US WITHDRAWAL FROM PARIS AGREEMENT AND

IT’S IMPACT ON CREDIT STABILITY IN INDIAN

CONTRACT

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 CONTENT SLIDE NO
1. Paris agreement 02
2. Where does India figure in all of this 04
3. Trump’s decision affect India 06
4. BENEFITS TO INDIA 09
5. BAD INDIAN TIMING 11
6. REASONS BEHIND WITHDRAWAL DECISION 13
7. Pre -2020 action 14
8. Conclusion.

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1.Paris agreement
 The Intergovernmental Panel on Climate Change has said that if the
world gets warmer by more than 2 degrees Celsius over the remainder
of the century, there will be a rise in the number of “extreme climate
events” on the planet. This include higher sea levels, changes in
weather patterns, food and water crises and other adverse effects.

 In December, 2015, 195 countries came together and signed the Paris
accord, which seeks to prevent global temperatures from rising below 2
degrees Celsius – in fact it attempts to restrict this to 1.5 degrees
Celsius.

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 The progress made by the countries who have signed the agreement
will be reviewed every five years. Developed countries have pledged
$100 billion (approximately Rs 6.4 lakh crore) as climate finance every
year to developing countries till 2020, an amount that will be reviewed
later on.

 Since carbon emissions are the biggest cause of global warming, the
Paris accord states that countries should strive to reach peak emissions
“as soon as possible”. Currently, experts predict this peak will be
reached around 2030, after which there should be enough renewable
resources to bring the levels down. However, the accord does not
indicate what measures should be taken to reach peak emission levels
sooner.

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2.Where does India figure in all of this

 While the US and China are the world’s top two polluters,
India also contributes significantly, accounting for over 4%
of global emissions. After ratifying the Paris accord on
October 2, 2016, India became bound to reducing its
carbon footprint by 33% to 35% from its 2005 levels, by
2030.

 This means India must focus on greater investment in

renewable energy sources, so that the economy can be
weaned off fossil fuels.

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 To do this, India will need to produce 175 gigawatts of
power from non-fossil fuel sources by 2025, a report
in Mint had said in 2016.

 India also needs to increase its forest cover by 5 million

hectares during this period, as well as improve the quality
of its green cover, the report had said

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3.Trump’s decision affect India

 For India to invest in renewable energy and other means to

combat climate change, it will need the billions of dollars in
aid that have been promised by developed countries in the
pact. It is precisely this promise that Donald Trump sees as
a problem.

 “India makes its participation [in the climate agreement]

contingent on receiving billions and billions and billions of
dollars in foreign aid from developed countries,” Trump had
said on Thursday, while calling the deal “unfair” to the
United States.
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 Moreover, after the US’ exit from the deal, other countries
could soon follow suit, or at least scale back their efforts to
combat climate change, as this report in Vox details.

 Because of its pullout from the climate pact, US will

probably not achieve its target of reducing carbon
emissions by 26 to 28 per cent by 2025. Therefore, other
countries will have to fill that gap by making additional
emission cuts.

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4.BAD INDIAN TIMING

 While India has not released an official statement on the

US withdrawing from the deal, The Times of India reported
on Friday that Indian and US officials have already been in
touch, with frantic phone calls and cables being exchanged
between the two countries immediately after Trump’s
announcement.
 Commentators will be watching closely to see how India
proceeds from here on.

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 Trump’s decision to withdraw from the climate deal and
attack India and China comes at a most inopportune time
for India – Prime Minister Narendra Modi is slated to visit
the White House later this month, though the official dates
have not been announced.

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 5.REASONS BEHIND WITHDRAWAL
DECISION

 JOB LOSSES
 JUST A TINY TEMPERATURE DECREASE
 NEGATIVE IMPACT ON US ECONOMY.
 BILLIONS AND BILLIONS OF DOLLERS

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6.BENEFITS TO INDIA

 To bring down its emissions intensity by 30 to 33 per cent

from 2005 levels by 2030.
 To increase the share of non-fossil fuel energy to 40 per
cent by 2030.
 To create an additional carbon sink of 2.5 to 3 billion tonnes
of carbon di-oxide (CO2) equivalent by increasing its forest
and tree cover by 2030.
 To invest in development programs in areas vulnerable to
climate change and also to health and disaster
management.
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 GLOBAL CARBON DIOXIDE EMISSIONS

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7.Pre -2020 Action.
The Decision calls for enhanced action prior to 2020.
Pre Action periods of 2020 :-
 Mitigation
 Adaptation
 Finance
 Other

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8.Conclusion :-
 The Paris Agreement provides a common framework within which individual
countries (or alliances of countries) are invited to define NDCs taking into
account the overall goal of the Convention and the Agreement as well as their
own capacities.
 The risk however, is that individual country contributions fall short of the overall
goal and that the Paris Agreement remains a shell without sufficient action and
support, unable to address the collective action problem of climate change.
 As costs for climate change mitigation are driven down by technological
advancements and alternative energy systems start to support development,
NDCs should become more ambitious, and the efforts more aligned with the
overall goal than

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