The missing link

The missing link

Climate change vs free trade

The countdown has begun. The forthcoming UN Climate Change Conference (popularly called CoP 15) scheduled to be held at Copenhagen from Dec 7 to18 is generating tremendous excitement. Climate change has suddenly become the buzzword. As top political leaders are getting ready to descend on Copenhagen, there is surely a thrill in the air.

The global debate, dominated by a handful of international NGOs, have managed to very deftly shift the entire development discourse to climate change. The United Nations (not only UNEP, but all its other arms), the bilateral donor agencies like USAID/DFID, and the global think-tanks like the International Food Policy Research Institute (which are no better than the corporate rating agencies) have for quite sometime been active in putting climate change on the top of the global development agenda. And they have surely succeeded.

In the process, the real issues confronting the world have been very conveniently swept under the carpet. So much so that if you don’t talk about climate change you appear to be out of fashion, feel outdated.

I am therefore not amused to see Indian NGOs, who otherwise swear in the name of poverty, hunger and food insecurity, suddenly riding the climate change bandwagon. Even dalit and adivasi issues are being linked to climate change. I wouldn’t be surprised if someone tries to find a correlation between climate change and the gender dimension.

This is not only true of India but almost all civil society organisations in the developing world. In reality, they are looking forward to an opportunity to be there where the action is. I mean travelling to Copenhagen, so that they can tell their colleagues: “yes, I was there.”

Nevertheless, the Copenhagen summit is expected to be somehow different. It is not only about emission standards but if you have been following it carefully, it is all about marketing green technologies and investments. I am not therefore surprised when Heads of State talk about Green Technology Revolution on the lines of Green Revolution, not realising that Green Revolution is in a way responsible for acerbating the climate crisis. In other words, the entire debate has been hijacked by the corporates to suit their business interests.

The UN says the world needs an investment of $200 billion to fight climate change, which is a euphemism for corporate investment, and like proverbial cats you will see the Heads of State fighting to get hold of a sizeable pie. It is expected that the developed countries might offer the developing countries something between $90 billion to 140 billion per year to be used for clean technologies. Climate change therefore offers bright business opportunities.

Global economic environment

Just a few days prior to the Copenhagen conference, the 7th ministerial conference of WTO is being held at Geneva, from Nov 30 to Dec 2. The general theme of the WTO ministerial will be the WTO, the multilateral trading system, and the current global economic environment. Surprisingly, the WTO ministerial is talking in terms of the global economic environment and not climate change. You will ask me so what? Well, that is where I want to draw your attention to.

The two international treaties that have hogged the limelight for quite some time are the WTO and the Kyoto Protocol. While one relates to global trade, the other is about climate change. Global trade is not only about economic growth but also seriously impacts climate change. After all, trade is not going to be conducted on bullock carts. It will mean more transportation, which means more burning of fossil fuels and therefore more global warming.

The World Bank has, through its global economic prospects report, already said that a successful Doha Round completion could generate $291 billion in global economic gains. It of course did not tell us how much the world would have to suffer by way of rise in the average global temperature.

So, in other words, the Doha development round of WTO paves a way for $291 billion gain, essentially for business and trade, whereas a successful completion of the CoP-15 would mean an additional business opportunity of $200 billion for the manufacturers of green technologies.
In the mid-1980s the OECD (Organisation for Economic Cooperation and Development) had published a study, which had estimated that by the end of 2004, when the WTO Uruguay Round was expected to complete, there would have been an increase of 70 per cent in internationally traded goods as compared to 1992.

This of course would mean that more fossil fuels being burnt to transport these goods across continents. OECD estimates had also shown that 25 per cent of carbon emissions, with some 66 per cent of this coming from rich countries, is from the global transport sector.

We know that each tonne of fright moved by plane uses 49 times as much energy as a ship. And a 2-minute take-off by a Boeing 747 jumbo is equal to 2.4 million lawn movers running for 20 minutes. More than the emissions standards, what is therefore more crucial for the changing climate is the restriction needed to be imposed on global trade. We need to have trade reduction standards on the lines of mandatory emission cuts.