Assessment of German climate change policies and lessons for India

Student name: Mr Harsh Vardhan Sharma
Guide: Dr Rajiv Seth
Year of completion: 2013
Host Organisation: Freie Universitat, Berlin
Supervisor (Host Organisation): Dr Kirsten Jorgensen

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Abstract:
Executive Summary

India has a fast growing economy and there are huge opportunities for cooperation between India and Germany, especially in the field of technology transfer through bilateral cooperation. To understand the issues of technology transfer, one also needs to understand the role of international negotiations and institutions. The various participants would like to have a degree of certainty in policy, return of their investment in long term as well as short term and overall specific environment to them.

Policy development is not an easy task. Policy makers need to understand the problems at various levels and based on the identified priorities, they should try to develop an effective solution to problems. While India is in the early stages of progress in climate change policies, India needs to learn from a front runner like Germany.

In my Master’s thesis, I have researched to understand the German experience in developing policies for climate change. While doing the research, learning from ongoing International negotiations and role of European Union were given due consideration. I firmly believe that India and Germany cannot move alone on the issues pertaining to technology transfer without being the key partner at international forums. I also believe that the role of UNFCC, IPCC, Kyoto Protocol and Technology Executive Committee also plays an important role in shaping bilateral relation between India and Germany.

My research is a broad analysis of major German climate change policies. I also covered some technology policies so as to understand their importance in Germany’s effort to reduce GHG emissions. I also explores some areas of action for India for exploring business dimensions through policies.

The report has been divided into eight sections. The first section introduces the reader to the essentials of climate change and its International context. The second section explains the present status of international negotiations, submission of India and European Union to move towards an effective policy formulation at an international level.

In the third section, I have explained the role of European Union in Climate change policy formulation, current policies, important measures and European Union’s enduring effort to bring member countries on board. I have mentioned some important policy measures inducted by EU to combat climate change.

In the fourth and fifth section, I have respectively mentioned Germany’s climate change policies and technology policy, their objectives, tools for enhancement, instruments and efforts of implementation. In the sixth and seventh section, I have thoroughly assessed the policies based on literature reviews and expert interviews cum interactions.

Finally, in the eighth section, I present my suggestions for India to consider while developing policies and some recommendations for action.

Key observations of my research:

- Germany is successful in converting environmental challenges into opportunities by its ‘first-mover’ advantage in developing climate change policies, capacities and technologocial developments
- The German policies are designed to create new avenues for economic growth and job creation
- Germany has adopted an ‘ambition based’ approach focused on mitigation aspects and there is a clear gap in technology policies in relation to adaptation measures
- Research & Development activities have been given due importance with focus on collective working between policy maker, industry and academician.
- Germany seems to be proactively working on exploring further collaboration with organisation outside UNFCCC mandate
- Germany is focused on technology as a critical intergrating tool for its social, economical and cultural development
- Germany’s policies are in line with EU inititatives for development of low carbon economy
- German climate polices are well defined mixtures of design, cost effectiveness and co-benefits orientation
- In Germany, public awareness and opinions are strong and plays a significant and important role in policy design
- Germany has identified India as a strategic partner but still lot of areas of bilateral cooperation are to be explored to their full potential
- Germany has initiated steps for integration, coherence and governance of all climate change policies

Some of the key observations for India based on my research are:

- India needs to develop its social infrastructure that actually enables the physical transfer of technology from developed countries
- Social Infrastructure includes – Clear understanding of technology needs, differentiated requirement for social and economic purpose, flexible set of institutions and transparent model of governance
- New Institution needs to be develop for addressing the growing concern of climate change
- India needs to develop its polices on balanced ground i.e. both for mitigation and adaptation
- India needs to give greater flexibility to its education institutions to participate in research & development activities
- India needs to think about the coherence and integration of various polices so as to develop healthy competition among various stake holders and interest groups
- According to experts, the areas where India needs to work upon are – Agro technology, Educational Institutions, Non business Forming Units and Defence

Most of the information contained in this paper have been taken from various published paper and reports. I have cited as much of the sources as possible. Other findings are my own interpretations of the available publications and interaction with experts from the related fields.

Finally, in my research, I have been able to capture the recent discussions around climate change on technology transfer among experts from various related fields. To that end, my research would be of help to policy makers, business entities, educational instituties and other stakeholders that seek to understand the wider implications and opportunities in the field of climate change technology transfer.