Deciphering Emission Realities: EU Official Discredits Unfair Comparisons
In a resounding declaration, a senior European Parliament official emphasized the critical need to avoid lumping nations together based on per capita emissions. Specifically, the official highlighted the stark contrast between India and other high-emitting countries like the UAE, China, and the US.
The European Parliament official adamantly stated that categorizing India alongside major emitters such as China and the US is entirely unacceptable. India's per capita emissions, he argued, are significantly lower, making such comparisons unjust.
Addressing the media at the UN climate talks, German politician Peter Liese emphasized the importance of acknowledging India's unique per capita emissions. He underscored the disparity, stating that Indian citizens should have the freedom to own a car, comparable to individuals in Germany who own two cars. Despite concerted efforts to link India with major emitters, its per capita emissions remain notably low.
Contrary to misleading narratives, India's per capita carbon dioxide emissions witnessed a modest increase of around five percent last year, reaching 2 tonnes. However, this figure remains less than half of the global average. A recent report by a global team of scientists shed light on this, placing the United States at the top of the per capita emissions chart.
The EU's proposed Carbon Border Adjustment Mechanism (CBAM) has ignited discussions at the international climate conference in Dubai. Liese argued that meeting the EU's climate promises is not feasible without implementing this border tax, emphasizing the necessity to strike a balance, especially considering the carbon intensity of India's cement, iron, and steel industries.
The CBAM aims to establish a fair price for carbon emitted during the production of energy-intensive products in non-EU countries. This encompasses goods such as iron, steel, cement, fertilizers, and aluminum. The EU justifies this mechanism by striving to create a level playing field for domestically produced green goods and reducing emissions from imports, constituting around 20 percent of the bloc's total emissions.
The carbon tax is scheduled to take effect from January 1, 2026, following a trial period starting on October 1, 2023. During this trial period, companies from seven carbon-intensive sectors must share emissions data with the EU. The EU, known for its stringent emissions rules, seeks to combat carbon leakage, where businesses may relocate to countries with lax regulations.
A UN Conference on Trade and Development study indicates that a USD 44 per tonne carbon tax through CBAM could significantly reduce leakage from 13.3 percent to 5.2 percent. However, concerns persist regarding the potential economic impact on Indian exporters of steel and aluminum, who could face losses of up to USD 2 billion.
While carbon taxes may incentivize producers to reduce emissions, there's a growing concern that they divert attention and resources from climate adaptation efforts in resource-deficient countries. Striking a delicate balance between emission reduction and adaptation remains a global challenge.
In summary, the discourse on per capita emissions, the proposed CBAM, and its potential impact on Indian exporters unfolds a complex narrative. It underscores the need for nuanced discussions, acknowledging the unique circumstances of each nation in the global fight against climate change.
