Call it the Obama effect or a last minute face saving tactic but the Obama Administration made it clear that it is willing to include national mitigation measures announced by the advanced developing countries in the international climate treaty to be discussed at Copenhagen next month.

In a joint statement the US and Chinese officials announced that the new climate treaty should be based on ‘common but differentiated responsibility’. This is the first time that the United States has agreed for different climate goals for developed and developing countries.

[B]oth sides believe that, while striving for final legal agreement, an agreed outcome at Copenhagen should, based on the principle of common but differentiated responsibilities and respective capabilities, include emission reduction targets of developed countries and nationally appropriate mitigation actions of developing countries.

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The world has been talking about the proactive measures announced by China in order to reduce its carbon emissions, increase renewable energy use and improve energy efficiency. But its neighbor, India, too is now is in a remarkable transition from an environmental underdog one who projected itself as a weak and helpless sufferer of the natural calamities that the changing climate threatens to bring in the future.

With changing international scenarios the domestic policies of India changed as well. With the change in Washington, many developing countries changed their stance and announced slew of proactive measures which they had fiercely opposed in the past. Even though they all are still opposed to mandatory emission reduction targets they have announced forest conservation plans as well as massive renewable energy projects.

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The European Union has proposed a climate change funding of €2-15 billion every year for developing countries to help them make transition from fossil fuel based energy systems to clean energy based systems. However, EU does not see the advanced developing counties like India and China eligible for this financial help.

EU in its Global Finance Blueprint for Ambitious Action by Developing Nations paper stated that advanced developing countries should contribute to the climate adaptation fund instead of expecting funds for themselves. According to the paper, advanced developing countries posses ample financial resources to initiate and sustain emission reduction programs.

The Commission said that from 2013, it would depend on the carbon market to fund 40% of the money required for climate change mitigation and adaptation in developing nations. The emerging economies should be able to generate 20-40% of the proposed global fund, it said. The remaining—around $22-50 billion a year—will be paid for by the European Union and the rest of the developed nations.

Developing countries have been at loggerheads with the developed countries on the issue of funding for adaptation to clean fuel technologies. Decision to set up an adaptation fund for helping poor and developing countries was taken at the Bali climate conference in 2007. However, the developed countries are yet to act on their promises of aid as they find themselves constrained by the global economic crisis and objections by their own people.

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India’s environment minster has announced that his government plans to invest $200 million in the conservation of forests in the country. His ministry will also measure and report the amount of carbon the forests capture.

While announcing the scheme, the minister reiterated his government’s stance that conservation and protection of forests is one of the most important aspects in the global fight against climate change. In addition, stopping deforestation and reforestation are the simplest and one of the most cost efficient methods of offsetting carbon emissions.

The Indian government carefully timed the announcement of such plan given the increasing pressure from developed countries to commit of some kind of emission reduction goals. China is already in talks with the United States for a potential deal on reduction of sectoral carbon emissions and India, being the other major developing country, is feeling the mounting pressure.

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During a recent meeting of the Environment minsters of EU member countries side stepped the issue of declaring carbon dioxide a pollutant. While the minsters agreed on a proposal to reduce industrial pollution various environment groups criticized the ministers’ inaction on what seemed an essential and significant decision in Europe’s fight against climate change.

According to the deal reached, heavy industries like power plants and oil refineries will have to comply to new and stricter sulfur and nitrogen emissions as well as the release of dust particles, asbestos and heavy metals into the environment. Obviously, carbon dioxide has been left out which is why the environmentalists have been fuming. European leaders should have sent a strong message by classifying carbon dioxide as a pollutant keeping in mind the Copenhagen Climate Talks scheduled later this year.

Classify carbon dioxide as a pollutant would have added teeth to the EU goal of 20 percent reduction in carbon emissions by 2020 by adding the health aspect it. European Environment Bureau, a coalition of local environmental groups voiced its concerns saying,

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As developed nations juggle with the numbers attempting to dodge the issue of agreement on ambitious carbon emissions cuts, the Scottish government has unveiled plans to cut the country’s carbon emissions by a staggering 42 percent, more than the 40 percent recommendation given by IPCC.

This is the most ambitious emissions reduction goal adopted by any country thus far, Germany has plans to 40 its emissions by 40 percent while Britain formally adopted a 34 percent reduction goal this April. Scotland, with its strong renewable energy infrastructure and bold plans to expand the same, has raised the bar even further.

In the recent weeks the developed countries have been in the line of fire of the green groups as they proposed disappointing emission reduction goals. Completely ignoring the IPCC recommendations of 25-40 percent reductions by 2020, Japan and Russia proposed cutting their respective emissions by merely 8 and 10-15 percent. These are only just better than the Kyoto Protocol goals which bind them to cut their emissions by 5-6 percent by 2012 from 1990 levels.

The driving engine behind this highly ambitious goal is the strong renewable energy infrastructure of Scotland. The Scottish government has unveiled numerous clean energy projects in the recent years which has helped the nation make the transition from fossil fuels to clean fuels.

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Getting no support from other developed nations like United States and Australia the European Union has so far failed to commit funds for developing and poor countries to help them mitigate effects of the changing climate. EU is under tremendous pressure to pledge funds as consistent monetary support to the developing countries is essential to make the next climate treaty a success.

During the Bali Climate Change Conference, held December 2007, it was agreed that the developed nations will create an Adaptation Fund to aid the developing countries acquire the new and clean energy technologies thus reducing their carbon emissions. This December, when the landmark Copenhagen Climate Change Conference is scheduled to take place, will mark two years of inaction on part of the developed countries.

While the European Union has always recognized its responsibility to help developing countries, the promises made have not been translated into concrete actions. Response from other developed nations has been dismal too. United States and Australia have no system in place to raise funds for the Adaptation Fund. The proposed emissions trading scheme in the United States would see industries getting emission rights for free, raising serious questions about the effectiveness of the scheme. Australia has delayed implementing its emissions trading scheme citing financial pressures owing to the economic recession.

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It seems unlikely that an agreement on the terms of the next climate treaty could be reached at the December-scheduled Copenhagen talks. The United States, not a member of the Kyoto Protocol and one of the major players in the international negotiations tussle over the climate treaty, has not yet reached a consensus over how to reduce carbon emissions and a bill successfully passing through the Senate in 2009 seems quite difficult.

The major issues that US lawmakers need to look into are, first, how to make the transition from carbon-intensive fossil fuels to clean renewable energy sources and, second, how to finance this transition without burdening the people with any significant monetary load.

The proposed carbon trading scheme has attracted criticism from the environmentalists since it allows the government to distribute emission permits to the industries free of cost. A bill proposing a nationwide carbon tax was also introduced in the US Congress but experts fear that, if implemented, the bill would put a financial burden of more than $1000 per year on the US households.

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Developed nations have so far ignored the guidelines and warning issued by the UNFCCC regarding the amounts of carbon emissions that they need to reduce by the year 2020 in order to prevent a climatic catastrophe.

According to the scientific panel of the United Nations Framework Convention on Climate Change, the world must cumulatively reduce its carbon emissions by at least 25 to 40 percent in order to mitigate the adverse effects of global warming. However, during the ongoing round of Climate Change Talks at Bonn, Germany, the developed nations have failed to come up with convincing targets for reducing their greenhouse gas outputs.

While the European Union has made it clear to notch up its 20 percent reduction target by 2020 to 30 percent if rest of the developed nations agree to a 20 percent reduction target, there has been poor response from countries like Australia, United States and Japan.

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India’s New and Renewable Energy Ministry has prepared a plan, which, if implemented as stated, will make the country one of the leading producer of solar energy globally by the year 2030. The proposal, yet to be approved, calls for $100 billion investment in solar energy over the next two decades to install 20,000 MW of solar energy.

The plan proposes that the government should give out $5 billion subsidies to the power utilities, every year for the next 20 years, which will then buy solar generated power from the solar power plants. The goal seems quite ambitious given the fact that the International Energy Agency predicts global solar energy generation to be 20,000 MW by the year 2020. The proposal comes after the announcement made by the Indian Prime Minister last year that solar energy would be the focus of the energy transformation in the country.

Solar energy gains importance from the fact that the coal fired power plants in India have been struggling to get coal supplies and there is lack of consistent gas supplies from other nations. Solar energy makes sense as it can be an alternative to connecting all the remote areas of the country to the grid.

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The next climate treaty is likely to include much tougher emission reduction goals for the developed countries and given the tormenting economic conditions their governments could be looking to outsource a significant percentage their emission reduction responsibilities to developing countries.

Although all the developed countries involved in negotiations for the next climate treaty agree that tougher emission reduction goals are necessary to combat global warming, they also acknowledge the fact that they are at loss of adequate resources to achieve those goals. While many plan to introduce carbon trading schemes the economic crisis means that the effectiveness of such schemes cannot be guaranteed. And thus, these countries seem to be looking for some tweaks in order to achieve those goals while avoiding any further damage to their economic growth.

The emission reduction schemes of both European Union and the United States allow a major portion of the emissions goals to be achieved by outsourcing them to developing countries. Experts fear that the real reduction in domestic emissions could be very less.

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During one of the many meetings preceding the Copenhagen round of talks scheduled to take place in December, the developed countries have tentatively agreed on a plan to collectively raise $100 billion per year in order to provide financial support to the poor and developing nations as they try to make the transition from fossil fuels to clean energy sources.

Funding for the international adaptation fund has been one of the contentious issues during the negotiations for the next climate treaty and the global recession has made it even worse with many countries showing reluctance in providing monetary support to developing and poor countries citing problems like unemployment and dropping GDP back home.

The problem is not only ‘who would pay how much’ but also ‘who gets how much’. As far as the first issue is concerned, the European Union had pledged monetary help for the developing and poor nations but failed to reach a final decision since there were no signs of support from the United States. While the EU has its Emission Trading System, the United States is yet to start its carbon trading scheme.

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GOP Senator from Wyoming, John Barrasso, has said that the United States must tap all oil and coal resources available domestically for energy production as relying on renewable sources will not fulfill the energy needs of the country.

Noting that there are vast untapped reserves of oil in coastal areas as well as the Outer Continental Shelf, the Senator said that if the goal of energy independence is to be achieved these resources along with clean coal technology and nuclear power must be used. While pointing to domestic oil fields he said there was enough oil to quench the demand.

“There’s enough oil shale in the Rocky Mountain West alone to power America for the next hundred years. As a nation, we need to be more energy independent. It is a matter of energy security, as well as national security.”

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With eyes on the Copenhagen talks for discussion on the next climate policy, the European Union plans to propose a tax on the carbon emissions of the developed nations, a move which could generate more than $200 billion by 2020. These funds will be used in helping developing and poor nations move from fossils fuels based energy systems to those based on renewable sources.

The European Union proposes that carbon offsetting through the trade of carbon credits under the Clean Development Mechanism be phased out and replaced by a scheme under which the developed nations would commit to cut their carbon emissions but would also pay taxes for extra emissions. The proposal also calls for a similar scheme for the ‘advanced developing nations’ like India and China but fails to clarify its nature.

Carbon offsetting cannot be pursued as a long term solution to mitigate the global carbon emissions and thus the Clean Development Mechanism should be seen only as a transformational step and not the solution to the problem. Replacing carbon offsetting with binding emission reductions seems to be the obvious next step but one has to ask if the world can afford a climate tax at this time of economic meltdown.

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The International Energy Agency is an intergovernmental organization which publishes reports about future trends of energy generation and use which help governments across the world to chalk out energy production plans. The Energy Watch group says that the IEA reports glorify fossil fuels deeming them irreplaceable by renewable energy sources.

The group compared the production projections of wind energy that the IEA presented in the past decade to the the actual growth in wind energy generation.

In 1998, the IEA predicted that global wind electricity generation would total 47.4GW by 2020. This figure was reached in December 2004. In 2002, the IEA revised its estimate to 104GW wind by 2020 – a capacity that had been exceeded by last summer.

In 2007, net additions of wind power across the world were more than four-fold the average IEA estimate from its 1995-2004 predictions.

The IEA report predicts a five-fold increase in wind energy from 2006-2015 but then assumes an abrupt & unexplained downturn in production. A Swiss parliament member also notes that IEA derives most of its employees from the oil industry and raised questions about its intent regarding the energy outlook reports.

One has to question the wind energy growth numbers that IEA puts in its reports. Investments in renewable energy have grown tremendously around the world. The European Union has been very open about its huge investment plans in renewable energy keeping with the emissions reduction targets and the clean energy targets it has set for 2010 and 2020. China has become the largest investor in clean energy, pumping in billions of dollars in building some of the biggest wind and solar energy plants in the world.

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