India and Denmark have signed the Green Strategic Partnership and will focus on strengthening bonds by collaborating in the fields of green hydrogen, offshore wind energy as well as research. In an exclusive interaction with THE WEEK, Danish Minister of Climate, Energy and Utilities Lars Aagaard talked about the way ahead for India, with an ambitious plan of renewables in the energy mix, Europe and the world.
Denmark was one of the first few countries to sign the 'losses and damages' from climate change. However, it still is a very emotive issue with not everybody on board. How do you see this and how can everyone be brought on board?
For Denmark, it is extremely important that we keep the 1.5 target alive. That is one thing. On finance and loss and damages, Denmark has already committed to our part of the funding. We are one of the first countries in the world that have done so. I deeply hope that our example would inspire others. In general, I think it is most reasonable that we keep the promises we make.
The conflict in Ukraine has affected the geopolitics of energy. It has had a climate change impact too. What are your comments?
India has challenges, and so does Europe, and one of the huge challenges for Europe is, of course, our dependency on imported fossil fuels and fertilisers. Not only Denmark, a lot of other countries too are dependent on importing raw materials from Russia. So what can you do. Well, what we have done is, we have, and I can use them as an example, I mean, we are much colder company compared to India. In winter, we use a lot of natural gas for heating our houses. Within the last year, we have lowered our consumption by 19 per cent. All government offices are not allowed to have more than 90 degrees Celsius in wintertime, which is a bit colder than normal. The first thing we have done is lowering consumption. That is a short-term reaction. The long-term reaction for Europe is to increase our ability to produce our own energy, which means solar and wind. It is the same for India. So, the power outlook for India, going to 2050, shows that solar and wind energy will grow tremendously; it will take over the role of fossil fuels. The only real solution here is getting your dependency down.
Could you just give us some details about the partnership that we are looking forward to in the energy sector?
We are looking at how can we expand renewable within the electricity system. Denmark is working together with India on that. We have good and bad lessons learned. We will give you the good ones and tell you not to do the wrong things. So you can meet your ambitions quickly. For example, looking into the seabed where an offshore wind can be developed could be cost-effective. How should you develop your electricity grid so that it can enable more renewables on the grid. Energy efficiency, digitalization, and green hydrogen are part of the solutions. I think what is very unique with the Indian-Danish partnership is that we are sending people from my ministry to yours. They are working here in India, they are staying here. I also hope that could be a model that other countries try out.
Denmark, along with other countries, and the EU, has been a leading voice batting for the phasing down of coal. It was discussed during cop 27 and 26 as well. What is your view on India's increasing reliance on coal, at least in the short term?
This is the third time I am in India. I came here for the first time when I was 18 years old, almost 35 years ago. I travelled for three months. I have seen poverty in your country. I have the deepest respect for the development that India has undertaken within the last 20 years. Your population has increased. But you have also managed to bring electricity to more than 700 million people. I know what that means for daily life—it brings light to your home, cools your food, you can cook without going into the forest and making biomass. Access to the energy that is affordable is such a fundamental change for everyone. Therefore, I will not be the first person to tell India what to do in the short- term during this crisis.
Every person on this planet needs to see a way where the use of fossil fuels including coal will go down. I have read into the 2030 outlook for the Indian energy system. The figures are quite clear. For some years now, coal will be dominant and the most cost-effective way for you to produce electricity. We are looking into a whole new phase where going green doesn't mean that you go poor.
What do you think is the new world order when it comes to energy and energy security? Energy prices are rising following the Russia-Ukraine conflict.
The good thing about wind and solar is that it is available all over the planet. I hope to see a future that is, of course, green, where we will meet our climate targets, but also where we have much more diversified access to energy. The prices are of course important, but being dependent on one or two suppliers is, in general, is not good for business.
