Assessing climate risks to India's oil and gas sector
A shift to renewables and infrastructure vulnerability to extreme climactic events are among the challenges the sector faces
India's oil and gas infrastructure sustains more than a third of India's primary energy supply and is likely to grow in absolute terms for at least two decades. At the same time, India's commitments to the Paris Agreement necessitate moving away from fossil fuels, and the country's recent policy initiatives in renewable energy, energy efficiency and electric vehicles demonstrate this commitment.
Climate change poses three types of challenges to the oil and gas sector. First is the threat to the future of industry itself due to the need to mitigate greenhouse gas emissions. Second is the risks to the infrastructure and operations in the industry, particularly due to extreme weather events. Third, relates to the nature of the Paris Agreement requiring improved transparency in accounting of greenhouse gas emissions.
In this issue brief, which is the output of a research exercise undertaken by TERI, these three challenges are explored for India’s oil and gas sector.