India Inc hopes to clear cloud over climate talks at Durban meet

India Inc is keeping fingers crossed as the first two days of parleys at the ongoing Durban climate summit are pointing at an enduring logjam.

The debate in the South African city has hit a roadblock, as Canada made it clear that it would not agree to a second commitment period for Kyoto, for which India and other BASIC countries (Brazil, South Africa, India and China)countries are pressing hard.

With such negative sentiments casting clouds over the current talks, the industry in India wants to see some strong action taken at Durban. This includes a roadmap for technology transfer, green climate fund and the future course of the Kyoto protocol.

DAY 2-DURBAN DRAMA
KEY RECOMMENDATION BY INDIA INC

* Talks should provide businesses with greater confidence to undertake low carbon investments

* Durban should ensure that the future policy direction will enable positive returns on investment.

* Future direction on the global climate change regime and Kyoto Protocol

* Commitments should be based on historic and future responsibilities within the context of domestic development realities

* Removal of barriers for technology transfer.

* Creating financing instruments to channelise private finance into low-carbon projects 

Ficci has come out with a report on the Durban talks. The chamber said industry expected a clear regulatory signal on existing as well as new market mechanisms regarding the guiding principle of enhancing tech transfer and financing for mitigation projects.

“The Durban negotiations should address the removal of barriers to trade,” according to Rita Roy Choudhury, Ficci’s director & head (environment, climate change, renewable energy). “They must ensure that the provisions for UTMs (unilateral trade measures) do not enter the realm of international climate policy regime.”

Earlier, environment minister Jayanthi Natarajan had made it clear that India was concerned about unilateral trade measures being taken by the developed countries in the name of climate inclusions.

Today, Confederation of Indian Industry (CII), another industry body, urged the governments to maintain the process of building a clear foundation for real and long-term global action. The chamber also wants that any commitment by the Indian government should be based on historic and future responsibilities within the context of domestic development realities.

A climate expert here pointed out the Durban downbeat was making the Indian companies worried. “They now perceive international agreements, national commitments, populist policies and stakeholder’s pressure to cause significant impact to their business,” he said.

In fact, according to a survey by Carbon Disclosure Project, about 65 per cent of the companies perceive some risk due to the political nature of the climate change talks.