The Threat of Climate Change Requires Action
The threat of climate change, popularly known as global warming, poses significant risk for mankind. The threat has arisen due to the accumulation of carbon dioxide and other green house gases (GHGs) in the Earth's atmosphere, mainly caused by use of fossil fuels. Manifestations of adverse climate change from this anthropogenic interference are detectable, and may, in the next several decades, result in unacceptable levels of adverse impacts.

2. The accumulation of green house gases in the atmosphere can largely be attributed to the Industrial Revolution and the use of fossil fuels by developed countries for the attainment of their present levels of prosperity. While developing countries have not contributed to the problem, they will be the most affected.

3. Climate change is a especially serious threat to a country like India, which is dependent on weather for its agricultural output. It is estimated that a 2 to 5C increase in temperature can lower rice yields in India by 20 to 50 per cent and wheat yields by 35 to 60 per cent. Disruptions, droughts and floods induced by climate change can also cause great hardship and impose large costs. Land loss due to submergence as well as due to salination, increase of flooding of low-lying coastal areas can cause large displacement of population. A one metre sea level rise could lead to displacement of 7 million persons within the country and submerge half a million hectares of land.

4. India is committed to the international regime represented by the UN Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol as the most appropriate tools to guide international efforts to protect global climate systems by reversing climate change in accordance with the principle of common but differentiated responsibilities This paper presents a proposal for a specific, voluntary partnership, within the scope of the present climate change regime, to enable participating countries decarbonize their energy futures, while preserving their respective policy spaces to address their energy needs in light of their individual circumstances. It is not an alternative to the UNFCCC process, and would not involve any new legally enforceable country-level commitments, but is based on a new paradigm of practical actions to deal with climate change.

Responsibility and Burden Sharing

5. The primary responsibility for the threat of climate change, rests on the industrialized countries who even today emit more than 60% of the greenhouse gases (GHG). Their historic contribution since the beginning of industrial revolution has been more than two-third of total global emissions. Unsustainable consumption patterns in the developed countries continue to contribute significantly to increase in emissions. The 25 per cent of the global population residing in industrialized countries not only emits the bulk of GHG but also consumes the bulk of resources.

6. The UNFCCC recognizes that there is a need to deal with the problem of climate change in accordance with the principle of common but differentiated responsibility. The primary responsibility to take action to reduce the threat of climate change is with the industrialized countries. The developed countries were to take the lead in accordance with the timetable set in the Kyoto Protocol but this has not happened in any meaningful way. The industrialized countries have not even initiated any substantive action to fulfill the promises made of returning to 1990 levels of emission by 2000. All industrialized countries are also not parties to the Kyoto Protocol. During the nineties, the increase in emissions of developed countries was nearly as much as India's total emissions.

7. International Energy Agency (lEA) projections indicate that aggregate carbon dioxide emissions of developed countries will continue to increase over the next three decades, despite their obligations under the UNFCCC and the Kyoto Protocol. According to these projections, even in 2030 emissions from developed countries will constitute the larger part of global emissions. It is true that carbon dioxide emissions of developing countries will rise more rapidly than those of industrialized countries, but this is imperative in order to meet the challenges of poverty eradication which developing countries face. It is also true that per capita emissions from developing countries will remain far below the level of industrialized countries even thirty years from now. In view of this, it is industrialized countries, which need to undertake greater effort in meeting the international commitments made by them.

8. Energy is a critical input for development. In particular, for developing countries, a rapid increase in energy use is imperative, if national development goals (and the Millennium Development Goals, MDGs) are to be realized. Appendix I lists Indias current Monitorable Development Goals, and indicates the principal activities in respect of which increased energy use is essential. The point made is a simple one realizing the national development goals are impossible without significant increase in energy use. We therefore believe that it is completely premature to talk of developing country commitments as developed countries have themselves not met any of the commitments that they had undertaken under the UNFCCC and the Kyoto Protocol.

9. Yet, developing countries could significantly impact global emissions by decarbonizing their economy. Decarbonization in the context of developing countries, must be taken to mean lower carbon intensity of the economy 1 over time. It cannot refer to reduction in the absolute level of GHG emitted over time, or to reduction in the rate of GDP growth, since neither would permit the raising of levels of living and realization of national development goals. In respect of industrialized countries it would mean reduction in both carbon intensities of the economy over time, and fall in the absolute level of GHG emissions. It need not, however, imply fall in living standards.

10. Decarbonization involves several paths, which are complementary, and not mutually exclusive. These are principally: enhanced energy efficiency; shift in primary energy use from fossil fuels to renewables (including hydropower) and nuclear energy; and changes in production and consumption patterns. Each path presents a diversity of options and challenges. The options available to a country depend also on its level of development. Developing countries can follow the path of decarbonization. However, they need to be provided incentives and helped to bear the additional burden of such a path if this is to succeed.

India's Efforts to Reduce GHG Emissions

11. While India is not required to reduce her GHG emissions, we have followed for quite some time GHG friendly policies in our own interest. India's energy strategy is designed to serve the primary goal of development to bring all citizens above the poverty line, some 250 million of whom are still poor. Around 500 million Indians still do not have electricity in their homes. Our current energy mix is 65% percent fossil fuel, 32% traditional biomass, 2% other renewable sources and 1% nuclear energy. Our energy demand was about 440 MMTOE in the year 2001-02. These figures do not include draught human and animal power largely used in the transportation of passenger and goods.

12. Some of the initiatives taken by India are detailed below:

Introduction of CNG as auto and domestic fuel in the metropolitan cities of Delhi and Mumbai. This initiative is to be expanded in many other towns and cities in a time bound manner. Conversion of about 84,000 public transport vehicles such as buses, taxis and 3 wheelers in Delhi alone is one of the largest such exercises the world over.

In order to introduce modal shift of transport from private to public, laying of 68.3 Kms of metro line in Delhi by 2005. Subject to availability of resources other cities to follow suit.

5 percent of blending of ethanol in petrol and diesel is required. In the next phase, the quantity to be increased to 10 percent. We have a major bio diesel programme in the country.

A special hydrogen initiative with public private partnership has set well-defined targets.

Target to increase the forest and tree cover in the country from existing 23 percent to 25 percent by 2007 and 33 percent by 2012.

Electrification of 62,000 villages through conventional grid expansion and 18,000 villages through decentralized non-conventional sources by 2007 is planned.

Awarded 16 blocks for exploration of coal bed methane.

R&D programme for Coal gasification, beneficiation and liquefaction for value addition to domestic coal.

Major thrust on renewable energy has over the years led to 3.26 million bio gas plants, 34.3 million improved wood burning stoves, 350,000 solar lanterns, 177,000 home lights, 41,400 street lighting systems and 4200 solar pumping system installed in the country.

Additionally, 3,000 MW of wind power; small and micro hydro plants of 1,600 MW; and 600 MW of biomass based power have been established.

27,760 MW of installed hydropower. Additional 41 schemes of 15,300 MW power are in different stages of implementation. A national hydropower initiative targeted at the setting up of an additional 50,000 MW of hydropower by 2012, of which 50% would be from run-of-river (ROR) projects without large reservoir capacities.

537 of MW biomass power, about 3000 MW of wind power and 1529 MW small hydro plants operational in India.

Petroleum Conservation and Research Association and the Bureau of Energy Efficiency have active campaign for raising public awareness.

13. These efforts and various other initiatives taken by us demonstrate our resolve in moving towards low carbon economy as a responsible member of the global community. With a very low per capita consumption of nearly one fifth of total energy and one twentieth of electricity consumption compared to that of OECD, India cannot accept any commitment to limit the growth of its energy consumption or any particular pattern of energy use. We would however, as we have done, continue to follow a path of cleaner energy technologies, consistent with our objective of improving the standard of living of all our citizens.

Indias Nuclear Energy Programme

14. Nuclear energy is a relatively clean source of energy, besides also being economical. Nuclear energy currently generates 16% of the worlds electricity, thereby avoiding approximately 600 million tonnes of carbon (mtC) emissions annually. This is approximately 8% of the current global GHG emissions.

15. In India, we have accorded importance to developing nuclear energy for meeting our energy needs. If we wish to sustain growth rates of 7-8% over the nextcouple of decades, then the scarcity of conventional sources of energy, particularly oil, gas and coal, could become a major constraint for our economy.

16. Our current plans are to raise substantially the contribution of nuclear energy to the overall energy mix. The technology for setting up of nuclear power plants and strategies for human resource development are already in place. We believe that, at the same time, there is a need for the international community to re-look at nuclear energy and promote its use consistent with non-proliferation concerns. There needs to be a fresh assessment of nuclear energy, as a clean source of energy. Legal and political barriers to the use of nuclear energy should be looked at carefully in a world increasingly vulnerable to the multiple risks of fossil fuels.

We believethat, at the same time, there is a need for the international community to re-look at nuclear energy and promote its use consistent with non-proliferation concerns. There needs to be a fresh assessment of nuclear energy, as a clean source of energy. Legal and political barriers to the use of nuclear energy should be looked at carefully in a world increasingly vulnerable to the multiple risks of fossil fuels.

The Way Forward A New Paradigm for International Cooperation for Action on Climate Change

17. India is committed to the UN Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, which represent the international consensus on the way to deal with climate change. Even though the international community has made promises for technology transfer and additional financing since Rio, this has not resulted in any effective transfer on the ground. Critical technologies, which can have significant impact on decarbonization, have been out of reach of developing countries because of both prohibitive costs and the existing IPR regime.

18. To enhance international cooperation within this framework, a new paradigm based on the internationally accepted principle of common but differentiated responsibilities is proposed. The focus is on practical action and partnership between developed and developing countries. The new paradigm would enable countries to decarbonize their future, while also preserving for developing countries their respective policy space to address their energy needs in the light of their individual circumstances. The three main components of the paradigm are:

Access to clean technologies by developing countries.

Provision of additional financial resources for access to critical technologies by developing countries.

A network of R&D institutions from both developed and developing countries to engage in research in new technologies.

Need for a New Approach

19. Decarbonization, which in the context of developing countries should mean lower carbon intensity of the economy and not reduction in the absolute level of GHG emitted over time, is not feasible without R&D in, and dissemination of new relevant technologies. R&D will not happen without innovators reaping reasonable financial rewards for their effort. Similarly, dissemination will not happen unless the new technologies are cheaper than the old. The Global Environment Facility (GEF) and the Clean Development Mechanism (CDM) are presently the primary multilateralarrangements to promote dissemination of decarbonization technologies to developing countries. These have, however, not succeeded in actively promoting R&D in technologies, which would be of actual interest to developing countries. A clear need thus exists for promoting R&D in such technologies. There is also need to ensure that uptake of these technologies is not limited by the perceptions of risk and high transaction costs involved in the GEF and the CDM.

Placing some IPRs in the public domain for developing countries

20. The IPR issue was successfully addressed with regard to HIV/AIDS. There is a similar need for it to be addressed with regard to technologies for energy efficiency and for clean energy.

21. One option would be to redefine the extent of patent protection for such technologies. The protection could exclude the use of such technologies in developing countries. Another option would be to establish a mechanism for the purchase of patent rights of certain technologies for their use in developing countries. Users in developing countries would then not be required to pay any license fees for these technologies. The patent holder could, however, continue to receive license fees for the use of the technology in industrialised countries.

New Financial Window
22. While dealing with the issue of transfer of technology to developing countries, the question of provision of additional financial resources would have to be dealt with. The financing of technology transfer to developing countries needs to be in addition to the existing flows of financing for development. The international community should explore the possibility of the establishment of a Clean Technology Acquisition Fund to enable developing countries to access critical technologies. This would encourage the adoption of clean technologies, and have a significant impact on decarbonization.

Network of R&D Institutions

23. A network of R&D institutes from developed and developing countries could be established to engage in research in new technologies, particularly those that would be of interest to developing countries. The model, which could be followed, is that of the Consultative Group of International Agricultural Research (CGIAR) that brings together 15 international agricultural centers for mobilizing science for the promotion of agricultural growth. A similar network of institutes from developed and developing countries engaged in R&D in energy efficiency and clean technologies could be established. We may call such a network CLEANET, which can be announced at the Gleneagles Summit. All collaborative R&D work done through the network would be made available to developing countries free of charge.

24. The network could be set up with voluntary funding from International Financial Institutions, other international organizations and from both developed and developing countries. An announcement of voluntary funding for the setting up of such an R&D network at the Gleneagles Summit would go a long way in demonstrating commitment to addressing climate change.

25. Additionally, a Global Technology Venture Capital Fund could be established for the financing of R&D, in particular collaborative R&D projects in industrialized and developing countries. The Fund may be able to cover some, if not all, of the costs of the network, through licensing fee from consumers in industrialized countries for use of the technologies that are developed. Equity contribution in the Fund and matters relating to its structure and governance could be considered by a core group of countries.

Appendix I: Indias Development Goals (Monitorable Targets) and their Energy Use Implications

S.No.	Target	Significant energy inputs
1.	Reduction of poverty ratio by 5% by 2007 and 15% by 2012	Energy inputs for increased production and consumption.
2.	Providing gainful and high quality employment to at least the addition to the labour force over the 10 th Plan period	Energy inputs for increased production and consumption.
3.	All children in school by 2003; all children to complete 5 years of schooling by 2007	Energy for school lunches; transportation; construction of buildings; production of books, teaching materials; drinking water, sanitation; lighting, fans, appliances
4.	Reduction in gender gaps in literacy and wage rates by at least 50% by 2007	Same as for 2, 3 above
5.	Reduction in decadal rate of population growth between 2001 and 2011 to 16.2%	Production, transportation, storage and distribution of family planning and maternal and child health supplies and personnel.
6.	Increase in literacy rates to 75% by 2007	Same as for 3 above
7.	Reduction in infant mortality rate (IMR) to 45 per 1000 live births by 2007 and 28 by 2007	Production, transportation, storage and distribution of maternal and child health supplies and personnel.
8.	Reduction in maternal mortality rate (MMR) to 2 per 1000 live births by 2007 and 33% by 2012	Same as for 7 above
9.	Increase in forest and tree cover to 25% by 2007 and 33% by 2012	Production, transportation and distribution of planting materials and supplies, earthwork, irrigation, and movement of personnel. In time afforestation will help increase to availability of biomass for renewable energy.
10.	All villages to have sustained access to potable drinking water by 2007	Extracting, transportation, treatment, and distribution of drinking water
11.	Cleaning of all major polluted rivers by 2007 and other notified stretches by 2012	Pumping of sewage, effluents, and their treatment.