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U.S.’ executive order and its implications

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April 03, 2017

What is the issue?

In March 2017, U.S. President signed an executive order which promotes U.S. energy independence and economic growth, but with potential collateral damage to global efforts to limit climate change.

What is the EO about?

  • The aim is to give a boost to coal, oil and gas production.
  • The centrepiece is a review of the U.S. Clean Power Plan.
  • The plan aims at reducing greenhouse gas emissions from the American electricity sector.
  • This was a key element in the previous U.S. administration’s plans to meet America’s climate pledge under the Paris Agreement.
  • Reviwing it might loosen regulations which ultimately might result in increased emissions.
  • The order lifts a moratorium on leasing federal land for coal mining, and revisit rules to limit methane emissions.
  • It also withdraws estimates of the “social cost of carbon”, an economic approach that sets a dollar value to the gains from reducing carbon.

What are its implications?

  • The deeper significance rests in the political signal it sends to the rest of the world.
  • The Paris Agreement is a confidence game. Each country is required to submit a national pledge to limit emissions growth.
  • This would be reviewed internationally, and updated and enhanced every five years.
  • US President’s order punctures global confidence.
  • Now, other countries may follow the U.S. lead and dilute their national actions.
  • This is not the first time the U.S. has pulled the rug out from under the global community.
  • In the mid-1990s, it notably walked away from the Kyoto Protocol, which requires developed countries to take the lead.

What are the implications for India?

  • India should not follow the same footsteps and neglect the Paris Agreement.
  • India’s interests are best served by strengthening the Paris Agreement.
  • This could be used to hold to account the developed world.
  • India has little to gain from going slow on implementing its own pledge because it is extremely vulnerable to climate impacts.

What India should do?

  • As a large emerging country, India has enormous leverage as a deciding factor in the future of the Paris Agreement.
  • It should insist that Western countries maintain their obligations, including financial.
  • Indeed, the new US’ order provides an opening to enhance India’s global standing.
  • Such a climate position could even be useful in a larger foreign policy sense, serving as a soothing element in relationship with China.
  • This order is likely to hurt the interests of the U.S. in the long run because it postpones an inevitable but complex readjustment of energy systems around renewable energy.
  • It undermines confidence in the U.S. as a reliable global partner, and even revokes preparation for climate impacts meant to safeguard American citizens.
  • In this scenario, India should reaffirm its Paris pledge and placing its weight behind implementing the Paris Agreement.

 

Source: The Hindu

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