Dr. R. Seetharaman strategic business model initiatives include his vision towards globalization through opening of full-fledged cross border branch operations in Dubai and Kuwait and representative offices in Singapore, Japan, Turkey, China, Romania, South Korea and United Kingdom.
Doha Bank has successfully established Doha Bank Assurance Company, the first Middle Eastern Bank to establish a 100% owned insurance company. He was instrumental in striking a strategic tie-up with a leading Indian brokerage firm and named it as Doha Brokerage and Financial Services Ltd., first financial institution to set foot in the Indian sub-continent.
BL: What is the rationale for climate change mitigation?
Dr. Seetharaman: Threat as a result of human activity rather than a natural effect. Global warming will lead to a rise in the level of the oceans and seas, causing a serious deterioration of the climate over the next 1,000 years.
• Earth surface’s temperature could rise by between 1.1C and 6.4C during the current century
• Burning of fossil fuels and the gases produced – especially carbon dioxide – were responsible for most of the temperature increases recorded during the second half of the last century.
• Forecasts the level of the oceans and seas will rise by between 18cm and 59cm by the end of the century as a result of the melting of the icecaps at the two poles.
• Global warming as an element that is likely to spark conflict during the current century, saying that floods, the melting of snow on the two poles and desertification might lead to a shortage of arable land, the poisoning of water supplies and the destruction of economic infrastructure.
• International efforts to mitigate climate change are insufficient to meet the goal of keeping global warming to below 2 degrees Celsius above pre-industrial levels.
• Keeping to the 2-degrees Celsius limit over the course of the 21st century is crucial to avert widespread disasters, from the disappearances of low-lying island nations under rising seas and searing droughts, famines, extreme storms and flooding, to the extinction of species.
United Nations Framework Convention on Climate Change (UNFCCC) convention entered into force in March 1994. Under this Convention, Governments:-
• Gather and share information on greenhouse gas emissions, national policies and best practices.
• Launch national strategies for addressing greenhouse gas emissions and adapting to expected impacts, including the provision of financial and technological support to developing countries
• Cooperate in preparing for adaptation to the impacts of climate change.
BL: What are the key developments in relation to Kyoto protocol?
Dr. Seetharaman: • The Kyoto Protocol entered in 1997 in Kyoto, Japan is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), aimed at fighting global warming and entered into force on 16 February 2005.
• Till September 2011, 191 states have signed and ratified the protocol
• Under the Protocol, 37 countries (“Annex I countries”) commit themselves to a reduction of certain greenhouse gases (GHG).
• They commit themselves to reduce their GHG emissions between 2008 and 2012 by an overall 5.2 percent compared to 1990 levels.
• The Three “flexibility mechanisms” for the mitigation of climate change which were agreed upon are:
(1) Trading with quantified emission limitations and reduction obligations (between industrialized countries); (2) Joint Implementation (JI, emission reduction projects between industrialized countries); and (3) the Clean Development Mechanism (CDM) between industrialized and developing countries).
BL: What were the developments in UN meeting at Bali and Copenhagen?
Dr. Seetharaman: The participating nations adopted the Bali Road Map in United Nations climate change conference, Dec 2007 as a two-year process to finalizing a binding agreement in 2009 in Copenhagen.
Copenhagen Accord came in Dec 2009 COP 15 with the following:
• Endorsed the continuation of the Kyoto Protocol.
• Recognized “the scientific view that the increase in global temperature should be below 2 degrees Celsius”, in a context of sustainable development, to combat climate change.
• Developed countries would “commit to economy-wide emissions targets for 2020” to be submitted by 31 January 2010 and agrees that these Parties to the Kyoto Protocol would strengthen their existing targets. Delivery of reductions and finance by developed countries will be measured, reported and verified (MRV) in accordance with COP guidelines.
• Agreed that developing nations would “implement mitigation actions” (Nationally Appropriate Mitigation Action )to slow growth in their carbon emissions.
BL: Would you kindly highlight on the 2010 United Nations Conference at Mexico?
Dr. Seetharaman: The conference was officially referred to as the 16th session of the Conference of the Parties (COP 16) to the United Nations Framework Convention on Climate Change (UNFCCC) held at Cancun, Mexico.
• The outcome of the summit was an agreement adopted by the states’ parties that called for a large “Green Climate Fund“ worth $100 billion by 2020, and a “Climate Technology Centre” and network.
• The agreement called for rich countries to reduce their greenhouse gas emissions as pledged in the Copenhagen Accord, and for developing countries to plan to reduce their emissions.
• Formal backing was given for the UN’s deforestation scheme, Redd (reducing emissions from deforestation and degradation), under which rich countries pay poorer nations not to chop down forests and so lock away carbon emissions.
• Countries agreed to the principle of having their emissions cuts inspected.
BL : What is the significance of the Durban Climate Change Conference?
Dr. Seetharaman: • In United Nations Climate Change Conference held in Dec 2011.Negotiators agreed to be part of a legally binding treaty to address global warming. (COP 17)
• The agreement, referred to as the “Durban platform”, is notable in that for the first time it includes developing countries such as China and India.
• The terms of the future treaty are to be defined by 2015 and become effective in 2020 the agreement, referred to as the “Durban platform”, is notable.
• The deal extends Kyoto, whose first phase of emissions cuts run from 2008 to the end of 2012. The second commitment period will run from January 1, 2013 until the end of 2017.
BL: What are the measures discussed in relation to financing and carbon credit in Durban meeting?
Dr. Seetharaman: • The conference led to progress regarding the creation of a Green Climate Fund for which a management framework was adopted. The fund is to distribute US$100bn per year to help poor countries adapt to climate impacts.
• The Kyoto scheme rewards governments or companies who invest in clean energy projects in developing countries with carbon credits, which they can trade and sell for profit.
• The new rules force project developers to put 5 per cent of the carbon credits earned in a reserve, to be awarded to them only after site monitors have proved that no carbon dioxide has leaked from the underground store 20 years after the end of the crediting period.
• To consider private funding and market-based mechanisms as options to finance the program on reducing emissions from deforestation and forest degradation, paving the way for billions of dollars of private investment.
BL: What are other recent initiatives regionally and Internationally to support Climate change?
Dr. Seetharaman: The State of Qatar supports the efforts of the United Nations Millennium goals , the ongoing negotiations under the United Nations Frameworks Convention on Climate Change and all international efforts aimed to address the phenomenon of climate change and the adoption of appropriate solutions that will decrease this degradation and reduce emissions of greenhouse gases, provided those solutions are logical and deliberated on scientific and economic basis
• World Bank Group announced the establishment of the Partnership for a total capitalization of $100 million for Developing Country Carbon Trading Initiatives. This new Partnership – which brings together developed and developing nations – will help developing countries get ready to put in place domestic trading schemes and other market-based instruments to meet national mitigation objectives.
• Countries, such as China, India, Chile, Indonesia, and Mexico are exploring the use of carbon market instruments and emissions trading mechanisms as a way of encouraging investment in alternatives to carbon-emitting technologies.
• In addition, 18th session of the Conference of the Parties (COP 18) to the UN Framework Convention on Climate Change (UNFCCC) will be held in Doha, Qatar this year.
BL: What are the areas which contribute to sustainable development in green economy ?
Dr. Seetharaman: The key areas which contribute to “sustainable development” are as follows:
• Environmental protection, based on the belief that our biosphere is a closed system with finite resources and a limited capacity for self-regulation and self-renewal.
• Economic development -The Green Economy is a global aggregate of individual communities meeting the needs of its citizens through the responsible, local production and exchange of goods and services.
• Socially just, based on the belief that culture and human dignity are precious resources that, like our natural resources, require responsible stewardship to avoid their depletion.
BL: Highlight green economy from global perspective?
Dr. Seetharaman: A key element for establishing a successful global green economy was guaranteeing the availability of sustainable energy for all.
• It calls for stronger government policies, public-private partnerships, and collaboration between businesses, academia, technology providers, financial institutions and civil society to further secure the longevity of green industrial development throughout the world.
• Developing countries are the first affected by climate change and degradation of the environment. Floods, drought, and earthquakes are the most visible effects. They put at risk the economic and social development
• The sustainable management of resources and natural capital is essential, for countries in all stages of development. – and It can be particular opportunity for developing countries as resources and natural capital are fundamentally linked to the efforts to eradicate poverty.
• To make this happen at a global level we have to start putting in place the right market and regulatory conditions globally.
BL: What actions suggested at regional and global level to promote green economy?
Dr. Seetharaman: 1. Combining market and regulatory instruments : eco-taxes, removing environmentally harmful subsidies, mobilising public and private financial resources, investing in skills and green jobs. Indicators that reflect a wider sense of progress (both environmental and social), and that can work alongside GDP, need to be developed.
2. Investing in key resources and natural capital: these are: water, renewable energy, marine resources, biodiversity and ecosystem services, sustainable agriculture, forests, waste and recycling. These areas underpin millions of livelihoods and can help alleviate poverty. They could become areas for future economic growth and global markets.
3.Improving governance and encouraging private sector involvement: reinforcing and streamlining the existing international governance structures (for example by upgrading the United Nations Environment Programme (UNEP)). The much greater involvement and engagement of businesses and civil society is also essential.
