Economic considerations a developing country perspective
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Economic Considerations - A Developing Country Perspective. Equity and Global Climate Change April 17-18, 2001 Pew Center on Global Climate Change Washington D.C. Sujata Gupta Tata Energy Research Institute. Outline. International perspective Initiatives in India Future strategy.

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Economic considerations a developing country perspective l.jpg

Economic Considerations - A Developing Country Perspective

Equity and Global Climate Change

April 17-18, 2001

Pew Center on Global Climate Change

Washington D.C.

Sujata Gupta

Tata Energy Research Institute


Outline l.jpg
Outline

  • International perspective

  • Initiatives in India

  • Future strategy



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Per Capita Carbon Emissions & Income

14.00

Qatar

12.00

10.00

United Arab

8.00

Carbon Emissions/Capita (tons)

Emirates

Luxembourg

Bahrain

Singapore

6.00

United States

Australia

Norway

4.00

Saudi Arabia

Canada

Czech Republic

Japan

2.00

Switzerland

Hong Kong, China

0.00

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

GDP/Capita (PPP$)



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Total & per capita energy related CO2 (1996)

Source: IEA & WRI


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Per capita CO2 emissions



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Main issues

  • Call for “meaningful participation” by major DCs made by the US

  • Globally, broad recognition of adverse impacts of climate change - commitment to take action

  • Several Annex B negotiators at COP-6 recognized that in the long run, equity pivoted on a per capita basis, is essential  convergence


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National Development Objectives

  • Poverty removal/employment generation

  • Food sufficiency/self-reliance

  • Drinking water, primary health etc,

  • Containing population growth

  • Efficiency/long-term sustainability

  • Technology development/Renewable Energy

  • Power development

  • Public transport

  • Higher industrial competitiveness

  • Sustainable forestry



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Energy sector characteristics

  • Persistent shortages

    • demand > supply

  • High import dependence - oil, BOP pressures

  • Poor productivity/efficiency

  • Poor internal rate of return

  • Limited energy alternatives for poor

  • Subsidies


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Reforms and the environment

  • Promotion of RETs

  • Incentives to efficiency improvements

  • Waste recycling / cogeneration

  • Clean coal technologies

  • Coal washing and fly-ash handling

  • Dismantling of the APM / Re-structuring

  • Decentralization of environmental clearances


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Ongoing Initiatives

  • Energy sector reforms

    • deregulation of the administered price mechanism - power, oil & coal (removal of subsidies)  market based pricing

    • private sector participation - power, oil & coal

  • Renewable energy programmes

  • Sector level reforms

  • Regional co-operation in energy


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Ongoing Initiatives

  • Bagasse-based cogeneration – subsidies on state of the art technology & soft loans for modernization

  • Biomass combustion – MNES provides a one-time subsidy of up to 30% of the project cost

  • Grid-connected solar photovoltaic (PV) applications – two-third of the total project cost s.t. maximum of 20 million rupees per 100 kWp capacity


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Ongoing Initiatives

  • Wind battery chargers – MNES has been subsidizing small aerogenerators for more than a decade

  • Wind pumps –MNES provides subsidies of 40-50% of the total cost

  • 9th Five Year Plan - Government recognizes the need to shift from capital subsidies for RETs to interest subsidies, & gradually phase out subsidies to move towards private entrepreneurship


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Future strategy

  • Support the Kyoto Protocol

    • step in the right direction

  • Continue with the ongoing program for “meaningful participation”

  • Participation in CDM projects

    • Enthusiastic business partners

    • Change in government’s reserved attitude

      • Local benefits

      • Developmental objectives

      • Technological upgradation/advancement


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Future strategy

  • Assess impacts of and vulnerability to climate change  adaptation measures

  • Exploit the synergy between local and global environmental issues with clear priority to local

  • Longer term perspective



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