Climate business needs an impetus

The final round of negotiations before the UN climate change conference in Copenhagen begins in Barcelona today.

Apart from the issues of adaptation, mitigation, financing and technology transfer, the agenda lists a discussion on the next phase of commitments of industrialised countries to reduce greenhouse gas emissions beyond 2012 under the Kyoto Protocol. Since even the UN has scaled down the expectations of a comprehensive deal, negotiators are looking for a broader agreement with details to be worked out later.

While the Indian government is keen to be seen as playing a constructive role in international climate change negotiations and not as a deal breaker, industrialist-politicians cutting across party lines believe that India should stick to its stand of not taking on emission reduction targets and at the same time take actions at the national level.

Says Milind Deora, a Congress MP, who owns plastic and chemical businesses, “Though developing countries like India can’t be held responsible for the past mistakes of developed countries, we must look at the future and take responsibility as a country, individuals and the corporate sector in our own interest and move forward domestically.”

The 2009 Congress Manifesto itself acknowledges the party’s responsibility of taking credible actions within the overall UNFCCC and Kyoto framework of meeting the development aspirations of the people for higher economic growth and higher standard of living. The manifesto calls for the implementation of the Congress-led UPA governments National Action Plan on Climate Change in its true spirit.

Its not surprising that the Congress Party has distanced itself from the letter written by environment minister Jairam Ramesh suggesting the need for radical changes like overlooking the Kyoto Protocol, dissociating from developing countries, and allowing external monitoring of greenhouse gas emission reduction.

Even parliamentarians from the main Opposition, BJP, believe in sticking to the stated government position. Says Suresh Chanabasappa Angadi, BJP MP and businessman from Belgaum, “We should continue on our sustainable development path and not bow to the pressures of the industrialised countries to take on commitments on emission cuts.”

He is talking in sync with the party line. Saying that industrialised countries, led by the US, have been asking developing countries like India and China to accept new emission norms, RSS has said in its weekly publication Organiser, “If accepted, they could put a spoke in the development process in India.” The weekly adds that developing countries have been trying to make the rich nations accept responsibility for the poison they spew and changing that stand will break the spirit of the developing nations.

CPM has gone ahead with suggestions in its resolution adopted on October 25. Calling for adhering to the principles of common but differentiated responsibilities, it says India should undertake measures to reduce the growth rate of emissions only if industrialised countries commit to emission cuts as suggested by the Intergovernmental panel on Climate Change (IPCC). The resolution adds that India should insist on funds and technology from developed countries for their historical responsibility. It even suggests that technology transfer should be done irrespective of restrictions on intellectual property rights.

Though broadly agreeing with the views of political parties, industrialist- parliamentarians are not for business as usual. Says Rajeev Chandrasekhar, an independent Rajya Sabha MP and former Ficci president, “Unfortunately there is nothing in India to encourage industries from becoming climate friendly. There are no incentives to go green. Indian businesses are following only a compliance regime. Even the enforcement is lacking.”

Adds Deora, “Indian companies can play a more proactive role if the government puts in place incentives and rewards for greening of the industry. Otherwise how can Indian businesses compete globally in an emerging low-carbon economy We will be in a soup to wake up one morning to find ourselves uncompetitive globally.”

Its not only about incentives, but creating a whole ecosystem. Says CR Patil, BJP MP and businessman from Navsari, “Our domestic approach should be more holistic and inclusive. Instead of having a piecemeal approach, the government should address fundamental issues on climate change in a systematic manner. It should be an inclusive approach. State governments should be taken into confidence while laying down policies.”

Source: The Financial Express

Published on 03 November 2009

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