By Rajendra Shende
Rajendra Shende is the Chairman of TERRE Policy Centre and a former UNEP Director.
The stone age did not end because the world ran out of stones. It ended because people invented bronze tools, which were more productive. The stone pelting between Indian and Chinese soldiers at a 10,000 feet high Himalayan plateau, called Doklam, ended recently. The reason definitely was because the more productive craft of diplomacy was used to resolve the issue. Experts on Indo-China relations are now busy deciding the winner. There is, however, game-changing and long-term win-win opportunities for both India and China, which have been overshadowed by territorial conflicts.
Grab what you have at hand
Having disengaged from Doklam, China and India should now engage in availing the huge opportunity related to sustainable development for their people and addressing the threat of climate change. Not exploiting such opportunities tantamount to denying the development of their own societies and overlooking the prospects of assuming global stewardship. The political chemistry between Modi and Xi is conducive for long term cooperation, as seen at the recent G-20 summit in Hamburg, Germany.
Importantly, both countries have an institutional framework to build on and have made a smart beginning on critical issues like clean energy. BRICS, a consortium of five major emerging national economies, namely Brazil, Russia, India, China and South Africa, representing 40% of the world population and 25 % of worlds GDP, is all set to seize the emerging opportunities. The foundation has also been laid for the energy related cooperation between India and China by holding a joint dialogue between the ministries of both.
Opposing policies, similar troubles
The common threats that people of India and China face which need a joint approach to address them include air-pollution, climate change, energy dependence, unemployment, rapidly urbanizing population, an eroding agricultural base and terrorism. India and China are capable of addressing these challenges on their own. But, the partnership between India and China would be essential in saving time and cost, particularly when the time is not on our side.
China and India account for 60 percent of incremental world energy demand at present. Coal-dominated and oil-dependent energy structure are the drivers of energy insecurity. Use of fossil fuel and inefficient use of bio-mass burning are responsible for air pollution that causes premature deaths of 5.5 million people in two countries together, as per the World Health Organization. It is of interest to both countries to enhance energy efficiency and rapidly increase the share of renewable energy in its total energy mix and reduce the dependence on coal.
The capacities of both the nations
China has effectively demonstrated its extraordinary speed and scale in implementing its renewable energy target where it has met its 13th five-year plan capacity target of solar photovoltaic (PV) electricity 3 years ahead of schedule. By end July 2017, its solar PV capacity was 112 GW as against a target of 105 GW by the year 2020. India is planning to reach its 100 GW target by 2022 and presently has reached only 13 GW.
But, India has an edge in energy information and management systems like technology in wind energy. India also has a large energy market, from which China can benefit. China has an advanced solar energy technology and the cost of its solar energy manufacturing is low while India has abundant solar energy resources but its solar energy manufacturing sector is still in the fledgling stage. China has expertise in the management of power grids. Whereas, power transmission with low loss and grid construction have always been the barriers in the development of India’s power sector. The two countries can jointly develop and invest in transmission technology.
Golden chances to mutually boost their economy
Despite campaigns like Make in India, if no Indian manufacturer is coming forward to set up solar cells and panel manufacturing, which seems to be the case, then India should not hesitate to get Chinese investment with the conditions of sharing of export markets, balancing the trade deficitwhich is now more than USD 50 billion, enhanced technology development and joint research. The employment potential for renewable energy sector is accelerating too. In the last few years, the new employment in solar and wind energy was more than in the fossil fuel sector, as per a report from the United Nations Environment Programme. India and China are yet to utilize the full potential of two excellent initiatives of ChinaAsian Infrastructure Investment Bank (AIIB) based in Beijing and the New Development Bank (NDB), based in Shanghai with a capital of USD 100 billion each. India and China can leverage green financing for joint projects.
Next BRICS Summit is being held on 3rd September in Xiamen, just weeks after disengagement from the Doklam stand-off. Interestingly, the theme of the meeting is BRICS: Stronger Partnership for a Brighter Future.” Timing favours those who dare to act despite challenges and differences. The BRICS meeting in Xiamen is that time.
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