Environment, Pollution and Business - A great Trade Off


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  • Carbon credit trading is an innovative method of controlling emissions using the free market. The Carbon Credit is this new currency and each carbon credit represents one tone of carbon dioxide either removed from the atmosphere or saved from being emitted.
  • But CO2 is absorbed, by trees, forests or by some natural phenomenon like photosynthesis and also oceans to some extent
  • The concept of carbon credits came into existence
  • For trading purposes, one credit is considered equivalent to one ton of CO2 emissions. For trading purposes, one credit is considered equivalent to one ton of CO2 emissions.
  • Environment, Pollution and Business - A great Trade Off

    1. 1. Presentation On Environment Submitted To: Prof. Shrikant Iyenger Submitted By: Dinesh Khunt (Roll No:07) Ravi Majithia (Roll No:09) Karishma Makim (Roll No:10) Purvi Panchal (Roll No:17) Nirav Vaghela (Roll No:36)
    2. 2. <ul><li>In 1980, the Deptt. of Environment was established in India. Later on it became the Ministry of Environment and Forests in 1985. EPA,1986 came into force soon after the Bhopal Gas Tragedy. </li></ul>Environment
    3. 3. <ul><li>It is the sum of the total of the elements, factors and conditions in the surroundings which may have an impact on the development, action or survival of an organism or group of organisms, such as, we human beings. </li></ul><ul><li>What Environment has given us: </li></ul><ul><ul><ul><li>Air </li></ul></ul></ul><ul><ul><ul><li>Land </li></ul></ul></ul><ul><ul><ul><li>Water </li></ul></ul></ul><ul><ul><ul><li>Forest </li></ul></ul></ul><ul><ul><ul><li>Natural resources </li></ul></ul></ul>Environment
    4. 4. Importance of the natural environment <ul><li>Natural environment is of crucial importance for social and economic life. We use the living world as </li></ul><ul><ul><ul><li>a resource for food supply </li></ul></ul></ul><ul><ul><ul><li>an energy source </li></ul></ul></ul><ul><ul><ul><li>a source for recreation </li></ul></ul></ul><ul><ul><ul><li>a major source of medicines </li></ul></ul></ul><ul><ul><ul><li>natural resources for industrial products </li></ul></ul></ul>
    5. 5. Humans & Environment <ul><li>Humans have had the ability to change their environment for thousands of years.  Today this ability is greater than ever.  This is because there are more people living now than ever before and human activity is concentrated in huge cities. </li></ul><ul><li>Science and technology allow us to interfere with natural processes in more direct ways. (Ex.China) </li></ul><ul><li>Industrialization, urbanization and population explosion are some of the phenomena which have had a drastic effect on the environment. </li></ul>
    6. 6. Environmental Pollution <ul><li>Any undesirable change in physical , chemical or biological characteristics of air , land , water or soil, that is likely to have an adverse effect on the natural environment or life, is termed as environment pollution. The different types of pollutions are: </li></ul><ul><ul><ul><li>Air Pollution </li></ul></ul></ul><ul><ul><ul><li>Water Pollution </li></ul></ul></ul><ul><ul><ul><li>Land (soil) Pollution </li></ul></ul></ul><ul><ul><ul><li>Noise Pollution </li></ul></ul></ul><ul><ul><ul><li>Thermal Pollution </li></ul></ul></ul><ul><ul><ul><li>Electro Pollution </li></ul></ul></ul>
    7. 7. The Underlying Causes of Environmental Degradation in India <ul><li>Social Factors </li></ul><ul><li>Economic Factors </li></ul><ul><li>Institutional Factors </li></ul>
    8. 8. Social Factors <ul><li>Population </li></ul><ul><li>Poverty </li></ul><ul><li>Urbanization </li></ul>
    9. 9. Economic Factors <ul><li>Non-existent or poorly functioning markets for environmental goods and services </li></ul><ul><li>Market distortions created by price controls and subsidies </li></ul><ul><li>The manufacturing technology adopted by most of the industries which generally is based on intensive resource and energy use. </li></ul><ul><li>Expansion of chemical based industry </li></ul><ul><li>Growing transport activities </li></ul><ul><li>Expansion of port and harbour activities. </li></ul>
    10. 10. Institutional Factors <ul><li>“ Lack of awareness and infrastructure makes implementation of most of the laws relating to environment, extremely difficult and ineffective”. </li></ul>
    11. 11. Air Pollution <ul><li>Air pollution is actually harmful substances in the atmosphere, which damages the environment. With the development of industries, came along the increase in air pollution. </li></ul><ul><li>Impact of Air Pollution on Human Health </li></ul><ul><ul><li>Global warming, Ozone depletion (Ozone hole), Acid rain </li></ul></ul><ul><ul><li>Polluted air contains one, or more, hazardous substance, pollutant, or contaminant that creates a hazard to general health. </li></ul></ul><ul><ul><li>It is usually measured in terms of &quot;particulate matter&quot;, or, the number of particles of these potentially hazardous substances as a percentage of air. </li></ul></ul><ul><ul><li>Air pollution in cities causes a shorter lifespan for city dwellers. </li></ul></ul>
    12. 12. The key Health Problems caused by Air Pollution <ul><li>Asthma </li></ul><ul><li>Cancer </li></ul><ul><li>Respiratory problems </li></ul><ul><li>Heart disease </li></ul><ul><li>Birth defects </li></ul><ul><li>Intellectual disorders </li></ul><ul><li>Immune system damage </li></ul>
    13. 13. Water Pollution <ul><li>Water pollution is the contamination of water bodies (e.g. lakes, rivers, oceans, groundwater). </li></ul><ul><li>Water pollution occurs when pollutants are discharged directly or indirectly into water bodies without adequate treatment to remove harmful compounds by mainly the industries. </li></ul><ul><li>Infectious diseases such as typhoid and cholera can be contracted from drinking contaminated water.  </li></ul><ul><li>The human heart and kidney heart s can be adversely affected if polluted water is consumed regularly. </li></ul><ul><li>Other health problems associated with polluted water are poor blood circulation, skin lesions, vomiting, and damage to the nervous system.  </li></ul><ul><li>In fact, the effects of water pollution are said to be the leading cause of death for humans across the globe. </li></ul>
    14. 14. Land Pollution <ul><li>Land Pollution  is the degradation of Earth's land surfaces often caused by human activities and their misuse of land resources. It occurs when waste is not disposed properly. Health hazard disposal of urban and industrial wastes, exploitation of minerals, and improper use of soil by inadequate agricultural practices are a few factors. </li></ul><ul><ul><li>Main Reason for land pollution </li></ul></ul><ul><ul><ul><li>Urbanization and concentration of population </li></ul></ul></ul><ul><ul><ul><li>Municipal solid waste </li></ul></ul></ul><ul><ul><ul><li>Industrial waste and Hazardous Waste. </li></ul></ul></ul><ul><ul><ul><li>Burning open dumps and forest fires </li></ul></ul></ul><ul><ul><ul><li>Deforestations </li></ul></ul></ul><ul><ul><ul><li>Mining and Erosion </li></ul></ul></ul>
    15. 15. Impact of Land Pollution <ul><ul><li>Over a long period of time, landfills start to emit landfill gases. Landfill gas is produced due to the anaerobic conditions that organic wastes decomposed in. </li></ul></ul><ul><ul><li>Most waste buried in landfills give rise to hazardous and toxic liquids known as leachates. These leachates contaminate water sources, like the ground water below the landfills, leading to water pollution. </li></ul></ul><ul><ul><li>Besides the points mentioned above, it is also important to note that these over-crowded dumps, contaminated sites and careless disposal of waste also contributes to air and water pollution, as well as, acid rain. </li></ul></ul>
    16. 16. Ministry Of Environment <ul><li>The primary concerns of the Ministry of Environment & Forests under the Government structure are implementation of policies and programs relating to conservation of the country’s natural resources including lakes and rivers, its biodiversity, forests and wildlife, ensuring the welfare of animals and prevention and abatement of pollution. </li></ul><ul><li>The broad objectives of the Ministry are: </li></ul><ul><ul><li>Conservation and survey of flora, fauna, forests and wildlife, </li></ul></ul><ul><ul><li>Prevention and control of pollution, </li></ul></ul><ul><ul><li>Afforestation and regeneration of degraded areas, </li></ul></ul><ul><ul><li>Protection of the environment, and </li></ul></ul><ul><ul><li>Ensuring the welfare of animals. </li></ul></ul>
    17. 17. Mandate of the Ministry <ul><li>Environment and Ecology, including environment in coastal waters, in mangroves and coral reefs. </li></ul><ul><li>Survey and Exploration of Natural Resources particularly of Forest, Flora, Fauna, Ecosystems etc. </li></ul><ul><li>Bio-diversity Conservation including that of lakes and wetlands. </li></ul><ul><li>Conservation, development, management and abatement of pollution of rivers which shall include National River Conservation Directorate. </li></ul><ul><li>Environmental Impact Assessment. Environment research and development, education, training, information and awareness. </li></ul><ul><li>Environmental Health. </li></ul><ul><li>Forest Development Agency and Joint Forest Management Programme for conservation, management and afforestation. </li></ul><ul><li>Wildlife conservation, preservation, protection planning, research, education, training and awareness including Project Tiger and Project Elephant. </li></ul><ul><li>International co-operation on issues concerning Environment, Forestry and Wildlife. </li></ul>
    18. 18. Environmental Policy In India <ul><li>Ancient India: </li></ul><ul><li>The Arthashastra by Kautilya, written as early as between 300 and 321 BC, contained provisions meant to regulate a number of aspects related to the environment. </li></ul><ul><li>The fifth pillar edict of Emperor Ashoka also contains such regulations </li></ul>
    19. 19. Environmental Policy In India <ul><li>During the British Reign in India: </li></ul><ul><li>Shore Nuisance (Bombay and Kolaba) Act, 1853 </li></ul><ul><li>The Indian Penal Code, 1860 </li></ul><ul><li>The Indian Easements Act, 1882 </li></ul><ul><li>The Fisheries Act, 1897 </li></ul><ul><li>The Factories Act, 1897 </li></ul><ul><li>The Bengal Smoke Nuisance Act, 1905 </li></ul><ul><li>The Bombay Smoke Nuisance Act, 1912 </li></ul><ul><li>The Elephant’s Preservation Act, 1879 </li></ul><ul><li>Wild Birds and Animals Protection Act, 1912 </li></ul>
    20. 20. Environmental Policy In India <ul><li>Modern India </li></ul><ul><li>National Council for Environmental Policy and Planning was set up in 1972 which was later evolved into Ministry of Environment and Forests (MoEF) in 1985. </li></ul><ul><li>MoEF and the pollution control boards (CPCB i.e. Central Pollution Control Board and SPCBs i.e. State Pollution Control Boards) together form the regulatory and administrative core of the sector. </li></ul>
    21. 21. <ul><li>It is responsible for planning and executing comprehensive nationwide programs for the prevention and control of water and air pollution. </li></ul><ul><li>Coordinating activities of State Pollution Control Board for prevention and control of pollution. </li></ul><ul><li>Development of industry specific national minimal effluent and emission standards </li></ul><ul><li>Development of industry specific environmental guidelines and comprehensive documents </li></ul><ul><li>Development of charter/requirements for Corporate Responsibility for Environmental Protection (CREP) for seventeen major polluting industrial sectors and monitoring its implementation through eight task forces and steering committees </li></ul><ul><li>Action plans for improvement of environment in eighty eight critically polluted areas and monitoring progress </li></ul><ul><li>Action plans for improvement of air quality in sixteen polluted cities and monitoring progress </li></ul><ul><li>National water quality monitoring and publishing annual water quality reports </li></ul><ul><li>National ambient air quality monitoring and publishing annual water quality reports Carrying out and sponsoring research activities relevant to environment protection </li></ul>Central Pollution Control Board
    22. 22. Environment ACT 1986 <ul><li>The standards of quality of air, water or soil for various areas and purposes; </li></ul><ul><li>The maximum allowable limits of concentration of various environmental pollutants (including noise) for different areas; </li></ul><ul><li>The procedures and safeguards for the handling of hazardous substances; </li></ul><ul><li>The prohibition and restrictions on the handling of hazardous substances in different areas; </li></ul><ul><li>The prohibition and restriction on the location of industries and the carrying on process and operations in different areas; </li></ul><ul><li>The procedures and safeguards for the prevention of accidents which may cause environmental pollution and for providing for remedial measures for such accidents. </li></ul><ul><li>Imprisonment for a term which may extend to five years with fine which may extend to one lakh rupees, or with both </li></ul><ul><li>Continues beyond a period of one year after the date of conviction, the offender shall be punishable with imprisonment for a term which may extend to seven years </li></ul>
    23. 23. Environmental Policy In India <ul><li>The Policy Statement for Abatement of Pollution and the National Conservation Strategy and Policy Statement on Environment and Development were brought out by the MOEF in 1992. </li></ul><ul><li>The EAP (Environmental Action Program) was formulated in 1993 with the objective of improving environmental services and integrating environmental considerations into development programs. </li></ul><ul><li>National Environment Policy, 2006 : It the first initiative in strategy-formulation for environmental protection in a comprehensive manner. </li></ul><ul><li>It undertakes a diagnosis of the causative factors of land degradation with a view to flagging the remedial measures required in this direction. </li></ul><ul><li>It recognizes that the relevant fiscal, tariffs and sectoral policies need to take explicit account of their unintentional impacts on land degradation. </li></ul>
    24. 24. Environmental Policy In India <ul><li>National Environment Policy, 2006 (contd.) </li></ul><ul><li>The solutions offered to tackle the problem comprise adoption of both, science-based and traditional land-use practices, pilot-scale demonstrations, large scale dissemination, adoption of Multi-stakeholder partnerships, promotion of agro-forestry, organic farming, environmentally sustainable cropping patterns and adoption of efficient irrigation techniques. </li></ul>
    25. 25. Legislative Framework <ul><li>Water (Prevention and Control of Pollution) Act, 1974 </li></ul><ul><li>Water (Prevention and Control of Pollution) Cess Act, 1977 </li></ul><ul><li>Air (Prevention and Control of Pollution) Act, 1981 </li></ul><ul><li>Atomic Energy Act of 1982 </li></ul><ul><li>Motor Vehicles Act ,1988 </li></ul><ul><li>The Wildlife (Protection) Act, 1972 </li></ul><ul><li>The Forest (Conservation) Act, 1980 </li></ul><ul><li>Environment (Protection) Act, 1986 (EPA) </li></ul><ul><li>The National Environment Appellate Authority Act, 1997 </li></ul><ul><li>Public Liability Insurance Act (PLIA), 1991 </li></ul><ul><li>National Environment Tribunal Act, 1995 </li></ul>
    26. 26. Environment Impact Assessment (EIA) There are two types of EIA models- the statutory model which makes the assessment of impact compulsory under an enacted law, or a delegated legislation, and the administrative model under which an administration exercises its discretion to find out whether an impact study is necessary. Till 1992, India was following the administrative model of EIA. On 27th January, 1994 a notification was issued dealing with mandatory EIA. The notification requires project proponent to submit an EIA report, and environment management plan, details of the public hearing and a project report to the impact assessment agency for clearance, further review by a committee of experts in certain cases. By the amendment in the year 1997, public hearing was made compulsory before impact assessment was finalized.
    27. 27. Role of Judiciary in Imparting Environmental Justice <ul><li>Disputes relating to environment are treated as cases related to violation of fundamental rights, rather than claims under law of torts. </li></ul><ul><li>It has been held that the Supreme Court and the High Courts can be directly approached under Article 32 and Article 226 of the Constitution of India in case of matters relating to environment. </li></ul>
    28. 28. Global business leadership to combat climate change <ul><li>Copenhagen Climate Council : </li></ul><ul><ul><li>Business leaders representing global companies and innovative entrepreneurs, who, through their actions, reveal that sustainable, climate-responsible business is both necessary and profitable; </li></ul></ul><ul><ul><li>Scientists will ensure that the work of the Council is underpinned by rigorous analysis; </li></ul></ul><ul><ul><li>Policy makers with experience in public policy will ensure that the work is informed by knowledge of what is required to assist high-level, complex policy negotiations. </li></ul></ul><ul><li>The Kyoto Protocol :The major feature of the Kyoto Protocol is that it sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions .These amount to an average of five per cent against 1990 levels over the five-year period 2008-2012. </li></ul>
    29. 29. The key principles of an effective global response <ul><li>Emissions Trading </li></ul><ul><li>Dedicated Funds For Low Carbon Innovation </li></ul><ul><li>Means To Protect Forests </li></ul><ul><li>The Promotion Of Sustainable Agriculture </li></ul><ul><li>Support For Adaptation </li></ul><ul><li>Incentives To Promote Energy Efficiency </li></ul>
    30. 30. Meaning of Carbon Credit <ul><li>Its tradable permit scheme and which is on the Environment and Pollution Control subject. </li></ul><ul><li>It is non-compulsory way to counteract the greenhouse gasses that contribute to climate change and global warming. </li></ul><ul><li>Create a market for reducing greenhouse emissions. </li></ul><ul><li>Carbon credits are also called emission permit. </li></ul><ul><li>Carbon credits are generated as the result of an additional Carbon project. Carbon Dioxide Saving Projects such as use of renewable energies. </li></ul><ul><li>These credits need to be authentic, scientifically based and Verification is essential. </li></ul>
    31. 31. Need for Carbon Credit <ul><li>Reasons for increasing in carbon dioxide in atmosphere: </li></ul><ul><ul><li>Natural reasons </li></ul></ul><ul><ul><ul><li>by volcanoes, </li></ul></ul></ul><ul><ul><ul><li>by rotting vegetation </li></ul></ul></ul><ul><ul><li>Modern time reasons </li></ul></ul><ul><ul><ul><li>burning of fossil fuels like coal, oil and natural gas </li></ul></ul></ul><ul><li>Vegetation, largely forest is already absorbing about one-third of human-induced emissions, planting more forests could increase absorption. </li></ul><ul><li>Impact: </li></ul><ul><ul><li>It include intensified droughts and floods, changed weather patterns, agricultural breakdown, ecosystem disruption, rising sea levels, epidemics, and social breakdowns that ultimately threaten the lives or livelihoods of hundreds of millions of people. </li></ul></ul><ul><ul><li>As global economies grow, use more natural resources, and emit more Carbon Dioxide (CO2), more solutions will be needed to reduce global warming. People have become increasingly concerned about the possible effects of global warming. </li></ul></ul><ul><li>Need for it: </li></ul><ul><ul><li>It is the unique way of limiting CO2 emissions through the creation of a carbon credit market. </li></ul></ul><ul><ul><li>Its goal is to stop the increase of carbon dioxide emissions. </li></ul></ul><ul><ul><li>It encourages compliance and financial managers to pursue cost effective emission reduction strategies and provide incentives to emitters to develop the means by which emissions can inexpensively be reduced. </li></ul></ul>
    32. 32. Existence of Carbon Credits <ul><li>Result of increasing awareness of the need for pollution control. </li></ul><ul><li>It is one of the outcomes of the Kyoto Protocol, an international agreement between 169 countries. </li></ul><ul><li>The Kyoto Protocol created legally binding emission targets for developing nations to meet these targets, nations must limit C02 emissions, it was enforced from Feb’05. </li></ul><ul><li>Main idea of “saving the planet from the global meltdown.” </li></ul><ul><li>Under the Kyoto Protocol, developed countries are required to limit their greenhouse gas emissions according to the following formula: </li></ul><ul><ul><li>Actual emissions must be ≤ the assigned amount +/- carbon sinks and Kyoto emissions. </li></ul></ul><ul><li>Carbon credits are certificates awarded to countries that are successful in reducing emissions of greenhouse gases such as water vapor, carbon dioxide, methane, nitrous oxide, and ozone. </li></ul>
    33. 33. Trading of Carbon Credits <ul><li>Buying carbon credits is not a charitable donation, but a retail action. Trade in carbon credits has the potential to make forestry more profitable and to sustain the environment at the same time. </li></ul><ul><li>One of the primary solutions for climate change is the purchase and sale of carbon credits. </li></ul><ul><li>Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. </li></ul>
    34. 34. Value of Carbon Credits <ul><li>Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air such as carbon emitted by burning of fossil fuels. This means that carbon becomes a cost of business and is seen like other inputs such as raw materials or labor. </li></ul><ul><li>Carbon credits are measured in tons of carbon dioxide.  1 credit = 1 ton of CO2 </li></ul><ul><li>Each carbon credit represents one metric ton of C02 either removed from the atmosphere or saved from being emitted. </li></ul><ul><li>For each ton of carbon dioxide that is saved or sequester carbon credit producers may sell one carbon credit. </li></ul>
    35. 35. Generation of Carbon Credits <ul><li>Many types of activities can generate carbon offsets. </li></ul><ul><li>Renewable energy such as </li></ul><ul><ul><li>wind farms </li></ul></ul><ul><ul><li>installations of solar </li></ul></ul><ul><ul><li>small hydro, geothermal </li></ul></ul><ul><ul><li>biomass energy </li></ul></ul><ul><ul><li>can all create carbon offsets by displacing fossil fuels. </li></ul></ul><ul><li>Other types of offsets available for sale on the market include those resulting from </li></ul><ul><ul><li>energy efficiency projects, </li></ul></ul><ul><ul><li>methane capture from landfills or livestock, </li></ul></ul><ul><ul><li>destruction of potent greenhouse gases such as halocarbons, and carbon sequestration projects that absorb carbon dioxide from the atmosphere. </li></ul></ul>
    36. 36. Recent Limelights <ul><li>Bombay HC stays Env Min's direction to Lavasa to stop construction: On November 25, MOEF issued a show-cause notice to Lavasa, demanding an explanation as to why it did not obtain clearances BT Brinjal stopped by Environment Ministry </li></ul><ul><li>Adani was fined for polluting and land degradation In Mundra </li></ul><ul><li>BP Case </li></ul>
    37. 37. British Petroleum Case <ul><li>“ Gulf of Mexico oil leak 'worst US environment disaster” </li></ul><ul><li>Case background </li></ul><ul><li>Slice and cap </li></ul><ul><li>Unjustly victimized </li></ul>
    38. 38. Global Market Overview – Renewable Energy <ul><li>Renewable electricity generation capacity reached ~ 240 gigawatts (GW) in 2007, an increase of 50 percent over 2004 which represents 5 of total capacity. </li></ul><ul><li>Including large hydro, the capacity supplied by renewable energy is close to 20% </li></ul><ul><li>The fastest growing energy technology in the world is grid-connected solar photo voltaics (PV), </li></ul><ul><li>Global renewable energy capacity </li></ul><ul><li> grew at rates of 15–30 percent </li></ul><ul><li>annually during the five-year </li></ul><ul><li>period 2002–2006 </li></ul>
    39. 39. Renewable Energy in India – An Overview <ul><li>Total installed capacity in the country is 141,500 MW as on February 29, 2008 </li></ul><ul><li>As of June 2007, in India, Generation capacities based on renewable resources are around 10.7 GW showing a y-o-y growth rate of 30%. </li></ul><ul><li>Including large hydro capacity, renewable capacity is ~46 GW </li></ul><ul><li>India consumes 3.7% of the world’s commercial energy - the 5th largest consumer of energy globally. </li></ul><ul><li>India is facing large supply-demand mismatches, with some areas without any access to electricity altogether. </li></ul><ul><li>Period from Apr-07 to Feb-08 witnessed a deficit of 16998 MW, or 15.8% of the demand </li></ul><ul><li>Key drivers for renewable energy in India </li></ul><ul><li>Ample number of sites for Wind, Hydro and Solar </li></ul><ul><li>Plants </li></ul><ul><li>Government incentives </li></ul><ul><li>Increasing sources of finance </li></ul>
    40. 40. India – An Attractive Renewable Energy Market <ul><li>The Indian subcontinent has a large potential for power generation by the effective utilization of renewable energy </li></ul><ul><li>The Ministry of New and Renewable Energy (MNRE), Govt. of India has planned a target of 10,000 MW renewable energy during the 11th five year plan (i.e. 2007 to 2012). </li></ul><ul><li>India ranked among the most attractive countries worldwide based on regulatory environment, feasibility for Renewable energy generatio and other incentives for Development </li></ul><ul><li>Overall score of 64/100 for all Renewable </li></ul>
    41. 41. Available potential in India
    42. 42. State wise potential in India, 2005
    43. 43. Indian Solar Power Sector Overview <ul><li>Large Potential Exists.. </li></ul><ul><li>Among top 5 destinations worldwide for Solar Energy development as per Ernst & Young’s renewable energy attractiveness index </li></ul><ul><li>Daytime production peak coincides with peak electricity demand making solar ideal supplement to grid </li></ul><ul><li>Though Limited growth till now.. </li></ul><ul><li>Cost of solar electricity versus conventional electricity has restricted past growth </li></ul><ul><li>Government encouraging Solar energy investments.. </li></ul><ul><li>The ministry is providing various incentives and duty concessions for both </li></ul><ul><li>manufacturers and users of solar products for e.g. : </li></ul><ul><ul><li>To help in running of solar projects, there is a subsidy of Rs 12/Kwh </li></ul></ul><ul><ul><li>Capital subsidy available in case of semiconductor based units </li></ul></ul><ul><ul><li>Provisions for Accelerated depreciation available for solar manufacturers </li></ul></ul><ul><ul><li>NIL excise duty for manufacturers </li></ul></ul><ul><ul><li>Low import tariff for several raw materials and components </li></ul></ul><ul><ul><li>Soft loans to users, intermediaries and manufacturers </li></ul></ul>
    44. 44. Indian Wind Energy Sector Overview <ul><li>Current Scenario </li></ul><ul><li>4th largest producer of wind energy in the world with a capacity of 7 GW </li></ul><ul><li>Capacity growth now touching 40 y-o-y </li></ul><ul><li>Tamil Nadu, Maharashtra & Karnataka are the leaders in wind capacity. </li></ul><ul><li>Of the 1.7 GW added in FY 07, ~ 76 was contributed by these three states. </li></ul><ul><li>Key Issues </li></ul><ul><li>Short construction period and low O&M cost make it an attractive proposition </li></ul><ul><li>Some Regulatory/institutional hurdles exist for wheeling </li></ul><ul><li>Future Potential </li></ul><ul><li>Cumulative installed capacity is expected to reach 12GW by 2010. </li></ul><ul><li>Over the last 10 years wind capacity has grown at a CAGR of 22. </li></ul><ul><li>The cumulative investment is currently more than Rs 25,000 bn; expected to touch Rs 35,000 bn by 2010. </li></ul>
    45. 45. Indian Hydro Power Sector <ul><li>Large Potential for Hydro power Generation </li></ul><ul><li>India ranks 8th in terms of hydro-electricity generated, thus making it one of the largest producers of hydropower. </li></ul><ul><li>Hydro power potential located mostly in North and North Eastern parts of India </li></ul><ul><li>Attractive on various counts </li></ul><ul><ul><li>Proven Technology </li></ul></ul><ul><ul><li>Low O&M costs </li></ul></ul><ul><ul><li>Equipments have longer lifetime </li></ul></ul><ul><ul><li>High energy conversion efficiency (around 70) </li></ul></ul><ul><li>Key weakness lies in high gestation period and capital costs </li></ul><ul><li>Government keen to promote Hydro Power </li></ul><ul><li>Investment in hydro sector, and power sector is driven by the government’s target to reduce energy shortage </li></ul><ul><li>Hydro capacity expected to reach 57 GW by 2012 </li></ul><ul><li>To encourage private investments in the renewable energy sector, MNRES has introduced subsidy schemes for small hydro projects upto 25MW. </li></ul>
    46. 46. Biomass <ul><li>Biomass already supplies 14 % of the world’s primary energy consumption. On average, biomass produces 38 % of the primary energy in developing countries. </li></ul><ul><li>USA: 4% of total energy from bio mass, around 9000 MW </li></ul><ul><li>INDIA is short of 15,000 MW of energy and it costs about 25,000crores annually for the government to import oil. </li></ul><ul><li>Bio Mass from cattle manure, agricultural waste, forest residue and municipal waste. </li></ul><ul><li>Anaerobic digestion of livestock wastes to give bio gas </li></ul><ul><li>Digester consumes roughly one third the power it’s capable of producing. </li></ul><ul><li>Fertilizers as by product. </li></ul><ul><li>Average electricity generation of 5.5kWh per cow per day!! </li></ul>
    47. 47. Other Natural Resources <ul><ul><li>Oil </li></ul></ul><ul><ul><li>Coal </li></ul></ul><ul><ul><li>Natural Gas </li></ul></ul><ul><ul><li>Tidal </li></ul></ul><ul><ul><li>Gobar gas Production </li></ul></ul><ul><ul><li>Biogas </li></ul></ul><ul><ul><li>Synthesis gas </li></ul></ul>
    48. 48. Historical challenges facing RE in India <ul><li>Key Barriers in Renewable Energy development </li></ul><ul><li>Optimal pricing of power generated from the renewable energy sources </li></ul><ul><li>Quality and consistency issue of renewable power arising from the intermittent nature of electricity from wind and small hydropower </li></ul><ul><li>The costs of technology development and production need to be reduced significantly from current levels </li></ul><ul><li>Creditworthiness of counterparties has posed challenges </li></ul><ul><li>Slow pace of rural electrification and pace of reforms in the rural electricity sector </li></ul>
    49. 49. Future growth drivers for RE in India <ul><li>Demand Supply Gap </li></ul><ul><ul><li>Supply regularly being over stripped by demand </li></ul></ul><ul><li>Natural Resource Scarcity </li></ul><ul><ul><li>Limited amount of fossil based fuel sources </li></ul></ul><ul><li>Large renewable energy potential </li></ul><ul><ul><li>Abundance of sites for tapping natural & renewable sources of energy </li></ul></ul><ul><li>Availability of New forms of capital – Private equity, CDM </li></ul><ul><ul><li>Increasing presence of PE funds in Clean energy </li></ul></ul><ul><ul><li>India emerging as a dominant player in CDM projects </li></ul></ul><ul><li>Fiscal incentives Provided by government </li></ul><ul><ul><li>Various incentives provided by the government to make </li></ul></ul><ul><ul><li>projects more attractive </li></ul></ul><ul><li>Increasing state level initiatives </li></ul><ul><ul><li>States such as Punjab, Haryana, AP taking </li></ul></ul><ul><ul><li>the lead in development of RE projects </li></ul></ul>
    50. 50. Government of Gujarat Jyotigram Yojana
    51. 51. <ul><li>Raysan: Village in Gujarat: Population 1700 </li></ul><ul><li>Electricity: 24/7 365 days/ year! </li></ul>Almost 85% of a state’s power goes to agriculture Uncontrolled supply of electricity = large wastage of electricity and water + large public costs + severe ground water extraction. <ul><li>  Innovations: </li></ul><ul><li>Not Power for Irrigation, but ‘Power + Irrigation’ Reform </li></ul><ul><li>Separate Domestic/ Industrial and Agricultural Feeders </li></ul><ul><li>Check Dams </li></ul>Jyotigram: Power and Irrigation Reform
    52. 52. Jyotigram: Power and Irrigation Reform Work executed under Jyotigram 1 New High Tension Lines 56,307 Kms New Low Tension Lines 22,146 Kms New Transformers 18,724 Nos. Poles erected 17,00,000 Nos. Government Grant Rs. 1115 Crores No. of Days 1000
    53. 53. Jyotigram: Power and Irrigation Reform
    54. 54. “… after the implementation of Jyotigram Yojna the electricity expense has notably increased for 95% of the households. Expenses on education, healthcare and consumer durables have gone up by 50%, 35% and 22% respectively”. Jyotigram: Power and Irrigation Reform
    55. 55. “ Rationing of farm power supply post-Jyotigram brought about a certain order and discipline in the extraction of groundwater, but the improved quality and reliability of farm power supply also made it possible for farmers to make ambitious plans to grow Bt cotton and wheat on a large scale.” Agricultural Growth Rates: 9.6 %- the highest in India Jyotigram: Power and Irrigation Reform
    56. 56. Source: ‘Secret of Gujarat's Agrarian Miracle after 2000',Tushaar et. al. Economic & Political Weekly, December 26th 2009. Jyotigram: Power and Irrigation Reform
    57. 57. Jyotigram: Power and Irrigation Reform <ul><li>Impact: </li></ul><ul><li>The entire costs of the scheme of 1115 crores was made back in 2.5 years. </li></ul><ul><li>Electricity distribution losses down from 30.64% to 21.5% </li></ul><ul><li>Revived a bankrupt electricity board: surplus of 126 crores. </li></ul>Average monthly revenue collection has increased… 2004-05 850 crores 2007-08 1231 crores 2008-09 1473 crores
    58. 58. <ul><li>Reduction in Distribution Loss and Distribution Transformer Failure Rate. </li></ul><ul><li>Promotion of industrial and commercial activities in villages leading to local </li></ul><ul><li>employment generation; </li></ul><ul><li>Buoyant revenue through prevention of power theft. </li></ul><ul><li>Improved standards of living in rural areas on account of access to a wide variety </li></ul><ul><li>of goods and instruments; </li></ul><ul><li>Enhanced exposure of rural population to different parts of the world through </li></ul><ul><li>electronic media, leading to updating of knowledge avenues; </li></ul><ul><li>Impact on quality of education; </li></ul><ul><li>Improved of health services and sanitation facilities; </li></ul><ul><li>Reduction in migration from rural areas to urban areas. </li></ul><ul><li>Regulated but improved quality power supply to agriculture enabled efficient </li></ul><ul><li>and optimum use of water, which in turn contributes to conservation </li></ul><ul><li>of ground water resources. </li></ul><ul><li>Speedy restoration of power supply due to parallel network in case of disruption. </li></ul><ul><li>Potential for replication in other States . </li></ul>Jyotigram Advantages
    59. 60. Compressed Natural Gas What exactly is CNG? CNG or compressed natural gas is a domestically available, economical, clean burning, alternative fuel source for vehicles.  CNG is Compressed Natural Gas which has been used as an alternative clean burning fuel since the 1990s It is essentially the same natural gas that is delivered to most homes to use for cooking, heating water, and forced air heat
    60. 61. 1.Economic benefit: The cost of CNG is almost a third of the cost of Petrol in terms of calorific value resulting in substantial saving in fuel cost, and investment on the CNG kit is paid back in a short period 2. Environment friendly: The use of CNG as a fuel reduces vehicular exhaust emissions significantly. Carbon Monoxide emissions are reduced by 70 to 90% and Hydrocarbon emissions by 40 to 60% as compared to vehicles that use the conventional fuel - Petrol. Carbon Dioxide emissions, a cause for global warming, are also reduced significantly by 10% 3. 100% Income Tax Depreciation: Corporate Organisations, firms, etc. can claim 100% depreciation on a CNG Conversion Kit as this is a pollution controlling equipment. Organisations that buy CNG Conversion Kits should consult their Income Tax Consultants and avail of the depreciation benefits 4 . Flexibility and ease of use: The basic engine characteristics of a vehicle are retained while converting it to run on CNG. The vehicle therefore is capable of running either on Petrol or CNG at the flick of a switch on its dashboard. Reasons for switching over to this alternate fuel
    61. 62. In addition, owning a Clean Burning Fuel Vehicle has many other upsides & advantages including:      increased longevity on the car (oil changes every 5,000 to 9,000 miles)         Engine components remain a lot cleaner with a clean burning fuel     less wear on critical engine components, bringin the cost of maintenance down drastically.       Better fuel efficiency in comparison to standard gasoline vehicles; and much more. Why CNG Now? You can save money and reduce greenhouse grass in one move ..
    62. 63. <ul><li>Prime among its disadvantages is the loss of luggage space. CNG cylinders take up a lot of storage space and generally have to be placed in the boot of the car. </li></ul><ul><li>The body of the cylinders too have to be made of good grade steel capable of handling the roughs and toughs of travelling. </li></ul><ul><li>The cost of conversion too is another major determining factor. The conversion kit can cost from Rs. 25,000 to Rs. 35,000. </li></ul><ul><li>Experts claim that this cost can be recovered from the fuel savings. Finally, based on its characteristics. CNG may slightly hamper vehicle performance. </li></ul>Disadvantage of CNG
    63. 64. Recommendation <ul><li>Consumption versus Preservation of Environmental Resources </li></ul><ul><li>Valuation of environmental damages </li></ul><ul><li>Natural Resource Accounting </li></ul><ul><li>Use of Economic instruments/Price Mechanism </li></ul><ul><li>Removing subsidies that encourage unsustainable use </li></ul><ul><li>Extension of Property rights </li></ul><ul><li>Trade and Environment </li></ul><ul><li>Development that can reduce poverty </li></ul><ul><li>Development of Infrastructure facility which can reduce the pollution. </li></ul><ul><li>Develop the awareness for the environment among the people. </li></ul><ul><li>Peoples’ participation—Green Movement </li></ul><ul><li>Participation in global dimensions of environment </li></ul>
    64. 65. THANK YOU