An analysis of the Paris Agreement, its impact on the Indian INDCs and businesses
Student name: Ms Vedamitra Rao
Guide: Dr Sapna Narula
Year of completion: 2016
Host Organisation: KPMG, Gurgaon
Supervisor (Host Organisation): Mr Manpreet Singh
Abstract: On 12th December 2015, 195 countries came together to broker a universal agreement to combat climate change. For the first time almost all the world‟s countries have collectively committed to limit global warming to „well below‟ 2˚C above pre-industrial levels and to „pursue efforts‟ to keep it to 1.5˚C. This agreement is now known as the Paris Agreement and will officially come into force by 2020. The Paris Agreement falls under the framework of the United Nations Framework Convention on Climate Change (UNFCCC), just like the Kyoto Protocol and the Doha Amendment. The UNFCCC established a Conference of Parties (COP) under Article 7. The COP acts as the convention‟s supreme body and meets annually where countries/ state parties negotiate and discuss.
At the 19th meeting of the COP, each of the countries agreed to develop and submit its INDC to UNFCCC at COP 21, where each of the relative contributions to 2ËšC will be assessed by COP, to develop an international climate change agreement by 2015. An INDC is the means for national governments to communicate internationally, about its national policies and steps to tackle climate change within its border. The countries can develop their NDCs, keeping their national priorities and capabilities in mind. 2005These NDCs can then be integrated within a global framework to transition to a low-carbon, climate resilient economy.
India submitted its INDC on 1st October 2015, with the objective “To establish an effective, cooperative and equitable global architecture based on climate justice and the principles of Equity and Common But Differentiated Responsibilities and Respective Capabilities, under the UNFCCC.†The contributions were prioritized as given below:
•Assurance of 33-35% reduction in emissions intensity by 2030, in comparison to the 2005 level
•Pledge to increase solar power to 100 GW, wind power to 60 GW, biomass power to 10 GW by 2022. A total increase of 175 GW capacity of renewables by 2022.
•Assurance to increase the non-fossil fuels‟ share of electricity mix to 40% by 2030, from the existing 30%.
•Pledge to increase forest area to create a carbon sink equivalent to 2.5-3 GtCO2e by 2030
The Paris agreement has been developed after deliberations between the countries, civil society and private sector (businesses). Thus there is a huge pressure on businesses to align their carbon reduction strategies with the 2ËšC goal. However despite the increased pressure, the responses from the industry has been positive and they have collectively appreciated this agreement. Business investors have also started prioritizing responsible investment opportunities.
