Bold climate goals in COP26: Unwavering move or political greenwashing?

Highlights

• Many major coal consuming countries have pledged to shift away from coal in a bid to achieve global climate goals. 
• Despite COVID-19-induced lockdowns, the greenhouse gas concentration touched a record high in 2020, going up at a rate faster than the annual average for the last decade. 
• China’s economic recovery was driven by aggressive steel-making activities, which use a significant volume of coal.

The annual UN climate change conference, the COP26 climate summit in Glasgow, has kicked off with more ambitious goals when major coal consuming countries pledged to shift away from fossil fuels. Notably, coal is one of the major contributors to greenhouse gases causing global warming.

However, it will not be the first time when such bold commitment has been made on the table, with the past years seeing a very negligible success compared to the commitments made on the conference table. Just days before the conference, the UN Environment Programme (UNEP) had said that national plans to tackle carbon emissions amounted to “weak promises, not yet delivered”. 

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Where is the world heading?

The greenhouse gas concentration hit a record high in 2020 despite COVID-19-induced lockdowns. The concentration grew at a rate faster than the annual average for the last decade, says a report by the World Meteorological Organization.

UN Chief António Guterres commented that the world was “still on track for climate catastrophe”. Notably, a recent UN report said that the world is expected to witness a temperature rise of 2.7 degrees Celsius by the end of the century on the current commitment by 192 countries. 

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This poses a devastating impact on life on the Earth. Meanwhile, extreme weather events such as forest fires and floods are increasingly hitting the world. At this stage, even the slightest uptick in temperatures can lead to catastrophic changes in global weather phenomena. 

Commitment from various countries

Many nations such as Poland, Chile and Vietnam have vowed to quit coal at the COP26 climate summit. The signatories would end all investment in new coal power generation at both domestic as well as international level. 

However, major coal consumers such as China, India, Australia, and the US have not pledged such a shift. US President Joe Biden plans to halve US greenhouse gas emissions by 2030. India, where 70% of electricity generation depends on coal, targets net-zero emission by 2070. Developing countries would need more funding to phase out their coal for electricity generation. 

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Meanwhile, China and Russia did not attend the GOP26 summit, raising concerns regarding their plans to end dependency on coal.

Record high coal prices amidst high demand

Coal prices in China touched record highs after ambitious coal-consuming steel making activities consumed coal inventories while the fossil fuel production received a significant blow from floods in its key coal-producing areas. It led to a severe power crunch in the country.

 In addition to direct intervention to set an immediate price target, the Chinese government has taken several initiatives to boost coal production. 

ALSO READ: China coal futures hit record highs on strong electricity demand

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In the current competitive landscape where power-producing companies and other coal users continue to ramp up coal imports, the dependency on fossil fuels becomes highly evident. 

EV and Clean Energy solutions have big shoes to fill

Electric vehicles (EVs) appear to be the megatrend unfolding in the auto sector as vehicle producers jump on the bandwagon to manufacture battery-powered automobiles. EV sales surged significantly in 2021, representing a significant shift among consumers. 

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Coal is the largest power source globally, and many countries such as China, Japan, India, and the US are responsible for over 75% of the electricity generated through coal. However, given such high dependency and high cost of renewable energy, such green transition appears to be in a sticky wicket.  

Bottom Line

The world is heading towards catastrophic climate change, and not just implementable plans but their executions are needed from global leaders. While the EV momentum shows positive signs, the world might need more push to eliminate dependency on coal and other greenhouse gas causing fossil fuels.