US President Donald Trump’s catchphrase at his inauguration, ‘Drill, baby, drill!’, to boost fossil fuel production showed that the developed world continues to depend on oil and gas. India’s Economic Survey 2024-25 points towards the US and EU’s continued investment in fossil fuels and says that India has no reason to neglect coal.
The Survey notes that commercial interests and energy security remain the most significant factors in the energy transition and there is no valid economic rationale for India to shut down coal plants.
“Coal has an important role to play in India’s sustainable development. Lessons learnt from the experiences of developed economies caution against shutting down thermal energy without adequate technological alternatives that allow a stable energy supply,” it said.
Developed countries have been demanding that emerging economies like India transition from coal-based power to bring down emissions.
Drawing on the historical carbon emissions data, the Survey said around 88% of the US’s coal-fired capacity was built between 1950 and 1990, while the United Kingdom, driven by its industrialisation, started very early and its coal-run power plants dominated energy supply till the late 1970s, when natural gas was identified as a reliable substitute.
“In India’s case, most capacity additions to the coal-fired power plants were made only in the 2010s. There is no valid economic rationale for shutting down coal plants in India, leaving huge investments underutilised and stranded and without a dependable alternative in place. The US and European countries may transition from coal to natural gas because they have access to that resource, and their older conventional coal-based thermal plants are nearing the end of their life cycle,” it added.
The Survey said in 2022, the EU introduced the REPowerEU plan, which aims to reduce dependence on Russian gas supplies with a budget of €10 billion allocated for investment in liquefied natural gas infrastructure and an additional €1.5–2 billion designated for securing oil supplies.
The EU further amended its sustainable taxonomy to include generating power and heat from fossil gaseous fuels as a transitional activity and the US administration in 2023 also approved the country’s largest oil drilling project in Alaska, with an estimated total oil and non-gas liquids production of 628.9 million barrels and 260.79 million metric tons of associated indirect carbon dioxide equivalent of emissions.
“Actions speak louder than words, with the biggest beneficiaries of carbon-intensive growth over several centuries holding on to fossil fuels even as they would want the developing countries to take up the less efficient, costlier and riskier options,” the Survey further said.