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India preparing for global warming

NEW DELHI, Dec 7 (Reuters) - India, likely to be one of the countries worst-hit by global warming, is already ahead of most developing nations in putting in place measures to help it adapt to climate change, the World Bank said on Thursday.

Experts predict that the earth's temperature will rise by 2-3 degrees centigrade in the next 50 years if greenhouse gas emissions continue at current rates.

This will seriously affect the Indian subcontinent and result in more frequent and more severe natural disasters like floods and droughts, more disease and poor crop yields, they add.

On the sidelines of an international conference on climate change, the World Bank's lead environmental specialist for South Asia, Bilal Rahill, said despite the threats, India was ahead in adapting to climatic variability.
"Adaptation is the same as development as it is basically about improving people's ability to deal with adversity whether it be adverse weather conditions or poverty," Rahill said.

"India has a number of development programmes that have inherent, built-in adaptation aspects ... (and) has a lead as it’s been dealing with more climate variability than most developing nations."

Rahill told Reuters India was already implementing projects to improve water management to cope with erratic rains and build infrastructure in coastal areas in case of cyclones or flooding due to rising sea levels. But it still needed to do more.

According to a report on the economics of climate change by former World Bank chief economist Nicholas Stern published in October, mitigation by reducing emissions is not enough.

Stern, head of Britain's government economic service but due to step down to become a professor at the London School of Economics, said that even if emissions stabilise by 2035, countries need to adapt to irreversible climatic changes.

Experts estimate that it will cost the world tens of billions of dollars a year for countries to adapt to the new challenges.

But Rahill said the cost for India would be marginal compared to its overall development budget. "Since India is already investing heavily in infrastructure and other development programmes, the cost of adaptation to climate change would be a marginal increase to that," he said.
Rahill said the challenge was to step up measures in rural areas where there were already serious water shortages.

 

According to India's The Energy and Resources Institute (TERI), climate change will particularly hit crop production with around 66 percent of cultivated land dependent on rain.

Agriculture accounts for around 20 percent of India's GDP and employs around two-thirds of the national workforce, says TERI.

Experts say that with more freak weather expected, India needs to move faster to develop irrigation systems, speed up income diversification, shift farmers to less water intensive crops and provide low interest rate loans.

"If you have floods, they are likely to be worse, if you have droughts, they are likely to be worse and they will happen more often as well so we all have to be as prepared as possible," said Rahill.

solar
Pu Kradueng National Park in Central
Thailand also uses solar power,
even on cloudy days.


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Using taxes to get Britons to go green


Money Talk
By Chris Sanger and Jonathan Johns

Using the tax system to change peoples' behaviour towards the environment is a hot political topic.
With the government's pre-Budget report due on Wednesday, two financial experts look at what tax tactics could be used to encourage people to go green.

There has been a lot of public debate about green taxes, with some applauding them, others claiming they are just a new stealth tax.
Despite this recent interest, they are not new: the first fuel duty was introduced in 1909.
This government's latest framework for environmental taxes was released in 2002, with the 'polluter pays' principle designed to deter environmentally damaging activity.
But green taxes represent a declining share of taxes, partly due to the freeze in real terms of fuel duty.
Estimates vary, but green taxes take around 1% to 1.5% less of total tax now than they did ten years ago.

Restoring the balance could provide an extra £5bn to £6n of tax revenues; that potentially gives quite a bit of scope to the chancellor.
The Stern Report has given him the economic argument to back his actions: he may find winning the political argument easier if he was prepared to offer incentives for 'good' green behaviour at the same time he inflicted taxes for 'bad' green behaviour.
The principal taxes that bite on environmentally bad behaviour at the moment are

  • Fuel Duty and VAT together mean that on a pump price for petrol of 85 pence per litre, the government takes approximately 61p, or nearly 72%
  • Air Passenger Duty currently ranges from £40 for standard rate flights to a 'discount' down to as little as £5
    Landfill Tax is paid by operators of landfill sites at £21 per tonne (and is due to increase yearly by at least £3 per tonne) with a reduced rate of £2 per tonne for inert or inactive wastes such as rocks or minerals

 

  • Congestion Charge - such as the £8 charge to drive in central London during specified hours on weekdays.


So how could the chancellor use the tax system to offer rewards to people for better 'green' behaviour?
We have compiled 'eight green tax changes' that could be hanging on the wall at the Treasury, just ready to fall into the chancellor's lap to help give him a greener tinge.

  • Fuel Duties - Drivers might accept higher taxes if a proportion of the revenue was directed to provide incentives for the infrastructure necessary to distribute greener fuels to Britain's petrol stations
  • Air Passenger Duty - A sustainable version would recycle some revenue into research on greener aircraft fuels, or offer partial rebates to airlines investing in qualifying renewable energy projects in the developing world
  • Government Internal Carbon trading - Why not set government departments a carbon target that they can trade with other departments, so that they face the same disciplines as the private sector?
  • Smaller council tax increase for energy- Wasting homes could raise money to invest in infrastructure and insulation for the fuel poor, and reduce the rates bill on properties which are energy efficient
  • A carrier bag tax - Already operating in Ireland, the money could be reinvested in community-based recycling schemes. A similar approach could be followed in relation to batteries
  • Household waste - Separating the charge for waste disposal on the council tax bill would make the cost of landfill visible to householders: they might be more prepared to accept this if they received discounts for recycling more of their domestic waste
  • Reform Enterprise Investment Schemes and Venture Capital Trusts - These scheme allow individuals to buy shares in start-up businesses. Add extra incentives for investors who plough money into new companies in the environmental sector
  • Value Added Tax - Greater use of lower rates for clearly carbon friendly goods and services could have an immediate impact.

In practice, many of these ideas are unlikely to be in the pre-Budget Report, but 'green' measures to encourage taxpayers to think about the environment may be on the cards.
When it comes to the environment the chancellor will want to demonstrate his commitment to this issue and may decide that deterrents are more effective than incentives.
This might encourage the behavioural change and re-direction of investment that will be required to meet carbon reduction targets.







tax
New tax incentives may be able to change people's priorities.


 


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