How About a Global Carbon Labelling Law?

The Copenhagen round of talks aimed at building a consensus about the features of the next climate treaty is scheduled to take place this December however, there seem to be no signs of consensus over how the world should proceed to reduce its carbon emissions. Which tool would be most effective? Clean Development Mechanism, a global carbon tax or maybe a global carbon labelling law?

Clean Development Mechanism has been tried, tested and, well, has been branded somewhat ineffective by not only the people outside the system but the people who are actually a part of it, the United Nations Framework Convention on Climate Change (UNFCCC). Bureaucratic delays, procedural wrongdoings in approval of projects and failure to make any difference at the grass-root level are some of the well known problems with this scheme.

The European Union has proposed that the CDM be replaced by a global carbon tax. United States saw a national carbon tax bill introduced in the Congress. The bill calls for levying an ‘carbon equivalency fee’ on imported products, in addition to the nationwide carbon tax in order to neutralize the losses incurred by domestic manufacturers. China has opposed this move saying that the developed countries are in part responsible for the emissions as they are the end users.

Obama Seeks to Inspire China, India to Do More in the Fight Against Climate Change

President-elect Barack Obama recently assembled his ‘dream green team’ which comprises of some of the best scientific minds of America. This green team symbolizes United States’ first real departure from the ideas that the Bush administration had regarding climate change. Obama seeks to use their expertise to not only create a low-carbon economy while creating new jobs but also, in doing so, set example for developing nations so that they could be persuaded to do the same.

While the previous administration ignored the suggestions of the scientific community and silenced even those working directly under it, the Obama administration has given clear indications that scientific knowledge will be the center piece of all policy matters regarding environment. Another important aspect of this administration is that it plans to solve the economic crisis, the problem of rising carbon emissions and energy security with a unified action plan. This would be very important in demonstrating to the world that United States under the leadership of Barack Obama is serious in fighting climate change.

Is Russia Looking for Greater Control in the Carbon Credit Market?

It seems that after using oil & gas as tool to punish the East European nations for their closeness to United States and showing Europe how dependent it is on its supplies, Russia is further trying to wield power by what seems is an intent to control a major share of the carbon credits market.

Russia has declared that it will not sell surplus carbon emission permits to other countries and will stockpile about $58 billion worth of the Kyoto carbon credits. It plans to use these surplus emission permits under the next climate treaty.

According to an official representing Russia at the climate talks in Poland, Russia has more emission permits than it requires but is not willing to sell them to any other country. The official argued that by stockpiling the surplus emission permits Russia is only securing its future economic growth.

Ukraine too has surplus carbon credits and it too intends to save them for use under the climate treaty that would succeed the Kyoto Protocol. But there is a difference between the two cases. Russia has the world’s largest gas reserves. By controlling a major portion of the carbon credits market Russia could indirectly control the control a major part of the global gas supplies.

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World’s Third Largest Emitter, India, Wants Europe To Cut Emissions

At the Asia Europe Meeting, held at Beijing this week, the Indian Prime Minister Mr. Manmohan Singh called up on his European counterparts to do more to reduce the carbon emissions of their countries. Talking about the per capita emissions he once against reiterated that the citizens of the developed countries need to reduce their emissions and do more to fulfill the promises that their governments made under the Kyoto Protocol. 

It is ironic that these statements are coming from the leader of a country which is expected to become the third largest emitter in the world. The Indian leaders always seem to fall back on the cushion of per capita emissions as India has some of the lowest per capita emission rates in the world. The Indian Prime Minster didn’t feel hesitant to remind Europe of its commitments under the Kyoto Protocol but somehow India couldn’t support the mandatory emissions cut goal for 2050. Both India and China opposed a compulsory emissions cut target when the G8 nations met in Japan earlier this year. 

Indian PM’s remarks clearly show the difference between India’s intent and actions on this sensitive issue. 

Rising Emissions Of Developing Economies Must Be Tamed

With China overtaking US as the largest greenhouse gases emitter and India set to become third largest emitter by year end, developed nations can no longer be solely held accountable for the rapidly rising global carbon emissions. Under the Kyoto Protocol the developing nations are not required to reduce their carbon emissions while it is mandatory for the developed nations to reduce & control their emissions as stated and agreed up on in the Treaty. This marks a grave unbalance as the world tries to cap the rising emissions in the midst of an overwhelming economic crisis.

The developing nations, which now produce a substantial amount of emissions, have been left out and are not bound by any mandatory emissions reductions.

Both China and India are big players in the trade of carbon credits together accounting for nearly 80% of the credits sold. Even after earning funding for clean energy projects both these countries have failed to register any substantial reduction in their emissions. Although China is the biggest investor in renewable energy and India is witnessing a boom in the clean energy projects especially solar, their role as the new big emitters has made headlines around the world. 

China’s Objection Signifies The Importance Of Indo-US Nuclear Deal

During his visit to China in January this year, the Indian Prime Minister Manmohan Singh was given assurance by high-ranking Chinese leaders that it would back India’s case at the NSG (Nuclear Suppliers Group) meeting. However, China came out as one of the major opponents of the proposed nuclear deal which, now, gives India an opportunity to trade in civilian nuclear technology something it wasn’t entitled to for the last 33 years.

Indian government claims that it was disappointed by the last-minute change in stance by the Chinese but it is hard to believe that the Indians wouldn’t have expected such a move. This very move shows how important this deal is and why the US administration is so keen to see it through even as some think of it as a one-sided affair, with India getting much more than it is giving back. 

When first announced the deal was ‘gift wrapped’ in order to project it as a dividend for India’s clean record as far as nuclear proliferation is concerned and President Bush went one step ahead claiming that the deal would eventually help reduce the carbon emissions as the trade of nuclear technology would help India move to nuclear power plants from coal fired plants.