Editorial 1:A role for India in South-South climate cooperation

Context

India can position itself as a leader in the global transition to a low carbon pathway, through transparent processes and equitable partnerships.

Introduction

COP29, at Baku, Azerbaijan, aptly referred to as the ‘Climate Finance COP,’ has played a crucial role in operationalising core elements of Article 6 of the Paris Agreement (PA). The adoption of Article 6 at Baku represents a renewed focus on the market mechanism which could help countries that are often constrained by limited resources and face difficulties in achieving an economy-wide transition to a carbon-neutral economy.

Article 6 of the Paris Agreement

• Article 6 has the potential: to meet climate ambitions through cooperative approaches.
• Its key component, Article 6.2, facilitates the transfer of Internationally Transferred Mitigation Outcomes (ITMOs) between host and partner country to help countries meet their Nationally Determined Contributions (NDCs), by offering flexibility for tailored agreements.
• The process not only supports emissions reductions in the host country (developing country) but also
  • fosters technology exchange,
  • promotes capacity building, and facilitates financial resources from the partner country (developed country),
  • helping in the transition to a low-carbon economy and
  • reaching the Sustainable Development Goals (SDGs).

Article 6.2 and India’s climate policies

• Greenhouse gas emissions and economic growth: India, which is considered to be the third largest emitter of greenhouse gases (GHG), though in absolute terms only, and a rapidly growing economy, is well-positioned to draw benefits from Article 6.2.
• Challenges in balancing development and climate commitments: The country has had a challenge in balancing its developmental goals with its climate commitments due to a lack of adequate finance and also a lack of support from developed countries.
  • India’s NDCs, inter alia, include ambitious targets, such as reducing emissions intensity by 45% by 2030.
  • However, the financial and technical constraints are considerable, as just before COP29, India reiterated its call for the developed nations to mobilise at least $1 trillion annually in climate finance for developing countries to meet the challenges of global warming.

India’s Carbon Credit Trading Scheme (CCTS) and Article 6.2

• Domestic emissions trading scheme (ETS): It is an opportune time for India as it moves to its own domestic emissions trading scheme (ETS), launched as a Carbon Credit Trading Scheme (CCTS) in 2023, with the aim of integrating market mechanisms into national policy.
  • While not directly linked to Article 6.2, the CCTS proposes to strengthen India’s institutions by providing a framework for transparent carbon credit tracking and verification.
• Prior experience in carbon markets: India’s prior experience with the Clean Development Mechanism (CDM), voluntary carbon market (VCM), Energy Saving Certificates (ESCerts) and Renewable Energy Certificates (REC) has laid the groundwork for effective engagement with international carbon markets under Article 6.2, unlocking opportunities for emission reduction projects and climate finance.

International Collaboration Under Article 6.2

• Identified key activities:India has identified 14 key activities for international collaboration under Article 6.2, which include Renewable Energy (RE), energy storage, and Carbon Capture, Utilization, and Storage (CCUS) programme.
  • These technologies, such as green hydrogen and sustainable aviation fuel, require advanced expertise, research, and significant investment, which India seeks through partnerships with leading nations such as South Korea, the European Union, and Japan.

Engagement in ITMO Transactions and Co-Benefits

• ITMO transactions for SDGs: Engaging in ITMO transactions under Article 6.2 gives India the opportunity to meet its SDGs by transferring surplus emissions reductions certificates to partner countries through different unique project implementations.
• Co-benefits of ITMO engagement: There are also co-benefits such as reducing health problems and enhancing income through green jobs.
• Encouraging south-south cooperation: On the other hand, by encouraging South-South cooperation, India can also generate ITMOs while facilitating investments in key sectors, in which India has extensive experience such as Renewable Energy (RE) and sustainable infrastructure.

Opportunities for the country

• Unlocking large-scale climate finance:Article 6.2 offers India an opportunity to unlock large-scale climate finance through South-South cooperation.
  • Countries under pressure to meet stringent NDCs can purchase ITMOs from India, generating financial resources for climate-resilient projects and green technology development.
  • For example, India’s renewable energy sector attracted over $10 billion in foreign direct investment in 2022.
  • Further, ITMO transactions could scale up these efforts for other developing countries.
• New Collective Quantified Goal (NCQG) and South-South cooperation:NCQG also encourages South-South cooperation as developing countries have been extending climate finance to other developing countries on a voluntary basis.
  • However, their contributions are often unreported.
  • Article 6.2 may foster such partnerships beyond the traditional North-South dynamic.
  • Enables India to lead South-South cooperation through the transfer of technology and building capacityin developing countries (Africa) to help them meet their NDCs.

India’s Partnerships with African Nations

• Memorandums of understanding (MoUs) and ITMO transfers: While India signs MoUs with developed countries to facilitate ITMO transfers, there is a strong case for India to focus on building partnerships with African nations.
  • India as partner country and Africa as host country strengthens South-South cooperation.
• Africa’s renewable energy potential and climate vulnerabilities:Africa, with its vast renewable energy potential and urgent climate vulnerabilities, is ideal for South-South cooperation.
  • Many African nations face severe climate impacts, particularly in agriculture and water resources.
• India’s engagement with Africa:India’s close partnership with African governments extends to trade, investment, and developmental projects.
  • Under the 10 principles for India-Africa engagement enunciated by Prime Minister Narendra Modi, a key pillar is economic cooperation.
  • This emphasises sustained engagement, creating local capabilities, enhancing agricultural productivity, and addressing climate change.
  • With its expertise in RE deployment, digital tools, and sustainable agriculture, India is well-positioned to help the region.
  • This can also help India meet its NDCs while accessing carbon market opportunities to fund sustainable development projects across the African continent.

Sharing of ITMOs and Credit Allocation

• ITMO sharing agreement specifics: The sharing of ITMOs between India and partner countries will depend on agreement specifics.
  • This reflects India’s role as the host country and the developed partner’s contributions to technology and capacity building.
  • Aligns with Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).
• Share ratio and contribution-based claims:The share ratio may vary based on each party’s contributions.
  • India could claim a larger share if it extends significant financial or technical inputs.
• Joint Crediting Mechanism (JCM) as a model: A similar approach is seen in the Joint Crediting Mechanism (JCM).
  • Credit allocation is decided through mutual consultation based on contributions to GHG reductions.
  • Japan typically offers technology, funding, and capacity building, while the host country implements the project.
  • The JCM Joint Committee reviews and issues credits, ensuring transparency by publicly sharing allocation details.

The challenges

• ITMO sharing offers opportunities for international cooperation. It also presents challenges for India.
• Developed nations might rely on low-cost emission reductions from India, potentially avoiding significant domestic decarbonisation efforts and shifting costly mitigation burdens onto India.
• For India, ITMO transfers could involve opportunity costs, as these reductions might otherwise support its own climate targets or sustainability goals.
• Inadequate transparency and governance in ITMO mechanisms may lead to inefficiencies and can accentuate inequities, affecting India’s interests.

Conclusion

Over-reliance on ITMO transfers by partner nations could also hinder India’s broader priorities, such as capacity building, green technology deployment, and climate-aligned economic growth. To address these risks, India must ensure ITMO agreements include safeguards for equitable benefit-sharing, transparency, and alignment with national and global climate ambitions.

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Editorial 2: Addressing the growing threat of forest fires

Context

India has put in place several policies and schemes to address forest fire management but needs to do much more.

Introduction

As wildfires swept throughout Los Angeles last month, destroying homes and causing casualties and displacements, the urgency of addressing and preventing forest fires took centre stage once again. Unfortunately, forest fires become a point of conversation only when some major incident causes irrevocable damage and captures media and public attention. The fires are a stark reminder that no place is immune from their impacts and that we need a clear pathway to prevent and manage them as their frequency increases.

• Extent of forest fire risk: According to the Forest Survey of India, more than 36% of the country’s forest cover is prone to fire.
  • An analysis by the Council on Energy, Environment and Water states that there has been a 10-fold increase in forest fire incidences in the last two decades.
  • Meanwhile, the total forest cover has increased by merely 1.12%.
• Significance of India’s forests:India’s forests are critical enablers of wildlife conservation and sources of biodiversity.
  • They serve as lifelines for local communities living around them.
• States most affected by forest fires:Uttarakhand and Himachal Pradesh often capture headlines for forest fires.
  • Other states such as Madhya Pradesh, Maharashtra, Odisha, and Karnataka are also grappling with increasing frequency and intensity of forest fires.

Devastating consequences 

• Human-induced causes: Nearly 90% of forest fires in India are caused by human activities such as:
  • • Deliberate land clearing
    • Slash-and-burn agriculture
    • Unattended campfires
• Climate change-driven factors:
  • Rising temperatures and extended dry spells further intensify the risk of forest fires.

Consequences of Forest Fires

• Environmental impact:Direct loss of trees, wildlife, and biodiversity.
  • Significant contribution to carbon emissions – a World Resources Institute report estimates that Indian forest fires emit approximately 69 million tonnes of CO2 annually.
  • Disruption of the water cycle and soil fertility degradation.
• Social and economic impact: Loss of timber and non-timber forest products, which are essential for forest-dependent communities.
  • Direct economic losses – a 2018 report by the Ministry of Environment, Forest and Climate Change estimated that forest degradation (including forest fires) results in an annual economic loss of approximately ₹1.74 lakh crore.
  • Increase in human-wildlife conflict as animals seek refuge in human settlements.

India’s Efforts in Forest Fire Management

• Policy interventions:
  • National Action Plan on Forest Fires
  • Forest Fire Prevention and Management Scheme (FFPMS)
• Centrally sponsored FFPMS: Assists State governments in strengthening forest fire prevention and management capabilities.

A more robust response

• Growing intensity of forest fires: Given the growing intensity of forest fires in India, much more remains to be done.

Budget Constraints and Funding Issues

• Fluctuating budget allocation:
  • Budget constraints have proven to be an obstacle.
  • The FFPMS’s funding allotment has fluctuated over time:
    • 2019-2020: ₹46.40 crore
    • 2020-2021: ₹32.47 crore
    • 2021-2022: ₹34.26 crore
    • 2022-2023: ₹28.25 crore
    • 2023-2024 projection: ₹51 crore (revised to ₹40 crore)
    • 2024-2025 planned allocation: ₹50 crore
  • This shows the need for more steady support.

Technology Gaps and Advanced Solutions

• Limitations of the existing Forest Fire Alert System: Cannot distinguish between forest fires and other types of fires, delaying ground-level validation and response.
• Advanced predictive modelling: India could use advanced predictive modelling to identify high-risk areas based on climatic and geographic data.
• Drone-based monitoring: Drones equipped with thermal imaging cameras can be used to monitor fire-prone areas, assess damage, and guide firefighting efforts.
  • Tamil Nadu and Odisha have already piloted such initiatives, which could be scaled nationally.
• Integrating existing data sources: Forest Survey of India, India Meteorological Department, and Indian Space Research Organisation data can be integrated and analysed for better forest fire management.

Community Involvement and Early Warning Systems

• Strengthening real-time data collection:
  • Local communities should be equipped to collect and share real-time data to report fires.
  • Mobile applications, toll-free helplines, and SMS-based systems can help strengthen early warning systems and ensure rapid, localised response.
• Successful community-led models:
  • In Uttarakhand and Himachal Pradesh, self-help groups, primarily women, collect pine needles to blunt future fires.
  • India can draw from Nepal’s Community Forest User Groups and Indonesia’s Fire-Free Village Program to strengthen community forest fire management.
• Empowering communities and youth involvement:
  • Empowering communities with awareness, training, and resources can foster stewardship.
  • Engaging youth as ‘forest fire scouts’ can help combine local knowledge with modern tools like fire risk mapping and controlled burns.

Conclusion: Holistic Approach and Multi-Stakeholder Collaboration

• Forest fires as a socio-economic issue: Forest fires are not just an environmental issue — they affect livelihoods, health, and ecosystems.
• Collaborative efforts for effective management: Collaboration of policymakers, scientists, civil society groups, and communities is essential.
  • Measures such as:
    • Policy intervention
    • Improved budgeting
    • Technology adoption
    • Building a trained personnel cadre
    • Empowering communities
  • All must go hand-in-hand to turn the tide against forest fires.