India is aggressively defending its corner ahead of global climate change discussions in December, but behind the scenes the country is making concentrated efforts to cut carbon emissions that put many developed nations in the shade. Richard Orange reports
When India's environment minister, Jairam Ramesh, went to Beijing a fortnight ago, it looked like the developed world's worst environmental nightmare: two normally competing regional rivals, which together will create much of the world's future carbon emissions, were teaming up before climate change talks in Copenhagen in December. But it was only last week, when Mr Ramesh followed up the visit with a prediction that India would more than double its per capita carbon emissions by 2030, that he started to look the best candidate to replace the former US president George W Bush as global climate villain number one.
Mr Ramesh was speaking at the launch of a report compiled by five different research agencies, including the Energy and Resources Institute of India and the management consultancy McKinsey, which projected that India's per capita emissions would rise from under 1.5 tonnes today to 3.5 tonnes by 2030.
"There is lot of commonality and co-operation with China when it comes to Copenhagen," Mr Ramesh told reporters at the release of the study. "We want a fair and equitable agreement in Copenhagen."
Judging by what he told Hillary Clinton, the US secretary of state, when she came to India in July, that means India will not budge from its stand against emissions caps. "There is simply no case for the pressure that we, who have among the lowest emissions per capita, face to actually reduce emissions," he said.
Thankfully, India's tough negotiating stance belies actions on the ground that in many areas put it ahead of some developed countries.
On the very same day that Mr Ramesh was synchronising strategies in Beijing, The Indian prime minister Manmohan Singh quietly approved an energy saving scheme that is as ambitious as anything a European country has yet put in place.
The national mission on enhanced energy efficiency will save nearly 100 million tonnes of carbon emissions every year from 2015, Mr Singh said. To put that in perspective, the UK's Carbon Trust is talking about saving 20 million tonnes a year by 2050.
Dr Ajay Mathur, whose Bureau for Energy Efficiency pushed the scheme, and who previously headed the World Bank's climate change team in Washington, said: "The mission really pushes the envelope, both for the savings it seeks to achieve and the institutional arrangements which it puts together to achieve these savings."
Under the scheme, India's industrial plants will each be given strict energy savings targets and awarded tradable certificates if they overachieve, a little like Europe's cap and trade scheme.
"It's much, much better than the cap and trade scheme, because it's not market-linked," said V Raghuraman, the India adviser to the Climate Group, the lobbying organisation launched with support from Tony Blair. "It's also much better than a voluntary scheme, such as there is in the UK, because it's mandatory and there's no question of missing the targets."
This is not the first time that India has been a trailblazer. In July, the announcement of India's national solar mission won plaudits from Greenpeace and other environmental campaign groups.
The mission aims to see US$20 billion (Dh73.46bn) invested in building 20 gigawatts of solar energy plants over the next decade, saving some 42 million tonnes of carbon annually. Capacity is planned to increase to 200gw by 2050, when, according to Greenpeace, it could save more than 434 million tonnes of carbon a year.
"India's solar mission represents one of the world's largest renewable energy plans to date," said the Washington-based Worldwatch Institute in a report on the project. Siddharth Pathak, the Greenpeace climate campaigner in India, said the country's tough negotiating stance gave a misleading impression. "The perception everyone seems to be putting forward is that India is the deadlock, because it's against the conventional world order. But if you look at the initiatives that they're doing, India is quite progressive. Where India falls short is on the PR. It's unable to show what actions its doing on the ground."
Dr Mathur said: "The world's most efficient cement plant, steel plant, fertiliser plant, refinery - you will find them all in India. We've seen a 25 per cent decrease in energy intensity over a six-year period: this is fairly good. If you look at other countries, you will see that this kind of increase in energy efficiency hasn't really occurred."
In the past few years, India has become the world's fifth-largest market for wind power, with more than 10gw of capacity installed. It is one of the few developing countries that has increased forest cover in the past 20 years, and its forestry plan sees it spending $2.5bn reforesting 6 million hectares, expanding forest cover from 23 per cent to 33 per cent of its territory.
It has also enthusiastically implemented carbon saving schemes under the UN's clean development mechanism (CDM), set up to channel money raised by carbon trading. India, with more than a quarter of the projects registered so far, is second only to China in the number of projects.
Dr Mathur's Bureau of Energy Efficiency was instrumental in developing a project, funded by money from the CDM, to replace all of the country's incandescent light bulbs - about 350 million to 400 million - with energy-efficient fluorescent bulbs, eventually saving more than 15 million tonnes of carbon emissions a year.
India has 264 green building projects registered, of which almost 20 per cent have qualified or pre-qualified for the US Green Building Council's LEED certification. Jamshyd Godrej, the chairman and managing director of Godrej and Boyce, and a pioneer of green buildings, said: "As far as green buildings are concerned, I think we are well ahead of most of the world - we are certainly well ahead of China, and we are well ahead of most of Europe."
Not all of India's older industrial plant are top of the range, Dr Mathur admits. "In the state of Jharkhand you will find two plants side by side: one plant set up two years ago will be an amazingly efficient plant and one set up 30 years ago will be an amazingly inefficient plant."
When India's economy started opening up to international markets 15 years ago, its previously sheltered companies found that their high cost and unreliable power supplies made them uncompetitive. The only option for many was to become more energy-efficient.
"The point is simply that as far as cost effective measures are concerned, those make sense to us anyway for a number of reasons," Dr Mathur said. "So all of these things we will continue to do, irrespective of what the climate change debate is."
Mr Raghuraman said: "Industry has to do it, otherwise industry will die. Look at the figures. Between 2002 and 2007 we were supposed to add 41,000 megawatts of new power generation capacity and we actually added only 17,000mw. But the economy still grew the fastest ever, so there have been many efficiency gains."
The other reason why India has some of the world's most energy-efficient industry and buildings is simply that much of it is new.
"If we continue to grow at 9 per cent, by 2030, 90 per cent of our assets will be new," Mr Raghuraman said. "So we can leapfrog other countries."
The same goes for buildings. If construction continues at present rates, by 2030 about 70 per cent of India's buildings will have been built between now and then.
All this is not to say that India's rapid development does not pose a terrifying prospect for the global climate. Its population of 1.2 billion people means that as a country it is already the world's fourth-biggest emitter (fifth-biggest including the EU), despite each person emitting about 15 times less carbon than someone in the US.
Rajendra Pachauri, the chairman of the UN's international panel for climate change, confessed last year that the Indian-built Tata Nano, which will bring car ownership within the grasp of tens, if not hundreds, of millions of new consumers, was giving him "nightmares".
India aims to meet much of its power shortage by building as many as 10 4,000mw coal-fired power plants. "We have the third-largest reserve of coal," Mr Ramesh said in an interview last week. "It would be foolish of us to give up on that option.
But if India even matched China's emissions of about 4.6 tonnes per person, it would mean adding about 4 billion additional tonnes of carbon emissions every year. To put that in perspective, it is about the same amount that would be saved if the entire EU became carbon neutral.
India is loth to take measures that will slow down its economic growth without the US and Europe agreeing to much more drastic cuts.
"The problems come when you talk about measures which are large net costs, where you are doing it only because of climate change negotiations," said Dr Mathur, who is part of India's negotiating team.
Dr Mathur's proposals, focused on accelerating technology transfer and development, have so far been blocked by the developed world, which is worried about losing intellectual property. But there are early signs that the new US administration is easier to deal with.
"You have to say they're trying very hard to see how various countries can be moved towards an agreement at Copenhagen," he said.
There were still bound to be differences, Dr Mathur said. "The question is 'who pays?' That's the developing country-developed country tension. That's not going to go away. It's unavoidable."
Dr Mathur said he could see an agreement where the world's countries all agree to maintaining long-term per capita emissions at between two and four tonnes a person. That would mean the US cutting per capita emissions by almost 80 per cent.
In Beijing, Mr Ramesh made a public call for developed nations to cut their emissions by 40 per cent from 1990 levels by 2020.
"That's a game changer," Mr Ramesh said. "It would be very difficult for me, as an Indian minister, not to respond if developed countries accepted this proposal. The fat would be in the fire, our bluff would be called."
When even that proposal, which would only put the US halfway towards parity with the rest of the world, seems breathtakingly unachievable, it shows just how large the tension between the developed and developing worlds is.
business@thenational.ae
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HAJJAN
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Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
UAE currency: the story behind the money in your pockets
The five pillars of Islam
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Petrarch: Everywhere a Wanderer
Christopher Celenza,
Reaktion Books
THE 12 BREAKAWAY CLUBS
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
THE NEW BATCH'S FOCUS SECTORS
AiFlux – renewables, oil and gas
DevisionX – manufacturing
Event Gates – security and manufacturing
Farmdar – agriculture
Farmin – smart cities
Greener Crop – agriculture
Ipera.ai – space digitisation
Lune Technologies – fibre-optics
Monak – delivery
NutzenTech – environment
Nybl – machine learning
Occicor – shelf management
Olymon Solutions – smart automation
Pivony – user-generated data
PowerDev – energy big data
Sav – finance
Searover – renewables
Swftbox – delivery
Trade Capital Partners – FinTech
Valorafutbol – sports and entertainment
Workfam – employee engagement
Prophets of Rage
(Fantasy Records)
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
More from Neighbourhood Watch:
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'Midnights'
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Abramovich London
A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million.
A three-storey penthouse at Chelsea Waterfront bought for £22 million.
Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military.
Sale of Chelsea Football Club is now impossible.
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
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'Peninsula'
Stars: Gang Dong-won, Lee Jung-hyun, Lee Ra
Director: Yeon Sang-ho
Rating: 2/5
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
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65
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MATCH INFO
Norwich City 0 Southampton 3 (Ings 49', Armstrong 54', Redmond 79')
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
'THE WORST THING YOU CAN EAT'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200