IAS 2015 MAINS ESSAY TEST 2

FRBM without its teeth

The Fiscal Responsibility and Budget Management (FRBM) Bill, 2000, took three years to get passed by Parliament and become the FRBM Act, 2003. In the process, some claim that its teeth were removed. The explicit annual targets, as a proportion of GDP, for reduction of fiscal (0.3 per cent) and revenue deficits (0.5 per cent) were eliminated from the legislation. The Act simply stated that the Centre will take appropriate measures to eliminate revenue deficit by March 31, 2008. Annual numerical targets were left to the government to formulate in the FRBM Rules under the delegated authority of the FRBM Act.

Without an autonomous Fiscal Management Review Committee and beyond the jurisdiction of civil courts, the FRBM Act, many claim, became like the Constitution's Directive Principles of State Policy.

The NDA government that got the FRBM Act passed did not last to promulgate the Rules. Under the first UPA government, the FRBM Rules came into force from July 5, 2004. While notifying the Rules on July 2, 2004, an amendment to the Act was passed for a one-year postponement of the target year for eliminating the revenue deficit to 2008-09. Before the ink on the FRBM Act was dry, the Finance Minister, in his Budget Speech for 2005-06, pressed the pause button vis-à-vis the FRBM Act because of the drastically changed pattern of devolution and funding recommended by the 12th Finance Commission. In March 2005, former Chief Economic Advisor Shankar Acharya published an article in this newspaper entitled "Farewell fiscal responsibility?"

What followed indeed looks like a farewell to fiscal responsibility. The FRBM path of fiscal correction was halted from 2008-09 because of unanticipated changes in the prices of fuel and fertiliser. Outlays on major subsidies shot up from Rs 67,498 crore in 2007-08 to Rs 1,23,581 crore in 2008-09. Off-budget bonds issued to the petroleum and fertiliser companies amounted to a further Rs 95,942 crore or 1.8 per cent of GDP in 2008-09. On August 28, 2008, the central government asked the 13th Finance Commission to lay down a revised road map for fiscal consolidation.

With elections for the 15th Lok Sabha scheduled for April-May, 2009, an Interim Budget for 2009-10 followed on February 16, 2009. A new Finance Minister, in office for only three weeks, called the economic circumstances extraordinary and announced extraordinary measures. The FRBM targets were relaxed to boost demand and counter the impact of the global financial meltdown.

Post-election, the Budget for 2009-10 presented on July 6, 2009, included a fiscal stimulus package. Between 2008-09 and 2009-10, as a proportion of GDP, the fiscal deficit shot up from 6.0 per cent to 6.5 per cent, with an even bigger increase in revenue deficit from 4.5 per cent to 5.2 per cent. Of course, the medium-term commitment to fiscal consolidation and a return to the FRBM targets at the earliest were reiterated.

In the context of FRBM, the 13th Finance Commission, in its report submitted on December 29, 2009, argued against disturbing the existing classification of revenue and capital expenditure in an ad hoc manner. Yet, in what was described as the "Godzilla of all fudges played out in this country in the guise of fiscal consolidation", Budget 2011-12 quietly introduced the concept of "effective revenue deficit." It is the revenue deficit adjusted for grants to states for asset creation. The Budget of 2012-13 went farther. Through the Finance Act, known for its missile-like efficiency for getting passed without elaborate discussion or amendments, it changed the FRBM Act itself. The Centre's commitment to eliminate its revenue deficit was dumped for the elimination of the tenuous concept of "effective revenue deficit". The amended FRBM Rules of May 7, 2013, stretched the time for its elimination by six years to March 31, 2015, and for bringing the fiscal deficit down to three per cent of GDP by eight years to March 31, 2017.

In 2014-15, as a proportion of GDP, the revised estimate of revenue deficit of the central government was far above zero at 2.9 per cent, and fiscal deficit 1.1 percentage points above the three per cent mark to be achieved by March 2017. So, has the FRBM Act been an exercise in futility?

Undoubtedly, even the toothless FRBM Act has been beneficial. Fiscal consolidation is like quitting smoking. Not easy. Politicians and policy makers want fiscal consolidation; but only in the medium term, not the current year. Most smokers recognise smoking as injurious to health, and want to quit, but, not now and here. There are short-term costs. Taxes are painful, and cutting expenditure hurts some constituency. Quitting smoking leads to withdrawal symptoms, frayed tempers and mood swings. Finally, not consolidating this year, like continuing smoking for another day, does not have immediate disastrous consequences.

In the move from discretion to rules in the fiscal arena, like in quitting smoking, there are many failed attempts before success. The US experience with debt ceilings from the First World War days and Gramm Rudman Hollings Act (1985), and EU experience with the Stability and Growth Pact since 1997 are cases in point.

Legislature consisting of the elected representatives of the people will, and should, have the power to formulate laws and change them at their discretion. The durability and success of fiscal rules ultimately depend on popular support for such rules. Pursuit of a virtuous rule, even when diluted, leads to mobilisation of popular support. In the 1950s and 1960s, there were only lonely voices of economists such as B R Shenoy against fiscal profligacy. With the FRBM Act, there is now a larger constituency against fiscal excesses.

India banks on subsidy cuts, higher taxes on fuels

India is experimenting, said the submission, with a careful mix of market mechanisms together with fiscal instruments and regulatory interventions to mobilise finances for climate change.

India would need to spend at least $2.5 trillion between 2015 and 2030 on mitigation activities to meet targets as part of its Intended Nationally Determined Contribution (INDC) submission to the United Nations Framework Convention on Climate Change (UNFCCC).

To achieve the INDC of reducing the emissions intensity of its GDP by 33 to 35 per cent by 2030 from the 2005 level, India has said it will bank on fiscal measures including fuel subsidy cuts and increased taxes on fossil fuels including diesel and petrol.

The Modi government’s policy of duty increases that are an implicit carbon tax of $140 for petrol and $64 for diesel in absolute terms will help India achieve a net reduction of 11 million tonnes of CO emissions in less than a year.

Over the past one year, India has almost cut its petroleum subsidy by about 26 per cent, according to the 38-page document. This, it said, is substantially above what is now considered a reasonable initial tax on CO emissions of $25- $35 per tonne. “The subsidies cuts and increased taxes on fossil fuels have turned a carbon subsidy regime into one of carbon taxation.”

India is experimenting, said the submission, with a careful mix of market mechanisms together with fiscal instruments and regulatory interventions to mobilise finances for climate change.

Cess on coal

One of the dedicated funds at the national level for meeting the costs of mitigation is the cess on coal. In 2010, the cess was imposed at the rate of Rs.50 ($0.8) per tonne of coal and has been quadrupled to Rs.200 ($ 3.2) per tonne of coal. The coal cess translates into a carbon tax equivalent, using the emission factor for coal, of about $2 per tonne. This forms the corpus for the National Clean Environment Fund -- used for financing clean energy, technologies, and projects related to it.

The total cess collection, of Rs.17,084 crore ($2.7 billion) till 2014-15, is being used for 46 clean energy projects worth Rs.16,511 crore ($2.6 billion).

Tax-free infrastructure bonds of Rs.5,000 crore ($794 million) are also being introduced for funding of renewable energy projects during the year 2015-16, India said.

Forestry sector

Also included in the submission is the 14th Finance Commission recommendation on incentives for forestry sector that has based the devolution of funds to states from the federal pool of taxes on a formula that attaches 7.5 per cent weight to the area under forest. According to the estimations based on 14th Finance Commission data, the initiative provides afforestation a boost by conditioning about $6.9 billion of transfers to the states based on their forest cover, which is projected to increase up to $12 billion by 2019-20. “Implicitly, India is going to transfer to states roughly about $174 per hectare of forest per year which compares very favourably with other afforested countries,” the INDC document said.

Preparing for Paris

India’s commitment to adopt low-carbon pathways for development is welcome reaffirmation that it fully recognises its role in averting dangerous climate change. In the statement of climate goals and plans — formally called the Intended Nationally Determined Contributions, or INDCs — which has been submitted to the UN Framework Convention on Climate Change, the Narendra Modi government has emphasised the expansion of clean technologies to generate power, greater energy efficiency in infrastructure, and a significant widening of forestry as key measures. There are several other actions that it will take in the areas of transport, buildings, agriculture and waste management in order to balance economic growth with carbon emissions. With all this, India promises to reduce the emissions intensity of its GDP by 33 to 35 per cent by 2030, from 2005 levels, while not committing itself to any absolute reduction in greenhouse gas emissions. What is significant is that the national plans given in the INDC, ahead of the Paris Climate Conference in December 2015, depends on the “unencumbered availability of clean technologies and financial resource from around the world”. Such a position is consistent with the principle of ‘common but differentiated responsibilities’ that guides climate negotiations. Yet, India cannot avoid addressing the internal contradiction — affluent citizens have access to cheap, abundant energy and mobility while the poor and the vulnerable are forced to fend for themselves — in facing the negative effects of climate change.

On the positive side, since much of India’s infrastructure is yet to be built, the Central and State governments can adopt the greenest technologies to ensure that the long-term impact on emissions is positive. This is particularly important in the design and construction of built structures, including housing and offices, mass transport systems and lighting, to name a few. New coal-based power generation facilities have a prolonged lock-in effect of high emissions, and it is vital to opt for the cleanest systems. Financing such a major effort requires massive funding; the INDC data estimate that between now and 2030, at least $2.5 trillion would be required for the country to meet climate change action requirements. Some of the funding could come from the taxing of fuels. As with the coal cess, there could be a climate tax on transport fuels — this would result in a tax-and-share arrangement where high-volume users would pay a tax to fund common facilities. Another area that needs support is in helping citizens scale up their contribution to renewable energy. Incentivising citizen-investment in roof-top solar installations would unlock private funds and help the country exceed the 100 GW it aims to generate from this source. That will be a world-leading achievement.

India matches Brazil’s record in university rankings

Seventeen Indian higher education institutions have featured in a list of the world’s best universities topped by California Institute of Technology.

While no Indian institution was among the world’s top 200 universities, the 12th edition of the annual rankings released by ‘Times Higher Education’ here today has the Indian Institute of Science in the un-ranked 251-300 category and the Indian Institute of Technology Bombay in the 351-400 category.

With 17 institutions on the list, India is now at par with its BRIC counterpart Brazil.

“It is good news for India that 17 of its institutions feature in this year’s list of the world’s best universities, but it will have to work harder to compete with other emerging economies such as China, which has 37 institutions featured in this year’s rankings, and Russia, which has fewer institutions overall but a higher proportion in the upper echelons of the table,” said Phil Baty, the editor of the ‘Times Higher Education’ World University Rankings.

“With the population of young people in the country continuing to expand resulting in further pressure on resources, it is now more crucial than ever that India invests in research and strengthens its links with other nations. The government has spoken about improving its universities but is yet to implement an initiative in this area. It will need to act, and fast, if it wants to match up against its fellow BRIC nations and the rising stars in Asia,” he said.

Other Indian institutions featured in the list are: Indian Institute of Technology Delhi, Indian Institute of Technology Kharagpur and Indian Institute of Technology Madras in the 401-500 category.

The 501-600 category has Indian Institute of Technology Guwahati, Indian Institute of Technology Kanpur, Indian Institute of Technology Roorkee, Jadavpur University and Panjab University.

Aligarh Muslim University, Amrita University, Andhra University, Birla Institute of Technology and Science, Pilani, University of Calcutta, University of Delhi and Savitribai Phule Pune University have been placed in the 601-800 category.

The rankings have doubled the number of institutions covered around the world for this year’s list, which was topped by California Institute of Technology, followed by Oxford and Stanford in second and third place.

University of Cambridge and Massachusetts Institute of Technology (MIT) complete the top five, with Harvard University a close sixth.

In Asia, the National University of Singapore holds Asia’s number one spot (in 26th place) while China’s two leading universities (Peking and Tsinghua) are firmly established in the world’s elite top 50 group at 42nd and joint 47th respectively.

For the first time, London has four universities — Imperial College London, University College London, London School of Economics and King’s College London — in the top 30 of the rankings.

“I’m incredibly proud that four of London’s universities are in the top 30 worldwide according to this survey. The capital continues to be the global leader in education, innovating and inspiring top talent from both across the country and overseas,” said London mayor Boris Johnson.

The 2015 ranking features universities in 70 countries, with 29 new countries included this year including Indonesia, Malaysia, Ghana, Nigeria, Bangladesh, Latvia, Oman, Qatar and the Ukraine.

“This year’s expanded list is testament to just how competitive global higher education has become — our top 800 universities come from 70 different countries, and the traditional dominance of the US is eroding,” said Mr. Baty.

The rankings are partly based on publication and citation data from Elsevier’s Scopus, the world’s largest abstract and citation database of peer-reviewed literature, and include analytics from SciVal, Elsevier’s tool to calculate comparative research metrics.

It examines 13 performance indicators to examine all the core missions of the modern global university — research, teaching, knowledge transfer and international activity.

India to reduce the Emissions Intensity of its GDP by 33 to 35 Per Cent by 2030 from 2005 Level India to create additional Carbon Sink of 2.5 to 3 Billion Tonnes of Co2 Equivalent through Additional Forest and Tree Cover by 2030

India’s Intended Nationally Determined Contribution is Balanced and Comprehensive: Environment Minister

India to reduce the Emissions Intensity of its GDP by 33 to 35 Per Cent by 2030 from 2005 Level

India to create additional Carbon Sink of 2.5 to 3 Billion Tonnes of Co2 Equivalent through Additional Forest and Tree Cover by 2030

India to Anchor a Global Solar Alliance

The Government has said that India’s Intended Nationally Determined Contribution (INDC) is balanced and comprehensive.  Addressing a press conference here today, Union Minister of Environment, Forest and Climate Change, Shri Prakash Javadekar, said that India is keen to attempt to work towards a low carbon emission pathway, while simultaneously endeavoring to meet all the developmental challenges that the country faces today. Shri Javadekar said that INDC include reduction in the emissions intensity of its GDP by 33 to 35 per cent by 2030 from 2005 level and to create an additional carbon sink of 2.5 to 3 billion tonnes of CO₂ equivalent through additional forest and tree cover by 2030.  India has also decided to anchor a global solar alliance, INSPA (International Agency for Solar Policy & Application), of all countries located in between Tropic of Cancer and Tropic of Capricorn.   

The Minister said, ‘recent decisions of the Government represent a quantum jump in its aspirations and demonstrate unparalleled vision’.  He also said that India’s contribution represent utmost ambitious action in the current state of development. 

The INDC centre around India’s policies and programmes on promotion of clean energy, especially renewable energy, enhancement of energy efficiency, development of less carbon intensive and resilient urban centres, promotion of waste to wealth, safe, smart and sustainable green transportation network, abatement of pollution and India’s efforts to enhance carbon sink through creation of forest and tree cover.  It also captures citizens and private sector contribution to combating climate change.  The INDC proposals are on the following:

a.             Sustainable Lifestyles

b.                        Cleaner Economic Development

c.             Reduce Emission intensity of Gross Domestic Product (GDP)

d.                        Increase the Share of Non Fossil Fuel Based Electricity

e.             Enhancing Carbon Sink (Forests)

f.              Adaptation

g. Mobilizing Finance

h. Technology Transfer and Capacity Building

INDC outlines the post-2020 climate actions they intend to take under a new international agreement.  The INDC document is prepared with a view to taking forward the Prime Minister’s vision of a sustainable lifestyle and climate justice to protect the poor and vulnerable from adverse impacts of climate change. Ministry of Environment, Forest and Climate Change adopted an inclusive process for preparation of India’s INDC. It held stakeholder consultations with the specific involvement of the key Ministries and State Governments.  Interactions were also held with civil society organisations, thinktanks and technical & academic institutions of eminence. The Ministry had commissioned Greenhouse Gas (GHG) modeling studies for projections of GHG emissions till 2050 with a decadal gap. The gist of all these consultations & studies were taken on board before submitting India’s INDC. For India’s INDC, Government  zeroed-in-on a set of contributions which are comprehensive, balanced, equitable and pragmatic and addresses all the elements including Adaptation, Mitigation, Finance, Technology Transfer, Capacity Building and Transparency in Action and Support.

Planned actions and economic reforms have contributed positively to the rapidly declining growth rate of energy intensity in India. The Government of India, through its various institutions and resources, has taken steps to de-couple the Indian energy system from carbon in the long run. Despite facing enormous development challenges like poverty eradication, ensuring housing, electricity and food security for all, India declared a voluntary goal of reducing the emissions intensity of its GDP by 20–25%, over 2005 levels by 2020, despite having no binding mitigation obligations as per the Convention.  A slew of policy measures to promote low carbon strategies and Renewable Energy have resulted in the decline of emission intensity of our GDP by 12% between 2005 and 2010. It is a matter of satisfaction that United Nations Environment Programme (UNEP) in its Emission Gap Report 2014 has recognized India as one of the countries on course to achieving its voluntary goal.

India has adopted several ambitious measures for clean and renewable energy, energy efficiency in various sectors of industries, achieving lower emission intensity in the automobile and transport sector, non-fossil based electricity generation and building sector based on energy conservation. Thrust on renewable energy, promotion of clean energy, enhancing energy efficiency, developing climate resilient urban centres and sustainable green transportation network are some of the measures for achieving this goal.

Solar power in India is poised to grow significantly with Solar Mission as a major initiative of the Government of India. A scheme for development of 25 Solar Parks, Ultra Mega Solar Power Projects, canal top solar projects and one hundred thousand solar pumps for farmers is at different stages of implementation.  The Government’s goal of ‘Electricity for All’ is sought to be achieved by the above programs that would require huge investments, infusion of new technology, availability of nuclear fuel and international support.

The energy efficiency of thermal power plants will be systematically and mandatorily improved. Over one million medium and small enterprises will be involved in the Zero Defect Zero Effect Scheme to improve their quality, energy efficiency, enhance resource efficiency, pollution control, waste management and use of renewable energy.

Urban transport policy will encourage moving people rather than vehicles with a major focus on Mass Rapid Transit Systems. In addition to 236 km of metro rail in place, about 1150 km metro projects for cities including Pune, Ahmedabad and Lucknow are being planned. Delhi Metro, which has become India’s first MRTS project to earn carbon credits, has the potential to reduce about 0.57 million tonnes of CO₂ e annually.

The switch from Bharat Stage IV (BS IV) to Bharat Stage V (BS V) and Bharat Stage VI (BS VI) to improve fuel standards across the country is also planned for the near future.

Renewable energy sources are a strategic national resource. Harnessing these sources will put India on the path to a cleaner environment, energy independence and, a stronger economy. The renewable energy technologies contribute to better air quality, reduce reliance on fossil fuels, curb global warming, add jobs to the economy and, protect environmental values such as habitat and water quality.  Over the years India has successfully created a positive outlook necessary to promote investment in, demand for, and supply of, renewable energy. India’s strategy on renewable energy is driven by the objectives of energy security, energy access and also reducing the carbon footprints of the national energy systems. It has evolved over the years through increasingly stronger commitment at federal level.

The institutional arrangement for offtake of renewable energy power will be further strengthened by Renewable Purchase Obligations and Renewable Generation Obligations.

   India’s share of non-fossil fuel in the total installed capacity is projected to change from 30% in 2015 to about 40 % by 2030.  India is running one of the largest renewable capacity expansion programmes in the world. Between 2002 and 2015, the share of renewable grid capacity has increased over 6 times, from 2% (3.9 GW) to around 13% (36 GW) from a mix of sources including Wind Power, Small Hydro Power, Biomass Power / Cogeneration, Waste to Power and Solar Power. On normative terms the CO₂ emission abatement achieved from the renewable power installed capacity was 84.92 million tons CO₂ eq. /year as of 30 June 2015.

To accelerate development and deployment of renewable energy in the country, the Government is taking a number of initiatives like up-scaling of targets for renewable energy capacity addition from 30GW by 2016-17 to 175 GW by 2021-22.The renewable power target of 175 GW by 2022 will result in abatement of 326.22 million tons of CO₂ eq. /year.  The ambitious solar expansion programme seeks to enhance the capacity to 100 GW by 2022, which is expected to be scaled up further thereafter. Efforts will include scaling up efforts to increase the share of non-fossil fuel based energy resources in total electricity mix including wind power, solar, hydropower, biomass, waste to energy and nuclear power.

The range of ecosystem goods and services provided by forests include carbon sequestration and storage. Despite the significant opportunity costs, India is one of the few countries where forest and tree cover has increased in recent years and the total forest and tree cover amounts to 24% percent of the geographical area of the country. Over the past two decades progressive national forestry legislations and policies of India have transformed India’s forests into a net sink of CO2. With its focus on sustainable forest management, afforestation and regulating diversion of forest land for non-forest purpose, India plans to increase its carbon stock. Government of India’s long term goal is to increase its forest cover through a planned afforestation drive which includes number of programmes and initiatives like Green India Mission, green highways policy, financial incentive for forests, plantation along rivers, REDD-Plus & Other Policies and Compensatory Afforestation Fund Management and Planning Authority 

For the first time devolution of funds to states from the federal pool will be based on a formula that attaches 7.5 % weight to the area under forest. It takes into account the changing realities in order to rebalance the fiscal system of the country in a way that will incentivize greener distribution of resources. This initiative will give afforestation a massive boost by conditioning about USD 6.9 billion of transfers to the states based on their forest cover, which is projected to increase up to USD 12 billion by 2019-20.

For India, adaptation is inevitable and an imperative for the development process. India is facing climate change as a real issue, which is impacting some of its key sectors like agriculture and water. The adverse impacts of climate change on the developmental prospects of the country are further amplified enormously by the existence of widespread poverty and dependence of a large proportion of the population on climate sensitive sectors for livelihood. It is of immediate importance and requires action now.  In the INDC,  the country has focused on adaptation efforts, including: a) developing sustainable habitats; b) optimizing water use efficiency; c) creating ecologically sustainable climate resilient agricultural production systems; d) safeguarding the Himalayan glaciers and mountain ecosystem; and, e) enhancing carbon sinks in sustainably managed forests and implementing adaptation measures for vulnerable species, forest-dependent communities and ecosystems. India has also set up a National Adaptation Fund with an initial allocation of INR 3,500 million (USD 55.6 million) to combat the adaptation needs in key sectors.  This fund will assist national and state level activities to meet the cost of adaptation measures in areas that are particularly vulnerable to the adverse effects of climate change. 

India's climate actions have so far been largely financed from domestic resources. India already has ambitious climate action plans in place.  Preliminary domestic requirements to implement national climate plans add upto more than USD 2.5 trillion between 2015 and 2030.Substantial scaling up these plans would require greater resources. Developing countries like India are resource constrained and are already spending enormous amounts on climate change, . Implementing climate change mitigation and adaptation actions would require domestic and new & additional funds from developed countries in view of the resource required and the resource gap.

Urgent efforts to reduce GHG emissions need to take place against the backdrop of a growing energy demand and urbanisation in India. With the responsibility of lifting around 360 million people out of poverty and raising the standard of living of an even greater number of people, technology is the only powerful solution for countries like India that can simultaneously address climate change and development needs. Technology development and transfer and capacity-building are key to ensuring adequate development and deployment of clean-technologies. The technology gap between rich and poor countries remains enormous and the capacity of developing economies to adopt new technology needs to be enhanced.  Enhanced action on technology development and transfer will be central in enabling the full and effective implementation of India’s INDC. Developed countries should be supportive and help in transfer of technology, remove barriers, create facilitative IPR regime, provide finance, capacity building support and create a global framework for Research & Development on clean coal and other technologies.

India has submitted it’s Intended Nationally Determined Contribution on Gandhi Jayanti, The approach of India’s INDC has been anchored in the vision of equity inspired by the Father of our Nation Mahatma Gandhi's famous exhortation;“Earth has enough resources to meet people’s needs, but will never have enough to satisfy people's greed” and formulated under the leadership and guidance of the Prime Minister, Shri Narendra Modi, who has called for ‘convenient action’ in order to deal with the ‘inconvenient truth’ of climate change.

Conference of Parties (COP) of United Nations Framework Convention on Climate Change (UNFCCC) at 19th Session held in Warsaw in November 2013 invited all Parties to initiate domestic preparations for their INDC towards achieving the objective of the Convention and to communicate them, well in advance of the 21^stsession of the Conference of Parties. The concept of ‘Nationally Determined Contributions’, taking into account the outcomes of both Warsaw COP 19 and Lima COP 20 has to (i) reflect the principles of equity and  Common But Differentiated Responsibilities (CBDR) and (ii) the Country’s contributions must be seen in a balanced and comprehensive context.

Expectations from Paris

1)                        A balanced agreement with all components -mitigation, adaptation, technology, finance and capacity building- consistent with the principles and provisions of the Convention;

2)                        New, additional and predictable finances from developed and developing countries for mitigation, adaptation, technology transfer and capacity building;

3)                        Provision of technology development, transfer and diffusion;

4)                        Paris Agreement must incorporate loss and damage and make operational Warsaw International Mechanism.

India’s Intended Nationally Determined Contribution: At a Glance

India’s Intended Nationally Determined Contribution: At a Glance

India has submitted its Intended Nationally Determined Contribution (INDC) to the United Nations Framework Convention on Climate Change. Some of the salient points of the INDC are:

• To put forward and further propagate a healthy and sustainable way of living based on traditions and values of conservation and moderation.

• To adopt a climate-friendly and a cleaner path than the one followed hitherto by others at corresponding level of economic development.

• To reduce the emissions intensity of its GDP by 33 to 35 per cent by 2030 from 2005 level.

• To achieve about 40 per cent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030, with the help of transfer of technology and low cost international finance, including from Green Climate Fund.

• To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030.

• To better adapt to climate change by enhancing investments in development programmes in sectors vulnerable to climate change, particularly agriculture, water resources, Himalayan region, coastal regions, health and disaster management.

• To mobilize domestic and new and additional funds from developed countries to implement the above mitigation and adaptation actions in view of the resource required and the resource gap.

• To build capacities, create domestic framework and international architecture for quick diffusion of cutting edge climate technology in India and for joint collaborative R&D for such future technologies.