India Makes Way for G20 Summit By Displacing Homeless People

KHOCHI, India—Anita Bhil regrets taking just a day off after more than two months of work without stop.

Since the first week of October, she has been cutting sugarcane for roughly 12 hours each day using a sickle. She then piles a bundle onto her head to walk over to a tractor. Each bundle of sugarcane weighs 20 kilograms (44 pounds). That’s about the equivalent of a large packed suitcase. By the end of each day, Bhil will have carried 50 bundles on her head and she will have tied together more than 100 bundles of sugarcane stems.

“In the past three years, my body has gotten used to this back-breaking labor,” said Bhil, who’s in her late 20s.

However, October’s devastating rainfall in Khochi village, followed by a sudden drop in temperature, then unusually high temperatures amid winter, caused her to be feverish. She took anti-inflammatory analgesics, returning to work the next day, despite an ailing body.

“Had I not taken a [day] off, I would have cut another 2,000 kilograms (4,410 pounds) of sugarcane,” Bhil said. A landless farm worker from the indigenous Bhil community, she had never before felt the need to migrate from her Chhavadi village in the Dhule district of western India’s Maharashtra state.

However, things have changed since 2018, she said. Incessant rainfall, rapid changes in the local climatic pattern, heat waves, and other recurring climatic events began destroying her region’s farms. For instance, between July and October of this year, natural disasters have affected more than 2.46 million hectares (6 million-plus acres) in Maharashtra alone.

For Bhil, these climate-induced events meant having no choice but to migrate 375 miles to the fields of western Maharashtra to cut sugarcane, moving from one plot to another on any given day. “No one in my family had ever entered this line of work,” she said.

Bonded Labor

In India, the sugar industry impacts the livelihoods of 50 million farmers and their families, who have helped produce more than 500 million metric tons of sugarcane worth 1.18 trillion Indian Rupees ($14.26 billion) from October 2021 to September of this year. That turned India into the largest sugar producer and consumer worldwide in 2021-22. However, producing sweet sugar has come with the bitter taste of labor-law violations, inequality and the perpetuation of the grinding cycle of poverty. In Maharashtra, more than 1 million sugarcane cutters migrate hundreds of miles from their villages, working 15 hours a day for five to six months each year.

With income sources drying up, Bhil and her husband, Kunal, 35, took out a loan of 50,000 Indian Rupees ($615) to pay for each year of their children’s education and meet everyday expenses for up to five months. That meant both had to cut more than 181,000 kilograms (399,036 pounds) of sugarcane in roughly five months, an average of 1.2 tons (2,645 pounds) daily. For cutting 1,000 kilograms of sugarcane, plus tying and loading them onto tractors, these workers in Kolhapur’s Khochi village are paid $3.40.

Anita has reported a consistent decline in her physical and mental health, which has meant the amount of sugarcane she has been able to cut has decreased. She’s been keeping a mental count of every kilogram of sugarcane because last year, by the time the season ended, the couple was 54,000 kilograms short of their target. That is why they returned to the sugarcane fields this year. Yet, every hour lost to a health ailment pushes workers deeper into bonded labor. “I won’t be able to meet this year’s target as well,” Kunal said.

However, what makes sugarcane cutting appear lucrative to poor people is the advance sums.

“It’s a debt trap,” explained Narayan Gaikwad, 75, who has spent more than four decades fighting for the rights of cane cutters, farm workers and daily wage earners. A member of All India Kisan Sabha, the farmers’ wing of the Communist Party of India (Marxist), Gaikwad has unionized hundreds of sugarcane cutters in the Kolhapur district.

“The wages have fallen drastically in the farming sector because of tremendous losses caused by rains and heat waves,” he said.

In the Dhule district, for 10 hours of work, men are paid $1.80, while women earn $1.20. But over in the sugarcane fields of western Maharashtra, workers like Anita and Kunal Bhil are paid $3.40. However, no one can be assured work will be available because of the impact climate change has had on farming. And yet, it’s better than what they faced on their family farm in Chhavadi village.

“When there’s no work in the fields, you are forced to take loans from private money lenders,” Gaikwad explained. “To repay this loan, workers then take loans from sugarcane contractors—it’s a vicious debt cycle.”

On any given day, 49.6 million people around the world are forced into modern slavery, said an International Labour Organization report. The report finds that one-fifth of people involved in forced labor exploitation are in debt bondage, which is most prominent in the mining, agriculture and construction sectors.

“Marginalized communities, ethnic and religious minorities, and indigenous peoples are among the groups at particular risk,” it mentions.

A September 2021 report by Anti-Slavery International and International Institute for Environment and Development issued a warning: “Climate and development policy-makers and planners urgently need to recognize that millions of people displaced by climate change are being, and will be, exposed to slavery in the coming decades.”

Recurring Climate Disasters

Kunal was once proud of the diversity of crops farmers cultivated in his region: Soybean, cotton, maize, sorghum and others. However, since 2018, it’s become increasingly difficult to grow these crops.

“None of them could survive the changing climate.”

Kunal’s father and two uncles collectively own 16 acres. Last year, on four acres, he cultivated pearl millet and was able to harvest just 17 quintals (3,747 pounds). “I was expecting at least 35-40 quintals.”

As a result, he couldn’t sell a single kilogram and kept the entire harvest for household needs.

The monsoon rains started late in his region. By the time the crop was ready, rainfall was too heavy to allow for harvesting. This was surprising, given Kunal comes from a drought-prone region. “We always cultivated crops that don’t require much water, but now everything has changed.” When he decided to shift to water-intensive crops, the delayed rainfall and the devastating October rains destroyed those, too. “We can’t decide what to grow because of the fluctuating climate.”

Moreover, the losses aren’t restricted to the farming fields. Of his three daughters, Kunal brought two of them to the sugarcane fields. “Who will take care of children back in the village when everyone migrates?” he asks.

Kunal, who became a helping hand too early in his life, couldn’t go to school. “I never wanted this to happen to my children, but looking at the climate disasters, I think even they will have to do this work.”

Paying for the Sins of the Global North

Between 1991 and 2001, climate disasters led to 676,000 deaths and affected an average of 189 million people living in developing countries every year, according to the Loss and Damage Collaboration’s report. “In the first half of 2022, six fossil fuel companies made enough to cover the costs of extreme climate- and weather-related events in all developing countries and still have nearly $70 billion left over in pure profit.”

Loss and Damage refer to the economic and non-economic impacts of climate change that cannot be avoided through mitigation or adaptation. Oxfam’s report said the estimated cost of Loss and Damage can range from $290 billion to $580 billion. Research published in Lancet found that from 1850 to 2015, the Global North was responsible for 92 percent of excess emissions, the United States 40 percent and the European Union 29 percent.

In 1991, Vanuatu, an island country in the south Pacific Ocean, first proposed on behalf of the Alliance of Small Island States (AOSIS) compensation for the impacts of rising sea levels due to climate change. It took 31 years for the issue to be addressed at a COP.

The 2022 United Nations Climate Change Conference (COP27), held last month in Sharm El-Sheikh, Egypt, ended with an agreement to establish a Loss and Damage fund.

However, several details, such as its operation and which countries would contribute to this fund, haven’t been finalized. The negotiations ended with an agreement to establish a “transitional committee,” which would make recommendations on operationalizing the funding and adopting it at the next COP.

To top it off, no agreement remains about what counts as Loss and Damage. Meanwhile, thousands of workers like Anita Bhil are being pushed every day into bonded labor.

‘No Option But to Migrate’

After cutting cane for more than two months this year, Prakash Bhil, 32, said he made a firm decision.

“No matter what, I won’t return next year to cut sugarcane.” He paused for a few moments and said, “But…” Then he stopped again. Almost teary-eyed, he placed his hand on the right leg. He thought it might be fractured, but he couldn’t visit a doctor because of the workload. “But it all depends if I will be able to cut enough sugarcane this year and whether rains create any havoc in my village,” Bhil said. “I just hope my children get a good education.”

Last year, the fields where he worked saw devastating rains, washing away cotton, soybean and sorghum. “Nothing survived.” Earlier, he found work for at least 25 days a month. “Now even finding 15 days of work is becoming difficult,” he said, referring to the impact of incessant rainfall.

Unable to pay off a $74 loan from last year, he returned to the sugarcane fields. “This year, I took an advance of $245 and won’t be able to repay it because of my poor health.” While he’s resting, the entire burden has fallen on his wife, a frail Sarla in her early 20s.

Back to Work 3 Days After Giving Birth

“There are massive labor rights violations in the production of sugar,” said Narayan, the organizer. He then shared the story of a sugarcane cutter who had migrated to the Kolhapur district. She was 9 months and 9 days pregnant.

“She was cutting sugarcane for seven hours and started experiencing labor pains in the evening. The case was so complicated that three public hospitals rejected her.” Narayan then took her to the district hospital and ensured a safe childbirth. “After three days, she was back to cutting cane,” Narayan added. “A decade since then, nothing much has changed.”

For more than seven years, community healthcare worker Shubhangi Kamble in Maharashtra’s Arjunwad village has been helping make public healthcare accessible to sugarcane cutters by going door to door, providing healthcare on the spot and connecting workers with doctors and hospitals. She said the cutters’ situation has been getting worse every year, attributing it to declining incomes caused by climate change impacts.

“Sugarcane cutters are trapped in debt, and no matter what happens to their health, they don’t take a break. Many do not even complete their prescribed medical course because they can’t afford the costly medicines,” she shared. In the past three years, complaints of body aches, fatigue, and dizziness have increased among cane cutters, especially among women, according to Kamble.

One among them is Anita Bhil, who, despite her deteriorating health, is adamant about not taking a break.

“A day’s off can push an entire generation into poverty,” Bhil said, as thuds of chopping sugarcane reverberated throughout the fields.

Sanket Jain is an independent journalist based in the Kolhapur district of the western Indian state of Maharashtra. He was a 2019 People’s Archive of Rural India fellow, for which he documented vanishing art forms in the Indian countryside. He has written for Baffler, Progressive Magazine, Counterpunch, Byline Times, The National, Popula, Media Co-op, Indian Express and several other publications.

Hasina Hajukhan never imagined that returning to her maternal house would turn into a near-death experience. In April, the 28-year-old was seven months pregnant, and her medical parameters were normal. “I was taking extra care to ensure no complications during childbirth,” she told Toward Freedom.

As is customary in many parts of India, pregnant women return to their parents’ homes to give birth. When Hajukhan first reached her mother’s house in Ganeshwadi village of the western Indian state of Maharashtra, she felt nauseated. “It was April’s final week, and I couldn’t even breathe properly,” she recounted. A heat wave had taken hold. “The climate was the stark opposite of what it was in my husband’s village.” In Ganeshwadi, things kept getting complicated with the rising heat. “Every day, I was breathless and would feel dizzy.”

Using a desk fan at the highest speed didn’t help, as it just circulated more hot air. An air conditioning system was something her family could not afford. The tin sheet roof would get extremely hot. During this crucial time, Hajukhan needed rest. However, she spent most of her day stepping out to gasp for cold air. In May’s final week, things got worse. “I felt as if I was going to die,” she recalled, teary-eyed.

Immediately, her mother dialed Ranjana Gavade, an accredited social health activist (ASHA worker), part of a community of 1 million women healthcare workers appointed for every 1,000 people in India’s villages. ASHAs are responsible for more than 70 healthcare tasks, with a particular focus on maternal and child health.

“I was worried looking at her rapidly deteriorating health and informed my colleagues.” Upon their instructions, Gavade called a government ambulance and swiftly took her to the district hospital, 33 kilometers (20.5 miles) away. Hajukhan gave birth to underweight twins. Her troubles still hadn’t ended when she was discharged after three days. For a month since then, Hajukhan has been trying to ensure her twins gain weight, but all efforts have failed. As a result, they weren’t administered the necessary Bacillus Calmette–Guérin (BCG vaccine used against tuberculosis), Hepatitis B, and Polio vaccines.

The Kolhapur district, where Hajukhan lives, has been reporting recurring floods, heat waves, incessant rainfall, and hailstorms triggered by climate change. She said everything would have been normal had she not returned to her parents’ home to give birth in the heat waves. “My children wouldn’t have had to live such a dangerous life,” she said.

Like in the village of Ganeshwadi, climate change impacts have been delaying children’s immunization schedules throughout India, making them vulnerable to diseases. Research has found that if a child belonged to a district highly vulnerable to climate change, the odds of stunting rose by 32 percent, low weight by 45 percent, anemia by 63 percent and acute malnutrition by 42 percent. An analysis by global nonprofit Save the Children found that, globally, 774 million children are living in poverty and at a high risk of climate-related disasters. Weather disasters ranging from floods to droughts prevent children from obtaining nourishment, causing low weight, and these disasters put a break on children receiving vaccinations on time. Their weakened immune systems, as a result of a lack of proper nourishment in crisis times, make them vulnerable to other diseases. Being sick can halt the necessary immunizations, and these delays have led to a rise in epidemics and diseases.

How Floods Impact Universal Immunization

Snehal Kamble, 24, a resident of Maharashtra’s flood-prone Arjunwad village, remembers the year 2019 in meticulous detail. “A day before the floods, I was preparing to go to my parent’s house.” Five months pregnant, she was looking for iron folic acid tablets. “Instead, all of us went to a flood relief camp,” she recounted. From there, she moved to another relief camp within a few days, as the water rose further. “During this time, I was worried about my house and belongings,” she said. She fell sick and was away from home for 15 days. “Those were the most difficult days of my life,” she shared. Then in January 2020, she gave birth to a boy named Sangarsh, who has often fallen sick. “When I went to my maternal house, he just couldn’t bear the heat there,” she said. The dehydration and spells of fever he experienced affected his immunization schedule. “His Pentavalent vaccine was delayed by several months because of health ailments,” said ASHA worker Shubhangi Kamble (no relation to Snehal), who has been monitoring this child since birth.

Further, his Measles-Rubella vaccine and Vitamin A dose were also delayed, making him vulnerable to diseases. “Vaccines need to be administered on time,” said Sachin Kamble, a nursing officer at the district women’s hospital in Maharashtra’s Osmanabad district. “Otherwise, it affects a child’s immunity, making them more vulnerable to diseases.”

He pointed out how the lack of vaccinations led to 2,692 cases in 2022 in Maharashtra, which reported the highest measles count in India. That was an eight-fold increase from the previous year. During this time, India reported 12,773 cases. India’s National Family Health Survey (NFHS) said only 31.9 percent of children ages 24 months to 35 months had received a second dose of measles-containing vaccine in 2019-21.

Another healthcare worker, Kavita Magdum, from flood-affected Ganeshwadi village, said that children in her surveying area never fell ill so frequently. She started noticing such stark changes only in the past five years. Upon inspecting this, she found, “Stress caused by the changing climate is leading to this.” For instance, Magdum sees that many children aren’t drinking breast milk, which has impacted their medical parameters. These drastic changes reflect in Indian government statistics, as well. During 2015-16, 58.6 percent of children ages 6 months to 59 months (just under 5 years old) were anemic in India. By 2019-20, this number rose to 67.1 percent. In addition, 32 percent of children nationally remain underweight.

After a year-and-a-half, Snehal’s son started getting better, thanks to Shubhangi’s consistent visits, when she monitored every parameter and ensured the best possible treatment by working hours beyond her duty. “Once the vaccination schedule started falling in place, his health, too, began improving,” Shubhangi shared.

Untimely Administration of Vaccines

While climate change is making it difficult for these healthcare workers to complete universal immunization, another challenge is the untimely vaccine administration.

“There are many instances, where vaccines in several villages are just not available,” said Netradipa Patil, leader of more than 3,000 ASHA workers and co-founder of Deep-Maya Foundation, a non-profit that works for women and children. “During such times, it becomes extremely challenging for us healthcare workers to manage everyone.”

Patil has observed that the workload has increased tremendously for all the ASHA workers because of the delay in vaccination. This is because ASHA workers are responsible for immunization, and in case of any discrepancy or error, they are held accountable. Research published in 2016 concluded, “Lack of timely administration of key childhood vaccines, especially DPT3 (the three doses of the Diphtheria, Tetanus and Pertussis vaccine) and MCV (measles-containing vaccine), remains a major challenge in India and likely contributes to the significant burden of vaccine-preventable disease-related morbidity and mortality in children.” Another paper published in 2019 inferred, “The proportion of children with delayed vaccination is high in India.”

In 2021, the World Health Organization found that 25 million children around the world under the age of 1 didn’t receive vaccines, a figure not seen since 2009. “Many children never get the Vitamin A doses on time. These doses are just not available when required,” Patil said, suggesting the Indian government should consult local healthcare workers to arrange vaccination. “We need to reach more and more people, and, currently, looking at the changing climate, we aren’t prepared to do this,” she shared. Patil made simple suggestions like identifying vulnerable children and their locality and monitoring them from the earlier stages, even before the disaster strikes. “Just by proper identification, we can save so many children,” she said.

Rising Undernourishment

Fed up with feeding medications and tonics that didn’t seem to help increase his weight and prevent him from continually falling ill due to the changing weather conditions, Rashi Patil, 23, quit taking her son to the doctor every month after 18 months. “My son just wouldn’t eat anything,” Patil said.

Moreover, the changes in local climatic patterns affected her son’s health, and he often fell sick. Last year, he was hospitalized for a week as his platelets fell and a fever intensified. What followed next were recurring illnesses that delayed his immunization schedule. Because of the fever in March, he wasn’t administered the Pentavalent 1 vaccine (it protects from five life-threatening diseases: Diphtheria, Pertussis, Tetanus, Hepatitis B and Hib [Haemophilus Influenzae Type b]). Her son soon became weak and began recovering only after the vaccine’s administration. All this while, her son struggled with good eating habits. After several trials and errors, Rashi and her husband, Rajkumar, discovered the climate affected their son’s health and eating habits.

“Now, their son makes it a point to eat only outside the house, where he gets some cold air,” says Rashi. “Contrastingly, this was never the case with my elder daughter.”

Toward Freedom reached out to Ganeshwadi’s community health officer, Dr. Prajakta Gurav, regarding what steps her team was taking to deal with delayed immunization. Gurav hasn’t replied as of press time.

The impact of poor diets is more obvious at the national level. For instance, just 11.3 percent of children between the ages of 6 months and 23 months receive an adequate diet. Plus, in 2022, India ranked 107 out of 121 countries on the global hunger index. These numbers further reveal how climate change is exacerbating the existing faultlines.

The problem is not restricted to India. Of the countries at severe risk of being adversely affected by climate change, the report by Save the Children says, “Burundi has the highest rate of stunted children (54 percent), followed by Niger (47 percent), Yemen (46 percent), Papua New Guinea (43 percent), Mozambique (42 percent) and Madagascar (42 percent).”

Research published in PLOS Medicine found that in 22 sub-saharan African countries, drought led to lower chances of completion of BCG (Bacillus Calmette-Guérin), Polio and DPT (diphtheria, tetanus, and pertussis) vaccines. “We took vaccines to the last mile. Now, climate change is eroding progress.”

For Komal Kamble, 30, vaccinating her 2-year-old daughter remains challenging. Her remote mountainous village of Kerle, in Maharashtra’s Kolhapur district, remains inaccessible most of the year.

For the village population of less than 1,100 people, the nearest healthcare facility is 15 kilometers away. Last year, within a week of October rains, the road that connects her village to the nearest hospital was completely under floodwater.

Komal’s daughter couldn’t get proper medical care for two days, worsening her health. Her chest was full of cough, and the fever rose, making things difficult for the agrarian Kamble family. This wasn’t restricted to heavy rainfall, though. Since her birth in 2021, Komal has taken her daughter to a private doctor at least 20 times, spending over Rs 15,000 ($182). Last year, she was feverish and wasn’t given the crucial Japanese encephalitis vaccine, a Vitamin A dose and the Measles-Rubella vaccine. This made her vulnerable to more diseases, challenging the Kamble family.

Healthcare worker Shubhangi Kamble from Arjunwad says that instances of children missing their vaccination are rising rapidly. When she went to find out why this was happening in her village, Arjunwad, she saw that children fell sick during floods and heat waves. “This was the time that coincided with their vaccination schedule, and so many couldn’t get the vaccines,” she shared.

However, a delay in vaccination has caused more problems than she had anticipated.

“Almost every day, at least one parent dials me asking where they should get their children hospitalized,” she said.

Now, every rainfall brings a health issue for Komal’s daughter. “I am tired of going to the healthcare center to hear that my daughter is underweight or sick and can’t be given the vaccine,” Komal said, with frustration in her voice.

Meanwhile, with every climate disaster, it will become increasingly difficult for many families to complete the immunization in time. “I’ve been vaccinating children for over a decade, but things never got this difficult. We took vaccines to the last mile. Now, climate change is eroding progress,” said healthcare worker Kavita Magdum.

Sanket Jain is an independent journalist based in the Kolhapur district of the western Indian state of Maharashtra. He was a 2019 People’s Archive of Rural India fellow, for which he documented vanishing art forms in the Indian countryside. He has written for Baffler, Progressive Magazine, Counterpunch, Byline Times, The National, Popula, Media Co-op, Indian Express and several other publications.

Editor’s Note: The following represents the writer’s analysis and was produced in partnership by Newsclick and Globetrotter.

The current crisis of spiraling gas prices in Europe, coupled with a cold snap in the region, highlights the fact that the transition to green energy in any part of the world is not going to be easy. The high gas prices in Europe also bring to the forefront the complexity involved in transitioning to clean energy sources: that energy is not simply about choosing the right technology, and that transitioning to green energy has economic and geopolitical dimensions that need to be taken into consideration as well.

Gas wars in Europe are very much a part of the larger geostrategic battle being waged by the United States using the North Atlantic Treaty Organization (NATO) and Ukraine. The problem the United States and the EU have is that shifting the EU’s energy dependence on Russia will have huge costs for the EU, which is being missed in the current standoff between Russia and NATO. A break with Russia at this point over Ukraine will have huge consequences for the EU’s attempt to transition to cleaner energy sources.

The European Union has made its problem of a green transition worse by choosing a completely market-based approach toward gas pricing. The blackouts witnessed by people in Texas in February 2021 as a result of freezing temperatures made it apparent that such market-driven policies fail during vagaries of weather, pushing gas prices to levels where the poor may have to simply turn off their heating. In winter, gas prices tend to skyrocket in the European Union, as they did in 2020 and again in 2021.

For India and its electricity grid, one lesson from this European experience is clear. Markets do not solve the problem of energy pricing, as they require planning, long-term investments and stability in pricing. The electricity sector will face disastrous consequences if it is handed over to private electricity companies, as is being proposed in India. This is what the move to separate wires from the electricity they carry aims to achieve through Indian Prime Minister Narendra Modi’s government’s proposed amendment to the existing Electricity Act of 2003.

In order to understand the issues related to transitioning toward green energy, it is important to take a closer look at the current gas supply-related issues being faced by the European Union. The EU has chosen gas as its choice of fuel for electricity production, as it goes off coal and nuclear while also investing heavily in wind and solar. The argument advanced in favor of this choice is that gas would provide the EU with a transitional fuel for its low carbon emission path, as gas tends to produce less emissions than coal. It is another matter that gas is at best a short-term solution, as it still emits half as much greenhouse gas as coal.

As I have written earlier, the problem with green energy is that it requires a much larger capacity addition to handle seasonal and daily fluctuations that planners have not accounted for while advocating for switching over to clean energy sources. During winter, days are shorter in higher latitudes, and the world therefore gets fewer hours of sunlight. This seasonal problem with solar energy has been compounded in Europe with low winds in 2021 reducing the electricity output of windmills.

The European Union has banked heavily on gas to meet its short- and medium-term goals of cutting down greenhouse emissions. Gas can be stored to meet short-term and seasonal needs, and gas production can even be increased easily from gas fields with requisite pumping capacity. All this, however, requires advance planning and investment in surplus capacity building to meet the requirements of daily or seasonal fluctuations.

Unfortunately, the EU is a strong believer that markets magically solve all problems. It has moved away from long-term price contracts for gas and toward spot and short-term contracts—unlike China, India and Japan, which all have long-term contracts indexed to their oil prices.

Why does the gas price affect the price of electricity in the EU? After all, natural gas accounts only for about 20 percent of the EU’s electricity generation. Unfortunately for the people in the EU region, not only the gas market but also the electricity market has been “liberalized” under the market reforms in the EU. The energy mix in the grid is determined by energy market auctions, in which private electricity producers bid their prices and the quantity they will supply to the electricity grid. These bids are accepted, in order from lowest to highest, until the next day’s predicted demand is fully met. The last bidder’s price then becomes the price for all producers. In the language of Milton Friedman’s followers—who were known as the Chicago Boys—this price offered by the last bidder is its “marginal price” discovered through the market auction of electricity and, therefore, is the “natural” price of electricity. For readers who might have followed the recently concluded elections in Chile, Augusto Pinochet—who was a military dictator in Chile from 1973 to 1990—introduced the Constitution of 1980 in Chile and had incorporated the above principle in a constitutional guarantee to the neoliberal reforms in the electricity sector in the country. Hopefully, the victory of the left in the presidential elections in Chile and the earlier referendum on rewriting the Chilean constitution will also address this issue. Interestingly, it was not the former UK Prime Minister Margaret Thatcher—as is commonly thought—who started the electricity “reforms” but Pinochet’s bloody regime in Chile.

At present in the EU, natural gas is the marginal producer, and that is why the price of gas also determines the price of electricity in Europe. This explains the almost 200 percent rise in electricity price in Europe in 2020. In 2021, according to an October 2021 report by the European Commission, “Gas prices are increasing globally, but more significantly in net importer regional markets like Asia and the EU. So far in 2021, prices tripled in [the] EU and more than doubled in Asia while only doubling in the U.S.” [emphasis added].

The coupling of the gas and the electricity markets by using the marginal price as the price of all producers means that if gas spot prices triple as has been seen recently, so will the electricity prices. No prizes for guessing who gets hit the hardest with such increases. Though there has been criticism from various quarters regarding the use of marginal price as the price of electricity for all suppliers irrespective of their respective costs, the neoliberal belief in the gods of the market has ruled supreme in Europe.

Russia has long-term contracts as well as short-term contracts to supply gas to EU countries. Putin has mocked the EU’s fascination with spot prices and gas prices and said that Russia is willing to supply more gas via long-term contracts to the region. Meanwhile, in October 2021, European Commission President Ursula von der Leyen said that Russia was not doing its part in helping Europe tide over the gas crisis, according to an article in the Economist. The article stated, however, that according to analysts, Russia’s “big continental customers have recently confirmed that it is meeting its contractual obligations,” adding that “[t]here is little hard evidence that Russia is a big factor in Europe’s current gas crisis.”

The question here is that the EU either believes in the efficiency of the markets or it doesn’t. The EU cannot argue markets are best when spot prices are low in summer, and lose that belief in winter, asking Russia to supply more in order to “control” the market price. And if markets indeed are best, why not help the market by expediting the regulatory clearances for the Nord Stream 2 pipeline, which will ship Russian gas to Germany?

This brings us to the knotty question of the EU and Russia. The current Ukraine crisis that is roiling the relationship between the EU and Russia is closely linked to gas as well. Pipelines from Russia through Ukraine and Poland, along with the undersea Nord Stream 1, currently supply the bulk of Russian gas to the EU. Russia also has additional capacity via the newly commissioned Nord Stream 2 to supply more gas to Europe if it receives the financial regulatory clearance.

There is little doubt that Nord Stream 2 is caught not simply in regulatory issues but also in the geopolitics of gas in Europe. The United States pressured Germany not to allow Nord Stream 2 to be commissioned, and also threatened to impose sanctions on companies involved with the pipeline project. Before stepping down as the chancellor of Germany in September 2021, Angela Merkel, however, resisted pressure from Washington to halt the work on the pipeline and forced the United States to concede to a “compromise deal.” The Ukraine crisis has created further pressure on Germany to postpone Nord Stream 2 even if it means worsening its twin crises of gas and electricity prices.

The net gainer in all of this is the United States, which will get the EU as a buyer for its more expensive fracking gas. Russia currently supplies about 40 percent of the EU’s gas. If this stalls, the United States, which supplies about 5 percent of the EU’s gas demand (according to 2020 figures), could be a big gainer. The United States’ interest in sanctioning Russian gas supply and not allowing the commissioning of Nord Stream 2 has as much to do with its support to Ukraine as seeing that Russia does not become too important to the EU.

Nord Stream 2 could help form a common pan-European market and a larger Eurasian consolidation. Just as it did in East and Southeast Asia, the United States has a vested interest in stopping trade following geography instead of politics. Interestingly, gas pipelines from the Soviet Union to Western Europe were built during the Cold War as geography and trade got priority over Cold War politics.

The United States wants to focus on NATO and the Indo-Pacific region, as its focus is on the oceans. In geographical terms, the oceans are not separate but a continuous body covering more than 70 percent of the world’s surface with three major islands: Eurasia, Africa and the Americas. (Although in the formulation of British geographer Halford Mackinder, the originator of the world island idea, Africa was seen as a part of Eurasia.) Eurasia alone is by far the bigger island, with 70 percent of the world’s population. That is why the United States does not want such a consolidation.

The world is passing through perhaps the greatest transition that human civilization has known in meeting the current challenges posed by climate change. To address these challenges, an energy transition is required that cannot be achieved through markets that prioritize immediate profits over long-term societal gains. If gas is indeed the transitional fuel, at least for Europe, it needs long-term policies of integrating its gas grid with gas fields, which have adequate storage. And Europe needs to stop playing games with its energy and the world’s climate future for the benefit of the United States.

For India, the lessons are clear. Markets do not work for infrastructure. Long-term planning with state leadership is what India needs to ensure supply of electricity to all Indians and ensure the country’s green transition—instead of dependence on electricity markets created artificially by a few regulators framing rules to favor the private monopoly of electricity companies.

Prabir Purkayastha is the founding editor of Newsclick.in, a digital media platform. He is an activist for science and the free software movement.