Fuel subsidies must go - but not now, says India

While agreeing on the need to withdraw subsidies on fossil fuels "over time", India once again made it clear on Thursday that it will not accept any emission reduction targets at the global environment summit in Copenhagen this December.

Shyam Saran, the country's special envoy on climate change, said on the sidelines of the meet in Pittsburgh that the G-20 may issue a "general commitment" on ending subsidies for fossil fuels like coal, oil and natural gas after the talks. But any steps must "be sensitive" to the needs of nations such as India, where large numbers of people lack access to energy, he said.

He ruled out the possibility of phasing out subsidies on energy pricing in the near future, saying while it was an objective it would not be implemented at the cost of poor people.

"We of course look upon subsidies as something that, over a period of time, should be retired," Saran said. "If there are distortions in energy pricing, removing these is in our own interest."

While issues such as limits on carbon pollution are not on the G-20 agenda, a strong message from the leaders would have a favourable impact on talks at the United Nations meeting in Copenhagen, Saran said. Negotiators from more than 180 nations will gather there to broker a new treaty to limit the release of gases from burning fossil fuels and clearing forests.

Saran expressed the hope that there would be consensus on financing emission control programmes in developing countries aided by technology transfer. To spur further efforts by developing countries, the developed world must provide more funding and technology, he said.