9 PM Daily Brief – 10th December 2015

A brief of newspaper articles for the day bearing
relevance to Civil Services preparation

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National

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[1]. Paris climate draft goes into final round / Climate negotiators release shorter draft 

Context: Ongoing summit of COP 21 – UNFCCC (United Nations Framework Convention on Climate Change)

What is COP21?

COP stands for conference of parties, an annual meeting of the 195 countries that make up the United Nations Framework Convention on Climate Change. As this is the 21st meeting, it’s COP21.

What are the aims of COP21?

There is one serious goal, as mentioned above: to create a legally binding agreement between all the world’s countries to lower emissions sufficiently to keep global warming below the 2°C threshold that scientists say is necessary for the health of the planet.

What has happened?

Paris Outcome Draft has been prepared documenting progress and differences on Lima Draft after high level ministerial meeting for two days in Paris. It is a shorter version with an aim to  to enable nations to have an overall view of the progress that has been made so far. Many a points in earlier draft has been strike out.

Chair of the current round of climate negotiations:  French Foreign Minister Laurent Fabius

Draft Details: 

The issue of differentiation under the Article on Purpose remains within brackets, indicating that it awaits discussion and finalisation. This Agreement will be implemented on the basis of equity and in accordance with the principle of common but differentiated responsibilities and respective capabilities, in the light of different national circumstances and on the basis of respect for human rights

What is issue of differentiation?

Climate talks are often described as a binary negotiation between ‘developed’ and ‘developing’ countries. Earlier the picture was very simple with two  group G77+China ( Developing Countries) and Umbrella Group of developed nations spearheaded by European Union (EU).

But, today the emergence of many other groupings which have made negotiations complex. Some of these groups are:

1. AOSIS (the Association of Small Island States)
2. LDCs (Least Developed Countries)
3. Africa Group
4. ALBA and AILAC (representing the socialist and market-orientated governments of South America)
5. BASICs (Brazil, South Africa, India and China)
6. LMDC Group (Like-Minded Developing Countries)

What these groups signify: The creation of these groups reflect the fact that the national interests of the developing countries have become more diverse and divided over the last twenty years and G 77 is no more a viable umbrella group.

An Analysis: – Paris outcome draft

1. The draft fails to acknowledge even in form of token the limit that need to be placed on global emissions.
2. The draft outcome has removed the main reference to a global carbon budget in Article 3 on mitigation and not a single reference to the one of the most policy-significant scientific results of the IPCC’s Fifth Assessment Report from its Working Group I now remains in the draft text.
3. To make matters worse, the draft outcome effectively declare holy the INDCs of the developed countries without any forecasted assessment.
4. Business globally and domestically in many countries has been asking for a clear signal on carbon prices. But in the absence of any ex-ante assignment of carbon rights, it is unclear how a carbon market may be expected to develop. Without a clear signal on carbon prices, technology and innovation through the private sector for advanced levels of mitigation becomes even more uncertain.
5. The possibility of the functioning of domestic carbon markets in developed countries does not take away from this global picture. The removal of fossil fuel subsidies or the imposition, implicitly or explicitly, of carbon taxes will not materially alter the situation.
6. Without the presence of a global constraint, and a clear ex-ante assignment of carbon rights, there is no means to leverage any review process to ratchet up ambition.
7. The INDCs of the developed countries will in fact constitute globally an outright carbon grab, since there is no clear assignment of carbon rights to developing countries. By the time the majority of them are in a position to use it, it will not be available.
8. The current text essentially promotes a bottom up regime characterized by the voluntary country driven climate actions, further weakening the historical responsibilities of the developed countries

 

[2]. US wants periodic climate review

US Message: 

Countries cannot get away with doing nothing or next to nothing after making pledges, though the Paris Agreement did not propose penalties.

The Paris Agreement held great promise since it relied on verifiable voluntary steps, rather than a fixed percentage of cuts which the Kyoto Protocol contained.

U.S. recognised the differentiated responsibilities of countries and was willing to provide:

1. More in financing, including its own funds,
2. Work with the World Bank and other institutions, though the real driver would be private capital in a clean economy;

What is needed to be done?

1. National pledges made in Paris should be reviewed in five years because progress would change national circumstances;
2. Investments in clean energy were actually cheaper because of avoided costs on environmental degradation and public health.

India’s Stand:

India says it is ready to adopt 1.5°C as its ambition for future temperature rise but stresses that the change needs to be initiated in developed countries owing to historical responsibility of climate degradation.

[3]. Real Estate Regulatory Authority on anvil / Cab OKs 20 Changes to Realty Bill

Real Estate (Regulation and Development) Bill – has been approved by the Union Cabinet with 20 amendments. It needs now to be passed by the parliament.

Objective of the bill:

1. Protect the interest of consumers
2. Promote fair play in real estate transactions
3. Ensure timely execution of projects

Bill proposes uniform regulatory mechanism to ensure speedy resolution of disputes.

This need to be done for orderly growth of the sector and rise up as a beneficial and transparent sector to attract more investment both domestic and foreign.

Aim: This is a major reform which will enable government to fulfil its promise of Housing for all by 2022.

Applicable: To both residential and commercial real estate projects alike.

Real Estate Regulatory Authority – proposed to regulate real estate transactions.

[4]. New dam the only solution 

The Issue: Mullaperiyar Dam

Understanding the Issue:

1. Tamil Nadu operates the dam in Kerala. wants to increase water level in it.
2. The Kerala government’s contention is that in case the dam breaks, the three dams downstream — Idukki, Cheruthoni and Kolamavu – will not be able to withhold the pressure, which will put the lives of 3.5 million people in the state.
3. TN government maintains that if the Mullaperiyar is demolished, it will create water scarcity in five districts of the state, leading to a draught in the region.

 

The Mullaperiyar Dam: 

1. Type: a masonry gravity dam.
2. River: confluence of Periyar river and Mullayar river
3. Place: Idduki, Kerala. The dam site is in Kerala but is leased to TN

Resolution Till Date: Following up on SC verdict TN government brought the water level down from 152ft to 132ft to allay the fears. In 2006, the water levels were restored.  Kerala passed a law the Kerala Irrigation and Water Conservation (Amendment) Act, 2006, to prevent the neighbouring State (TN) from raising the water level beyond 136 feet.

May 2014: Supreme Court order

1. Kerala dam Law of 2006 is unconstitutional and void.
2. Because, Mullaperiyar is a dispute between two states. In such disputes, one state legislature cannot unilaterally enact law in its own favour.
3. Besides, in 2006 we had allowed Tamil Nadu to raise water height. By enacting g this law, Kerala is interfering with our judicial function.
4. Permitted Tamil Nadu to increase water level up to 142 feet.

In News: Kerala wants a new dam in place of Mullaperiyar dam to allay it fears.

Why TN doesn’t agree to this? – Because it would mean it that the 999-year lease would be void, and it would have to surrender the 8,000 acres of land under its control to Kerala

[5]. Back to basics for Airtel Zero & Internet.org

Issue: Diffrential tarrifs being provided to consumer to view websites which have tied up with the telecom operator.

What has happened?

Telecom Regulatory Authority of India (TRAI) invited suggestion from citizens. Citizens saw this against net neutrality and hence dispproved of such move.

TRAI has now issued consultation paper which has reported Facebook’s Internet.org (now Free Basics) and Airtel Zero as discriminatory, non-competitive and thwarting innovation and disapproved of existing package if any sold.

TRAI has suggested two models:

1. Operators can provide initial data consumption for free, without limiting it to any particular content
2. Content providers reimburse customers directly the cost of browsing or download irrespective of which mobile operator they have used to visit the website.

What is net neutrality?

The principle that Internet service providers should enable access to all content and applications regardless of the source, and without favouring or blocking particular products or websites.

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International

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[1]. Strengthening a foolproof relationship 

Context: India – Japan Relationship

Importance of India – Japan Relationship:

For Japan:  Growing tensions in the South China Sea and unshakeable anxiety about Beijing’s military stance. Japan is wary of China’s geopolitical aspirations, and continues to rally support from potential regional allies. India is by far Japan’s biggest potential partner — on the security, economic, and political front.

For India: Japan plays a central role in India’s current ‘Act East’ policy, which calls for intensified relations with East Asia. Another chief motivation for India’s Asia policy is to respond to Beijing’s activities in the region. There are few better partners to enlist in India’s ‘Act East’ enterprise than Japan, a regional economic power with a growing security profile.

The thorn in the ties: India – Japan Nuclear Deal

Nuclear accord would aid energy-starved India while helping Japan recover nuclear confidence shattered after the Fukushima disaster. It would also enable Japanese companies such as Hitachi and Mitsubishi to diversify their industrial portfolios

Tokyo remains uneasy about New Delhi’s continued refusal to sign the nuclear non-proliferation treaty. Cooperation with India on technological transfers could present major political difficulties for Japan.

Probable Deals and Their advantages

1. Agreement to jointly produce amphibious military aircraft, which would boost India’s counterterrorism and counter-piracy capacities. For Japan, such a deal would bolster its military relations with a key partner amid concerns about China’s military ambitions and North Korea’s nuclear capabilities.
2. While India-Japan security cooperation, driven by shared concern about China, may get the most attention, bilateral economic relations are equally important in that they also amplify the relationship’s symbiotic nature.

The Silent Spectator: United States

There is great enthusiasm for the India-Japan relationship, which serves U.S. interests in multiple ways. It brings two key U.S. partners closer together. It enables India and Japan to assist each other in ways that the U.S. cannot or does not.

The US though should not look to proxy its pivot to South Asia through India Japan relations as India and US don’t tend to get out of the most of their geopolitical situation. Current regime in India wants friendly ties with China where as it also has fear that US drawing out from Afghanistan may bring taliban to the borders of India.

[2]. The same old script of India – Pakistan ties 

Context: The confused Indian regime in tackling the Pakistan. The recent meeting of NSA level talk after being cancelled in August, 2015.

What has happened?

August 2015, NSA level talks has been called off due to –

1. No meddling by the Hurriyat, a Kashmir-based organization with a separatist agenda
2. Restriction of the NSA-level talks to terrorism alone (leaving out Kashmir)

Bangkok process – The venue of Bangkok helped Pakistan avoid the political compulsions of meeting the Hurriyat leaders.

With the initial hurdles now overcome, it will not be surprising to see the resumption of the composite dialogue process—the template for full-fledged bilateral talks

Sushma Swaraj, the minister of external affairs, is on a trip to Islamabad to attend the Heart of Asia conference, which focuses on regional cooperation with a strong emphasis on stability in Afghanistan.

he Bangkok talks were intended to resume the bilateral engagement in order to pave the way for Modi’s participation in the 19th SAARC (South Asian Association for Regional Cooperation) summit scheduled to be held in Islamabad in 2016.

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Economic Digest

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[1]. Government will protect the farmer’s interest in WTO talks 

Context: WTO meeting of ministers – 15 – 18 December, 2015 at Nairobi, Kenya

The Fear:

The WTO Agreement on Agriculture (AOA) has limitation on subsidy for farm products which might impact India food security programme. Under the relevant rules of WTO, if procurement for public stock-holding programmes for food security purposes is done at administered prices, rather than at market prices, then the subsidy element, if any, has to be kept within certain prescribed limits. At present a stop gap arrangement is there under WTO.

Secondly, is the issue of import surge leading to price drop of farm commodities which might heavily affecting the earning of poor domestic farmers.

India’s Stand: 

India wants the Nairobi meet to take up on a priority basis issues including an effective Special Safeguard Mechanism and  and a permanent solution to the issue of public food stockholding in developing countries for the purpose of food security.

Special Safeguard Mechanism: a trade remedy allowing developing countries to temporarily hike duties on farm products to counter sudden import surges and price falls, thereby protecting the interests of poor farmers

Current Scenario: 

On SSM : consultations have continued to show entrenched and widely divergent positions, he said, adding that, therefore, the negotiations on this issue have reached an impasse

On Stockholding: consultations, based on the proposed texts, have not so far taken much closer to a consensus.

FACT: 

WTO Director-General: Roberto Azevedo

[2]. Rare admission by RBI as it gears up for U.S. Fed rate hike

Context: US Fed upcoming meet might see a rise in interest rate in almost a decade which could lead to volatility in the market.

What is RBI planning to do?

RBI has planned to intervene in the Exchange Traded Currency Derivatives (ETCD) segment

The central bank generally intervenes in the spot currency market, and manages the rupee flows resulting from that intervention through the forwards market.

“RBI intervenes in the domestic foreign exchange market as and when required in order to manage excessive volatility and to maintain orderly conditions in the market

Three exchanges — National Stock Exchange, BSE and Metropolitan Stock Exchange of India — offer paired derivative contracts of rupee-dollar, rupee-yen, rupee-pound and rupee-euro.

Why is it needed?

The Indian currency has been under pressure amid foreign fund outflows and has depreciated almost 7 per cent against the dollar in the current financial year. In November, the rupee almost touched a two-year low, and weakened 2.1 per cent, making it the worst performing currency in Asia.

Facts:

What is Currency trading? – Trade is an international business and for any trade payments are settled in Currencies, which are specific to the countries/regions involved. Whenever any Currency is bought or sold for another, the transaction is known as ‘Currency trading’. Currency trading is the largest financial market globally.

Why do we have Exchange Traded Currency Derivatives? – Exchange Traded Currency Derivatives provide greater access for market participants, be it investors, speculators or corporate who may want to trade Currencies to hedge their Currency risk. Exchange Traded Currency Derivatives offer efficient risk management mechanisms and provide a transparent trading platform, with no chance of anybody dealing with insider information.

Spot Currency Trade: A foreign exchange spot transaction, also known as FX spot, is an agreement between two parties to buy one currency against selling another currency at an agreed price for settlement on the spot date. The exchange rate at which the transaction is done is called the spotexchange rate.

[3]. CEA-led panel proposes concessions for smaller traders

Context: Arvind Subramanian (Chief Economic Adviser) panel on revenue-neutral rate (RNR) recommendations.

What has been recommended? 

1. Traders below Rs 25-lakh turnover should not be covered by the new indirect tax regime and that there could be a concessional rate for those with Rs 25 lakh to Rs 1 crore turnover.
2. Recommended a standard GST rate of 17-18% for all services and for most of the goods (with an RNR of 15%)
3. The report favoured the centre’s idea of having a Rs 25 lakh threshold for GST in contrast to the Rs 10 lakh bar that states want, but added that the threshold could go up to Rs 40 lakh.
4. The panel has made a strong case for removing all countervailing duty and special additional customs duty exemptions currently given to imports as these amount to negative protection for domestic producers.

What is revenue neutral rate?

It is the tax rate that allows the government to receive the same amount of money despite of changes in tax laws. In the GST regime the revenue of the government would not be same in comparison with the present tax structure due to tax credit mechanism, removal of cascading effect , or otherwise. Therefore an adjustment in tax rate is required to avoid reduction in revenue of the government. This adjusted Rate is termed as Revenue Neutral Rate (RNR). It is the rate at which tax revenue will remain same, despite allowing input tax credit and other factor.

[4]. Illicit outflows from India third highest, says report 

Context: The GFI report on cross-border money transfers for 10 years

Illicit Financial Outflows from India 2013 : $83 billion which is third only to China and Russia

Cross-border money transfers for 10 years through 2013 pegged illicit financial outflows from India at $510 billion, double than the foreign direct investment inflows of $258 billion to the country during the period.

How is it done?

1. Export under invoicing – Undervalues export
2. Import Over invoicing – Raises the cost of import.

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In both the above cases the profit of the domestic corporate seems to be lowered but in actual huge portion has been moved out of the country.

Added incentive to over-invoice imports as import taxes have declined due to trade-based globalisation.

GFI analysis shows that, of the $1 trillion in illicit flows leaving poor nations annually, over 83% was due to trade mis-invoicing, resulting in massive tax evasion.

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Editorials & Opinions 

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[1]. The crisis enveloping Europe

Context: The article looks into presence of an invisible guest at COP 21 summit where dignitaries from all over the globe has assembled to find answer to climate change. The invisible ghost is terrorism which has been etched in mind of France and also Europeans after the deadly attack by IS operatives on 13th November in Paris.

It looks into coming change character of Europeans due to fear of terrorist attacks .

An entire continent has developed a siege mentality.

Outraged by the barbaric acts of premeditated violence, indignation over the terrorist attacks, together with the uncontrolled flow of migrants/refugees into the continent from West Asia and other regions, is beginning to cast a shadow over the character of Europe, especially its approach to humanitarian and other causes.

EU which was already reeling under economic problems since 2008 has now new set of threats to look after.

The terrorist attack along with refugee inflow has one immediate result is that it has led to a divided European Union. It has also given an impetus to right-wing nationalist forces in many countries. The Schengen concept is under grave threat.

Living with terror

Europe tends to be divided between those who want the state to be armed with greater powers and those who fear that indiscriminate “war talk” may lead to a crackdown domestically on any contrarian voices.

The employment and the use of extraordinary powers under the plea that the nation and its institutions are under grave and immediate threat have serious connotations for Europe’s future according to the champions of civil liberty and keepers of the European way of life.

Emergency measures vs civil freedoms

What is considered certain by most is that European intelligence agencies will be invested with greater powers for surveillance and to carry out more intrusive attacks. At present, those who insist on the importance of safeguarding civil freedoms are clearly in the minority.

Conclusion: 

As Europe flounders on how to deal with a slew of new problems, it is worth considering whether the developments in Europe will have an impact on global governance. Coexistence among people of different regions and the compact among those belonging to different religions across the planet — something that Europeans, in particular, are said to greatly treasure — is coming under threat.

[2]. Big emission lessons from a small country

Context: The best practises in Bhutan regarding maintaining climate and environment has a potential to teach everyone in the world.

These lessons are especially relevant as the world negotiates in Paris a new pact on climate change at the International Climate Change Summit, known as COP21.

South Asia is the region which is at the most risk of climate change.

Three lessons:

Firstly, a commitment to ambitious goals will be critical to save the world from climate disaster.Bhutan declared in 2009 that it would remain carbon-neutral and has made the most ambitious pledges on cutting emissions at COP21. It is carbon-neutral already because of its vast forests absorbing carbon emissions

Secondly, mainstreaming comprehensive climate change measures across the economy is the way to go.

Bhutan has taken the approach of mainstreaming climate change and resilience in policies on disaster risk management and weather monitoring, water-related services, agriculture, urban transport, information and communications technology (ICT), hydropower, and forest management.

Thirdly, there are big potential wins in the fight against climate change from cooperating with neighbours.

[3]. Too Close to the Sun?

Context: India launched global solar alliance with 121 countries and created what is being called the billionaire’s fund, with corporate heads like Jack Ma, Mukesh Ambani, Bill Gates, Mark Zuckerberg and Ratan Tata pledging to finance green technology innovations.

Issue: The big targets and political backing for solar have created euphoria in the market, but there is scepticism about India’s approach of focussing largely on utility scale solar parks and aggressive pricing.

Fact:

India’s First Solar Park: Charanka, Gujarat

National Solar Mission: Installed capacity increased from 20 GW to 100 GW

2022 – 175 GW of installed capacity of solar power

2030 – 40% of energy requirement from non fossil resources

Policy Scenario :

Policies and infrastructure to transmit and distribute solar energy are still weak, and 21 of the 29 state power distribution companies (discoms) are abysmally debt-ridden, unable to purchase any power generated in their state. These are not only inefficiencies but also risks for developers.

Benefit of Solar Power:

1. The two biggest challenges for solar the world over are need for land to mount solar panels, and building the expensive, time-consuming infrastructure to connect to the grid. “Solar parks are a great solution, because the government does both, and then invites private developers who just come install their panels.
2. By pitching for solar, the Modi government is no only offsetting emissions from coal energy, but also addressing energy insecurity. India’s energy bill is high, dependent as it is on imported coal, oil and gas Over 300 million people still have no access to electricity and sustainable economic growth will need alternative sources of clean energy.

Cost factor:

Bulk transmission of an unstable power like solar needs a strong grid and high-voltage substations, which are expensive. Their transmission lines are time-consuming to build.

Many developers believe technological change should be the real driver for a fall in solar tariffs. “Even in a household, people who bought poor-quality solar panels were turned off it for life. If we don’t invest in technology, and rush to slash prices, it will help neither energy security nor climate action,“

[4]. The Invisible People

What has happened?

The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, (PWDA) completed two decades of existence this month. And still there are a lot of disabled people who are yet to receive the benefits of this law.

What are the problems Disabled people faces?

1. Inaccessible public places
2. Non-accommodative educational institutions
3. Social stigma
4. Lack of proper care and nurturing
5. Lack of employment opportunities

What are provisions of the 1995 act? 

1. Mandatory 3% reservation in public employment
2. Employment exchanges at state and central level to provide hassle free services

Some obstacles :

1.  Some states which account for the largest proportion of the disabled are biased against employing educated disabled candidates
2. The required 3 per cent reservation is still far from being implemented in many departments in-spite of conducting recruitment drives.
3. Absence of any penal provision for those who violate the PWDA is a serious lacuna.
4. According to Census 2011, more than 60 per cent of disabled people live in the countryside but mostly urban people benefit from reservation.
5. Disabled women, SCs and STs in rural India are among those who need attention.
6. Government services and information related to welfare schemes and educational and employment opportunities hardly reach the marginalised.
7. Insufficient financial allocation is also an obstacle.

What you need to know?

The Right of Persons with Disabilities Bill, 2014:-

This bill is still pending in the parliament and needs to be implemented asap.
It aims to establish a disabled friendly environment and also imposes financial penalty on violators.
Visit the below link for more info about the article.

[5]. Not just GST 

Context:-

Real estate bill 2015 was given nod by the cabinet. This is also an important legislation like GST that is crucial for reforms in the real estate sector which might be stalled by the opposition.

The new real estate bill incorporates recommendations of the opposition unlike the GST where considerable difference of opinion is still lingering.

What the real estate bill says?

It emphasises on consumer protection in the real estate sector which always had a lopsided buyer seller equation.

It aims at establishing a Real Estate Regulatory Authority in states and Union territories to monitor real estate transactions.

The objective is to:

1. Institutionalise transparency and accountability
2. Boost consumer confidence
3. Promote timely execution and professionalism in the sector
4. Provide easier to access capital and financial markets.

It will cover both residential and commercial projects and includes real estate agents in the ambit of the bill.

The bill stipulates mandatory disclosure of all registered projects, including details of the promoter, layout plan and the statuses of approvals.

What’s the issue now?

In 2014 congress led government in Maharashtra enacted a similar bill in the state , contradictorily its stalling the enactment of the bill at national level

Political parties stalling the functioning of parliament should introspect about their behaviour when it comes to such crucial legislations.

[6]. Centre State Mindset 

Context:-

The article laments about the insufficient media coverage state governments receive in the national media when compared to the central government.

The media is less concerned about the usage of 42% untied funds given to the states based on the 14^th finance commission.

The author feels the term centre state is more centrifugal and the term Union state is the right expression.

Indian polity is a union of states and it needs recognition.

National media – Some interesting observations :-

Tripura has surpassed Kerala and Mizoram in literacy rate yet many are unaware of it.

In Indian railways performance 95% of its income comes from states.

After 1991 liberalisation , most reforms still pending are concerned with the factor markets which are mostly subjects of state or concurrent list.

What is factor market?

Goods market is concerned with finished goods and factor market is concerned with the market of factors of production like land, labour and capital. E.g. While Air Conditioner is an example of goods market, an AC mechanic or plastic manufacturing company will be factor market. Both goods and factor market form a closed loop of money.

Rajasthan has removed 12% of its statutes declaring them as old and dysfunctional.

Jharkhand has rationalised its number of departments by clubbing the relevant ones together.

[7]. A low carbon future is possible 

Context:-

The Paris climate talks are expected to adopt a legally binding agreement on green house gasses for the period beyond 2020.

The developing countries should demand a legally binding agreement as with their rising population they will be the worst affected by water and energy crisis and hence their economic growth will be impacted.

If they fail to do so the US will again blame them for a weak agreement.

Fixing a target will put price on carbon and facilitates market mechanisms.

What are the developments till now?

There is an air of optimism and commitment as more than 170 countries have submitted their INDCs (Intended nationally determined contributions) for this period which covers 95% of global emissions.

Initial assessment shows that it’s consistent with 2.7 to 4 degree rise in temperature (Global target 2 degree, small islands target 1.5 degree).

Though in the last agreement the developed countries agreed to reduce emission and assist developing countries with finance and technology it wasn’t legally binding.

The US and Canada did not participate in Kyoto protocol which had country specific targets for 2008 to 2012.

The Doha Amendments have targets for the developed countries for 2012-20 — but the US, Canada, Russia, Japan and New Zealand don’t participate in this agreement

The demand for fairness:

Though the demand of developed countries to legally bind the developing countries after 2020 is not appropriate but still it will force the developed countries to take some action.

The planet is becoming unstable and poses high risks for developing countries which is forcing the closure of fairness debate.

But still there are alternatives which should be explored and Developing countries should focus more on sustainable development.

As the developed countries are more locked into fossil fuels its easier for the south (developing countries) which are green field to shift to renewable energy.

How is this possible?

Though climate mitigation is all about energy the climate impact is mostly on water which has political, social and economic consequences in the developing nations.

Countries like India should look at structural approaches rather than symptomatic approaches.

It should exploit the intellectual capacity of India to explore green energy technologies.

China is  way ahead of India in investments in solar and wind energy and Indian politicians should free themselves from the five year political cycle.

The trade off like rice and potato/ grain production where the former is more water intensive and emits more methane than the latter.

Also stranded resources(  coal/ gas and oil resources which are left underground) should be thought about.

Considering  the facts that china has bought fossil reserves in north it implies that developed countries are phasing out fossil fuels before the asset value drops to zero.

Denmark has already announced a phase-out of fossil fuels by 2050; 50 per cent of energy in Germany already comes from renewable sources.

By: ForumIAS Editorial Team