India, poised for dramatic economic growth, is seriously investing in biogas to decrease its carbon emissions. The state of Uttar Pradesh has opened the doors to innovation with the construction of biogas plants aimed at converting agricultural waste, particularly the copious cow manure produced locally, back to energy. Given the cultural significance of cows, this initiative cleverly taps local resources to align with sustainability goals.
This ambitious program took off back in 2018, with plans to establish 5,000 biogas facilities by 2024. Despite facing initial hurdles—namely, scant interest from investors even with enticing subsidies—the Indian government is now poised to change the narrative. Starting April 2025, automotive fuels and domestic energy uses will be required to contain a minimum percentage of biogas, compelling major industries to take notice.
Leading figures from the industrial sector are already mobilizing. Mukesh Ambani, CEO of Reliance Industries, has pledged to construct 55 biogas plants by 2026, underscoring the financial benefits for local farmers who could transform from agricultural producers to symbiotic energy providers. Meanwhile, Adani Total Gas Ltd plans to pour $200 million over the next five years to bolster biogas infrastructure, viewing the industry as both economically beneficial and environmentally responsible.
Recent reports from the International Energy Agency (IEA) predict India and China will become pivotal players in the global bioenergy market, with biogas demand anticipated to catapult by 88% by 2030. Yet, the road to full integration of biogas is fraught with challenges. Currently, about 70% of India’s electricity generation relies on coal, and there's a goal to boost the gas share from 6% to 15% by 2030. Much of this anticipated increase will come from liquefied natural gas (LNG), which still carries eco-friendly concerns.
The potential for biogas cannot be understated. Utilizing agricultural waste not only minimizes harmful emissions from burning but also signifies sustainable rural development. Nonetheless, obstacles like high installation costs and consistent supply chain management remain pivotal hurdles. For example, the substantial investment of $25 million for the Adani TotalEnergies plant located in Barsana is transforming manure and straw daily, resulting in both energy and fertilizer, which has notable positive ramifications for local employment.
Nakul Kumar Sardana, vice president of Adani TotalEnergies, asserts, “We are no longer wasting energy,” emphasizing the significant benefits for local communities. Despite the current high cost of biogas—$14 per cubic meter, which is double the price of LNG—there’s widespread optimism about its role in the much-needed energy transition.
This sets the stage for the upcoming COP29 summit, where global leaders will gather to reflect on climate ambitions and energy transitions. Taking place in Baku, Azerbaijan, COP29 could reveal stark contrasts between energy policies, particularly emphasizing the divide highlighted by U.S. climate setbacks following Donald Trump's election.
Dubbed the "Finance COP," this event aims to push ambitious climate finance objectives and mobilize up to $1 trillion annually by 2030 to support developing nations. Yet, skepticism looms as the goal denoted as the New Collective Quantified Goal (NCQG) may falter without sufficient private sector engagement, particularly after the difficulties of reaching the previous $100 billion annual target.
Compounding these challenges is the surge in fossil fuel production endorsed by the Trump administration, which limits green investments promised under recent legislative frameworks like the Inflation Reduction Act. Analysts warn this could lead to staggering emissions increases of up to 4 billion tons by 2030, amplifying the urgency to effectuate serious global energy policy shifts. Meanwhile, global temperature rises could reach as high as 2.9 degrees Celsius, way off the target cap of 1.5 degrees Celsius set by climate experts.
Conversely, countries such as China and India are making impressive strides toward clean energy. China, for example, delivered 163 GW of solar power capacities within 2023 alone, outpacing all major European players combined. Its automotive sector has witnessed electric and hybrid vehicles surpassing half of new sales, contrasting markedly with the 20% seen within the U.S. market.
The Global South, particularly India, has shown remarkable advancements with 23% annual growth rates recorded for solar and wind energy over the last five years. According to estimates provided by the Rocky Mountain Institute, these nations are now directing 87% of their energy investments toward clean power alternatives. Such momentum not only enhances their green credentials but also strengthens their position for greater Western financing.
Economists like Nick Stern and Vera Songwe assert these developing countries could independently mobilize about $1.4 trillion annually for green transitions, provided they can effectively demonstrate the deployment of local resources. By showcasing these successes, the argument for increased sustainable financing from the West gains traction, fostering hope for collective global action against climate change.
