India: Giant coal-fired power plant gets green subsidies

A giant Indian company that has bought up famous British firms such as Jaguar, Land Rover and Tetley Tea is to get hundreds of millions of pounds in “green” subsidies to build one of the world’s biggest coal-fired power stations.

Tata will receive huge sums from the West for building the power station in India, thanks to the carbon trading system established by the Kyoto treaty. Critics say the system makes a mockery of attempts to combat climate change.
When the plant near the port of Mundra, in Gujarat, becomes operational in 2011 it will emit 25.7m tonnes of carbon dioxide a year – more CO2 than any power station in Britain.

Yet it will be classed by the United Nations as a source of “clean power”. That means Tata will be able to sell surplus “carbon credits”, established under the Kyoto treaty, to firms in the West. Energy groups will be able to buy the credits as an alternative to reducing CO2 emissions.

[…]

Tata Power, the subsidiary building the Mundra plant, said India is suffering a “chronic” energy shortage, with up to 450m people living in places without access to electricity.

“Coal-powered energy is vital to address India’s energy scarcity,” said Prasad Menon, managing director of Tata Power. “India and Tata are looking at renewable energy also, but solar is too expensive.”

The Times