Climate Change: The Hottest topic of the Season Use of Fossil Fuels for Generation of Electricity/How can CSR help?

Let us start with a simple definition of climate change. Climate change refers to long term shifts in temperature and weather patterns on Earth.

What is climate change and how does it matter to us?

Interesting Study Released on Tamil Nadu by Anna University’s Centre for Climate Change and Disaster Management:

This will us an idea of one city in India grappling with Climate Change.

Interesting FACT:

Fossil fuels that is coal, oil and gas are the largest contributors to global warming. 

How?

Coal, oil and gas cause greenhouse gas emissions and carbon emissions. Greenhouse emissions blanket the earth and trap the sun’s heat, this leads to global warming and climate change.

Fossil fuels are the largest contributor and account for 75% of global greenhouse emissions and 90% of carbon dioxide emissions. Due to greenhouse gas emissions and trapping of sun’s heat by the greenhouse blanket, earth is warming faster than any point in history.

What are the activities related to fossil fuels which are contributing to this greenhouse effect:

1.       Generation of Power
2.       Manufacturing goods
3.       Using transportation
4.       Producing food
5.       Powering buildings
6.       Overconsumption

Generation of Power: Most electricity is still generated by burning coal, oil, or gas, which produces carbon dioxide and nitrous oxide – powerful greenhouse gases that blanket the Earth and trap the sun’s heat.

Global coal consumption reached an all-time high in 2022 and the world is heading towards a new record in 2023. Global coal demand reached a record high in 2022 rising 4% year on year to 8.42 billion Tonnes. Global CO2 emissions from coal-fired power plants reached a new high in 2022.  In 2022 CO2 emissions from coal-fired power plants grew by over 2% from the previous year.

Interesting FACT: Coal-fired power plants account for more than one-third of total electricity generation in the world. Though consumption of coal has fallen by 20% in European union and United States, the growth in China has been around (5%) and India has been around (over 8%) followed by other Asian countries like Indonesia and Vietnam.

What has led to the increase in demand in India?

Extreme heatwaves lead to a sharp increase in demand for electricity, which is primarily met by coal fired generation. Year on year, climate change is causing an increase in temperature, which in turn results in increasing demand for electricity and more power generation. This is leading to a significant year-on-year increase of more than 8.5% demand in coal in 2022, with a 20% increase in April through July compared to the same period in the previous year.

Caveat: India today though is a major contributor of greenhouse gases; it is unfair to put the country in the same class as the United States or China. Looking at per capita emissions, India produces at about 2 tons CO2e per capita—a fraction of the 20 tons CO2e in the U.S. or even the 8 tons CO2e in China.

Is Net Zero Possible with Coal Fired Power Plants?

The overall trend currently is not on track with the Net Zero Emissions by 2050 Scenario. We need to reduce coal‐fired generation by 55% by 2030 compared to 2022 levels, and a complete phase-out by 2040.

Wondering what is the progress on Wind and Solar Energy Sources Worldwide?

Only a quarter of electricity comes from wind, solar and other renewable sources. These renewable sources emit little or no greenhouse gases or pollutants into the air.

As far as India is concerned, we are fourth in position in world in terms of renewable energy produced per year. 

How can CSR based Initiatives reduce dependence on coal for generation of electricity.

By targeting “Net Zero”. In simple terms “Net Zero” is cutting greenhouse gas emissions to as close to zero as possible.

The energy sector is responsible for around three-quarters of greenhouse gas emissions today. Replacing coal, gas and oil-fired power with energy from renewal sources such as wind and solar would reduce carbon emissions.

Interesting FACT: The top five emitters (China, the United States of America, India, the European Union, the Russian Federation) accounted for about 60 per cent of greenhouse gas emissions in 2021.

How can companies contribute to CSR to achieve net zero goal?

Carbon Reduction Initiatives:

Renewable Energy Investments: Invest in solar on large scale particularly to make Government schools, PHCs and hospitals go grid free. This should include long-term commitment to support maintenance of these solar installations over years so that sustainability is ensured. 

Energy Efficiency Programs: Installation of energy meters and education of the personnel on the same to understand the impact of these initiatives. This will encourage them to try the same initiatives at more locations or even at their own homes. 

Awareness of Renewable Energy: Workshops on renewable energy held on war footing to help people understand the seriousness of climate change and necessity to adopt renewable energy instead of traditional methods.  As of today, few are aware of the crisis we are facing on earth due to fossil fuels.

By integrating these CSR initiatives into their business practices, companies can make meaningful contributions to the global effort to achieve net-zero emissions while demonstrating their commitment to responsible and sustainable business practices.