INTERVIEW-India says flexible on climate deal

By Sean Maguire and Krittivas Mukherjee

NEW DELHI, Oct 16 (Reuters) - India will scale back demands for deep emissions cuts by rich nations if a global climate deal includes a generous package of technology transfers and finance, its environment minister said on Friday.

In the latest sign India wants to appear flexible ahead of the December negotiations in Copenhagen on cutting climate-harming emissions, Jairam Ramesh said New Delhi was no longer insisting on 40 percent cuts in emissions by 2020.

"The developing world's demand...is a minimum of 40 percent. Now I am saying, look, that is a political statement," said Ramesh, a fiesty technocrat credited with restoring credibility to India's stance in international climate politics since he took office in May.

"If we say, let's start with 25 percent, that's a beginning. I'm not theological about this. It's a negotiation. We have given a number of 40 but one has to be realistic."

Ramesh said it was still difficult to envisage a comprehensive and ambitious deal being struck in Copenhagen, recommending that further talks be scheduled for 2010.

"We may not get the perfect agreement. This is Copenhagen 1.0. You may have Copenhagen 2.0 a couple of months later...If there is a political agreement on the broad framework we need to pursue, we can go back, work the numbers, and come back."

Many countries are unwilling to commit to cuts before knowing the position of the United States, the world's biggest emitter per capita, where legislators are unlikely to pass laws outlining their promises on carbon cuts until next year.

A huge gap also exists between rich countries reluctant to pay the fiscal and lifestyle costs of deep cuts in their emissions, and developing states who say they must be allowed to increase emissions so their economies can catch up.

Ramesh said rich countries such as the United States were offering "anaemic" cuts. But they still could help seal a global deal by transferring emissions-reducing technology and paying to reduce the impact of climate change on vulnerable communities.

"It's a package," Ramesh said.

"I would like the U.S. to come into the mainstream (of climate politics) and if they can't better their 5 percent (emission cut) offer, look at technology, look at finance."

FINANCE

Developing countries such as India and China are among the most threatened by climate change, but their huge populations mean they will still be heavily reliant on burning fossil fuels to try to lift millions out of poverty.

Developing countries, under no obligation to make any cuts under the existing Kyoto protocol, say they could make the shift to low-carbon economy with a helping hand from the rich.

But negotiations have struggled on disagreement over how far rich countries should fund action in developing countries.

Initial talk of huge assistance packages has subsided and Ramesh indicated a lower start-off figure would be sufficient.

"My own numbers say that if by 2015 we're able to get a $15-20 billion financing mechanism, going up to a $100 billion by 2020, then we can make progress," said Ramesh, who already faces domestic criticism for softening India's position.

Many larger developing countries, such as India, say they are taking voluntary steps to curb the growth of their emissions, such as increased use of renewable energy and imposing energy efficiency standards, to help seal a global deal.

Ramesh said Prime Minister Manmohan Singh, keen to overturn India's image as obstructionist in multi-lateral negotiations, had mandated him to be flexible.

"I tell you my prime minister has told me two days ago, 'don't block, be constructive, work pro-actively, make sure there's an agreement.' What more can I say?"

Ramesh will allow monitoring of green projects built with international finance and prepare annual reports on climate change that could be submitted to the U.N.

Insistence on outside monitoring of compliance with emissions pledges riles nationalist sensitivities in developing states.

Ramesh said India would monitor its own progress.

"Every year we are prepared to make public a climate policy document which authenticates all our activities," he said.

"The verification is that of (India's) parliament...I am not accountable to any international organisation," he said.

"Maybe in the year 2020 after the developed countries have actually cut their emissions by 25 percent I may revisit this position but as of now I am not obligated."