India’s Climate Change Position and Critique of EU’s CBAT

Context:

In the Economic Survey (ES) 2023-24 presented in Parliament, the Indian government expressed a distinct stance on climate change, acknowledging the likely failure to meet the 1.5℃ target. Additionally, the ES criticized the European Union’s proposed Carbon Border Adjustment Tax (CBAT), deeming it contrary to the Paris Agreement’s spirit and highlighting concerns about protectionism.

Relevance:

GS III: Environment and Ecology

Dimensions of the Article:

1. Global Temperature Target
2. India’s Criticisms of the Global Climate Change Discourse
3. Suggestions from the Economic Survey for Addressing Climate Change
4. Carbon Border Adjustment Mechanism (CBAM)
5. India’s Criticisms of CBAM

Global Temperature Target

Paris Agreement Targets (2015):

• Primary Goal: Limit the increase in global average annual temperature to within 2°C above pre-industrial levels (1850-1900 average).
• Aspirational Goal: Strive to limit the temperature rise to 1.5°C above pre-industrial levels.

Implementation:

• Action Plans: Countries are required to prepare and implement national action plans to contribute towards these temperature targets.

India’s Criticisms of the Global Climate Change Discourse

1. Inequity of the Climate Change Architecture:

• India has consistently criticized the global climate change framework for its inequity, particularly highlighting the lack of substantial climate action from developed nations despite their historical responsibility.

2. Inadequate Temperature Targets:

• The single global temperature targets (1.5°C or 2°C) are viewed as insufficient for addressing the complex relationships between climate change, ecological integrity, and human well-being.

3. Problems with Alternate Energy Solutions:

• The extraction of critical minerals for renewable energy technologies, such as batteries, often occurs in underdeveloped regions, leading to adverse effects on regional ecological health.

Suggestions from the Economic Survey for Addressing Climate Change

1. Lifestyle Changes:

• Emphasis on adopting more sustainable lifestyle choices, reducing waste, and minimizing overconsumption as a means to address climate change effectively.

2. Shorter-Term Policies:

• Implement policies aimed at improving quality of life in the short term as a more balanced approach to climate action, rather than focusing solely on switching to alternate energy sources.

Carbon Border Adjustment Mechanism (CBAM)

Overview:

• Purpose: Implement tariffs on energy-intensive goods imported into the EU to prevent local producers from facing a competitive disadvantage compared to producers in countries with more lenient emission standards.
• Target Goods: Includes iron, steel, and aluminium.
• Implementation Date: Expected to come into force on January 1, 2026.

India’s Criticisms of CBAM

1. Contravention of the Paris Agreement:

• CBAM is seen as contrary to the Paris Agreement’s principle of Common but Differentiated Responsibilities (CBDR), which recognizes the different capacities and responsibilities of countries.

2. Adverse Impact on India:

• Export Dependency: In 2022, India exported iron, steel, and aluminium products worth $8.2 billion to the EU, representing 27% of its total exports in these sectors.
• Financial Strain: Achieving net zero by 2070 requires an annual investment of $28 billion, and India’s climate action is largely funded through domestic resources due to limited international finance.
• Resource Impact: CBAM could strain India’s financial resources needed for climate change adaptation and mitigation efforts.

-Source: The Hindu