The Climate Conundrum Has Been Growing As The Existential Threat To Humankind With Its Multifaceted Impacts On The Systems Of Biosphere Which Is Disastrously Getting Extended Into Social Inequality Around The World. The Ambitious Plan Of Making Net-Zero Economies And Carbon Neutrality Is Far Behind In Its Schedule And Found No Adequate Actions, Even In The Developed Frugalities. In The Recently Held European Climate Summit (ECS, 2024) In Florence, Italy, The Voice For Accelerated, Swift And Decisive Actions For Mitigation Was Heard Unanimous And Loud. There Are Few Non-European Members Too, Like Me Who Frightened To Listen To The Deliberations Where Actions Are Reasonably Advanced Towards The European Target Of Net Zero By 2050 With Reported Reduction Of Around 1 Billion Tonnes Of GHG Over Every Year. Interestingly, It Is Our Commitment Too, As Our Prime Minister Resounded In His “PANCHAMRITA” Speech At COP 26 In Glasgow (2021).
The proposed actions built on the jurisdiction of differentiated responsibilities among the countries is the crux of all contentious issues in the global climate negotiations. Any developmental economy is predominantly depend on the industrialization. The Kyoto Protocol (1997) born on appreciating this disparity among the world communities and it failed to move forward from its Second Commitment Period (2013-2020), interestingly, for the same reason.
Their target for Net Zero by 2050 is not deterrent them from encouraging private investments and perhaps, it provided big space and hope for new technologies for energy transition and Carbon Capture Utilization & Storage (CCUS).The Carbon Market is certainly keeping them engaged, although with varied prices in the Voluntary Carbon Market (VCM) and Compliance Carbon Market (CCM). They seem to work even outside the frameworks of Clean Development Mechanisms (CDM) of IPCC and promoted guidelines like Gold Standards (GS) and Core Carbon Principles (CCP) to ensure credible and dependable Carbon removals and reductions, also enhancing the trust and adding value to investments.
The space in Compliance Market is expanding in Europe and hence Indian contribution with respect to technology innovations for GHG removal or reduction which will provide impetus to domestic funding. Our energy transition strategy is in the best of its path. Nevertheless, we need to develop newer frameworks with policies to incentivize the decarbonization projects. In the present taxing landscape, India needs to set Carbon Market and introduce tax Credit schemes like 45Q of USA to infuse and enhance more corporate funding to build climate resilience in the growing economy.
Europe stands fourth or fifth as climate polluter, putting Pacific Asia, US and China behind; where India, as a country in South Asia is fast becoming a carbon intensive economy next only to US and China.
The required net climate finance for the world has been assessed for a whopping figure of 125 trillion USD, to be spent towards achieving the Net Zero target by 2050.Specifically, it is 32 trillion USD for the current decade (2021-2030). India would be requiring 4.5 trillion USD per annum, to facilitate global economy as Net Zero by 2050. This is near impossible for India in this decade with the GDP at 3.2 trillion USD (the most recent data, 2022, WB) and so our commitment to become Net Zero only 2070, get justified.
Per se, no developed economy have its share of finance adequately available to tackle the issue and hence the participation of private corporates are assessed for an elephant share of more than 60%. Europe is not only implemented “ Cap and Trade “ based market mechanisms to reduce the carbon intensity of industrial emissions, mechanisms like Carbon Border Adjustment Mechanism (C-BAM) has proved to be very successful in resourcing climate finance and to spend on the exclusive targets like Biodiversity.
While Loss & Damage claims have taken some shapes in Dubai (COP 28, December 2023),it was not as successful as it was intended to carry forward the Paris Pact (COP 21, 2015). The forthcoming COP 29, scheduled for November 2024 at Azerbaijan, Is expected to deliberate the Carbon Stock Taking Exercise and Biennial Update Reports (BUR). Our Intended Nationally Determined Contributions (INDC) submitted to UNFCCC; which paved basis for climate action at National and State level, are still looking for strategies with funds for timely implementation. Having submitted three reports, India has to submit its BUR-4 which is dew now.
Leveraging my participation in ECS-2024, it is evidently clear that market-based mechanisms are in the mainstream landscape of private participation to mitigate GHG emissions and a key policy tool in the carbon markets to drive climate action forward.The climate budget required for Asia Pacific countries, where China & India are the leading economies, is 13.6 trillion USD and India alone requires 2.5 trillion USD for the current decade. India is bound to entertain private actors to provide to share this burden to safeguard the life from natural hazards
Said apart, the deadliest extent of loss of life and property during Mumbai Rains (2005), Chennai Flood (2015), and Kerala landslides (2018), what happened in the last year (2023) is alarming and necessitates mitigation actions; and not the usual post event adaptation activities at unprecedently higher cost. The 2023 has gone with not-well noticed havocs in India with Assam (extraordinary monsoon- flood and landslide, June & July); the wettest days in Maharashtra, Telangana, Uttarkhand, Punjab and Delhi (July); Kerala, Gujarat, Rajasthan and Maharashtra (Severe monsoon with Flood, September); Sikkim and West Bengal (October); and Tamilnadu, Andhra Pradesh and Telangana (December), to mention a few documented disastrous events, induced by Climate Change. Having allocated funds and implemented the State Action Plan for Climate Change (SAPCC) and Integrated Coastal Zone Management Plan (ICZMP), the loss and damage which were then assessed for several thousands of crores could have been saved, apart from the requirement of exorbitantly high Resettlement and Rehabilitation (RR) cost.
The historical data set of the Climate Science, documented by IPCC, indicates an alarming urgency to act expeditiously and resolutely; towards 2030, the average surface temperature is assessed to exceed 1.5 degree C above the pre-industrial time. The recent unprecedented events of draught, flash rain, flood and the current heat wave onset of summer in India, demands climate resilience in all our future endeavors and we may even have to prepone the presently committed target for Net Zero from 2070. It should be cheaper now to save the planet than destroying it through our flamboyant living. In the global perspective, the cost of action is apparently inexpensive than the cost of inaction.
Climate Catastrophe – The Cost of Inaction
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