It takes two to tango

The global climate mitigation movement recently received a shot in the arm with the “return of the prodigal son” — Presi­dent Joe Biden steering the US back to the Paris Agreement. This comes at a time when the risk of our planet warming beyond a critical climate threshold is high, with countries sauntering when they need to sprint. According to the Emissions Gap Report 2020, Nationally Determined Contributions must be roughly tripled for the 2 degree Celsius pathway and amplified at least five-fold to meet the 1.5°C target.

President Biden must not only make up for lost time but also earn back the world’s confidence by walking the talk. The new regime has begun in earnest by marking climate change as one of its top priorities, backed by a $2 trillion package while setting a target of an emission-free electricity grid by 2035 and a net-zero carbon economy by 2050. A spate of quick decisions like annulling the Keystone XL pipeline project, reestablishing a mechanism for measuring the social cost of GHGs (greenhouse gases) and a ban on fossil fuel leasing on federal land and water signal the Biden administration’s intent. The decision to resume contributions to the Green Climate Fund to finance climate adaptation and mitigation projects in the more vulnerable developing nations will also help restore US credibility.

More importantly, the US must focus on a wider leadership role, integrating climate considerations within its foreign policy and driving the rest of the world to up the ante on decarbonisation. The appointment of John Kerry, a chief architect of the Paris Agreement, as the President’s climate envoy is a fantastic start towards this goal. Kerry, a veteran diplomat, is perhaps best suited for negotiating with global leaders and convincing them to enhance commitments before the Earth Day Summit convened by Presi­dent Biden. With Secretary Kerry’s much-awaited visit, there’s a rise in the global chorus around more “exp­e­c­t­ati­ons” from India and a concrete net-zero emission goal.

Under Prime Minister Narendra Modi, a keen advocate of sustainable growth, India has emerged as one among the few countries that are on track to meet their Paris commitments. Ever since the US and China pledged carbon neutrality by 2050 and 2060 respectively, there is immense pressure on India as the world’s third-largest carbon emitter to follow suit. There is plenty of speculation that India may target a net-zero economy by 2047, to coincide with 100 years of Independence and steal a march over China. However, a midcentury target may be a tall order given India has a growing population and is at a much earlier stage of development than both US and China, with urbanisation, industrialisation and energy demand all poised for accelerated growth. Yet, a bold target, backed by legislation will send out a clear signal to different stakeholders to implement policies and measures to work towards the target and establish India as a climate champion. This calls for a clear, coherent policy framework at the national and state levels, addressing various socio-economic impacts of transition.

Firstly, India will need a more aggressive deployment of renewables to increase its share in the power mix vis-à-vis coal. Next, it must usher in a greener transport sector by fast tracking electric vehicles running on clean power, backed by adequate charging infrastructure. Businesses will need to switch to low carbon modes, particularly in hard to abate sectors like steel and cement. The key lies in boosting energy efficiency, choosing cleaner options like hydrogen, liquid biofuels and embracing carbon capture, utilisation and storage technologies. Economic mechanisms like carbon trading will facilitate the reallocation of resources towards new technologies, while public-private partnerships will be essential to fund and promote research and innovation. Urban living will need to turn environment friendly with more green buildings and expanded tree cover.  

Declaring a net-zero goal is the easy bit but backing it up with actionable steps in the short term can be daunting. It is here that the US can act as a strategic partner and inject the much-needed financial and technological stimuli that will enable the achievement of India’s net-zero goal. There is tremendous potential for effective collaboration between the two nations with US support catalysing India’s decarbonisation. The US Climate Envoy’s visit is the perfect opportunity to focus on closer ties in the following areas:  

i) Accelerate India’s transition to clean energy through direct aid from the Green Climate Fund and by facilitating USAID and USDFC investments in green projects.

ii) Design collaborative research programmes for fast emerging low carbon technologies like green hydrogen and carbon capture, marked by a transfer of both funds and technical knowhow.

iii) Promote development of climate risk resilient infrastructure with the US joining the CDRI, a brainchild of Prime Minister Modi. Further, develop financial solutions for retrofitting existing infrastructure and introducing new climate risk insurance schemes.

iv) Setting up a joint forum of CEOs and climate entrepreneurs, drawn across sectors, to discuss ideas, innovations and share best practices related to sustainable business operations.

The US lending a helping hand can embolden India to declare a net-zero goal that is not just another hollow pledge. A successful US-India climate partnership marked by techno-financial assistance to pursue carbon neutrality can set a template for the rest of the world and provide a much-needed fillip to the global climate action movement. 

The writer is Founder, Chairman & CEO, ReNew Power, Board Member, US India Strategic Partnership Forum (USISPF)