India should head to London climate talks with a definitive plan of action: Rajan | No country can bring change alone in climate change, India should come forward with better proposal

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  • India Should Head To London Climate Talks With A Definitive Plan Of Action: Rajan

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New Delhi7 hours ago

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Raghuram Rajan says India should listen to its climate activists and push for global action.

  • All countries will meet in London this year regarding climate change
  • America’s Biden administration ready to work on climate change

There is an unexpected fire in Australia’s forests. The problem of drought is increasing in the sub-Saharan desert of Africa. These events suggest that the problem of climate change is once again facing the whole world. India is also one of the countries most vulnerable to climate change. It is in our interest to listen to our climate activists and push for global action. Former Reserve Bank of India (RBI) Governor Raghuram Rajan has said this in his latest column.

No single country can change

Rajan says that no single country can bring change on the issue of climate change. Globally, change is possible only through collaborative action. With the Biden administration ready to work in this direction, it is expected that this year, there may be an important decision in the negotiations to be held in London. Rajan says that India should go to London with a better proposal regarding climate change as an emerging market. This proposal should also be good for the industrial world.

Most economists in favor of taxation

According to Rajan, most economists are generally supportive of imposing taxes to reduce carbon emissions. But the changes in these taxes according to the design can be harmful in the short term. This means that in any negotiation about imposition of carbon tax at the earliest, many countries will evade tax and the problem of transparency will arise. Industrialized countries such as the US will worry that developing countries will be free of carbon tax and will continue to emit. In 2017, the per capita carbon emission in India was 1.8 tonnes. Which at that time was 16 tonnes per capita in the US and 19 tonnes in Saudi Arabia.

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Reduced emission method will have to be adopted

The former RBI governor says that to reduce emissions, the least expensive method should be adopted and everyone should be given equal incentives. Under this, India should not build any more coal plants. Whereas Europe should close its existing coal plants. So the big question is how do we balance these concerns while saving the world in which we live.

Its economic solution is quite simple

According to Rajan, the simplest economic solution is the per capita carbon levy or Global Carbon Reduction Incentive (GCRI). Countries that emit more than 5 tonnes of carbon per capita should pay into the Global Incentive Fund. This annual payment should be calculated by multiplying the excess emissions being generated by the population of that country. If GCRI is started at $ 10 per tonne, then the United States will have to pay about $ 36 billion annually for $ 2.6 billion and Saudi Arabia $ 4.6 billion for about 33 thousand crore rupees.

India will get an incentive of 3 lakh crore rupees

Rajan says that under this system countries producing carbon emissions below the global average will get incentives. In this, Uganda will get about $ 2.1 billion, about 15 thousand crore rupees and India will get $ 41.6 billion, about 3 lakh crore rupees every year. These countries will be able to use this money to reduce carbon emissions and increase alternative energy.

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