-By Meet Goel
ABSTRACT
India is one of the fastest-developing states and is proactive in building and maintaining its economic relations with the foreign. They are actively cooperating with other states at several forums with a common objective of sustainable economic development. This paper strongly suggests that the world governments should initially work to cover the loopholes of all the existing or functional frameworks in lieu of deliberating on new solutions to tackle the issues, especially sustainable development. India is a part of many such multilateral forums where it cooperates and collaborates with states on a multilateral level which might be in the form of regional/bilateral/international agreement(s). One of such esteemed forums is the Group of 20(G20). It follows the same common objective and has many countries and regional bodies like the European Union(EU) and the recently joined African Union(AU) as a part of it. The objective of working on the existing loopholes is to inspire how the discussion of a unified world can make changes to its existing systems and dynamically adhere to the changes they will make—realising that adapting the simple mechanism of trial and error on implementation of the above-mentioned changes will be the key.
INTRODUCTION
The G20, or Group of Twenty, is a prominent international forum comprising 19 countries and the European Union, collectively representing the world’s largest economies. Its membership includes nations such as Argentina, Brazil, China, India, the United States, and the European Union, among others, accounting for over 60% of the global population and a significant share of the world’s GDP. Since its inception in 1998, the G20 has served as a critical platform for addressing global economic and financial challenges. Originally conceived to mitigate the Asian financial crisis, its role was solidified during the 2008 global financial crisis, when it became pivotal in crafting collaborative solutions to stabilize the global economy.
Beyond economic concerns, the G20 has evolved to address pressing global issues such as climate change, sustainable development, and inclusive growth. The annual summits convene leaders, finance ministers, and central bank governors to foster dialogue and cooperation on matters of global significance. The emphasis on shared responsibility and actionable commitments underscores the G20’s relevance in an interconnected world.
India’s presidency of the G20 in 2023 marked a historic milestone, as the 18th G20 Summit was hosted for the first time in New Delhi at the Bharat Mandapam in Pragati Maidan. Under the leadership of Prime Minister Narendra Modi, the summit resonated with the message of Vasudhaiva Kutumbakam—”One Earth, One Family, One Future.” This ancient Indian philosophy reflects the interconnectedness of humanity and emphasizes collective well-being and sustainable progress.
The theme of India’s G20 presidency highlighted critical priorities, including green development, climate finance, and the promotion of sustainable lifestyles through the LiFE (Lifestyle for Environment) movement. The summit facilitated meaningful dialogue on advancing renewable energy, sustainable development goals, and climate action. By embracing Vasudhaiva Kutumbakam, India underscored the importance of global solidarity, fostering cooperation across nations to tackle shared challenges like climate change and economic disparity.
Through its proactive leadership, India set a strong precedent for inclusivity and collaboration, with a vision that transcends borders. The G20’s capacity to
unite diverse nations under a shared agenda reaffirms its role as a cornerstone of international cooperation.
SUSTAINABILITY AND CLIMATE CHANGE IN INTERNATIONAL COOPERATION
Sustainability and climate change have become central themes in international law, reflecting the urgent need to address the environmental, economic, and social impacts of a warming planet. Numerous international legal instruments and frameworks have been developed to guide nations toward collective action in mitigating climate change and promoting sustainable development.
The cornerstone of international climate law is the United Nations Framework Convention on Climate Change (UNFCCC), adopted in 1992. This treaty established the foundation for global cooperation by recognizing the need to stabilize greenhouse gas (GHG) concentrations to prevent dangerous anthropogenic interference with the climate system. The UNFCCC operates through periodic Conference of the Parties (COP) meetings, where nations assess progress and negotiate new commitments.
One of the most significant outcomes of the UNFCCC is the Kyoto Protocol (1997), which introduced legally binding targets for industrialized countries to reduce GHG emissions. However, its focus on developed nations, excluding major emerging economies, led to criticism and the eventual evolution of a more inclusive framework.
The Paris Agreement (2015) marked a turning point in international climate governance. This legally binding treaty commits all parties—developed and developing alike—to limit global warming to well below 2°C above pre-industrial levels, with efforts to cap it at 1.5°C. Central to the Paris Agreement are Nationally Determined Contributions (NDCs), wherein countries submit plans to reduce carbon emissions and adapt to climate impacts. The agreement also emphasizes climate finance, urging developed nations to provide financial resources to support developing countries in their mitigation and adaptation efforts.
To complement these climate-specific agreements, other international instruments address sustainability more broadly. The 2030 Agenda for Sustainable Development, adopted in 2015, includes 17 Sustainable
Development Goals (SDGs), with Goal 13 specifically focusing on climate action. This agenda promotes integrating environmental sustainability into global economic and social development policies.
The Montreal Protocol (1987), originally designed to phase out ozone-depleting substances, has indirectly contributed to climate change mitigation by eliminating potent GHGs like hydrofluorocarbons. Meanwhile, frameworks such as the Convention on Biological Diversity (CBD) and the United Nations Convention to Combat Desertification (UNCCD) address climate impacts on ecosystems and land degradation, promoting resilience and sustainability.
Despite these efforts, the challenge of carbon emissions remains paramount. The Intergovernmental Panel on Climate Change (IPCC) has consistently warned that achieving climate goals requires rapid, deep reductions in emissions across all sectors. Instruments like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and regional mechanisms such as the European Union’s Emissions Trading System (ETS) have sought to create market-based solutions for limiting emissions. However, these measures require stronger enforcement and broader participation to meet their potential.
International law has also begun recognizing novel principles like the polluter pays principle, common but differentiated responsibilities (CBDR), and intergenerational equity, ensuring that climate and sustainability obligations are fair and inclusive. These principles guide agreements and policies, balancing the need for global cooperation with the recognition of differing national capabilities and historical responsibilities.
CRITICAL ANALYSIS OF SUCH FRAMEWORKS
While international legal frameworks addressing climate change and sustainability have established an essential foundation for global cooperation, their implementation remains fraught with practical and structural challenges. A critical analysis reveals gaps in enforceability, equity, and adaptability, which hinder their effectiveness in achieving transformative climate action. This critique evaluates these shortcomings and proposes specific policy reforms, focusing on the need for cross-border carbon taxation mechanisms like the Carbon Border Adjustment Mechanism (CBAM) to align global supply chains with ambitious environmental goals.
1. Weak Enforcement Mechanisms
International agreements such as the Paris Agreement rely on voluntary commitments, primarily through Nationally Determined Contributions (NDCs). While this bottom-up approach promotes inclusivity, it lacks binding enforcement provisions. Countries failing to meet their NDC targets face no significant penalties, undermining the agreement’s effectiveness. This absence of accountability creates a compliance gap, allowing high-emitting industries to evade stringent climate action.
2. Equity and Burden-sharing Issues
The principle of Common But Differentiated Responsibilities (CBDR), while foundational, has led to ambiguities. Developing nations often argue that developed countries should bear a larger share of the burden due to their historical emissions. However, this has allowed emerging economies, some of which are now significant emitters, to delay implementing robust mitigation strategies. This dynamic perpetuates a global imbalance, leaving critical sectors like heavy industry and energy inadequately regulated in many regions.
3. Insufficient Focus on Global Supply Chains
The current frameworks inadequately address the transnational nature of emissions. Multinational corporations often shift production to countries with lax environmental regulations, creating “carbon leakage.” This undermines global mitigation efforts, as emissions are effectively outsourced rather than reduced. Without robust cross-border mechanisms, the interconnectedness of global supply chains remains a loophole in international climate law.
4. Lack of Financial and Technological Support
While the Paris Agreement emphasizes climate finance, actual contributions from developed countries fall significantly short of the
$100 billion annual goal. This gap constrains the ability of developing nations to invest in green technologies, adaptation measures, and
sustainable infrastructure. Moreover, technology transfer mechanisms lack specificity, limiting the spread of affordable, low-carbon solutions.
The Role of Cross-Border Carbon Taxation and CBAM
To address these challenges, integrating cross-border carbon taxes into international frameworks could provide a pragmatic and equitable solution. The European Commission’s Carbon Border Adjustment Mechanism (CBAM) represents a promising model, but its current design requires amendments for broader applicability and fairness.
1. CBAM: A Targeted Approach to Emissions
CBAM seeks to impose carbon tariffs on imported goods from countries with weaker environmental regulations. This mechanism prevents carbon leakage by levelling the playing field for domestic industries subject to stringent climate laws. However, as proposed, CBAM could disproportionately burden small and medium enterprises (SMEs) and developing economies, exacerbating economic inequalities.
To enhance its efficacy and fairness, the mechanism should levy taxes only on big-emitting industries like steel, cement, and aluminium, which account for a significant share of global industrial emissions. This targeted approach would shield smaller local industries from competitive disadvantages while incentivizing high emitters to adopt cleaner technologies.
2. Mitigation Tools and Green Technology Promotion
Alongside taxation, CBAM should incorporate mitigation tools such as avoidance, minimization, and compensatory mitigation. These strategies could mandate industries to first reduce emissions at the source (avoidance), adopt efficiency measures (minimization), and invest in offset projects (compensatory mitigation) as a last resort. Integrating these principles ensures that mitigation efforts are comprehensive and aligned with sustainability goals. Additionally, CBAM revenue should be earmarked for promoting green technology development and transfer, particularly to developing nations. This would address existing barriers
to low-cost abatement and accelerate the transition to sustainable energy systems globally.
3. Universal Application Across Supply Chains
CBAM and similar mechanisms must ensure that no organization in global supply chains can escape environmental obligations due to their geographic location. This requires harmonizing carbon pricing across jurisdictions and extending regulations to imported goods and services. By doing so, industries will be compelled to reduce emissions irrespective of their operational base, fostering accountability across borders.
The proposed reforms to CBAM and the broader emphasis on cross-border carbon taxation directly contribute to achieving zero carbon emissions by 2050 and fulfilling Sustainable Development Goals (SDGs) 7 (Affordable and Clean Energy) and 12 (Responsible Consumption and Production) by 2030. These mechanisms incentivize a systematic shift toward cleaner production processes and sustainable consumption patterns.
Moreover, implementing such measures ensures a balanced approach, combining regulatory pressure with financial and technological support. This framework aligns with the overarching principle of fairness, addressing concerns from both developed and developing nations while fostering a global consensus on climate action.
While existing international legal frameworks on climate change and sustainability have established a strong theoretical foundation, their implementation remains impractical and fragmented. To bridge this gap, integrating robust mechanisms like CBAM with targeted reforms can address key shortcomings, including carbon leakage, inequitable burden-sharing, and weak enforcement. By focusing on cross-border carbon taxation, promoting green technology, and embedding mitigation principles, the global community can create an actionable pathway to a sustainable, low-carbon future. These measures ensure that no industry or nation is exempt from its environmental responsibilities, enabling the collective realization of ambitious climate goals.
CONCLUSION
The intricate interplay between multilateral forums like the G20 and India’s economic and sustainability priorities underscores the growing need for collaborative global governance. This research highlights how platforms like the G20 facilitate not just economic cooperation but also address broader challenges such as climate change, sustainable development, and equitable growth. India’s leadership, exemplified through its 2023 G20 presidency under the ethos of Vasudhaiva Kutumbakam—”One Earth, One Family, One Future”—illustrates the power of unity and shared responsibility in tackling global issues.
India’s proactive participation in the G20 has redefined its role in global economic relations, positioning the nation as a bridge between developed and developing economies. The emphasis on climate finance, green development, and the LiFE movement during the 18th G20 summit showcased India’s commitment to integrating sustainability into economic frameworks. Yet, as this research critiques, the practical implementation of international frameworks like the Paris Agreement and mechanisms such as CBAM (Carbon Border Adjustment Mechanism) reveals systemic inefficiencies, including weak enforcement, carbon leakage, and inequities between nations.
The proposal to amend CBAM by focusing on major emitting industries while promoting green technologies and equitable carbon taxation addresses these flaws pragmatically. Such reforms can align global supply chains with the ambitious goals of net-zero emissions by 2050 and the Sustainable Development Goals (SDGs). Moreover, India’s advocacy for inclusive frameworks reflects its vision for sustainable progress rooted in equity and shared responsibility.
In conclusion, multilateral forums hold immense potential to reshape global economic and environmental governance. By aligning their strategies with principles like Vasudhaiva Kutumbakam, they can create a balanced, cooperative framework for addressing the interconnected challenges of economic development, climate change, and sustainability. India’s leadership
offers a model for harmonizing national priorities with global imperatives, inspiring a unified response to shared global challenges.
