Climate change's impact on India's business, tech, finance, & politics. Analysed and explained every Wednesday.
Good Morning Dear Reader,
This is how it began. India made one of the boldest commitments at Glasgow, but the G20 collective looked pusillanimous. After months of preparation to go with China+10 as the net zero target year, India by and large kept to its plan. But other countries did not.
Ninety years ago, as the Great Depression wore on, economist John Maynard Keynes drew a conclusion that the “economic problem may be solved or be at least within the sight of solution within a hundred years”.
Today’s climate crisis needs a similar prognosis. There is technology, there is money, but there’s no great political will to solve the climate problem within this century. But let me not jump the gun. There are still nine days to go before the COP26 summit winds up, and there’s already good news aside from India’s pledge—to halt deforestation by 2030. Some 30 financial institutions have promised to eliminate the practice from their portfolios by 2025.
The rich can do the math
The year 2021 will go down as one where varied segments of society tried everything under the sun to persuade the rich and the influential to commit to mitigating climate change. The runup to Glasgow has been relentless. Can we count on recency bias?
Yesterday, a massive study published by Japanese researchers attributed two million premature deaths every year to air pollution caused by consumption in the G20 nations. It’s the first time a study has quantified nation-t0-nation consumer responsibility for global mortality due to both primary and secondary PM2.5 particles.
G20 members met in Rome, Italy, over the weekend and will decide the fate of COP26 this week in Glasgow. These countries represent ~80% of the world’s economic output, two-thirds of the global population, and three-quarters of international trade.
They are the historical polluters, and they still have a massive impact. Now to hammer it home with a startling statistic: “G20 lifetime consumption of about 28 [24-33] people claims one life.”
A G20 country like India has a bigger problem at home. Out of its footprint of 493,000 premature air pollution deaths per year, 87% occur in India; 13% in foreign countries. In terms of production-based emissions, India generated 549,000 deaths a year, 12% of which occurred in other countries.
On a bilateral basis, the US consumption has a significant impact on China, India, Mexico, and Russia, as well as on the US itself. But 62% of its PM2.5 premature death footprint is outside the country.
We understand why the timing of the study is important. Lead author Keisuke Nansai tells me that many climate change measures will reduce PM2.5, but if those measures are in countries which already have clean air, then it will not reduce global PM2.5 premature deaths significantly.
In short, the rich must pay to clean up the air in developing countries.
If the four million premature deaths that are caused every year by PM2.5 are blamed solely on the emitting countries, says Nansai, it is easy to predict that the high number of premature deaths (including infants) in developing countries will continue.
“By showing the reality that PM2.5 deaths in developing countries actually occur to support the consumption of other developed countries with technology and money, we hope to give the countries a rational responsibility to cooperate with each other and open up opportunities for international cooperation,” Nansai wrote in an email.
The pressure has been building up on the G20. Last week, a unique global survey’s results were released. Called the “G20 Peoples’ Climate Vote”, the survey polled 689,000 people, including over 302,000 people under the age of 18. In India, over 30,000 people were polled each in the adult and under-18 categories.
In all of the G20 countries surveyed, a majority of under-18s said they believed climate change is a global emergency, ranging from Argentina and Saudi Arabia (63%), to Italy and the UK (86%). In most countries, under-18s are more likely to believe this than adults, and often by large margins, such as Australia, the US, and India.
Interestingly, the three most popular climate policies among both adults and under-18s were conserving forests and land (56% vs 59%), promoting renewables (54% vs 57%), followed by climate friendly farming (53% vs 57%).
Source: UNDP
Tell me if this strikes you as well—58% of adults in India believe climate change is a global emergency, meaning there’s a lot more work to do in creating awareness.
According to another report by the British Council in early October, 88% of young Indians feel that gaining knowledge and helping others to understand climate change and related threats is public responsibility. Young people in India between 18-25 years of age were surveyed for it through 946 surveys and 80 focus groups. They want to participate more but find themselves socially excluded.
Awareness is a challenge. As the Secretary-General of the United Nations Antonio Guterres exhorted last week—“Young people need to keep doing what they are doing: demanding action from their leaders and keeping them accountable”.
Accountable to the next generation; to the generations unborn.
I strongly recommend this episode of Hidden Brain podcast: We broke the planet. Now what? Among many things that we learn in this podcast, we get to hear from this real estate developer in Maldives who is building a new island by reclaiming land from the sea. Trying to create in a few months what takes nature hundreds of years to build. Maldives is one of the first island nations that would go under water in this century. The country may be building new cities on sand banks, but it knows this is like buying time, just a few more decades.
What Maldives is seeing today, other coastal regions will face in a few decades.
Even if we stopped every molecule of CO2 from escaping into the atmosphere, seas will continue to rise for centuries to come.
Possibilities for our grandchildren (2021)
In September, climate protests by young people across the world got scientific validation.
Science published a unique perspective on intergenerational climate inequalities. It says that going by current global climate policy pledges, babies born in 2020 worldwide could expect to experience 2-7 times more extreme climate events—including heat waves, crop failures, droughts, floods, wildfires, and tropical storms—than someone born in 1960.
The disproportionate climate change burden gets starker if you factor in the declining population rate in high income countries.
The study says children born in the present and future are much more likely to be born in regions “facing the highest increase in lifetime extreme event exposure”. For instance, 64 million born in Europe and Central Asia between 2015 and 2020 will experience 3.8-4 times more extreme events under the current pledges, but 205 million children in Sub-Saharan Africa face a 5.4- to 5.9-fold increase in lifetime extreme event exposure. For heat waves, the lifetime exposure increases by a factor of 49 to 54.
These findings have implications for climate litigation, and international and intergenerational justice.
In 1930, at the peak of the Great Depression, British economist John Maynard Keynes wrote the famous essay: Economic Possibilities for our Grandchildren (1930). (If you hadn’t guessed already, this edition’s headline riffs on that.)
Keynes wrote:
The prevailing world depression, the enormous anomaly of unemployment in a world full of wants, the disastrous mistakes we have made, blind us to what is going on under the surface to the true interpretation of the trend of things. For I predict that both of the two opposed errors of pessimism which now make so much noise in the world will be proved wrong in our own time- the pessimism of the revolutionaries who think that things are so bad that nothing can save us but violent change, and the pessimism of the reactionaries who consider the balance of our economic and social life so precarious that we must risk no experiments.
In 2021, social scientists argue that the world has “the last, best hope” to correct the imbalance and inequalities that have arisen out of the 200 years of unsustainable economic development.
Formerly a Harvard University professor and now a Columbia University economist Jefferey Sachs puts it aptly:
I think we have the chance to live much better in the future. I think we will be much less automobile-centred than we were in the 20th century . . . I believe that we will have car sharing rather than car ownership, for example, and we will have a lot more ecommerce, which will change tremendously the logistics of our city life…
But I don’t think that it’s going to be the imperative of green that will be the main reason for the behavioural changes. I think it will be mainly the increasing technological options that are available for more flexible lives, more life of leisure, more continued education, more cultural enrichment and a more care-oriented economy.
As countries play good COP, bad COP (pardon the pun) at Glasgow this week, they absolutely must keep the possibilities for countless generations on the negotiating table.
What caught our eye
Over the past few years, more than 1,500 companies with combined sales of more than $11.4 trillion have made net-zero commitments. If we don’t turn pledges into progress, we run the real risk of fostering confusion and even cynicism.
The ideal speed for the transition depends on whether you want to mitigate transition risk (from the shift to cleaner energy) or physical risk from extreme weather events). A slower transition increases physical risk, which comes with its own problems. A hotter planet with more extreme weather would make inflation more volatile.
Leaders must be more upfront about the costs of saving the planet, FT
When designing climate change policies, appeals to altruism will fail and what’s needed is a solution that benefits people alive today as much as it benefits our grandchildren and our grandchildren’s grandchildren.
Stopping Climate Change Doesn’t Need to Be Altruistic, NYT
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