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28th June 2024 (15 Topics)

Fossil Fuels Still Dominate Global Energy, with Global North Leading the Production

Context

The 2023 Statistical Review of World Energy (SRWE) reveals a record high in primary energy consumption, highlighting the persistent dominance of fossil fuels and the contrasting energy trends between the Global North and Global South.

Trends and Data on Energy Consumption:

  • Record Primary Energy Consumption: The world saw a 2% increase in primary energy consumption in 2023 compared to 2022. Despite the growth in renewable energy, fossil fuels still constitute 81.5% of the global energy mix.
  • Regional Disparities: The Global South, particularly the Asia-Pacific region, accounted for 56% of total energy consumption in 2023, with significant contributions from China, India, and Indonesia. In contrast, energy demand in Africa fell by 0.4%.
  • Greenhouse Gas Emissions: Global emissions rose by 2.1%, crossing 40 billion tonnes of CO2 equivalents. The Global North continues to have higher per capita emissions, with North America averaging 11.5 tonnes of CO2 per person compared to 2 tonnes in the Global South.

Fossil Fuel Production and Consumption:

  • Oil Production and Consumption: Oil consumption reached a record 100 million barrels per day, driven mainly by China. The United States remains the largest oil producer, with an 8.5% increase in production, while Russia's production fell by 1%.
  • Natural Gas and Coal: The US set a new record in natural gas production, surpassing Qatar as the largest exporter of LNG. Coal production reached record levels, with 80% of output from the Asia-Pacific region, led by China and India.
  • Impact of Sanctions: Russia’s oil production decline is attributed to international sanctions following the conflict with Ukraine.

Renewable Energy Trends:

  • Growth in Renewables: Renewable energy accounted for 14.6% of total primary energy consumption in 2023. Renewables generated 30% of the world's power, with significant contributions from solar and wind.
  • Regional Contributions: The Southern and Central American region had 72% of its power generation from renewables, despite significant growth in oil production.
  • Record Installations: Record levels of renewable capacity installation, especially in China and Europe, reached 67%.
Challenges and Future Outlook:
  • Energy Demand in Developing Regions: Despite low current energy demand, the population growth in Africa and South Asia positions these regions for increased future demand.
  • Fossil Fuel Transition: The Global North, as historical polluters, must lead the transition away from fossil fuels. However, the transition remains slow in these regions.
  • Policy Implications: The SRWE underscores the need for robust policies to balance economic growth with environmental sustainability, particularly in developing regions heavily reliant on fossil fuels.
Fact Box: India’s Energy Demand and Infrastructure:
  • India is the world's third-largest energy consumer. Electricity accounts for 34 per cent of India’s total GHG emissions.
  • The country has achieved an installed capacity exceeding 400 GW, leveraging a mix of traditional fuels like coal, oil, and gas, alongside renewables such as solar, wind, biomass, and hydroelectric power.
  • India’s Climate Commitments
    • Net Zero by 2070
    • India aims to reduce its emission intensity by at least 45% from 2005 levels by 2030.
    • At least 50% of the country’s total electricity will come from renewable sources by 2030.
  • As of May 2024, Renewable energy sources, including large hydropower, have a combined installed capacity of 193.57 GW.
  • Installed capacity for Renewables:
    • Wind power: 46.42 GW
    • Solar Power: 84.27 GW
    • Biomass/Co-generation: 10.35 GW
    • Small Hydro Power: 5 GW
    • Waste To Energy: 0.59 GW
    • Large Hydro: 46.92 GW
  • India’s initiatives:
    • Electric Mobility and Vehicle Scrapping Policy: India has launched the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles Scheme to accelerate the transition to electric vehicles (EVs).
    • Green Hydrogen Production: India plans to establish a green hydrogen electrolyzer gigafactory in Bangalore, capable of producing 20 million tonnes (MT) of green hydrogen annually by 2030 at $1 per kilogram, valued at $20-25 billion.
    • Transportation Revolution: To achieve Net Zero Emissions by 2070, India is focusing on enhancing "walkability," public transportation, rail networks, roads, and improving vehicle efficiency.
    • Electric Vehicles (EVs): Aligned with global climate goals under the Paris Agreement, India supports the EV30@30 campaign, aiming for a 30% EV sales share by 2030.
    • Ethanol Blending in Petrol: India has advanced its target of 20% ethanol blending in petrol to 2025, aiming to reduce petroleum-related pollution.
    • 100% FDI is allowed for renewable energy generation and distribution projects subject to provisions of The Electricity Act 2003.
  • Transition to Renewable Energy: Despite fossil fuels dominating the power sector, India has set ambitious goals to increase the share of renewable and nuclear energy.
Related PYQ

Q1: The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries.  [2016]

Q2: Give an account of the current status and the targets to be achieved pertaining to renewable energy sources in the country. Discuss in brief the importance of the National Programme on Light Emitting Diodes (LEDs). (2016)

Q3: Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international for in the context of geopolitics.  [2022]

UPSC Mains Questions:

Q. Discuss the implications of the persistent dominance of fossil fuels in the global energy mix on efforts to combat climate change. Highlight the role of developed and developing countries in this context.

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