Rising demand around the globe is increasing pressure on the environment, and creating greater competition for natural resources. The only way out is green growth, according to European Union environment commissioner Janez Potocnik, on a visit to India. Talking to Piyali Mandal, he explains why the industry and environment need to work hand-in-hand in the long term if one needs to attain a sustainable future. Edited excerpts:
Recently, the EU came under a lot of criticism from many countries, including India, for imposing the emission trading system (ETS) for all flights entering or departing from airports in the region. Are you planning to reconsider the decision?
No, we do not want to opt out, but we want other countries to opt in. In the EU, we have the fundamental belief that we have to fight against the climate change. We have this fundamental belief that all sectors should participate, including the aviation sector. That’s why we have adopted the law. The EU’s ETS put a cap on the total amount of certain greenhouse gases that can be emitted. Within this cap, companies receive emission allowances, which they can sell to or buy from one another as needed. For the aviation sector, up to 85 per cent allowances are distributed freely — and only 15 per cent go for auction. If a company is pushing its carbon dioxide emissions down, there is no need to pay anything.
It is important to understand that the ETS is about capping the emissions; not about collecting the money.
But looking at the protest and agitations, are you open to discussions?
We are perfectly open to discuss the issue with any global stakeholders. We want all of them on board. However, we are not going back on the ETS. It is a law so it had to be followed.
When we talk about emissions, the term for the Kyoto protocol is ending. Do you favour extension of the protocol?
My view is that Kyoto Protocol has played an important part in the fight against the climate change. We need absolutely something that will give us better results in the future. We need an international agreement to fight against climate change.
Do you think a new framework should be evolved? Or that the existing protocol should be extended?
Certainly, a follow-up of Kyoto is necessary. How we will deal with that is a problem we collectively should deal with.
When we talk about climate change, don’t you think developed nations, who were the historic polluters, should do more?
We want all developing countries to do their work. If I would ask “Is it in the interest of India that they use water in a sustainable way”, yes! It is fundamentally in the interest of any nation to preserve its natural resources. We think some of the devolvement path, we had chosen in the past proved that it is not sustainable. We had to go back, and we had to prove to India and other country that we are thinking seriously. That’s why we have come up with a green economy roadmap for EU.
How do you think the developing nations should balance their growth and sustainable development goals?
Both things can and should go together. For example, in Europe we are considering the question of sustainable growth. We have economic problems; we have to seriously deal with them. But we are talking about growth that is inclusive, smart and sustainable.
I think you can also learn from our experience. We were using some of the resources in a way that was not sustainable. When we talk about India’s growth, it is intelligent to organise your growth in a way that you do not repeat the story that we had done.
Do you think India should start imposing heavy taxes on natural resources?
I can’t say what India should do. We don’t preach. We are making a proposal of systematically taxing resources. It is still a proposal and member states have to decide.We are not talking about higher taxes, but we are talking about predominantly shifting the tax base and taking into considerations some of the other resources.
We have member — states collect more than 10 per cent of their public revenues from taxing energy. Certain natural resources, which are valuable, should also be valued.
What message you would like to give to India?
We should not see environment as something going against the industry or rather how we would use business for supporting the considerations.
