5.5.16

Energy-related CO2 emissions by India & China in the New Policies Scenario

As the economies of China and India take off, global concerns about their impact on energy consumption and climate change have increased. Both countries have complex energy regulatory and policy machinery that traditionally employs a five-year national economic planning cycle. The main purpose of this paper is to examine the emerging policy concerns in the context of energy related CO2 emissions in the countries.
India’s energy policymaking is highly fragmented and decentralized, with a strong tradition of federalism. In India, the federal government has control over mineral and oil resources, nuclear energy and some taxes. States, by contrast, have jurisdiction over water and land rights, natural gas infrastructure, and taxation of mineral rights and the consumption and sale of electricity. In other areas, they share power, such as over electricity, forestry, and economic planning. There is no institutional body that has overarching authority over a national energy policy. Several ministries share power over various aspects of energy policy and energy infrastructure, which can result in fragmented decision-making. In addition, the country’s policy direction may shift as electoral mandates change.  Energy policy making in China is much more centralized and top-down. The State Council, in accordance with the vision of the Chinese Communist Party, sets the overall policy direction of the country. The State Council’s various organs, primarily the National Development and Reform Commission (NDRC), formulate and implement most of the important energy policies. These policies are conveyed across the vast country through provincial level NDRCs to ensure that the will of the central government does not get misconstrued. There is no federalism in China, as in theory the provinces are subordinate to the central government, although the reality of implementation is often messier.
While China’s 13th five year plan (FYP), was released in March 2016 and covers the period up to 2020. The headline targets are to reduce energy intensity by 15 percent and carbon intensity by 18 percent compared to 2015 levels. In addition, energy consumption will be capped at 5 billion tons of coal equivalent, and the share of primary energy consumption from non-renewable sources will increase to 15 percent.

Internationally, the Indian Government has voluntarily agreed to reduce the emissions intensity of its gross domestic product (GDP) by 20–25 percent from 2005 levels by 2020. Indian and international studies suggest that India is likely to meet—or even exceed—this pledge based on its existing policy package and macroeconomic trends. Nevertheless, significant uncertainty surrounds the effective implementation of these policies and changes in the GDP composition. Domestically, the Indian Government launched the National Action Plan on Climate Change (NAPCC), which includes eight missions to tackle climate change on a sector-by-sector basis.2 Although India has not apportioned the 20–25 percent energy intensity reduction target to specific missions, at least two of these missions (the Jawaharlal Nehru National Solar Mission and the National Mission for Enhanced Energy Efficiency) are expected to contribute to meeting this goal. This is an advance over the approach taken in the 11th 5-year plan, in which concern about climate change was expressed in the form of a limited reference to the objective of improving energy efficiency by 20 percent by 2016–17.


Both countries’ economies are growing at an unprecedented pace. Due to high economic growth based on rapid industrialisation, the energy consumption of both countries is rising fast. Against this background, the quest for energy security has transformed both countries’ policies domestically and internationally. Thus showing a possibility for attaining a world with an economy driven by `green growth' .

Nupur Dass
20153044

1 comment:

  1. This is a summary from two different sources. Where are your words?

    ReplyDelete