INDIA faces resource constraints and environmental decline in meeting the growing energy needs over the next two decades. Fuel consumption in the household, industry and transportation sectors pollutes the atmosphere and leads to problems such as smog and acid rain. However, the TERI report says it is possible to provide energy services more efficiently.

Coal, the single largest commercial energy source for India, produces carbon dioxide, sulphur dioxide, nitrogen oxides and other pollutants. Carbon dioxide emissions from coal use contribute to global warming.

Jyoti Parikh of the Indira Gandhi Institute of Development Research says, "With concern for global warming, developed countries have been discouraging countries like India and China from exploiting their coal resources. There is increased pressure on India to displace coal with oil and gas, which is indeed a devaluation of India's coal resources."

The shortage of finances to exploit coal mines has led India to shift to mechanised opencast mining that requires removal of large amounts of top soil. This causes soil erosion, siltation, water contamination and permanent diminishing of soil productivity. Opencast mining yields low-grade coal, which causes higher pollution from thermal plants.

The road transport sector also accounts for a significant share of greenhouse gas emissions. According to TERI director R K Pachauri, the demand for petroleum products will continue to remain high because of the uncontrolled growth of this sector.

TERI estimates annual emissions of toxic gases will be four to six times 1984-85 levels. It says increased use of renewable energy sources and improvements in efficiency can reduce sulphur dioxide emissions by 35 per cent and emissions of nitrogen oxides by 50 per cent. Carbon dioxide emissions can be cut by 20 per cent in TERI's high conservation scenario.