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India and the European Union: A Green Partnership

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] D [/yt_dropcap]uring the 13th EU-India Summit, held on 30 March 2016 in Brussels, Prime Minister Narendra Modi (India), Donald Tusk (President of the European Council) and Jean-Claude Junker (President of the European Commission) emphasized on the strategic, security and economic potentials of this relationship. This article, however, focuses on a significant but less publicized area of strategic compass between India and the European Union- the Joint Declaration on A Clean Energy and Climate Partnership.

Notably India and the European Union hold an annual Energy Panel Meet since 2005 under the Joint Action Plan and the 2016 Declaration is an attempt to take the commitments adopted under the 2012 Joint Declaration for Enhanced Cooperation on Energy between the EU and India, to a broader and higher level.

The Perspective

In the present scenario, the India-EU green energy cooperation gains significance in the context of some recent events in the global, regional and national energy scenario.

The UN- sponsored Paris Climate Change Pact of 2015, the first ever universal legally-binding global deal, set the target of keeping the rise of global temperature below 2 degree Celsius, if possible to limit it to 1.5 degree, above the pre-industrial level to reduce the risks and impact of climate change, and asked for all concerned parties, to formulate and communicate long-term low greenhouse gas emission development strategies, in view of their common but differentiated responsibilities and respective capabilities, in the light of different national circumstances. The October 2016 Kigali Amendment to the 1989 Montreal Protocol also put differentiated cuts on the emission of hydrofluorocarbons to reduce global warming level by half a degree Celsius. It is significant to note that India not only ratified the Paris Climate Pact, thereby paving the way of its entering into force in November 2016, but it took a leading and principled stance during the negotiations of both these global treaties to put forward the rights of developing countries to provide economic security to its population, without jeopardizing the global climate change goals and to seek environmental justice for the Mother Earth.

The European Energy Union was proposed by the European Commission in February 2015 through the adoption of the ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’ to provide secure, sustainable, competitive and affordable energy for its citizens. The idea of this Union is greatly influenced by the Commission’s 2030 Climate and Energy Package that seeks to reduce green house Gas emission by at least 40 per cent by 2030 and a rise in the share of use of renewable energy to 27 percent during the same period. Three of the five dimensions (apart from ensuring diversification of energy supply and implementation of a fully integrated energy market) of the Energy Policy, that this Union attempts to address, are related to the green dimension of energy security- energy efficiency, de-carbonization of the economy, as well as research, innovation and competitiveness in areas of renewable energy, smart grids, carbon capture and storage and nuclear technology.

India’s new energy policy, as proposed in 2014 by the Modi administration, also envisaged of achieving 175 GW of renewable energy by 2022- 100 GW of solar, 60 GW of wind, 10 GW of biomass and 5GW of hydro electricity- to change its energy mix with an increased percentage in favour of renewable energy. It is important to note in this vein, when India’s candidature for Nuclear Suppliers’ Group in June 2016 was supported by a large majority of members of the Group, it was not only a vindication for India’s impeccable non-proliferation record, unlike some of its neighbours, but also it was an international support for India’s plan to change its energy mix through better access to clean energy, to acquire newest civilian nuclear technology to limit its carbon emission percentage and reduce air pollution from coal-based power plants, as well as to propose plutonium trade for its indigenous thorium-based nuclear programme to gain green energy security.

The Way Forward

It is significant to note that since 2005 India and the EU are partners (along with the United States, Russia, Japan, China and South Korea) in a global project for the advancement of scientific-technological knowledge for determining the future global energy strategy through ITER (International Thermonuclear Experimental Reactor) or the project to re-create the fusion process of the Sun to produce energy for commercial use on earth- an ambitious project to provide green energy to the world.

Also, it is notable that the International Solar Alliance, an initiative by the Indian Prime Minister Narendra Modi, is the conclave of 121 Sunshine countries, i.e., countries with high solar power potentials, situated between the Tropic of Cancer and Tropic of Capricorn, was inaugurated in Paris, alongside the global Climate Change Summit in 2015. The foundation for its Headquarter was jointly laid by PM Modi and the French President Francois Holllande in Gurgaon (India) in 2016 to provide a platform for cooperation among solar resource rich countries’ where bilateral and multilateral organizations, corporate, industry and stakeholders can make a positive contribution to the common goals of increasing utilizing of solar energy in meeting energy needs of ISA member countries in a safe, convenient, affordable, equitable and sustainable manner.

The 2016 Declaration concentrates on a number of areas for future energy cooperation- to exchange views and to continue joint activities on regulatory approaches, best practices, business solutions, market access and research and innovation solutions in the fields of energy efficiency and climate chang; development and deployment of renewable energy like clean coal technology, solar and offshore wind energy, and nuclear fusion technology; to develop the EU-India cooperation on smart grids; to explore possibilities for the EU to cooperate in the area of International Solar Alliance Mission Innovation; and to exchange bilateral views and experiences on various international mitigation initiatives under the Paris Climate Treaty and the Montreal Protocol on ozone-depleting substances in view of the 2015 Dubai Pathway on hydrofluorocarbons. It also envisages to implement the Partnership commitments through two new mutually supportive Dialogues- Energy Dialogue and Climate Change Dialogue

Conclusion

Energy security is fundamentally significant for the human civilization to progress, but more important is the fact that if the earth- the lone planet in the solar system to have proper conditions for life to bloom- becomes inhabitable for the human life, due to human negligence to balance energy security and environmental concerns, then the only probable option might remain to relocate the global population to Proxima B, the planet with possibly such conditions for life, but the only problem remains- it is only 4.3 lightyears away!

So there is an urgent need for long-term, comprehensive strategizing for global energy interdependence to find viable, alternative and innovative solutions to make life on the earth secure for us and most important, for the future generation, to whom we owe this responsibility, as we inherited the earth from our forefathers.

The 2016 EU-India Energy Partnership Declaration shows aspiration and provides hope to meet and balance these twin challenges to ensure secure, clean, affordable energy for sustainable human development while mitigating the adverse impacts of climate change.

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South Asia

The “Neo-Cold War” in the Indian Ocean Region

Kagusthan Ariaratnam

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Addressing an event earlier this week at London’s Oxford University, Sri Lankan Prime Minister Ranil Wickremesinghe said some people are seeing “imaginary Chinese Naval bases in Sri Lanka. Whereas the Hambantota Port (in southern Sri Lanka) is a commercial joint venture between our Ports Authority and China Merchants – a company listed in the Hong Kong Stock Exchange.”

Prime Minister Wickremesinghe has denied US’ claims that China might build a “forward military base” at Sri Lanka’s Hambantota port which has been leased out to Beijing by Colombo. Sri Lanka failed to pay a Chinese loan of $1.4 billion and had to lease the China-developed port to Beijing for 99 years. Both New Delhi and Washington had in the past expressed concerns that Beijing could use the harbor for military purposes.

Image courtesy of Google

The USA, China, and India are the major powers playing their key role in the “Neo-Cold War” in Central Asian landmass and the strategic sea lanes of the world in the Indian Ocean where 90% of the world trade is being transported everyday including oil. It is this extension of the shadowy Cold War race that can be viewed as the reason for the recent comment made by the US Vice President Mike Pence that China is using “debt diplomacy” to expand its global footprint and Hambantota “may soon become a forward military base for China’s expanding navy”.

According to some analysts, the deep-water port, which is near a main shipping route between Asia and Europe, is likely to play a major role in China’s Belt and Road Initiative.

In his book “Monsoon” Robert D. Kaplan (2010), a senior fellow at the Centre for a New American Security notes the following:

[…] the Indian Ocean will turn into the heart of a new geopolitical map, shifting from a unilateral world power to multilateral power cooperation. This transition is caused by the changing economic and military conditions of the USA, China and India. The Indian Ocean will play a big role in the 21st century’s confrontation for geopolitical power. The greater Indian Ocean region covers an arc of Islam, from the Sahara Desert to the Indonesian archipelago. Its western reaches include Somalia, Yemen, Iran, and Pakistan — constituting a network of dynamic trade as well as a network of global terrorism, piracy, and drug trafficking […]

Two third of the global maritime trade passes through a handful of relatively narrow shipping lanes, among which five geographic “chokepoints” or narrow channels that are gateway to and from Indian ocean: (1) Strait of Hormuz (2) Bab el-Mandab Passage (3) Palk Strait (4) Malacca and Singapore Straits and (5) Sunda Strait.

While Lutz Kleveman (2003), argues that the Central Asia is increasingly becoming the most important geostrategic region for the future commodities, Michael Richardson (2004) on the other hand explains that the global economy depends on the free flow of shipping through the strategic international straits, waterways, and canals in the Indian Ocean.

According to the US Energy Information Administration (EIA)  report published in 2017, “world chokepoints for maritime transit of oil are a critical part of global energy security. About 63% of the world’s oil production moves on maritime routes. The Strait of Hormuz and the Strait of Malacca are the world’s most important strategic chokepoints by volume of oil transit” (p.1). These channels are critically important to the world trade because so much of it passes through them. For instance, half of the world’s oil production is moved by tankers through these maritime routes. The blockage of a chokepoint, even for a day, can lead to substantial increases in total energy costs and thus these chokepoints are critical part of global energy security.  Hence, whoever control these checkpoints, waterways, and sea routes in the Indian Ocean maritime domain will reshape the region as an emerging global power.

In a recent analysis of globalization and its impact on Central Asia and Indian Ocean region, researcher Daniel Alphonsus (2015), notes that the twists and turns of political, economic and military turbulence were significant to all great players’ grand strategies:

(1) the One Belt, One Road (OBOR), China’s anticipated strategy to increase connectivity and trade between Eurasian nations, a part of which is the future Maritime Silk Road (MSR), aimed at furthering collaboration between south east Asia, Oceania and East Africa; (2) Project Mausam, India’s struggle to reconnect with its ancient trading partners along the Indian Ocean, broadly viewed as its answer to the MSR; and (3) the Indo-Pacific Economic Corridor, the USA’s effort to better connect south and south east Asian nations. (p.3)

India the superpower of the subcontinent, has long feared China’s role in building outposts around its periphery. In a recent essay, an Indian commentator Brahma Chellaney wrote that the fusion of China’s economic and military interests “risk turning Sri Lanka into India’s Cuba” – a reference to how the Soviet Union courted Fidel Castro’s Cuba right on the United States’ doorstep. Located at the Indian Ocean’s crossroads gives Sri Lanka the strategic and economic weight in both MSR and Project Mausam plans. MSR highlights Sri Lanka’s position on the east-west sea route, while Project Mausam’s aim to create an “Indian Ocean World” places Sri Lanka at the center of the twenty-first century’s defining economic, strategic and institutional frameworks. Furthermore, alongside the MSR, China is building an energy pipeline through Pakistan to secure Arabian petroleum, which is a measure intended to bypass the Indian Ocean and the Strait of Malacca altogether.

A recent study done by a panel of experts and reported by the New York Times reveal that how the power has increasingly shifted towards China from the traditional US led world order in the past five years among small nation states in the region. The critical role played by the strategic sea ports China has been building in the rims of Indian Ocean including Port of Gwadar in Pakistan, Port of Hambantota in Sri Lanka, Port of Kyaukpyu in Myanmar and Port of Chittagong in Bangladesh clearly validates the argument that how these small states are being used as proxies in this power projection.

This ongoing political, economic and military rivalry between these global powers who are seeking sphere of influence in one of the world’s most important geostrategic regions is the beginning of a “Neo-Cold War” that Joseph Troupe refers as the post-Soviet era geopolitical conflict resulting from the multipolar New world order.

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South Asia

IMF bail-out Package and Pakistan

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Pakistan may approach IMF to bail-out the current economic crisis. It is not the first time that Pakistan will knock the doors of IMF. Since 1965, Pakistan has been to IMF 17 times. Almost all of the governments has availed IMF packages. Usually, IMF is a temporary relief and provide oxygen for short time so that the patient may recover and try to be self-sustained. The major role of IMF is to improve the governance or reforms, how the ill-economy of a country may recover quickly and become self-sustained. After having oxygen cylinder for 17 times within 5 decades, Pakistan’s economy could not recover to a stage, where we can be self-sustained and no more looking for IMF again and again. This is a question asked by the common man in Pakistan to their leadership.  People are worried that for how long do we have to run after IMF package? The nation has enjoyed 70 decades of independence and expects to be mature enough to survive under all circumstances without depending on a ventilator.

The immediate impact of decision to approach IMF, is the devaluation of Pakistani Rupees. By depreciating only one rupee to US dollar, our foreign debt increases 95 billion rupees.  Today we witness a depreciation of rupee by 15 approximately (fluctuating), means the increase in foreign debt by 1425 billion rupees. Yet, we have not negotiated with IMF regarding depreciation of Rupees. Usually IMF demand major depreciation but all government understands the implications of sharp devaluation, always try to bargain with IMF to the best of their capacity. I am sure, Government of Pakistan will also negotiate and get the best bargain.

IMF always imposes conditions to generate more revenue and the easiest way to create more income is imposing tax on major commodities including Gas, Electricity and Fuel. Pakistan has already increased the prices of Gas, Electricity and Fuel. It has had direct impact on basic necessities and commodities of life. We can witness a price hike of basic food, consumer items and so on. Except salaries, everything has gone up. While negotiating with IMF formally, we do not know how much tax will be increased and how much burden will be put on the common man.

We believe, our rulers know our capacity and will keep in mind the life of a common man and may not exceed the limit of burden to common man beyond its capacity. We are optimistic that all decisions will be taken in the best interest of the nation.

It is true, that Pakistan has been to IMF so many times, so this might be a justification for the PTI Government to avail IMF package. But, there are people with different approach. They have voted for change and for “Naya” (new) Pakistan. They do not expect from PTI to behave like previous several governments. If PTI uses the logic of previous governments, may not satisfy many people in Pakistan.

Especially, when Pakistan was in a position to take-off economically, we surrendered half way, may not be accepted by many people in Pakistan.

The government has explained that other options like economic assistance from friendly countries was also very expensive, so that they have preferred IMF as more competitive package. I wish, Government may educate public on the comparison of available options, their terms and conditions, their interest rate, their political conditions, etc. There might be something confidential, Government may avoid or hide, one may not mind and understand the sensitivity of some of the issues. But all permissible information on the terms and conditions of all options in comparison, may be placed on Ministry of Finance’s website or any other mode of dissemination of knowledge to its public.

Against the tradition, people of Pakistan have voted Imran Khan, who so ever was given ticket of PTI, public has voted him or her blindly in trust to Imran Khan. A few of his candidates might not be having very high capabilities or very good reputation, but, public has trusted Imran Khan blindly. Imran Khan is the third most popular leader in Pakistan, after Jinnah the father of nation, and Zulfiqar Ali Bhutto, the Former Prime Minister of Pakistan in 1970s.

People of Pakistan have blindly trusted in Imran Khan and possess very high expectations from him. I know, Imran Khan understands it very well. He is honest, brave and visionary leader and I believe he will not disappoint his voters.

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South Asia

Now India denies a friendly hand: Imran Khan debuts against arrogant neighbors

Sisir Devkota

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Imran Khan is facing the brunt for overly appeasing its arch rival-India. On September 22, Khan tweeted that he was disappointed over India’s arrogant reply to resume bilateral talks in the UNGA and that he had encountered many “small men” in big offices unable to perceive the larger picture.I am observing a south Asian order changing with Khan’s rise in Pakistani politics. We in Nepal need to grasp the possible reality before circumstances shall engulf our interests.

Observation 1

Narendra Modi was undoubtedly “The Prince”of South Asia from Niccolo Machiavelli’s 16th century classic political narrative. I sense the old prince acting in distress over the rise of a new one. Imran Khan’s invitation for a ministerial level meeting in New York; amidst the eyes of foreign diplomats could not have been a better approach by Pakistan in a long time. Instead, Indian foreign minister, Sushma Swaraj dismissed the offer, blaming Pakistan’s double standard in killing Indian forces and releasing Burhan Wani’s (India’s terrorist and Pakistan’s martyr) postal stamps. Khan did not sanction the postal release, but as the Prime Minister of Pakistan, he must be held accountable for failing to stop the killings,just when talks were supposed to happen. He should have addressed the highly sensitive Indian government. But, I do empathize with Khan’s statement, “small men in big offices”; as he clearly outlined the exact problem. He directly called upon the Indian government to think bigger and escape circumstances to solve historical problems. Narendra Modi has developed a new rhetoric these days; that India is not going to keep quiet over Pakistan’s actions. It fits the nature of Machiavelli’s Prince as an authority which can maintain national virtue. Unfortunately, I do not buy Modi’s rhetoric. The Prince has come a bit late in his tenure to act for Indian virtues. I am sure many at the UNGA would have noticed India’s apprehension in the same manner. I suspect that the ex-prince is facing insecurities over the fear of losing his charisma. Nepal, in particular was charmed by his personality when he first visited our capital, with promises that flooded our heart. And then, we faced his double standard; right after the massive earthquake in 2015. Nobody in Nepal will sympathize with Swaraj’s justification of cancelling the meeting.

Observation 2

Let me explain the source of insecurity. Modi has thrived by endorsing his personality. A tea man who worked for the railways under great financial hardships, became the poster man of India. He generated hope and trust that his counterparts had lost over the years. His eloquent stage performance can fool the harshest of critics into sympathizing his cause. People have only realized later; many macro economists in India now argue that demonetization was, perhaps, one of the worst decisions for India’s sake. Narendra Modi is India sounds truer than Narendra Modi is the Prime Minister of India.

Imran Khan, a former cricketer does not spring the same impression as Modi. Khan, a world champion in 1992, is known for his vision and leadership in Cricket. Comparatively, Khan does not need to sell his poster in South Asia. He does not cry over his speeches to garner mass euphoria. Ask anybody who’s into the sport and they will explain you the legend behind his name. I suspect that Modi has realized that he is going to lose the stardom in the face of Pakistan’s newly elected democratic leader. After all, the Indian PM cannot match Imran’s many achievements in both politics and cricket. I suspect that Modi has realized the fundamental difference in how his subjects inside India and beyond are going to perceive Imran’s personality. I expect more artificial discourses from India to tarnish Imran’s capabilities.

Nepal & Pakistan

You will not find Pakistan associated with Nepal so often than with India. Frankly, Nepal has never sympathized with Indian cause against Pakistan. We have developed a healthy and constructive foreign relations with the Islamic republic. However, there has always been a problem of one neighbor keeping eyes on our dealings with another. Indian interests have hindered proximity with past governments. Now, Imran Khan has facilitated the platform for deeper relations. He does not carry the baggage of his predecessors. He is a global icon, a cricket legend and a studious politician. He is not the result of mass hysteria. Imran Khan has pledged to improve Pakistan’s economy, reinstate foreign ties and boost regional trade. For me, he is South Asia’s new Machiavellian prince; one that can be at least trusted when he speaks.

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