Table of Contents
- 1 Lima Summit, 2014
- 2 Paris summit, 2015
- COP20 or CMP10 or Lima Summit was held in Lima, Peru, in December 2014.
- 2014 United Nations Climate Change Conference.
- It is the
- 20th yearly session of the Conference of the Parties (COP 20) to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and
- the 10th session of the Meeting of the Parties (CMP 10) to the 1997 Kyoto Protocol.
- The overarching goal of the conference is to reduce greenhouse gas emissions (GHGs) to limit the global temperature increase by 2030 to 2 degrees Celsius above 1850 baseline or Pre Industrial era.
- No agreement was reached due to lack of consensus between developed and developing countries.
- There was no clarity on the burden that each country has to bear and the summit ended in mere symbolism.
- The last minute deal urged developed countries to provide financial support to developing countries to meet their “ambitious mitigation” goals (Slightly in favor of Common But Differentiated Responsibility).
- The agreement urges parties to take national pledges by finalizing their Intended Nationally Determined Contributions (INDC) by November 2015 (Before Paris Summit).
- The agreement was severely criticized for being too shallow in its commitments.
- Wealthy nations like the U.S, EU argued that emissions from developing countries are consistently rising and they need to commit to more serious emission cuts.
- But India accused them of watering down the CDR principle envisaged in earlier agreements (Kyoto Protocol).
- India stuck to its conventional position that the developed countries should shoulder a bigger burden as they are responsible for the problem in the first place.
- India confirmed that poverty alleviation would continue to be its primary concern and hence it will not compromise with its share of carbon credits.
- China agreed a deal in 2014 under which its emissions would peak by 2030 (after 2030, it will start reducing its carbon footprint).
- India, the world’s third largest carbon emitter, is under pressure since then to make commitments like China did.
- India says carbon emissions will grow as it drives to beat poverty.
- India’s emissions are around 1.9 tonnes per person — less than China, which emits around 7.2 tonnes per person and the 5 tonnes world average.
- So India wants to use its carbon credits to alleviate poverty and is not ready to accept anything other than ‘common but differentiated responsibilities’.
- India has long defended the principle of “common but differentiated responsibility” (Common but differentiated responsibility = Contribution proportional to pollution: USA, China, Japan and Major European powers are polluting since many years and hence they should contribute more. India and other developing nations along with African nations have stated polluting the environment very recently and hence they will contribute less).
- India must demonstrate concerns about climate change issues (2015 Chennai floods, 2013 Uttarakhand floods are all the effects of climate change).
- Emissions in India are rising dangerously and the environmental costs will offset all its economic progress.
- Instead of always passing the burden onto others, it has to take responsibility.
- India had to make a pragmatically determined national pledge before Paris Summit [India announced its INDC in October 2015].
- 2015 United Nations Climate Change Conference.
- COP 21 or CMP 11.
- November 30 to December 11, 2015.
- Location ==> Paris.
- Previous summit was Held in 2014 in Lima, Peru.
- No agreement was reached in Lima.
- All agreements and decisions were reserved for Paris Summit 2015.
- Paris Summit is one of the most important environmental conference because of the INDC commitments made by major polluters.
- The conference objective is to achieve a legally binding and universal agreement on climate to be signed in 2015, and implemented by 2020.
- Prior to the conference, 146 national climate panels publicly presented draft national climate contributions (so-called Intended Nationally Determined Contributions, INDCs).
- Prior to the summit, China and the United States have agreed on a timetable to limit emission of GHGs.
- It will impose fresh pressure on India to make a voluntary commitment.
- S. agreed to reduce by 2025 its emission of greenhouse gases by 26 per cent to 28 per cent below its 2005 level.
- China stated its intent to peak emissions of carbon dioxide in 2030, if not earlier (from 2030 it will start reducing its emissions). It also agreed to raise the share of non-fossil fuels to 20 per cent in the next 16 years.
- India’s per capita emissions are estimated at one-tenth of the United States and one-fourth of China.
- China – US deal imposed a fresh pressure on India to make a voluntary commitment.
- India announced its INDCs in the end of 2015.
- During previous climate negotiations, countries agreed to publicly outline what actions they intend to take under a global agreement well before the Paris Summit 2015.
- These country commitments are known as Intended Nationally Determined Contributions (INDCs).
Inclusion of Adaptation, finance and transfer of technology
- Developed countries are of the view that only actions that help in reducing greenhouse gas emissions should be counted as ‘contributions’ in INDCs.
- Almost every developing country, including India, however, wants adaptation measures also to be counted.
- Developing countries also want efforts by developed ones on providing money or transferring technology to poorer nations to be included in INDCs.
- This will help in holding the rich countries (biggest culprits that contributed to the increase of GHG emissions since Industrial Revolution) accountable to their promises on ensuring financial and technology flows.
- India, European Union, China etc. are in favor of a 10-year commitment period.
- The United States, however, wants five-year commitment period so that countries can make quicker reviews.
- Since the INDCs are ‘nationally-determined’ and voluntary, the level of ambition in making ‘contributions’ is likely to be low.
- Some countries want an assessment of each country’s INDC to see whether these are in line with the global 2 degree target.
- India and the United Statesstrongly resent any such provision, saying such an exercise will negate the ‘nationally-determined’ nature of the ‘contributions’.
- Announced in October, 2015 (Lima summit urged every country to announce its INDCs by Nov, 2015)
Reduce emission intensity by 33 to 35%
- Reduce emission intensity by 33 to 35 per cent by 2030 compared to 2005 levels.
- Introduce new, more efficient and cleaner technologies in thermal power generation.
- Reducing emissions from transportation sector.
- Promote energy efficiency, mainly in industry, transportation, buildings and appliances
- Develop climate resilient infrastructure.
- Pursue Zero Effect, Zero Defect policy under Make in India programme.
Produce 40% non-fossil fuel based energy
- Produce 40 per cent of electricity from non-fossil fuel based energy resources by 2030, if international community helps with technology transfer and low cost finance.
- Install 175 GW of solar, wind and biomass electricity by 2022, and scale up further in following years.
- Aggressively pursue development of hydropower.
- Achieve the target of 63 GW of installed nuclear power capacity by 2032.
Create additional carbon sink of 2.5 to 3 billion tonnes
- Create an additional carbon sink of 2.5 to 3 billion tonnes of carbon dioxide equivalent by 2030 through additional forest and tree cover.
- Full implementation of Green India Mission and other programmes of afforestation
- Develop 140,000 km long tree line on both sides of national highways
- Develop robust adaptation strategies for agriculture, water and health sectors.
- Redesign National Water Mission and National Mission on Sustainable Agriculture.
- Active implementation of ongoing programmes like National Initiative on Climate Resilient Agriculture, setting up of 100 mobile soil-testing laboratories, distribution of soil health cards to farmers.
- Additional impetus on watershed development through Neeranchal scheme.
- Effective implementation of National Mission on Clean Ganga.
- Early formulation and implementation of National Health Mission.
- Complete Integrated Coastal Zone Management plan. Mapping and demarcation of coastal hazard lines.
- At least USD 2.5 trillion (at current prices) required between now and 2030 to implement all planned actions.
- A total of INR 170.84 billion collected through cess on coal production. Being used for funding clean energy projects.
- National Adaptation Fund has been created with initial allocation of Rs 3500 million.
- Tax free infrastructure bonds of INR 50 billion being introduced for funding renewable energy projects.
- Budget 2015 introduced “National Adaptation Fund” for climate change.
- As an initial sum, an amount of Rs 100 crore will be transferred to the Fund.
- Budget provision for the year 2015-16 and 2016-17 is Rs.350 crores.
- Money obtained from coal cess goes into NAF.
- Objective: Assist States and Union Territories that are particularly vulnerable to the adverse effects of climate change in meeting the cost of adaptation.
- The National Bank for Agriculture and Rural Development (NABARD) has been appointed as National Implementing Entity (NIE) responsible for implementation of adaptation projects under the (NAFCC).
- A bond is an instrument to borrow money.
- Infrastructure bonds are borrowings to be invested in government funded infrastructure projects within a country.
- They are issued by governments or government authorized Infrastructure companies or Non-Banking Financial Companies.
- Infrastructure bonds are good for people who need a fixed income. They offer a decent rate of interest and tax benefits.
- The maturity of these bonds is often between 10 to 15 years with an option to buy-back after a lock-in of 5 years (one can sell their bonds only after 5 years).
- Example: An authority or company wants to raise Rs 5 crore from tax-free bonds. The price of each bond is Rs. 1000. It will issue 50000 units of bonds. The maturity period is ten years. The minimum investment is 5 bonds which is equal to Rs. 5000. You want to invest Rs 10000. If the interest rate which is known as the coupon rate is 10 %, your return per annum is Rs. 1000. So after 10 years, you get a total of Rs. 20000.
What are the tax benefits?
- Investments up to Rs. 20000 are eligible for income tax deduction under Section 80 CCF of the Income Tax Act.