Who should pay for climate damage?

Who should pay for climate damage?

Who should pay for climate damage?

#GS-03 Climate Change, #GS-02 International Relations

For Mains

The need for Common but Differentiated Responsibilities (CBDR):

  • Global Carbon Project data show that between 1751 and 2017, 47% of the CO2 emissions came from the U.S. and the EU-28.
  • Between 1900 and now, developed countries have benefitted from industrial development, which also led to greenhouse gas (GHG) emissions.
  • Therefore, options like financing the developing or underdeveloped countries by the developed world have been discussed at the COP27.

Per Capita Emissions of Countries:

  • India is among the top seven emitters of GHG emissions.
  • But, put in the context of India’s population, its emissions are far lesser per head, than for others.
  • India remains far below the world average at 2.4 tonnes of CO2 equivalent (tCO2e).
  • World average per capita GHG emissions were 6.3 tonnes of CO2 equivalent (tCO2e) in 2020.
  • The U.S. is above this at 14, followed by 13 in the Russian Federation and 9.7 in China.
  • India along with China, the EU-27, Indonesia, Brazil, the Russian Federation and the U.S plus international transport, accounted for 55% of global GHG emissions in 2020.
  • Collectively, G-20 members are responsible for 75% of global GHG emissions.

Emissions and Economy:

  • Emissions attributable to the U.S. over 1990-2014 caused losses that are concentrated around 1–2% of per capita GDP across nations in South America, Africa, and South and Southeast Asia.
  • This has happened because temperature changes have likely impacted labour productivity and agricultural yields.
  • Climate change-spurred floods could cost Canada $17 billion annually by 2050.
  • But emissions may have also helped a few countries, such as those in Northern Europe and Canada.
  • Moody’s Analytics estimates that by the middle of the century, Canada would see a rise in GDP of 0.3% (about $9 billion a year) as warmer climates spur agriculture and labour productivity.

What has been done:

  • At the G-20 summit in Bali, rich nations including the U.S., Japan and Canada have pledged $20 billion to wean Indonesia off coal.
  • The U.S. and Japan have led the International Partners Group to mobilise funds from the public and private sector to support Indonesia’s efforts to reach carbon neutrality by 2050.
  • In addition to last year’s pledge of net-zero emissions by 2070, India has also committed to generate 500 GW of renewable energy capacity by 2030, bringing down emission intensity of GDP, as also raising forest cover.