Keeping tabs on carbon with an accounting system

Contact Counsellor

Last Updated06/10/2023

The term ‘climate polycrisis’ refers to the interconnected and compounding crises related to climate change that are affecting the planet across several sectors and domains.
It encompasses the physical impacts of climate change and the social, economic and political challenges that arise from these impacts.

In India, one can see the interconnections between seemingly different sectors that are being impacted by climate change.
It includes sectors such as energy, infrastructure, health, migration and food production
Recognising the complexity and interconnectedness of the climate polycrisis, it is crucial in developing a holistic approach.
Such an approach must take into account the diverse perspectives and priorities of different stakeholders while ensuring resilience, equity, and justice.
We need to imagine ‘carbon infrastructure’ that creates opportunities for a flourishing future carbon regime.
Such a regime would take the flows of carbon into account in the formulation of policy at every level viz. household, panchayat, district, State and country.

We need to measure carbon emissions from that of individual citizens to that of the nation as a whole, including all that is in the flow.
Then, we can build an accounting system that helps us balance our carbon books.
Existing carbon accounting methodologies are already capable of tracking carbon balance sheets at the corporate level.

The stocks and flows of carbon are not tracked at a granular level anywhere in the world.
As a result, there is no possibility for a progressive carbon tax that penalises large buyers of petrol more than the average consumer.
A progressive carbon tax requires us to keep track of the inflows and outflows of carbon i.e., national carbon accounting.
Carbon accounting is a way for companies to keep track of the carbon they are producing, removing, storing and offsetting.

It is both an evolutionary and a revolutionary generalisation of these ideas.
It will bring the entire nation, starting from individuals and households under one carbon accounting framework.
One would file carbon tax returns alongside the income tax returns, or maybe only the carbon tax returns.
It will bring the concept of carbon books to the nation and will make it mandatory for businesses and individuals to declare/report their carbon inflows and outflows.
It will make the circulation of carbon visible, and just as with financial accounting, other goods and services can be ‘financed’ using carbon surpluses.
We will be able to set targets, make predictions about future emission reductions and track our progress against those goals.
We can speculate about a future national carbon budget that helps us re-imagine the entire economy, including new technologies and new forms of collective action.
Instead of just increasing economic GDP in money terms, there will be a parallel goal of a carbon GDP which countries will try to reduce.

NCA will help India meet its commitment to becoming net zero by 2070.
It will also help create new livelihoods and new forms of organising its economy and society.
It will open up the possibilities of a new form of public discourse and an alignment between development and ecological sustainability.
In short, an NCA is a polysolution to the climate polycrisis.