Pakistan's climate change project was cleared with a conditionality at the Green Climate Fund. India, faced with complete isolation at the fund's board meeting in South Korea, relented and dropped its demand for an outright rejection of the proposal.
It was decided that an independent assessment would again be carried out of the project by its supporting institution, UNDP and submitted to the board. The money would be disbursed for the project only if the independent assessment yet again weighs in favour of the project.
On Wednesday, India had asked for outright rejection of the project stating that the project was technically flawed. This put all developing country projects being considered at the board meeting at risk of being blocked from funding as they were being dealt with as a package agreement. No other developing or developed country, except for India, favoured this hold up on Wednesday and the discussions were put off for Friday, giving time for closed door negotiations.
On Friday when talks began, India took one step back from its demand for outright rejection and instead tried several different tacks to hold up a decision on the Pakistan project for this particular board meeting.
Instead of arguing that the project was technically flawed, set to fail with no possibility of redeeming it, India's representative and special secretary in the finance ministry, Dinesh Sharma said the project could cause harm people on the Indian side of the western Himalayan range. He also wondered aloud who would pay the penalty if a case was filed for damages later against the project.
Even as he reiterated that his concerns were purely environmental and not political he also noted that there was a dispute over the area where the project was to be located, "We consider this part of India sovereignty (sic), but under the administrative control of some other country." But then he checked himself by saying, "Forget about the administrative control forget about the sovereignty. Let us rise above it. We are talking about globe. Whatever lakes have this chance of flooding. Expand it. India will be the last country or I representing India, representing Asia Pacific will be the last to oppose it."
His arguments failed to cut ice with other board members with some of them openly warning that the argument from India were being seen as politically motivated. The board member from Africa reminded India's representative that he was not there only for India but for the entire region by giving example from his own continent. The board member from Germany said the idea that the project could harm people on the Indian side of the western Himalayas were not correct. Several repeated the point that India was making perfection the enemy of a good project by demanding yet greater scrutiny and expansion of the project right away. The Co-chair also noted that India was welcome to join the project at a later stage if it wanted.
As Sharma continued to argue alone against the project being cleared in this board meeting, at one stage he admitted he was standing in the way of consensus and added, "I am sorry that I am giving the impression it is political. There is nothing political about it."
The co-chairs of the board offered the idea of an independent assessment after clearing the project and before releasing of funds and permitting India to record its reservations if any in the minutes of the meeting. Sharma rejected to this offer as well, saying board could not give a nod now and have an assessment later. He said the assessment must assure that the project would be a success and that it would not cause harm to the Indian side and till then the project be not approved.
To break the impasse the co-chairs made another offer that the project be approved but the independent assessment of the project be submitted to the board for its consideration and the disbursements would be made only after that. At that point, India agreed to approve the project with the new condition.
