COP28: Carbon capture at ultra-supercritical coal power plants can meet India’s developmental, green goals

India has an opportunity to take the lead in a transition to cleaner ultra-supercritical coal power plants.

India, as one of the world's fastest-growing economies, grapples with the urgent need to mitigate the impacts of climate change, a pressing concern to be addressed at COP28. The country's ambitious plans to decrease GDP emissions intensity by 45 percent by 2030 from 2005 levels are intricately linked with sustaining robust economic growth. Forecasted to reach Rs 301.75 trillion ($3.69 trillion) in 2023-24, India strives to achieve a $5 trillion economy by FY2025.

India’s Ambition

However, these aspirations necessitate substantial investments, particularly in the renewable energy sector, aligning with India's goal of reaching net-zero emissions by 2070. Such a transition demands significant funding—approximately $10.1 trillion between 2022 and 2060, a figure that escalates to $3.4 trillion if the net-zero targets are advanced to 2050.

India's commitment to net-zero emissions could potentially boost its economy by 4.7 percent above projected baseline growth by 2036, equating to a remarkable $371 billion. The shift toward renewable energy not only enhances economic prospects but also fosters environmental sustainability, potentially reducing air pollution and creating jobs within the clean energy sector.

As India progresses toward expanding its renewable energy capacity, aiming for 500 gigawatts (GW) by 2030, it stands at the forefront globally. India ranked fourth globally in renewable power capacity, boasting 163GW of installed energy, while having the world’s largest renewables auction market with over 38GW of solar and wind energy projects auctioned in 2022. Besides, with over $20 billion of investments in 2022, India became the third-largest investor in the renewable energy sector globally.    Despite these strides, challenges persist, limiting renewable energy's contribution to overall power generation, currently hovering around 14 percent.

The Renewables Challenge

Moreover, irrespective of the global downtrend in renewable costs over the past decade, the world grapples with challenges in the speed of renewable deployment, infrastructure readiness, funding levels, and the inclusivity of this transition – all falling short of the demands outlined by the 1.5°C pathway. In response to this concern, the Energy Transition Working Group, led by India during its G20 presidency, has pinpointed “low-cost finance for the energy transition” as one of its top six priorities.

Within the G20 discussions, particular attention was given to the worldwide escalation in interest rates, significantly impacting the expenses related to capital and debt financing for renewable energy projects, notably in developing nations. This surge has heightened the costs of climate-focused bonds and bank support for sustainable initiatives.

Macro-level crises, such as pandemic shocks, supply chain disruptions, and the Ukraine conflict have spiked food and energy costs, prompting global interest rate hikes to curb inflation. This impacts renewable energy progress, especially in India and the Global South. Overcoming this demands stakeholder collaboration, innovative frameworks, and private capital leveraging through blended finance. Addressing climate risks can improve access to low-cost capital. India's advocacy for this in COP28 is pivotal, vital for scaling up green technologies like hydrogen and energy storage.

The Carbon Capture Route

India faces a critical challenge in its renewable energy journey under its coal policy. Relying on coal for 70 percent of electricity, India sees it as crucial due to poverty alleviation and rising electricity needs. Advocating for a gradual reduction rather than an abrupt removal, India emphasises “national circumstances” in COP28, balancing economic growth with environmental goals. Moving toward ultra-supercritical coal (USC) power (a more efficient technique that uses less coal for producing the same amount of energy), India aims to phase-down, decrease carbon emissions, and pursue eco-friendly alternatives. Yet, to align with net-zero targets, India should prioritise carbon capture utilisation and storage (CCUS) tech to further reduce its carbon footprint.

However, India's pursuit of its climate goals via ultra-supercritical coal power hinges on deploying CCUS technology. CCUS can potentially capture 90 percent of the CO2 emissions and securely store it underground, making it compatible with the Paris Agreement goals. But CCS remains underutilised and financially challenging, adding extra costs and complexities to coal power facilities. However, this challenge can be addressed by leveraging its existing partnerships and platforms such as International Solar Alliance, the Mission Innovation global initiative, and the Clean Energy Ministerial in the G20. Moreover, by showcasing its own initiatives in a CCUS project in Talcher while pitching for CCUS support, India can demonstrate its leadership and commitment to climate action, while ensuring its energy security and economic growth in the COP28.

Thus, India's stance at COP28 bridges economic growth with climate action, urging investments in renewables for net-zero targets. While balancing coal with a gradual reduction strategy, it can also push for CCUS tech for sustainable progress. Advocating low-cost financing, India has led to climate action, securing energy and environmental goals globally.

Manish Vaid is Junior Fellow, Observer Research Foundation. Views are personal, and do not represent the stance of this publication.