Nicholas Stern Tackles Climate Change for India

Sir Nicholas Stern, author of the British government's report on climate change, is to advise the Indian government on the issue, arguing that developed countries should bear the burden for a problem they created.

The chancellor, Gordon Brown, told reporters that Sir Nicholas had had a number of "detailed discussions" with Indian ministers. "We are very pleased to announce that we (agreed) to develop a structure" on the economics of climate change in India.

India has shown interest in getting hold of clean technology developed by the west and many companies have taken advantage of "carbon finance" trading, by which rich countries and companies invest in projects to cut emissions in the developing world. The carbon finance market in developing countries is worth almost £2bn.

Sources told the Guardian that the chancellor and Sir Nicholas had been talking to the Indian government about joining a global carbon trading scheme. Mr Brown said that the economist would return with the British environment minister, David Milliband, in the next few months.

India, which contributes more than 6% of greenhouse gases, has been hostile to suggestions that it should attempt to reduce its rapidly increasing emissions, given that it has only begun to industralise now.

Despite Sir Nicholas's longstanding interest in India - he lived in a village in the north of the country for the best part of a year for his early research - many question whether action on climate change in India is politically possible.

"(His) economic warnings are unlikely to find many takers in the harsh political reality of India today," wrote Barun Mitra of the Delhi-based thinktank Liberty Institute recently in the Hindustan Times.

"About half of Indian homes today don't have any electricity, and many who do have the connections, don't enjoy the benefits. It will be politically suicidal for any Indian leader to promote the virtues of low energy consumption to the Indian masses."