Equity Concerns In Banning Fossil Fuel Extraction

Context: 

This editorial is based on the news “Equity concerns in banning fossil fuel extraction” which was published in the Hindu. This article highlights the challenges of inadequate response from governments and corporations in dealing with the issue of climate change. 

Transitioning Beyond Fossil Fuels: Addressing Climate Change

• Phasing Out Fossil Fuels: Context of growing calls for phasing out fossil fuels to meet climate goals.
• Treaty & Pacts: Proposal for a fossil fuel non-proliferation treaty and coal elimination pact.
• Principles of the Climate Change Regime: Concerns on aligning these with the Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) and Nationally determined contributions (NDC).

Equitable Phasing Out Challenges 

• Dependency on Fossil Fuels: Countries dependent on fossil fuels for revenue and jobs will face difficulties in transition.
• Developed Nations: Diversified economies like the US/UK have capacity for transition unlike Azerbaijan, Iraq etc.
• Others: Latter group cannot be expected to lead on fossil fuels phase out.

International Law Considerations 

• Use Natural Resources, but don’t Harm: States can use internal natural resources for development but not cause transboundary harm.
• For Global Concerns: This obligation is largely untested for global commons like climate change.
• Assessment: Asking states to conduct climate impact assessment of fossil fuel extraction on global emissions has a shaky legal basis.

Treaties & Agreements On fossil fuel Extraction

• Paris Agreement: To eliminate coal by 2030, driven by concerns over the Production Gap Report’s projections and challenges with the temperature goals.
  • The basis of the Paris Agreement is NDCs, which is not a binding agreement to prohibit fossil fuel extraction.
• Net Zero Emissions by 2050: The Powering Past Coal Alliance, launched at COP23, in its declaration refers directly to the benchmarks provided in our global coal report, to stress that the Paris Agreement requires coal phase out by 2030 in the OECD countries and by 2050 in the rest of the world.

Developed Countries’ Inconsistencies

• Double Standards of Developed Nations: Developed producers like Australia, Canada, US plan to increase production as per Production Gap Report, however questioning India’s Subsidies.
  • This hypocrisy needs highlighting using CBDR-RC and coalition building tactics.
• Economic Inequalities: Developed nations like the US and UK have greater flexibility, while developing countries such as Azerbaijan and Nigeria struggle with economic diversification and revenue dependency.

India’s Situation and Constraints

• Dependency on Coal & Power: Despite progress, fossil fuels dominate India’s power sector.
  • 3.6 million jobs connected directly or indirectly to coal and power.
• Challenge: Unemployment is a major concern, and  can’t afford an abrupt cleaner fuel transition.
• Scrutiny by the West: India’s subsidies on kerosene oil have come under scrutiny in the West as it is found to be inconsistent with Article 2(1)(c) of the Paris Agreement and is also considered as inefficient subsidies.

Way Forward 

• Manage Time-Frame: India signalled the need for differential timeframes in transition at COP26 by changing “phase out” to “phase down” language.
• Oppose Double Standards of Developed Countries: India should continue to oppose developed countries’ double standards on fossil fuel extraction norms.
• Focus on Employment: Managing employment impact crucial along with judicious fossil fuel demand management.

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