Commit On GHGs At G7

Context: The upcoming G7 summit offers India the significant opportunity to reassess its policy priorities and come up with bolder new announcements towards a low carbon future.

Recent developments towards low-carbon future

• G7 countries announced that they would stop all financing for unabated thermal coal power projects by end-2021.
• Earlier, 99% of HSBC’s shareholders voted for the world’s top financier of coal power to phase out support for the fuel by 2040.

Assessing India’s pivotal role in avoiding runaway global warming

• India is the third-largest emitter: Having the second-largest population, yet India will be the only country at the G7 summit with a nationally determined contribution (NDC) compatible with 2° C pathway.
• Continuing interest and investment in coal: As it remains an important source of employment and tax revenues. India is the second-largest coal producer.
  • The Energy Policy Tracker reports that India has dedicated nearly a quarter of its energy-related fiscal stimulus spending around $31 billion to fossil fuels.
• Huge cost of polluted development pathway: The State of Global Air 2020 report suggests that 980,000 Indians died from toxic air pollution in 2019, with coal power plants being a major contributor.
• Increasing frequency and severity of climate-related disasters: g. Cyclones Tauktae and Yaas have hammered India’s coastline even as Covid-19 continues to batter the country.
• Significant potential for low carbon economy: India blessed with plenty of renewable energy potential, a skilled workforce and a gigantic domestic market.

Way forward

• Focus on India’s 2030 emission targets: Stronger near-term targets are equally crucial because -
  • Net-zero target by 2050 might not be feasible.
  • Greenhouse gases accumulate in the atmosphere and early reductions in emissions make it easier to achieve long-term temperature goals.
    • It would signal to builders, businesses, investors and more that they need to take emission reductions into account.
• Steer public and private finance towards sustainable options: Announce measures to help India’s banks, pension funders, insurance companies, and other financial institutions manage climate risks and seize low-carbon opportunities.
• Move beyond policy of transition to cleaner fuels: Nurture greener industries and reskill workers in the affected regions to create future-ready jobs.