The government has taken temporary measures such as a one-off energy tax relief and lower fuel taxes to ease the crisis.? My Agency? is suggesting to use the crisis to reform the value-added tax system and make it more ecological and more socially responsible. We have, for example, proposed scrapping VAT on fruits and vegetables, which would save households around 4 billion euros a year while at the same time help fight climate change, as the production of fruits and vegetables is far less emissions-intensive than producing meat. Yet in Germany, meat products still benefit from a reduced VAT rate of 7%, compared with 19% on plant-based staples.?We have also proposed that VAT be scrapped for public transport and the installation of solar panels. Those measures would help both consumers and the climate.?
Germany and India have been working together closely for many years to achieve the Sustainable Development Goals (SDGs). The cooperation covers a wide range of areas, such as preventing plastic litter from entering marine environments, circular economy and biological diversity. At the Indo-German Environment Forum, German and Indian environment ministers, business representatives and other stakeholders come together regularly to showcase best practices and jointly address climate change, loss of biodiversity and pollution. At this year¡¯s 6th biennial Indo-German Government Consultations, it was agreed at the highest level to intensify the cooperation on climate change and to meet the SDGs by 2030. ?Prime Minister Narendra Modi and German Chancellor Olaf Scholz signed a Joint Declaration of Intent on the Green and Sustainable Development Partnership. As part of this partnership, Germany will support India¡¯s forest restoration efforts via its International Climate Initiative (IKI). Forest restoration is crucial for a healthy global water cycle and will reduce the risk of extreme heat waves in Indian cities. The restoration project will also promote jobs in rural areas and bring cooler and fresher air to cities. Germany wants to support India in achieving its goal of restoring 26 million hectares of forest areas by 2030 and raising its forest cover from 21 to 33%.
Moving away from conventional waste disposal in landfills to a more circular waste and resources management is the most decisive step. Circular economies are key to reducinge the huge pressure on ecosystems and natural resources.? Germany established a ban on landfills in 2005, which significantly reduced emissions and boosted the expansion of a recycling industry. In developing countries with growing urban populations, the waste sector can contribute significantly to the reduction of greenhouse gases. According to our studies, a country's total greenhouse gas emissions can be reduced by up to 15% through improved waste management.
However, a sustainable circular economy does much more than just reduce methane, a very potent climate gas, from landfills. The reuse, recycling and energy recovery from waste significantly reduce the consumption of raw materials and fossil energy.?The scarcity of raw materials we are experiencing today should make us rethink how we treat waste, which in most cases is not simply waste, but a resource that can be used as a raw material.?
It took Germany decades to change its attitude towards waste and we are continuously developing ways to ensure that waste is treated more sustainably. From what I know, India seems to be movinge into a similar direction. The Indian Waste Management Act not only reinforces the existing landfill ban, but also prescribes the establishment of a comprehensive monitoring system. The task now is to implement and enforce these policies.?
First of all, climate neutrality and the Paris Agreement Climate goals can only be achieved if all countries eliminate their emissions by midst century. Germany needs to deliver, India as well. The IEA projects a growth of 25-50% in India¡¯s energy demand by 2030. It is inevitable to focus foremost on renewable energy, to quench that demand. While the IEA foresees explosive growth in solar capacity, solar power currently only produces 4% of electricity in India. Coal still makes up a frightening 70%. Encouraging steps are on the way and Germany is also providing practical support through the Indo-German Solar Energy Partnership.
India¡¯s potential and the steps taken also show that the government could afford to be even more ambitious than they have been. According to calculations by the IEA an estimated additional 1.4 trillion USD of spending on renewable energies would be needed over the next 20 years, but would largely be offset by the resulting savings on fossil fuel imports. India should therefore lean on partners for specific support to hasten the expansion of its renewable energy infrastructure.??
It is also encouraging that India has set a net zero target, but 2070 is likely too late. Perhaps with support from partners, India could move this date forward by drawing on ?the EU-India Trade and Technology Council, the EU¡¯s 300 billion Euro Global Gateway Initiative as well as the G-7 engagement in Just Energy Transition Partnerships.
Germany's goal is to become climate neutral by 2045. The EU is aiming at zero emissions by 2050. To implement that is challenging, but realistic. Climate protection will modernize our economies and infrastructures. China and India could be responsible for 20 gigatons of greenhouse gas emissions in 2030. We won¡¯t be able to keep global warming below 2 degrees if China and India are not fully committed to international efforts to cut emissions. But the energy crisis created by Russia¡¯s war against Ukraine has made international cooperation on climate change even more challenging. How is the West going to talk China and India out of coal energy for example, when Germany and others are keeping the option to bring back coal plants to compensate for a possible stoppage of Russian gas deliveries? ?The question is: how do we turn the crisis into an opportunity? China and India have different political systems and their economies and growth needs are also different. So, Germany and its European partners could offer each of those two giants tailor-made cooperation plans. In the case of India, Germany and other? European governments could encourage companies to make strategic green investments that are mutually beneficial. This would create jobs and generate tax revenue for India while also providing European economies with products and services, which have so far been predominantly outsourced to China, the world¡¯s biggest emitter. Electromobility is one area of cooperation that would hugely benefit India and help it reduce pollution in its cities.??
Electromobility as well as measures to reduce traffic and shift to climate-friendly transport are essential to end our dependence on fossil fuels. Mobility should become climate-neutral and we need to quickly reduce greenhouse gas emissions and air pollution that goes along with fossil-powered cars and lorries. EVs powered by renewable energy are the most efficient way to make transport climate-neutral. They also contribute to better air quality, which is sorely needed in densely populated areas.
Electromobility is a worldwide process. With support from the German government, our carmakers are in a good position to weather the huge transformation and become leaders of innovation in alternative drivetrains. There is huge potential in the fields of battery cell production and recycling. There are business opportunities and new markets to conquer. The pressure facing the automotive sector should be turned into an opportunity. The EU¡¯s plan to ban the sale of combustion engines by 2035 provides clarity for car manufacturers and parts suppliers, which is why we welcomed the decision. Germany should seek to meet that goal a few years earlier. German manufacturers such as Volkswagen or Mercedes-Benz have said this is realistic.
International cooperation, global networking, sustainable supply chains as well as knowledge transfer is essential for the success of the transformation process in the automotive sector not just in Germany and India but globally. Everyone would reap economic, social, technological as well as environmental benefits from intensive cooperation on producing clean cars.?
Road traffic, construction works and stubble burning are the main reasons for bad air quality in India, leading to dust concentrations exceeding even the least ambitious WHO interim targets. India urgently needs to step up their game there. What is needed are stringent standards for exhaust gases from cars and trucks, improve public transport and reduce road traffic. Prohibiting stubble burning has been established in many places but implementation could be improved. India should also introduce Best Available Technology (BAT) standards to abet pollution from industrial clusters. Standards comparable to the Industrial Emissions Directive in Europe would help India meet its goals in the areas of climate protection, air and water pollution control, waste management and biodiversity protection. Since 2013, Germany has been supporting India in the development of an Indian BAT concept to ensure sustainable industrial production.
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