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Will the rich countries keep their word this time?

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The United Nations (UN) Climate Change Conference (COP27), held in Sharm El-Sheikh, Egypt, ended yesterday morning.

At the end of the summit, COP27 President and Egyptian Foreign Minister Samih Shukri, announced at the press conference that the coordination process has begun for the transfer of the presidency of next year’s COP28 to the United Arab Emirates (UAE).

Shukri also announced that an agreement was reached at the conference to create a fund dedicated to the losses and damages caused by climate change in poor countries.

While poor and developing countries have been demanding this fund and a payment schedule for nearly 30 years, rich countries such as the United States and European Union (EU) members, which alone have the most responsibility for global and historical greenhouse gas emissions, have stood up to the agenda of creating funds and played for time.

The climate crisis is felt the most by the countries least to blame, so compensation is central to climate justice demands.

The fact that the countries and societies, which contributed the least to the greenhouse gases that warm the planet, suffered the most and were least equipped to cope with death and destruction was once again raised at this summit. One of the most important success criteria of the summit was the decisions expected to be taken in this regard.

The West is on at China

While the United States and EU countries are blocking the idea because they fear they may face huge payments and be held legally liable for historic greenhouse gas emissions, they also do not want the fund to go to states on the United Nations list of developing countries, such as China.

The EU then proposed to “set up a special fund for covering loss and damage in the most vulnerable countries, funded from a broad donor base.” Under this proposal, the loss and damage fund will be contributed not only by the wealthiest nations that have contributed the most to historic emissions, such as the United States and European countries, but also by emerging economies, such as China, whose emissions have risen in modern times.

However, in previous proposals, China was on the side of benefiting from the fund, not contributing to the fund. Beijing advocates the principle of “common but differentiated responsibility” in this regard. China has no liability for loss and damage, Beijing says, while arguing that they are already helping and are willing to help developing countries to increase their capacity to adapt through South-South Cooperation. Beijing denies the pressure of Western countries in this regard.

Therefore, this issue stands out as one of the important debates between China and the U.S. at climate summits.

Scope of the agreement remains unclear

Despite these debates, about 200 delegates in COP 27 reached agreement on the establishment of a loss and damage fund. However, there are serious questions about the scope of the agreement and whether it will be implemented.

Under the agreement, a transitional committee involving representatives of 24 different countries, will work over the next year to determine the form of the fund, which countries will contribute and where the money should go. The committee is expected to hold its first meeting before March 2023. The operational details of the fund will be determined at next year’s COP28 in Dubai. Apart from this general framework, many details remain unclear.

Officials have warned that the agreement on loss and damage is part of a broader agreement that is still under negotiation.

Rich countries, meanwhile, are demanding stronger commitments from developing countries to reduce emissions over the next decade to meet the climate targets of the Paris agreement, which calls on governments to limit global warming to well below 2°C and preferably 1.5°C.

According to the Global Times, formal talks between Beijing and Washington, and even face-to-face discussion, will take place after COP27 is concluded.

It may not be put into practice

Although poor countries are pleased that a decision on the fund has finally been taken, many are concerned about whether the decisions taken will translate into meaningful action. As a matter of fact, these concerns have a point. In 2009, developed countries committed to giving developing countries $100 billion annually by 2020 to help them reduce emissions and adapt to climate change. However, this commitment was not fulfilled and was constantly postponed.

Experts also point out that the details of how to implement the mechanism in line with the decision taken and how to quantify the damage caused by the climate crisis are not clear, stressing that this will make the mechanism difficult to operate and leave room for rich countries to maneuver.

It is unrealistic to expect the United States, historically the largest emitter of greenhouse gases, to lead efforts to provide climate finance for the developing world, which has blocked proposals for loss and damage to date. Considering that the U.S. budget for the fund should be approved by Congress, it may not even be possible for Washington to put money into the fund, let alone lead the way.

‘The empty promises of the West’ 

Criticizing the Western world for their indifference to the agenda of loss and damage, Scottish Prime Minister Nicola Sturgeon stressed that this is a fundamental question of climate justice and that the “rich world” has a responsibility here.

Despite the deteriorating effects of the climate crisis, the West, and especially the EU, has forsaken its responsibility with “empty promises and sweet nothings,” Sturgeon said.

From ‘phased out’ to ‘phased down’

On the other hand, after the COP26, when the ‘phase-out of coal’ was first mentioned, demands for the commitment to encompass all fossil fuels this year were not accepted. The demand for “phasing out of all fossil fuels” was not included in the final text.

Furthermore, the reference to “low-emission and renewable energy” in the text was interpreted as an element that could lead to the development of more sources of natural gas (as it produces less emissions than coal).

Following the sanctions against Russia, the European Union’s retreat from its goals due to the ongoing energy crisis has also attracted criticism within this context. Last year at COP26, discourses and commitments about “phasing out” coal were replaced by “phasing down” this year.

Parade of fossil fuel lobbyists

One of the most prominent criticisms of COP27 was the intense participation of fossil fuel lobbyists. Powerful fossil fuel companies swarmed the summit. 636 people linked to the oil and gas industry reportedly attended the summit.

The sponsorship of COP27 by Coca-Cola, which produces about 120 billion waste plastic bottles every year and uses fossil fuels in the process, was discussed widely on social media.

Diplomacy

Xi Jinping to miss BRICS summit in Rio for the first time

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Chinese President Xi Jinping will not attend the upcoming BRICS summit in Rio de Janeiro next week.

According to multiple sources cited by the South China Morning Post on Tuesday, this marks the first time Xi will miss the gathering of leaders from major emerging economies.

Officials familiar with the matter stated that Beijing informed the Brazilian government of a scheduling conflict. Premier Li Qiang is expected to lead the Chinese delegation in Xi’s place, a similar arrangement to the 2023 G20 summit in India.

Chinese officials involved in the preparations suggested Xi’s absence is due to his two meetings with Brazilian President Luiz Inácio Lula da Silva within the past year. The first occurred during the G20 summit and a state visit to Brasília last November, while the second took place at the China-CELAC forum in Beijing this May.

Xi has never before missed a BRICS summit. In 2023, he was scheduled to deliver a speech at the meeting in South Africa but, at the last minute, sent Commerce Minister Wang Wentao instead. Beijing provided no official explanation for the change.

During the COVID-19 pandemic, Xi participated in BRICS meetings virtually, with Russia hosting in 2020 and China in 2021.

On Tuesday, the Brazilian Foreign Ministry told the Post it “would not comment on the internal deliberations of foreign delegations.” The Chinese embassy in Brazil did not immediately respond to requests for comment.

However, Chinese Foreign Ministry spokesman Guo Jiakun told the Brazilian newspaper Folha de S.Paulo, “information regarding participation in the summit will be shared at the appropriate time.” Guo added that China supports Brazil’s BRICS presidency and aims to “promote deeper cooperation” among member nations. “In a volatile and turbulent world, the BRICS countries are maintaining their strategic resolve and working together for global peace, stability, and development,” he said.

In Brasília, officials have not concealed their disappointment regarding Xi’s absence. A source informed the Post that Lula had traveled to Beijing in May as a “show of goodwill” and had hoped “the Chinese president would reciprocate the gesture by attending the Rio summit.”

There was also speculation that Lula’s invitation to Indian Prime Minister Narendra Modi for a state dinner after the BRICS summit may have influenced Beijing’s decision, as Xi might have been “perceived as a supporting actor” at the event.

Lula’s special adviser for international relations, Celso Amorim, met with Chinese Foreign Minister Wang Yi in Beijing, where he clearly expressed Brazil’s desire to host Xi. “I told them, ‘BRICS without China is not BRICS,'” Amorim stated, recalling that then-President Hu Jintao attended the first BRICS summit in Brazil despite a major earthquake in China at the time. “He only stayed for one day, but he came.”

Amorim emphasized the particular importance of Xi’s attendance in the current global context, citing the “US withdrawal from the Paris Agreement and the World Health Organization” as a “violation of international rules.”

Premier Li is expected to arrive in Brazil next weekend for the summit, which is scheduled for July 6 and 7 in Rio.

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German arms industry expands presence in India amidst geopolitical shifts

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German arms manufacturers Rheinmetall and Diehl Defence have signed agreements with India’s Reliance Defence for the production of precision-guided munitions, explosives, and propellants in India. This move is driven not only by a desire to diversify supply chains but also by Berlin’s efforts to encourage New Delhi to reduce its arms cooperation with Moscow.

Germany has recently increased military collaboration with India, including joint naval and air force maneuvers. However, German companies still lag significantly behind their Western rivals in the US and France, who are supplying or planning to supply fighter jets for large-scale arms purchases in India.

The recent military conflict between India and Pakistan has intensified competition in the growing Indian defense market, with India shifting its focus toward advanced high-tech weaponry, including combat aircraft.

Reliance Defence, the partner of Rheinmetall, continues to lead the list of Indian companies securing international defense contracts. The company has faced accusations of receiving preferential treatment from Prime Minister Narendra Modi.

Diehl and Reliance partner for 155mm precision-guided munitions

On June 10, Diehl Defence and India’s Reliance Defence announced a strategic cooperation agreement for the production of Vulcano 155mm precision-guided munitions in India. These munitions, equipped with GPS technology and laser-guided targeting, are expected to enhance the Indian army’s precision weapon capabilities.

Reports suggest that Reliance Defence anticipates sales of up to $1 billion. This agreement between Diehl and Reliance was announced just days after another strategic partnership was revealed on May 22 between Rheinmetall AG and Reliance Defence. Under this latter agreement, Reliance will take over the production of explosives and propellants for medium and large-caliber ammunition, supplying them to Rheinmetall.

This strategic partnership provides Rheinmetall with access to critical raw materials and ensures the security of its supply chains, with plans for further expansion of the collaboration. The timeframe and total value of the agreement have not yet been disclosed.

South Asia’s largest manufacturing facility to bolster Indian defense production

To support its collaborations with Diehl Defence and Rheinmetall, Reliance will establish its own manufacturing facility at Dhirubhai Ambani Defence City in India’s Maharashtra state. This facility, projected to be one of the largest in South Asia, will produce precision-guided munitions and boast an annual production capacity of 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants, which will be supplied to Rheinmetall.

These two contracts increase Reliance’s international defense partnerships to four, following existing collaborations with France’s Dassault Aviation and Thales. The agreements reflect the newly established Reliance Defence’s plans to become a leading company in India’s rapidly expanding defense sector.

Meanwhile, both Diehl and Rheinmetall aim to capitalize on the Indian government’s plan to achieve $5 billion in arms exports by 2029.

Germany’s move to reduce India’s reliance on Russian military imports

The agreements between Rheinmetall, Diehl, and Reliance Defence are part of intensified German efforts, ramped up in 2022, to reduce India’s high dependence on Russian arms imports. In February 2023, during a visit to India, then-Chancellor Olaf Scholz urged New Delhi for greater support in Western efforts to isolate Russia, including an increase in arms purchases from Germany.

In June 2023, then-Defense Minister Boris Pistorius stated during his visit to India, “It is not in Germany’s interest for India to remain dependent on Russia’s arms deliveries in the long term.” Pistorius’s discussions resulted in the signing of a memorandum of understanding between the two countries for the joint construction of six non-nuclear submarines in India, to be carried out by Germany’s ThyssenKrupp Marine Systems (TKMS) and India’s Mazagon companies.

The “Focus on India” document, adopted by the German government in October 2024, explicitly linked the intention to “more strongly direct India toward German arms companies” with the goal of “reducing India’s arms policy orientation toward Russia.” Simultaneously, both countries have expanded practical military cooperation, including joint air and naval maneuvers in and around the Indian Ocean.

India-Pakistan tensions and the Sino-Western military technology rivalry

The recent military conflict between India and Pakistan, also viewed as a test case for the clash between Western and Chinese military technology, has further intensified competition for India’s large defense market. The armed conflict lasted four days, with both sides employing their most advanced weapons, including modern fighter jets. Reports indicate that the Pakistan Air Force, with the assistance of Chinese-made J-10C fighter jets, managed to shoot down one or more Indian Air Force Rafale fighter jets; both aircraft are classified as 4.5 generation.

Since then, the US has increased its efforts to expand arms sales to India, including the potential sale of fifth-generation F-35 fighter jets. Shortly before the conflict, India signed a billion-dollar deal with France to acquire 26 Rafale fighter jets to replace its Russian MiG-29K fighter jets.

In response, Russia offered to sell India the Su-57, another fifth-generation fighter jet, and unlike the US, Russia proposed manufacturing the jets in India, including technology transfer. This would enable India to equip the aircraft with indigenous radar and weapon systems. Compared to France and the US, Germany has not recently secured significant arms contracts from India, the world’s largest military equipment importer, apart from the submarine agreement.

Controversial Indian giant: Reliance

Reliance Defence is a subsidiary of Reliance Infrastructure, which is part of the Reliance Group. The Reliance Group is one of India’s leading conglomerates, with total assets of approximately $47 billion and a broad base of about eight million shareholders. The group also includes other affiliated companies such as Reliance Communications, Reliance Capital, Reliance Power, Reliance Defence and Engineering Limited, and Reliance Defence Technologies Private Limited.

However, the group has a controversial history. The Reliance Group is owned by Anil Ambani, who was once listed as the world’s sixth richest person in 2008. By 2019, however, he had accumulated $2 billion in debt to various investors. In 2020, Anil Ambani was forced to declare bankruptcy in a British court after being sued by three Chinese banks for unpaid loans totaling $700 million.

Another significant setback came from Swedish telecommunications company Ericsson, which sued one of his companies over unpaid bills. Anil Ambani was saved from a jail sentence in this case only by the intervention of his elder brother, Mukesh Ambani, India’s richest man, who paid the debt.

Allegations of Modi’s support for reliance defence

The crisis-ridden Reliance Group reportedly received a lifeline from Indian Prime Minister Narendra Modi in the form of an excessively expensive arms deal with French company Dassault Aviation to purchase 36 Rafale fighter jets worth a total of $8.8 billion. As part of the contract signed in April 2015, Reliance Group was designated as an offset partner: Dassault was to reinvest a very large portion of the revenues into Reliance to purchase more defense equipment and strengthen indigenous production capabilities.

This was done despite Reliance Group having no prior experience in the defense sector. In fact, Reliance Group established its subsidiary, Reliance Defence Limited, only thirteen days before the deal with Dassault was announced. A few days after the agreement was signed, Reliance Group formed Dassault Reliance Aerospace Limited, which would become Dassault’s most important offset partner. The indebted Ambani Group, with no experience in the aviation sector, suddenly became the guarantor of a multi-billion dollar aviation business.

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Erdoğan to meet Trump at NATO summit to mend relations

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President Recep Tayyip Erdoğan is set to meet with US President Donald Trump during the upcoming NATO summit in an effort to improve relations between the two countries.

According to Bloomberg, the meeting is expected to take place late Tuesday, June 24, in The Hague.

Türkiye’s decision to purchase the Russian-made S-400 missile defense system has strained relations, leading the US to remove Ankara from the F-35 program. Tensions have also been exacerbated by US support for the Syrian Democratic Forces (SDF), which Türkiye considers a threat.

The Bloomberg report suggests that Erdoğan will attempt to persuade Trump to lift the ban by offering assurances that his country will use the Russian missile defense system in a “controlled manner.”

Türkiye argues that acquiring F-35 jets would enable its military to operate seamlessly with other NATO members and strengthen the alliance’s deterrence on its southeastern flank. According to sources, Türkiye is seeking to purchase a total of 40 F-35s and 40 F-16s.

Ankara will also request permission to purchase and assemble GE Aerospace F110 and F404 engines, which are used in US-made fighter jets as well as in Türkiye’s twin-engine Kaan fighter and Hürjet trainer aircraft.

Sources indicated that Erdoğan may also raise the issue of integrating the SDF into the new Syrian army during his discussion with Trump.

Furthermore, the sources added that Erdoğan might ask the US president to restrain Israel and express opposition to its attempts to establish a permanent military presence in Syria.

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