Ecotechnology is an applied science that seeks to fulfill human needs while causing minimal ecological disrupution, by harnessing and subtly manipulating natural forces to leverage their beneficial effects. Ecotechnology integrates two complementary fields of study: the ‘ecology of technics’ and the ‘technics of ecology,’ requiring a substantial understanding of the structures and processes of ecosystems and societies. All sustainable engineering that can reduce damage to ecosystems, adopt ecology as a fundamental basis
Sustainable development requires the implementation of appropriate environmentally friendly technologies which are both efficient and adapted to local conditions. Ecotechnology allows improvement in economic performance while minimizing harm to the environment by:
* increasing the efficiency in the selection and use of materials and energy sources,
* control of impacts on ecosystems,
* development and permanent improvement of cleaner processes and products,
* eco-marketing,
* introducing environmental management systems in the production and services sectors, and
* development of activities for increasing awareness of the need for environmental protection and promotion of sustainable development by the general public
http://en.wikipedia.org/wiki/List_of_countries_by_carbon_dioxide_emissions
The link will give the list of carbon-di-oxide emissions and INDIA is in in 3rd position.
The Essay on What Is the Difference Between Ecosystem and Ecology
Ecosystem is the physical system (an open system) in which the mutual interaction between biotic and aboitic component motored by the energy component is studied. While the Ecology is the science which study the interrelation between Abiotic (inorganic) and Biotic (organic) components as well as the interaction among the biotic component. To make it more clear, ecosystem is the fundamental unit of ...
http://en.wikipedia.org/wiki/List_of_countries_by_ratio_of_GDP_to_carbon_dioxide_emission
s
The above link is quite important
Important Concept: Carbon Credit
The Investopedia Inc investment dictionary defines a carbon credit as a “permit that allows the holder to emit one ton of carbon dioxide”..which “can be traded in the international market at their current market price”
The major greenhouse gases emitted by these industries are carbon dioxide, methane, nitrous oxide,hydrofluorocarbons (HFCs), etc., all of which increase the atmosphere’s ability to trap infrared energy and thus affect the climate.
Policies that provide a real or implicit price of carbon could create incentives for producers and consumers to significantly invest in low-GHG products, technologies and processes. Such policies could include economic instruments, government funding and regulation
Under the Kyoto Protocol, the ‘caps’ or quotas for Greenhouse gases for the developed Annex 1 countries are known as Assigned Amounts and are listed in Annex B.[6] The quantity of the initial assigned amount is denominated in individual units, called Assigned amount units (AAUs), each of which represents an allowance to emit one metric tonne of carbon dioxide equivalent, and these are entered into the country’s national registry
Operators that have not used up their quotas can sell their unused allowances as carbon credits, while businesses that are about to exceed their quotas can buy the extra allowances as credits, privately or on the open market. As demand for energy grows over time, the total emissions must still stay within the cap, but it allows industry some flexibility and predictability in its planning to accommodate this
By permitting allowances to be bought and sold, an operator can seek out the most cost-effective way of reducing its emissions, either by investing in ‘cleaner’ machinery and practices or by purchasing emissions from another operator who already has excess ‘capacity
The Research paper on International Stock Market Of Developed & Developing Countries
An understanding of the difference in stock price exposures across markets helps to determine equilibrium premium and asset allocation of international portfolio. This paper is based on cross sectional study of various developed and developing countries for the year 2006,2007 and 2008. Eight developed countries viz.USA, UK, Australia, France, Germany, Hongkong, Japan, Singapore and Nine developing ...
For trading purposes, one allowance or CER is considered equivalent to one metric ton of CO2 emissions. These allowances can be sold privately or in the international market at the prevailing market price. These trade and settle internationally and hence allow allowances to be transferred between countries. Each international transfer is validated by the UNFCCC. Each transfer of ownership within the European Union is additionally validated by the European Commission
http://articles.economictimes.indiatimes.com/2010-05-12/news/28406828_1_renewable-energy-carbon-credits-power-projects: Indian Carbon Credits to triple in 2012
http://www.frost.com/prod/servlet/market-insight-top.pag?docid=188268024
Some of the Important points of this link:
Carbon trading will be mentioned in the agreement, as most economies agree strongly on this mechanism to counter climate change. Post-2012 polices for the carbon market can create an increasing financial flow to developing countries and could potentially deliver as much as $67.6 billion per year by 2020
Post-2012 policies are expected to open many new gates for India to leverage the growing carbon market. The government bodies are also planning for a domestic energy efficiency cap-and-trade scheme.
The Indian economy strictly needs a regulator for the carbon market. The forward Contracts (Regulation) Amendment Bill, which would define the regulation on carbon credits trading and introduce options based on them, is the need of the hour. This will build confidence in the market, and trade volumes will be back on track for the Indian commodity exchanges
http://www.business-standard.com/india/news/india-inc-holds-back-carbon-credit-sale/449761/
Some of the Important points of this link:
“CER (demand) is a function of manufacturing activity, which depends upon the health of the overall economic environment. The price of CER fell to a nadir post the economic debacle in 2008 and it’s repeating now. Hence, we advise Indian corporates to hold CERs they have generated after an investment worth crores and years of effort, and wait for a revival in the market for sale,” said an economist with a leading Indian corporate house.
The Essay on The Effort/Methods to Reduce My Carbon Footprint and Emissions Rating
I have never considered myself as person who was interested in saving the planet or an environment lover; however, even as a child I was always fearful of contributing to the growing pollution that I saw as a child growing up in a small town in Rochester, NY. I can still see the trash that lined the sidewalks and the garbage thrown on the highways. What always haunted me was the commercial where ...
BACKGROUND
According to the latest report by research firm Crisil, Indian projects are estimated to receive 246 million CERs by December 2012, a three-fold rise from 72 million in November 2009. This will cement India’s second position in the global CER market. But industrial houses in the country are discouraged due to a drastic decline in demand from European countries.
Each tonne of obnoxious gases saved from being released into the environment amount to one CER. Developing countries generate CERs by installing emission-cutting machinery and developed countries, mainly from Europe, buy CERs for releasing more of the gases than they are permitted to.
The Indian government has approved 1,400 projects as part of the CDM, that could attract around $6 billion (Rs 28,000 crore) into the country by 2012, through sale of CER certificates. The National CDM Authority (NCDMA) in India has accorded Host Country Approval to 1,455 projects. These projects have seen an investment of $33.7 billion (Rs 1.6 lakh crore).
If all these get registered at the CDM executive board, it will earn developers 600 million CERs by 2012. At a conservative $10 per CER, the figure works out to a little over $6 billion.
European countries expect a deficit of 1.97 billion permits (CERs) from 2008 to 2020 to be partly met by imports of international carbon credits, resulting in a net shortage of around 300 million tonnes. The system is likely to have a deficit of around 170 mt in 2013, rising to 380 mt in 2020 and 660 mt in 2028. As access to low-cost emission-reduction measures starts to run out, regulators may curb the allowed use of international credits, pushing the carbon price to euro 100 per tonne by 2024 without any access to international credits and euro 65 a tonne with access to offsets.
Meanwhile, big companies across the world have started hedging their risk on the futures platform. Consequently, ICE Futures reported a 93.8 per cent rise in CER volume to 34,761 contracts in August this year. as compared to 17,941 contracts in the same month last year.
The Essay on Enron Business India Project Government
Enron was willing to make the huge investment due to following reasons: firstly, from the political perspective, the available investing environment has engaged. By the 1990! s, India experienced the ideological changes, government embraced a free market approach, including de regulations and loosening of foreign direct investment (FDI). Also Rao! s government allowed foreign private company to ...
The Clean Development Mechanism
(CDM) is an arrangement under the Kyoto Protocol
allowing industrialized countries with a
greenhouse gas reduction commitment to invest
in emission reducing projects in developing
countries as an alternative to what is generally
considered more costly emission reductions in
their own countries. Under CDM, a developed
country can take up a greenhouse gas reduction
project activity in a developing country where the
cost of GHG reduction project activities is usually
much lower. The developed country would be given
credits (Carbon Credits) for meeting its emission
reduction targets, while the developing country
would receive the capital and clean technology to
implement the project
Developing countries (non-Annex I) such
as India, Srilanka, Afghanistan, China, Brazil,
Iran, Kenya, Kuwait, Malaysia, Pakistan,
Phillippines, Saudi Arabia, Sigapore, South Africa,
UAE etc have no immediate restrictions under the
UNFCCC. This serves three purposes:
a) Avoids restrictions on growth because pollution
is strongly linked to industrial growth, and
developing economies can potentially grow very
fast.
b) It means that they cannot sell emissions credits
to industrialized nations to permit those
nations to over-pollute.
c) They get money and technologies from the
developed countries in Annex II
Other than Industries and transportation,
the major sources of GHG’s emission in India are
as follows :
• Paddy fields
• Enteric fermentation from cattle and buffaloes
• Municipal Solid Waste
Rough Draft
The need for urgent, concerted action to combat climate change is now widely accepted. The fact that a range of initiatives need to be taken to arrest the pace and reverse the accumulation of Greenhouse Gas (GHG) emissions is clear. However, the implications of such initiatives on countries, economies, businesses and societies are expected to be significant, and the allocation of costs, risks and responsibilities is still under debate and negotiation
The Term Paper on India–Russia Relations
Indo-Russian relations refer to the bilateral relations between the Republic of India and the Russian Federation. During the Cold War, India and the Soviet Union (USSR) enjoyed a strong strategic, military, economic and diplomatic relationship. After the collapse of the USSR, Russia inherited the close relationship with India, even as India improved its relations with the West after the end of the ...
The nature of climate change as a global pollutant and one that is likely to impact virtually every sector of the economy means that it holds important implications for businesses. Corporations can play an integral role in the fight against climate change and are likely to be fundamentally impacted by the risks that climate change
poses as well as the opportunities it affords
India’s role in global mitigation efforts is informed by its position as one of the largest
aggregate emitters of GHG but with one of the lowest per capita emission rates. The
government has adopted a stance of ‘common but differentiated responsibility’ to
affirm India’s commitment to combating climate change as a responsible global
citizen, but only as part of a globally coordinated approach that recognizes the
responsibility of developed nations to lead the response
In the area of carbon markets, the financing of CDM projects in India has
encountered unprecedented tax issues that fundamentally impact the very basis of
many projects. Further, the need for greater liquidity and transparency in the carbon
market as it grows in scale and scope has spawned the development of rating and
certification instruments to aid in efficient price discovery.
Also, whilst currently low, pressure from stakeholders for Indian companies to be
more environmentally responsible is likely to increase in the future, thereby
compelling delivery by firms across all industries on a triple bottom line of economic,
social and environmental performance
A particular area of interest in the context of international negotiations is the access
of developing countries like India to technology and finance support from developed
countries. Whilst the CDM mechanism is envisaged to be one such vehicle of
transfer, the future access of Indian industry to the technology and capital required
to reduce emissions whilst maintaining economic growth is a critical factor in India’s
The Essay on Migration From A Developing Country To A Developed Country Pros And Cons
Migration from a Developing Country to a Developed Country: Pros and Cons Although the pace of international migration has somewhat slowed down, the number of international migrants, who are moving from a developing country like Jamaica, to the developed world, is consistently increasing. In this respect, international migration becomes the issues of the day, as more than any other issue, it puts ...
development as a low-carbon economy
Detailed Point:
The Kyoto Protocol, which came into force in February 2005, is the most detailed
binding international agreement to tackle global warming. As part of the first
commitment period expiring in 2012, developed countries (Annex-1) are required to
reduce their GHG emissions below levels specified for each of them in the treaty, on
an average of 5.2 percent below the 1990 baseline. Most of the major developed
countries except US have ratified the treaty. Developing countries (non-Annex 1)
including India do not face binding emission targets
The allocation of the responsibility amongst developed and developing countries for
reducing emissions has been the most significant point of contention in
international negotiations. Because the current stock of GHG in the atmosphere
that is responsible for global warming is largely attributable to the industrial
progress of developed countries in the past century, it is argued that these countries
must assume a commensurately central role in reducing their emissions now. By
not imposing such quantitative reduction targets on developing countries, it is
argued that they will be able to pursue the fervent, unrestricted economic growth
needed to pull their burgeoning populations out of poverty.
However, the sheer size of developing countries and their recent rapid rates of
growth have meant that their aggregate levels of emissions may render the
emission cuts by developed countries ineffective in preventing the catastrophic
effects of significant temperature increases in the decades to come. China has
already overtaken USA as the world’s leading emitter and emissions developing
countries as a group are expected to overtake those from developed nations by
2050. Developed countries have thus called for mandatory emission reduction
targets for the major emerging economies as a pre-condition to committing to any
quantitative targets of their own
As a non-Annex I country under the Kyoto Protocol, India is not subject to binding
emission targets under the current commitment period. On the basis of the widely
accepted axiom of ‘common but differentiated responsibility’, it has rejected taking
on quantitative restriction targets but has committed to never let its per capita
emissions (currently one of the lowest in the world) from ever exceeding those of
developed countries through a range of mitigation and adaptation techniques
On its part, India has extended a commitment to developed countries to show
demonstrable results in areas where it receives the capital and technology support
that is needed by developing countries to enable them to take on ‘no regret’
measures to reduce emissions whilst not sacrificing much-needed economic
growth. Whilst the CDM mechanism is envisaged to be one such vehicle of transfer
of capital and technology, developing countries like India have called for
substantially greater support to help them arrest the pace and reduce the
accumulation of their emissions
In line with the government’s adopted policy of shared but differentiated
responsibility, the plan does not impose quantitative emission targets on the
country, but rather focuses on efficiency targets. There are 8 national missions
which form the core of the plan and dictate the direction of future action. These
cover the following areas:
1 Solar energy
2 Energy efficiency
3 Sustainable habitat
4 Water
5 Sustaining the Himalayan ecosystem
6 Green India
7 Sustainable agriculture
8 Sustainable knowledge for climate change
Importantly for businesses, the policy mandates the setting up of energy
benchmarks for each industry sector and allows for trade in energy efficiency
certificates. Along the lines of the international market for trade in carbon credits,
the aim of such a ‘cap-and-trade’ scheme is to facilitate the least-cost method of
achieving the overall target of sector-wide efficiency. Nine energy intensive sectors
such as thermal power plants, iron and steel and cement have been identified and
within these sectors, bands have been created which classify individual units
(businesses) on the basis of energy intensity levels. The list of 9 energy intensive
sectors is:
1 Thermal power plants
2 Fertilizer
3 Cement
4 Iron and steel
5 Chlor Alkali
6 Aluminum
7 Railways
8 Paper and pulp
9 Textiles
Each band is given a target (which is periodically revised upwards) to reduce their
fuel consumption over a fixed period of time. The industrial units who surpass their
targets are to be given energy efficiency certificates which can be traded on the
open market or banked for the next round of efficiency targets. Industrial units that
surpass their allocated standard would be forced to buy such credits from more
energy-efficient units. In keeping with India’s international stance, this trading
would be restricted only to the domestic market and would not be linked to any
international trading regime
In this manner, businesses have a monetary incentive to become more energy
efficient and face risks of financial loss if they do not. At present, only those
industries above a certain size and energy consumption levels in energy intensive
sectors are covered by this mandate in an attempt to protect labour-intensive small
and medium scale units. However, through this intervention, the government has
sent out a clear signal to all businesses on the seriousness of its intentions and its
future plans. Indian companies of all sizes in every industry would be well served to
take concerted action now to adequately prepare themselves for an imminent largescale
greening of the economy.
The mechanics of the taxation system are likely to work as follows; Initially, power
plants emitting above a certain efficiency level (which still needs to be determined)
will be taxed according to relevant emission factors and are to be allowed to pass on
this cost to consumers for a specified period of time (e.g. five years).
However, the
accepted level of emission is likely to decline over time, thereby raising the bar and
forcing plants to achieve ever-increasing levels of efficiency.
After the expiration of the initial indemnity period, plants emitting more than the
dynamically reducing efficiency level are to be taxed and not be allowed to pass on
this additional cost to the consumer. They would then have to either shut down
(because operations become unprofitable after the tax), implement abatement
measures to reduce emissions or pay the additional tax / purchase emission
allowances from other more-efficient plants in order to continue operating. In this
manner, power plants have an economic incentive to evolve towards cleaner
production methods.
Thus, the immediate impact of the imposition of a carbon tax on polluting power
plants is likely to be a rise in electricity costs for all consumers of electricity.
Businesses who take concerted action now to become more energy efficient are
likely to be far better prepared when the tax is finally imposed
The areas of renewable energy and clean technology in India are set for
unprecedented growth, with the impetus coming from a variety of sources. This is
likely to create new and/or expand existing markets for clean technologies and their
ancillaries, in what represents a significant ‘window of opportunity’ for many Indian
businesses
Responding to the need for greater energy security and reduced emissions through
a lower reliance on fossil fuels, the Ministry of Power has expansive plans for the
renewable energy sector in India. Renewable energy currently comprises 9 percent
of India’s 145 GW present capacity (large hydro accounts for a further 25 percent).
Of the 80 GW of capacity proposed to be added during the 11th five year plan (2007-
12), 17.5 percent to 25 percent is envisaged to come from renewable sources. This
represents significant businesses opportunities for providers of renewable energy
and its many affiliated industries through an expanded market
On its part, the government has created favorable conditions for the spawning and
expansion of clean technologies across various sectors and industries. To promote
the development of clean technologies, the government envisages using
differential taxation on appliances that have been certified as energy efficient
through the energy labeling programme of the Bureau of Energy Efficiency (BEE).
Concurrently, to promote the deployment of clean technologies amongst
consumers, the government plans to provide allowance for accelerated
depreciation of up to 80 percent in the first year on energy-efficient equipment as
well as reduced VAT on these products.
Thus, businesses are not only presented with vastly expanded potential markets
through the various initiatives of the 8 missions in the national action plan, but their
foray in these segments has been made simpler and easier through favorable
conditions created by the government
Such ‘carbon equalization’ measures could take the form of either a carbon tax or of
requiring producers in the exporting countries to purchase international reserve
allowances to sell their products in the EU or US, both of which effectively raise the
price of imported goods to the level of similar goods produced by ‘cleaner
technologies’ within the EU or US
Indian businesses with export interests in these, and other developed
economies will need to take concerted action now in order to adequately prepare
themselves for what may be a significant factor in their businesses
Indian companies with operations in developed countries that have more stringent
environmental regulation may face potentially debilitating hurdles to continued
operation and/or expansion. A poignant case in point is the complication of Tata’s
takeover of Jaguar and Land Rover in the UK as a result of the EU’s proposed
emission norms.
In an initiative aimed at reducing CO2 emissions from new passenger cars by 19
percent, the EC had adopted a proposal for legislation on December 2007 (to enter
into force in 2012) that defines a limit value curve of permitted emissions of CO2 for
new vehicles according to the mass of the vehicle. The curve is set in such a way that
heavier cars have to improve more than lighter cars. And manufacturers are
expected to be able to make cars with emissions above the limit of value curve,
provided these are balanced by cars that are below the curve.
While Jaguar-Land Rover could have offset higher CO2 emission of its fleet by
balancing it by Ford’s fleet of light low-emission cars, the same is not possible under
Tata Motors as it does not sell cars in Europe. Tata Motors also faces a proposed
penalty, or the ‘excess emissions premium’, that companies have to pay for going
over the stipulated curve. A premium of 20 euros per gm/km has been proposed in
the first year (2012), gradually rising to 35 euros in the second year (2013), 60 euros
in the third year (2014) and 95 euros by 2015.
Whilst Tata has assured that it has always been aware of these issues and is
formulating an appropriate response, this is one example of how regulations in
developed countries may fundamentally impact the operation of Indian businesses
Developments in registration and issuance in India
The issue
The importance of robust risk assessment and appropriate management on the part
of project developers has come to the fore in the wake of the recent spate in nonperforming
/ under performing projects in India. As of May 2008, the issuance of
CDM projects was falling short of registration globally by at least 30 percent,
attributed to shortfalls in project performance and changes/clarifications in
methodologies.
There are times when companies, in a bid to get a better price for future credits,
enter into contracts giving delivery guarantees even though their project type are
known to have huge fluctuation in annual carbon credit generation. Thus, the project
developers who are callous in their treatment of the various risks of the project run
the risk of being unable to deliver the CER’s that they had contracted to execute
IMPACT:
In the event that the project performance falls short of the contracted amount, the
project developer is liable for fulfilling delivery guarantees by buying carbon credits
from the open market. Hence, though the contracted rate for delivered carbon
credits is high in the agreement, in reality, the company’s realization is much lower
or even negative (after taking into account the loss they incur by buying credits in
open market at higher rates).
Further, there is the risk of risk of the buyer initiating litigation to enforce delivery
guarantees offered by Indian company. A poignant example of this danger is the
case of the Dublin firm AgCert, which ran into financial problems as it could not meet
its carbon credit delivery commitments to polluting companies. As a result, its debts
mounted to 90 million euros and it earned the dubious distinction of being the first
carbon credits company to go into examinership.
THE WAY FORWARD:
Indian companies can and should take various measures to ensure adequate risk
appraisal and management. At the outset, companies need to do proper due
diligence for CDM projects to assess the quantum of carbon credits expected to be
generated. Factors like operational efficiencies, plant availability, etc, need to be
taken into account before contracting part of the volume based on conservative
estimates. Further, the price risk can be mitigated by entering into at least part
forward contracts or options.
The scale and scope of the issues outlined above illustrates that businesses face
multiple spheres of influence on climate change. These forces are complex, rapidly
evolving and have the potential to fundamentally affect the very functioning of many
companies is not recognized and dealt with adequately.
In order to optimally manage these various forces, individual businesses need to
develop a structured approach consisting of the following components;
1 Measurement of the carbon footprint of the business
2 Projecting the likely carbon footprint if the business continues to grow under
the ‘ Business As Usual (BAU)’ scenario
3 Analysis of the risk of climate change issues to the sector and the business
4 Identification of opportunities within the business, and beyond (CDM
projects, clean technologies, renewables, etc) to maintain growth, but with a
different approach
5 Preparation of a time bound action plan for reducing the carbon footprint
compared to the projected carbon footprint
6 Institutionalize the action plan in business processes
7 Institutionalize a measurement and verification system to monitor progress
against the plan
8. Periodically report progress to stakeholders.
