Loss and damage fund

What it means and where India should stand?

COP29 is over and here we combine a recent news item and one of the key demands (maybe the only) in all climate talks – that developed countries should pay less developed countries for the damage caused as a result of climate change. 

The argument is that developing countries like India do not have the funds to support their citizens when loss and damage happens as a result of climate change. That it is the much larger and more historic emissions of developed countries which is now causing climate change.

Is this a correct demand? Lets examine.

2. Coking coal is absolutely essential to the steel making process. Approx 800 kgs of coking coal is required to produce 1000 kgs of steel. This steel is then used for making automobiles, refrigerators, air conditioners and much more.

3. A critical mineral means that it is essential for India’s growth and development and its mining should be facilitated within India so that the country can reduce imports.

4. As per latest numbers, India imported 58 million tonnes of coking coal last year and paid Rs. 1.5 lakh crores for the same. That is roughly $20 billion.

5. Whatever be the product that you consume, a car or two wheeler or a refrigerator you have paid for the steel used in the production and as an extension you have also paid for that imported coking coal. 

6. Keep in mind that the coal has been imported on your behalf. The steel company does not manufacture steel for itself. It does for millions of people of India.

7. A large quantity of carbon dioxide emissions are released at the steel plant as a result of burning so much coking coal. 

8. A part of those emissions are YOURS. Millions of Indian consumers of cars and daily use appliances have also contributed. Millions of tonnes of Co2 is produced and released into the atmosphere.

9. There is Loss and Damage that will happen as a result of those emissions – your emissions. These are the emissions causing climate change. 

10. Now let us come to the Loss and Damage fund.

11. India is among the countries which keeps holding the developed nations accountable to pay for the damage caused as a result of climate change. There is a demand that developed nations like the USA, UK and others should pay India and other poor countries for the loss and damage caused as a result of climate change. That they (the developed countries) have caused more emissions over a longer period of time.

12. How do we establish that a particular loss and damage is happening exactly because of climate change alone and more specifically due to the historic emissions of the developed countries and not because of the new emissions from China and India?

13. If due to unseasonal rains there is crop loss then how do we prove that the loss and damage is due to climate change alone and not due to other governance failures compounding the situation? Secondly how do we establish that the ‘climate event’ is due to historic emissions? How do we make a case that the emissions from India and China in the past two decades have in no way contributed to the climate event? Thus making way for the West to pay for the loss due to that event.

14. If there is heavy flooding due to extreme rain then should the adaptation systems should be paid by climate finance from the 1.3 trillion dollar fund? Or can that happen through a coal cess paid for by the residents of India itself?

15. Remember, the damage that we are talking of is in India. Also remember that India is also releasing CO2 in the atmosphere. India is the third largest emitter of greenhouse gases in the world.

16. Now the main point for your consideration. If India – which classifies itself as a poor or developing nation – can pay 1.5 lakh crores to import coking coal then can it not pay for the loss and damage as well?

17. Who will face the loss and damage? The same people who buy the cars and appliances?  Who should pay for the damage?

18. Everything in the car is paid for by the consumer – an Indian consumer. The outer steel shell, the tyres, various components, seat, high end music and navigation system. Can’t the same consumer pay a bit more for the loss and damage happening as a result of him and to him? Her and to her?

19. If the polluter pays principle is to be applied then each individual Indian consumer is equally responsible for the emissions. Not just the steel factory.

20. If the developed nations do not pay for the Loss and Damage fund then will Indians go about silently suffering and do nothing?

21. Should it be the case that I cause the damage but you pay for my loss?

What do you think? Share your thoughts in the comments section.

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