The paper employs Grygiel’s Model of Geopolitics to analyse the case study; geopolitics because much of China’s development in the renewable sector has been a function of its geography and abundance of natural resources.

    Introduction:

    China has experienced decades of near double-digit economic growth and since the 2000s, has witnessed a growing population and rapid industrialization that has correspondingly driven demand for energy. Its expeditious implementation of economic reforms has elevated it to the status of a global power capable of challenging the US-established status quo. Stability is increasingly being viewed as a function of China’s behaviour vis-à-vis its strategic rivals, primarily the US, and to a lesser extent Japan, India, Russia and the littoral states of Southeast Asia. But more importantly, it has been China’s near fanatic fervour to rise as a technologically superior state, as the US emerged post the World Wars, that has generated interest. The modernization of its military, near the meteoric rise of installed capacities for renewable sources of energy and technological revolution, underscores the importance and role technological advancement plays in a state’s development. Technology and international politics have a near symbiotic relationship and the former has the potential to fundamentally alter the way states exercise their sovereignty in pursuit of their national interests.

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  • Revisiting India’s Renewable Energy Sector Policy and Limitations

    Revisiting India’s Renewable Energy Sector Policy and Limitations

    One of the most important results in India from the pandemic-driven lockdown that began in March 2020 was the reduction in carbon emissions and its beneficial impact on the environment. Travel restrictions and a decrease in industrial production have caused significant reductions in emissions. But these reductions were temporary. The results, however, highlights the need for India to reduce its dependence on carbon-emitting energy sources and shift the majority of its energy production to renewable sources that will better equip India towards achieving and even exceeding its  Paris Agreement targets.

    The Indian renewable energy sector is the world’s fourth-largest, after the US, China, and Germany. Its wind energy sector has the fourth-highest total installed capacity, 38.124 GW, in the world. Tamil Nadu, Maharashtra, Karnataka, and Gujarat are the leading states in wind energy.  The solar energy sector has emerged as a significant player in the power generation capacity since the establishment of the National Solar Mission 2010. India achieved 5th global position in solar power distribution with an installed capacity of 35,739 MW as of August 2020.

    Yet, over the years, the wind energy sector faced several problems such as an imbalance between demand and supply, persistent energy shortages, insufficient funds, high-transmission and distribution losses, and poor institutional infrastructure. Thus, it is important to identify the exact causes and find solutions so that upcoming projects can be better planned. This article identifies and analyses a few important barriers faced by the renewable energy sector.

    Barriers to the sector

    First, India’s renewable energy infrastructure, despite its considerable growth over the decades, lacks consistent standards as compared to other countries. Wind energy technology has not kept pace with the modernisation achieved across the world.  Research, both in public and private sectors, is one way to mitigate the problem. Despite 80% of the technology being domestic, a significant quantity of manufactured components is imported from China. A mix of foreign and indigenous parts (with different quality and technical standards) results in inconsistency in the technology used which reduces the power plants’ overall efficiency. The Government, in a move to promote domestic manufacturers and “self-sufficiency”, has levied customs duty of 20-25% on solar cells imported from China.

    A 2019 study suggests that the country would require an investment of Rs 1.65-1.75 lakh crore per year to generate cheaper power.

    Second, the renewable energy sector is capital-intensive and requires high capital investment initially to set up the farms. One way to source funds is to increase private sector participation. With increased competition among the private sector to develop technology, the country would gain from the lower costs of power generation and higher employment opportunities. A 2019 study suggests that the country would require an investment of Rs 1.65-1.75 lakh crore per year to generate cheaper power. The Government needs to encourage companies like ReGen Powertech Pvt Ltd., through generation-based incentives and tax holidays, that will invest in renewable energy power plants for its long-term financial benefits, despite the risk factors involved. At a time when investments in the sector are growing, the Government’s move to rescind benefits, may not impact the big players but will certainly have an adverse impact on the volume of investments from small investors, who largely depend on the Government’s support.

    Another financial barrier the sector faces is the lack of proper reinvestment. As the benefits from this sector are usually accrued in the long-term, the Government invests revenue from power generation in short-term development projects instead of reinvesting in the energy sector. Thus, for new solar energy projects to succeed, the efficient allocation of funds is pertinent. Alternatively, India could also follow Germany’s path. In Germany, since the energy transition set off in 2000, tens of thousands began investing in solar panels on their houses and buying shares in wind turbine producing companies, thus increasing capital. The government has actively engaged people in small cooperatives to favour energy transition from fossils to renewable sources.

     According to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA), the total hybrid capacity is at 148 MW and is expected to increase almost 80 times in the next three years.

    Third, the intensity of the wind and solar energy availability is unstable, and it restricts the total power generated. Additionally, the setting up of separate wind and solar power plants is expensive. Thus, the government’s National Wind Solar Hybrid Policy of 2018 is highly pertinent. According to the policy, the two sources of energy complement each other, since solar can fuel power in the day and wind at night. This also means that the solar panels and wind turbines can be set up on the same farm, thus reducing costs. According to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA), the total hybrid capacity is at 148 MW and is expected to increase almost 80 times in the next three years.

    In relation, the renewable energy sector also faces the problem of storage. Although India has developed battery storage facilities, it lacks a central framework to control the use of energy storage systems. The technology available is not enough to store energy from all power grids. This implies that an equilibrium has to be maintained between the demand and supply of power from renewable energy to reduce wastage. But this is an onerous task. The Solar Energy Corporation of India (SECI) has recently encouraged bids for designing, engineering, and constructing new solar projects with provisions for battery storage systems. The recent World Energy Outlook report by the International Energy Agency (IEA) predicts that India will become the largest market for utility-scale battery storage by 2040.

    The Government should treat PV waste separately and bring out recycling policies that will sustain the solar energy sector in the long run.

    Lastly, the sector faces disposal issues as there is no proper system in place to dispose of broken solar panels and wind blades. Broken solar panels emanate harmful chemicals that are detrimental to the environment and consequently, public health. Solar PV waste is by default considered e-waste and is therefore guided by the e-Waste Management Rules, 2016. According to this, manufacturers are liable for the disposal of PV waste. But this regulation is inadequate. The Government should treat PV waste separately and bring out recycling policies that will sustain the solar energy sector in the long run. Europe, for instance, has set up a recycling plant that separates the different parts of the panel and recycles them individually. Given the increasing pace at which the solar energy sector is growing in India, setting up a similar method of waste management will benefit the sector and ergo the country’s future.

    Conclusion

    While India is responsible for nearly 6.65% of total global carbon emissions, it is also leading in the renewable energy sector. Its share of coal-based power plants in new installations declined significantly from 62% in 2016 to just 19% in 2017, whereas solar power led with around 45% of total power capacity additions. But to maintain this development, the Central and State governments should make coordinated efforts and bring out policies that ensure that power is affordable to all people, and efficiently manage renewable energy waste to not only reach its energy targets but also to ensure its overall development and growth.