Ficci today welcomed the adoption of the Paris Agreement to curb green house gases, stating that a positive outcome was crucial for business and industry to have a clear and long term policy signal.
The new accord, embraced by 195 nations, aims to cap global warming to "well below" two degrees Celsius above pre-industrial levels, and to "pursue efforts" to limit the increase to 1.5C.
The industry chamber appreciated the Indian government for playing a positive role in the COP 21 negotiations in Paris and ensuring that the key tenets of the Indian position were safeguarded in the final agreement.
"The fact that principles of equity and common but differentiated responsibilities have been retained is a big factor in the success of the outcome, as these are the underlying principles that India and Indian business and industry saw as bridging the trust deficit and ensuring climate justice", Ficci said.
However, it said the aspect of climate finance, though spelt out, leaves doubt on the amount that will be made legally binding. The agreement places a clear responsibility on developed countries to mobilise climate finance to developing countries for realising their mitigation and adaptation targets, it said.
"While differentiation in responsibilities is important, it is a common responsibility for all humanity. In that sense, it is a win not only for India but also for all countries that were party to the final Paris Agreement", Ficci President Jyotsna Suri said.
However, the chamber said there are some areas of concern such as meeting the incremental cost of intellectual property rights associated with the transfer of climate friendly technologies that Indian industry feels should have been met through an international financial mechanism.
"The omission of liability and compensation from the loss and damage provision is also an issue. However, overall, the Paris Agreement gives a clear signal to markets about the direction in which the global economy is headed",Ficci said.
