India’s Changing Position on Climate Change

What’s in today’s article?

• Why in News?
• What is the Global Temperature Target?
• Why is India Challenging Global Climate Change Discourse?
• Suggestions in the Economic Survey for the Climate Problem
• What is the Carbon Border Adjustment Mechanism (CBAM)?
• Why India Criticises CBAM?

Why in News?

• The government of India articulated a radically different position on climate change (at a time when it is becoming increasingly clear that the 1.5℃ target would be missed) in the Economic Survey (ES) 2023-24 presented in the Parliament.
• The ES has also observed that the proposed Carbon Border Adjustment Tax (CBAT) of the European Union (EU) is in violation of the spirit of the Paris Agreement and reiterates the Central government’s concern on protectionism.

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What is the Global Temperature Target?

• According to the 2015 Paris Agreement, countries must make efforts to ensure that the rise in global average annual temperature is contained –
  • Within 2℃ from the pre-industrial times (average of 1850-1900 period), and
  • Preferably within 1.5℃.
• Every country has to prepare and implement an action plan that contributes towards meeting this target.

Why is India Challenging Global Climate Change Discourse?

• Inequity of the global climate change architecture: India has consistently criticised the inequity of the global climate change architecture and the indifference of developed countries in their climate efforts.
• A single global temperature (1.5 or 2℃ thresholds) target: The global temperature target fails to reflect the intricate connections between climate, ecological integrity, and human well-being.
• Alternate energy solutions had their own set of problems: For example, critical minerals (required for batteries) were being mined in the most underdeveloped parts of the world, adversely affecting regional ecological health.

Suggestions in the Economic Survey for the Climate Problem:

• A more sustainable approach to addressing the climate problem would involve changing lifestyle choices and minimising waste and overconsumption rather than switching to an alternate energy source.
• A more balanced approach suggests that the best insurance against climate change is to implement shorter-term policies aimed at improving people’s quality of life.

What is the Carbon Border Adjustment Mechanism (CBAM)?

• These are tariffs that will apply on energy-intensive goods imported into the EU.
• Its goal is to ensure that
  • Local producers of iron, steel, and aluminium (which use a significant amount of fossil fuel) do not face a competitive disadvantage when compared to
  • Producers of similar goods made in developing nations whose industries have more lenient emission standards for fossil fuels.
• The CBAM system is expected to come into force on January 1, 2026.

Why India Criticises CBAM?

• CBAM is in contravention to the Paris Agreement: These taxes are in contravention to the spirit of the Paris Agreement that recognised Common but Differentiated Responsibilities (CBDR).
• India is adversely affected by CBAM:
  • In 2022, 27% of India’s exports of iron, steel and aluminium products worth $8.2 billion went to the EU.
  • To achieve net zero by 2070, India needs $28 billion annually until that year.
  • India’s climate action has been largely financed through domestic resources and the flow of international finance has been very limited.
  • Hence, CBAM will affect India’s financial resources for climate change adaptation.

Q.1. What are Common but Differentiated Responsibilities (CBDR)?

The CBDR principle was formalised in the UNFCCC of Earth Summit in Rio de Janeiro, 1992. It acknowledges that all states have shared obligation to address environmental destruction but denies equal responsibility of all states with regard to environmental protection.

Q.2. What are India’s contributions to climate action?

India’s contribution to climate action is significant through its international efforts – International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), creation of LeadIT, Infrastructure for Resilient Island States (IRIS), and Big Cat Alliance.

Source: Climate Change: Need to move away from ‘excessive preoccupation’ with meeting global temperature target, says Economic Survey