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Gulf crisis & energy transition

Updated: March 10th, 2026, 08:20 IST
in Opinion
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Dhurjati Mukherjee

Dhurjati Mukherjee

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Dhurjati Mukherjee

In the wake of the Middle East crisis, the need for acceleration of green energy in India assumes great significance, more so because the country has committed to net-zero emissions by 2070. Let’s start with the current oil crisis. The Strait of Hormuz carries 20% of the global oil supply, as there is no alternative to compensate for the loss of supplies on this scale. India depends upon nearly 50% of its oil imports on countries in this region. Just a one-dollar increase in crude oil price can result in an increase of India’s annual crude import bill by Rs 14,000 crore.

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Gas is also an area of concern as India imports LNG requirements from Qatar and the UAE, which lie inside the Hormuz Strait. Qatar, which accounts for 40% of India’s LNG imports, has stopped its production and export. This has resulted in the spot price of Asian LNG tripling from $10.73 to $35 per MMBtu. Regarding LPG, India imports 60% from West Asia, and the longer the war lasts, households are expected to suffer. Right now, it’s important to tap other sources like Australia and Canada, but in the long-term, there is a need to scale up biogas production in the country. A recent Niti Aayog report reiterated that reliable, affordable and progressively cleaner electricity is essential to improve living standards, raise productivity and unlock a low-carbon transition across transport, buildings and industry. With nearly 258GW of renewable energy capacity installed by December 2025, India has emerged as the world’s fourth-largest renewable energy producer.

However, the country’s coal consumption could more than double by mid-century before plunging sharply as the country shifts towards cleaner energy, as indicated. In 2025, India achieved a major milestone with 50% of the installed power generation capacity now coming from non-fossil fuel sources, five years ahead of its 2030 target under the December 2015 Paris Agreement. The passage of Shanti Act has thrown open doors of nuclear energy to private parties. As is known, nuclear operates continuously, requires minimal land and provides the stable base load power that modern economies need. The government’s target of 100GW of nuclear capacity by 2047 represents roughly 12 times its current capacity, which at present doesn’t appear an easy target. While India did not commit to tripling nuclear capacity at COP28 in Dubai, the Shanti Act shows commitment through concrete legislative action. As India is fast developing, it can’t do without fossil fuel, and its effects and those on the environment need to be understood. Doctors opine the most direct impact of such fuel is on the respiratory system. Toxic air pollution directly affects the human body, increasing risk of dangerous infections like pneumonia, cancers and chronic respiratory conditions. Evidence has shown air pollution increases cardiovascular diseases, risk of strokes and dementia among other neurological conditions.

Children are particularly at risk because their organs are still developing and, as they grow, they are exposed to these toxins that generate long-term impacts. What should government strategy be? While balancing power needs, it’s vital to ensure pollution in all forms is controlled to check the looming environmental threat. Industrial fumes, emission-emitting vehicles we see on roads and highways should immediately be banned, and other steps taken to ensure that deterioration of air and water is kept at bare minimum. Meanwhile, though globally efforts are on to shift to renewable energy, the US decision to pull out from all major climate-linked global bodies, including India head quartered International Solar Alliance and UN Framework Convention on Climate Change, is a setback. However, most nations are determined to curb emission though stronger initiatives. India must do its bit.

 

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