The 21st United National Framework Convention on Climate Change (UNFCCC) Conference of Parties (or COP21) was convened in Paris in December 2015 to come to an agreement regarding the actionable measures that could be taken by countries around the world to mitigate as well as adapt to the effects of climate change..
By Akanksha Sharma
Image Attribute: India pavilion at COP21 venue in Paris. (Pic: Avik Roy)
Image Attribute: India pavilion at COP21 venue in Paris. (Pic: Avik Roy)
The 21st
United National Framework Convention on Climate Change (UNFCCC) Conference of
Parties (or COP21) was convened in Paris in December 2015 to come to an
agreement regarding the actionable measures that could be taken by countries
around the world to mitigate as well as adapt to the effects of climate change.
195 countries on 12 December, 2015 committed to reduce their collective carbon
emissions in an effort to keep rising climate change at a cap of 2 degrees
Celcius above pre-industrial levels. This agreement however, is not legally
enforceable. The second key outcome of COP21 was related to climate financing;
with a commitment of USD 100 billion per year, starting from 200 to developing
countries in order to facilitate their adaptation to climate change and transition
to a greener energy sector. India announced its intended Nationally Determined
Contribution (NDC) as follows: a 33-35 GDP percent reduction in emissions
intensity by 2030, against 2005 and a target of attaining 40 percent of its
energy from renewable energy resources by 2030.
COP21
has significant implications for India, especially on three levels:
policy-making, businesses and the social sector. The reverberations from COP21
can already be felt in India’s policy and decision-making corridors. During the
proceedings of COP21, Indian Prime Minister Narendra Modi had a key part in
launching the International Solar Alliance (ISA). He also offered for the
hosting of its Secretariat in India. According to the Economic Survey (2015-16)
tabled on 26th February, 2015, following institutional measures to
achieve the proposed targets have been undertaken: the formation of a mission
on climate change and health and a National Expert Group on Climate Change and
Health. According to Budget 2016, the cess on coal has been increased by two
times. It is now rupees 400 for every tonne. This funds collected from this
cess will be directed towards the National Clean Energy Fund (NCEF). From the
examples highlighted above, it appears that the policy environment in India has
received quite a stimulus from the run-up to and the follow-up post COP21.
From a
business perspective, there are significant opportunities to invest in
technology, services and human resources in new arenas such as energy
efficiency, water recycling, clean energy and the conversion of waste to
energy. This was an important point highlighted by PM Modi in his address at
the ‘Make in India’ week in Mumbai. Bhatt (CDKN, 2015) writes that solar energy
and green technologies are popular avenues for private investment. However, the
UNFCCC database for actions also highlights other areas that will benefit from
investment, such as water and sanitation and insurance. At RE-INVEST 2015 (Global
Renewable Energy Investors' Meet & Expo), Indian Finance Minister Mr Arun
Jaitely highlighted India’s geographical advantage in the form of a huge land
mass which had great potential to being converted into a resource. KPMG’s COP21
Business Briefing (2015), gives the opinion that renewable energy technology
costs are cheap and new mechanisms for financing, like green bonds are
witnessing a proliferation.
Deliberations
by senior business leaders (TERI, Encore, 2014) highlighting the importance of
the need to expand vision of businesses as linear growth models wherein achieving
high profits could only be through bounded procedures such as cost-reduction
and production-increase; is a sign that the business landscape in India is now
increasingly characterised by innovation. If a long-term perspective is taken,
then current activity towards climate adaptation is in the best interests of
businesses. According to the IPCC (2012), Asia went through the highest
economic losses globally between the years 2000 and 2008 due to extreme weather
events, at 27.5 percent. For businesses that are located or possess significant
capital and assets near coastal areas or in port cities, investing in climate
adaptation can be considered to be a form of asset protection. Ringue (in TERI,
Encore, 2014) writes that industries such as petro-chemicals and energy which
are heavily reliant on traditional shipping routes for trade will be
disproportionately affected by the negative effects of climate change. According
to certain scientific studies, if the sea level rises by 0.5 m by 2070; assets
in cities such as Kolkata, Mumbai and Dhaka would become extremely vulnerable.
He further discusses the need for businesses to adopt sustainable practices
from the present time itself in order to ensure consistent future growth.
COP21
has important implications for the social sector in India. The negative effects
of climate change are intimately linked to lives, livelihoods, property,
displacement, health security and financial stability. Bhatt (CDKN, 2015)
highlights the valuable role that will be played by good data collection in
identifying the areas among the social sector that need priority interventions.
A solid analysis of accurate data obtained from reputable sources is necessary
for knowledge management and to make sense of the vast amounts of information
that key stakeholders are bombarded with every day. COP21 Dialogue (IRADE,
2015) highlights the opinion of Green Climate Fund (GCF) board member Mr Deepak
Das Gupta on the localisation of climate finance and funding for India’s social
sector schemes. He stated that The National Bank for Agriculture and Rural
Development (NABARD) would be one of the beneficiaries of the GCF, as it is
currently involved in agenda-setting for decisions on development investment.
As the agriculture sector, is highly vulnerable to the negative impacts of
climate change it becomes critical to reduce risk factors towards the
livelihood of 50 percent of India’s population. Stakeholders also need to
identify most vulnerable communities living in low-lying, flood prone areas and
brainstorm and strategise with regards to climate adaptation measures for them
in collaboration with NGOs and civil society organisations working at the
grass-roots level.
COP21
as an international platform working together to mitigate and adapt to the
negative effects of climate change, has acted as a stimulus to India on the
above mentioned three levels: policy-making, business sector and the social
sector. The coming years are an opportunity in different areas: investment and
returns, socially inclusive economic growth, and policy measures with the teeth
to make a difference.
About The Author:
Akanksha Sharma is an Independent International Affairs Analyst. She was
previously Research Analyst with the S.Rajaratnam School of International
Studies, Singapore. Her research interests include, but are not limited to
International Relations in the Asia-Pacific and India’s Foreign Policy. She can
be contacted via LinkedIn. Thomson
Reuters ResearcherID : L-2076-2015
Cite This Article:
Sharma, Akanksha, " FEATURED | What Does
COP21 Mean for India? : An Analysis" IndraStra. April 13, 2016. Vol 2,
Issue 04, 0035, https://www.indrastra.com/2016/04/ FEATURED-What-Does-COP21-Mean-for-India-002-04-2016-0035.html.|ISSN
2381-3652| Download the Pdf - LINK
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