Shortcomings In the Endeavour Of Coal-free Future
Penulis: Ditria Nabila
The coal industry’s prospects appear to be dimming as the world becomes more conscious of the issue of climate change. Banks, especially in Asia, had already started to prepare to withdraw funding for fossil fuels, particularly coal. For instance, the Asian Development Bank (ADB) reportedly declared that it will no longer finance coal-fired power plants, coal mining, or oil and natural gas production and development. Following ADB’s decision, a number of Southeast Asian banks, as well as development banks and export credit agencies (ECA) from China, Japan, and South Korea, withdrew financial assistance for dirty energy power generation. This is a banking sector endeavor to promote significant climate change objectives by the middle of the century (Fajrian, 2021).
Indonesia, as one of the world’s largest coal producers, showing a reversal in coal. Domestic coal usage in Indonesia is assumed to be 140–145 million tonnes in 2020. This is less than the objective of 155 million tonnes but more than the 138 million tonnes which were consumed in 2019 (Reuters, 2020). Jokowi stressed the discourse on green economy investment, indicating that he was serious about building the country’s green economy. One of them is the substitution of newer and renewable energy replacing coal. He stated that he had approved a Presidential Regulation addressing the carbon economic value instrument, which also will govern the forthcoming carbon trading system. Furthermore, in the energy sector, Indonesia is opening up investment possibilities to retire coal facilities early and substitute them with renewable energy. Indonesia had established a goal of using 23 percent renewable energy by 2025 and 31 percent by 2050 (Gielen, Saygin and Rigter, n.d.). In addition, the President stated that Indonesia has the capacity to produce electric cars and batteries. This is due to Indonesia’s mineral riches, which includes nickel, copper, and bauxite/aluminium (Tambun, 2021).
Whereas developed countries have shifted from the secondary (manufacturing) to the tertiary (services) economies, developing countries are anticipated to see considerable development in infrastructure projects in the future years. According to the International Energy Agency (IEA), as populations and GDPs in emerging nations in South Asia, Southeast Asia, and Africa expand, so too will demand for steel, cement, and concrete. In addition, as per the Indonesian Mining Energy Forum (IMEF), oil, coal, and natural gas still account for over 84 percent of total energy use. The majority of Indonesia’s coal output, which is expected to be over 625 million tons this year, will almost probably be consumed in the Asian market, particularly in China and India (Fajrian, 2021). Coal has also long been considered the major source of energy in the Philippines. According to Energy Secretary, Alfonso Cusi, the energy shift ought to be fuel and technology neutral. Attempting to stop investment in oil, gas, and coal without addressing efficiency and competitiveness, according to Cusi, will be a loss for the Philippines, he further exclaimed that this will be a struggle for the Philippines to join the ranks of higher middle-income countries (RR, 2021).
The emphasis on a fair shift to sustainable energy and the accelerated stage of coal seems to be at the center of COP26, and is viewed as critical in the quest to control global rising temperatures to 1.5 degrees Celsius, as stipulated by the Paris Agreement. However, because of the emphasis on the electricity sector, the second greatest source of carbon emissions, major industries did not receive adequate interest (Mondal, 2021). Heavy industry is the second-largest contributor of carbon pollutants after the power industry, responsible for 27% of total CO2 emissions globally. Cement is the single greatest pollutant in heavy industry, accompanied by iron & steel and petrochemicals. Steel, cement, aluminium, and chemicals are the four most common materials used in infrastructure building, accounting for 60 percent of current sector emissions. Steel consumption is expected to rise by more than a third until 2050, led by growing countries such as those in South and Southeast Asia, where large populations necessitate greater infrastructure investment. To make matters worse, it is extremely challenging to render these sectors more ecologically sustainable. Utilizing renewable energy to produce steel, for instance, has its own set of issues. The carbon emissions from these growing industries may exceed the remaining carbon budget needed to keep global warming to 1.5 degrees Celsius (Mondal, 2021).
Despite worldwide consciousness of the need to minimize reliance on fossil fuels is growing, the development of renewable energy sources shows no evidence of a drop in coal consumption. The Pacific region’s need for coal is expected to rise further until at least 2035. In essence, the large orders for coal from China and India suggest that there is still a prospect for up to 40 years. Even though Japan, South Korea, and Taiwan have begun to cut their usage, they will require coal for at least another decade (Mondal, 2021). Also, while the effort to accomplish clean energy objectives by reducing reliance on coal is praiseworthy, some considerations must be made, such as how developing countries can adapt with the changes. Some emerging nations, particularly in Asia, are still heavily reliant on coal, and the deadline for coal-free development appears to be far off or difficult for such developing countries to meet. To make that transformation achievable, the developed nations should be doing more to help nations still focused on bringing their people out of poverty to consider green solutions.
References:
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