"There are few areas where that cooperation is needed more than
on the issues of climate change and clean energy," said US President Bill Clinton, at
his March 22 meeting with environmentalists in Agra. The speech, which promised funding
for a series of energy projects in India, followed the signing of a joint statement on
cooperation in energy and environment between Indian Minister of External Affairs, Jaswant
Singh and US Secretary of State, Madeleine Albright earlier that day.
The agreement, under which a joint consultative group on energy and environment will be
set up, is the second of its kind in six months in October 1999, Singh signed a
similar statement on energy and environment with visiting US energy secretary Bill
Richardson. This eagerness on part of the US to engage India in energy projects is not
without cause. Under the Kyoto Protocol of the UN Framework Convention on Climate Change
(FCCC), the US has to show a reduction of its greenhouse gas emissions, mostly carbon
dioxide, by 7 per cent compared to 1990 levels, by the 2008-2012 period.
Despite being the worlds largest emitter of greenhouse gases (GHG), the US is
unwilling to make these reductions domestically. Instead, they want to make GHG reductions
in developing countries under an emissions trading mechanism called the clean
development mechanism (CDM), which they would then show as their own reductions
under the Kyoto Protocol. Pressure has been increasing on the Indian government because
the modalities of CDM will be discussed at the sixth conference of parties in The Hague in
November. The US claims that it will not be able to ratify the Kyoto Protocol unless India
and the G77 accept CDM on US terms which will bring down the cost of US emissions
reduction by 95 per cent.
For instance, if a power plant costs 100 crores, the US will bear the incremental 2-10
crores that it takes India to buy a more efficient power plant from the US with lower GHG
emissions. In this way, the US will reduce emissions in developing countries,
and show this as a reduction by the US under the Kyoto Protocol. Naturally, India will
have to buy the clean energy technology from the US, making the arrangement even more
lucrative for them.
But India has led the G77 in their opposition to CDM, pointing out that it is nothing
but a mechanism for the North to mop up low cost emission reduction possibilities from
developing countries. Moreover, it does not address the right of every individual to have
equal rights to emit greenhouse gases, and to the Earths atmosphere. The GHG
emissions of one US citizen with a more energy-intensive life style equalled those of 19
Indians in 1996.
According to an official from the Ministry of External Affairs speaking under
conditions of anonymity, the pressure on India to accept CDM in recent months has been
intense. Though Indian officials have succeeded in keeping both agreements general,
without giving away any firm commitments for unqualified support to CDM, both signal an
increasing and dangerous acceptance of the mechanism by India. According to the 1999
agreement signed by Singh and Richardson,
The governments of the United States and India resolve to work closely together with
other countries to develop agreed international rules and procedures for the Kyoto
Mechanisms, including the Clean Development Mechanism.
According to the more recent agreement,
The two countries intend to work together and with other countries in appropriate
multilateral fora toward early agreement on the elements of the Kyoto mechanisms,
including the Clean Development Mechanism
they recognise, in particular, that the
Clean Development Mechanism could provide important opportunities for economic growth and
environmental protection.
In his Agra speech, Clinton also said that countries "dont have to choose
between economic opportunity and environmental protection", implying that developing
countries can take on commitments to reduce their GHG emissions without compromising their
development. While this statement contradicts the US own position where the
Senate has refused to take on reductions because their fear it could affect economic
growth even environment-friendly countries like the Netherlands have accepted that
economic growth and GHG emissions cannot be de-linked. Scientists in the Netherlands have
shown that it can de-link sulphur dioxide emissions from Gross Domestic Product (GDP, i.e.
national wealth), but they have not been able to reduce carbon dioxide emissions without
reducing GDP (see graph). If industrialised countries are unable to achieve this
goal, how can developing countries be expected to bear the weight of it?