Part 3 lecture- environmnetal regulation in energy sector
Environmental Regulation in
Dr. Tabrez Ahmad,
Professor of Law
o Review of Existing environmental Norms and the Power sector
o Environmental pollutant
o Hazardous substance
o Penal provisions
o Prohibition of dumping of ash or any wastes from thermal power plants in the
o Critically polluted area
o Various power plants
o Rehabilitation plan for displaced people
o Critique of the various Environmental Acts
o Environmental Standards
o Implementation and Enforcement Problems
o Climate Change
o Climate Change and India’s actions
o National Missions on Solar, Energy
o Climate Technology Centers and Network
o India’s National Communication to United Nations Framework Convention on
Climate Change (UNFCCC)
o Climate Change & India
o Intergovernmental Panel on Climate Change (IPCC)
Dr. Tabrez Ahmad, http://energylex.blogspot.in 2
o Fuel Regulations
o Regulatory Bodies
o Legislative background
o Environment Performance
o Energy Efficiency & Re-cycling
o Fuel Emission Standards
o The 2003 Auto Fuel Policy (2000–2015)
o Future (2013–2035): A time for action and leadership
o Alternative Fuels and New Energy
o International Council on Clean Transportation
o Liquefied Petroleum Gas Vehicles
o Biofuel Vehicles
o Life cycle GHG emissions of biofuels
o New Energy Vehicles
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o Fuel Efficiency and Greenhouse
o Weight-Based Versus Size-Based Regulations
o International LDV Standards
o International HDV Standards
o INDIA’S Fuel Economy Standards
o Future prospects
o Findings and Recommendations
o Effects of New Regulations on the Environment, Public Health, and
the Economy in India
o Environmental Management
o New Energy Policy Instruments (NEPIs )
o The Future-Sustainable Energy
o Case Study
Dr. Tabrez Ahmad, http://energylex.blogspot.in 4
Environmental pollutant- Any solid, liquid, or gaseous
substance present in such concentration as may be or
may tend to be injurious to the environment.
[Section2 (c)], EPA 1986
Hazardous substance - Any substance or preparation
which by reason of it's chemical or physio-chemical
properties or handling is liable to cause harm to
human beings, other living creatures, plants, micro-
organisms, property or the environment. [Section2
(e)], EPA 1986
Dr. Tabrez Ahmad, http://energylex.blogspot.in 5
Review of Existing environmental Norms and
the Power sector
Polluter Pays and Precautionary Principles:
Vellore Citizens Forum vs Union of India (Supreme Court,
In Indian Council for Enviro-legal Action vs. Union of India
(Supreme Court, 1996), the court held that the Central
Government has the power under Sections 3 and 5 of the EPA
to levy and recover the cost of the remedial measures.
The polluter pays principle was also held to be applicable and
Sections 3 and 5 of the EPA were held to empower the
Central Government to give directions and take measures for
giving effect to this principle.
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Section 22: Bar of jurisdiction
No civil court has the jurisdiction to entertain any suit, or
proceedings in respect of anything done, action taken, or order
or direction issued by the Central Government or any other
Authority or officer in pursuance of any power conferred by or
in relation to its or his /her function under the Act.
Section 23: Powers to delegate
Under this section the Central Government can delegate its
functions (as specified in Section 3 of the Act). The Central
Government's power to constitute an authority [Section 3(3)]
and the power to make rules (Section 25) are an exception to
this section. Under the Notification of April 10, 1997, power for
clearance for some power plants has been delegated to State
Governments. For the following types of power plants
clearance can be obtained from the State Government:
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For co-generation power plants of any capacity;
Gas/naphtha-based and coal-based power plants with a fluidised bed
technology of up to 500MW capacity; and
Conventional coal-based power plants of up to 250 MW capacity except
when located within 25 km of the boundary of reserved forests, biosphere
reserves and critically polluted areas or within 50 km of interstate
The following State Governments have been delegated power for
1. Andhra Pradesh, 2. Assam, 3. Bihar, 4. Gujrat, 5. Haryana, 6. Himachal
Pradesh; 7. Karnataka, 8. Kerela, 9. Madhya Pradesh, 10. Mizoram, 11.
Orissa, 12. Rajasthan, 13. Sikkim, 14. Tamil Nadu, 15. Meghlaya, 16. Punjab,
17. Uttar Pradesh, 18. Maharashtra, 19. Goa, 20. Jammu & Kashmir, 21. West
22. Manipur, 23. Tripura
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Section 24: Effect of other laws
After the exceptionally stringent penal provisions provided
in Section 15, the EPA dilutes the same drastically Section
24. Under this section, where an act or omission
constitutes an offence punishable under EPA and also
under any other Act, then the offender shall be liable to be
punished under the other Act and not this Act. For
example, for an offence under EPA As well as the Water
Act, the offender shall be punishable under the Water Act
(Imprisonment of three months or a fine of Rs 5000) and
not the EPA.
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Prohibition of dumping of ash or any wastes from thermal power plants in the
Thermal power plants require environmental clearance from the MoEF, for
foreshore facilities for transport of raw material and for facilities for intake of
cooling water and outfall for discharge of treated waste water/cooling water, in
2. Dhanu Taluka Notification (1991)
Dhanu Taluka in District Thane in Maharashtra has been declared as ecologically
fragile and thermal power plants are not permitted to be set up there.
3. Doon Valley Notification (1989)
This prohibits setting up of an industry in which the daily consumption of
coal/fuel is 24 Mt/day.
4. Revdanda Creek Notification (1989) Under this notification the Central
Government has prohibited location of all industries, carrying on of operations or
processes in a belt of one kilometer from the high tide mark from the Revdanda
Creek (latitude 19 degrees 35 minutes) upto Devgarh point (near Shrivardhan)
latitude 18 degrees; as well as along a one kilometer belt along the banks of the
Rajpuri creek upto Mhasia. 5. Disposal of Fly Ash Notification (1999)
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The main objective of the notification is to conserve top soil,
protect the environment and prevent the dumping and disposal
of fly ash discharged from coal or lignite-based power plants.
The salient features of the notification are:
No person within a radius of 50 km from coal- or lignite-based
power plant shall manufacture clay bricks or tiles or blocks
without mixing at least 25 per cent of as with soil on weight- to
Every coal- or lignite-based power plant shall make available ash
for at least ten years from the date of publication of this
notification, without payment or any other consideration, for the
purpose of manufacturing ash -based products.
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Every coal- or lignite-based power plant commissioned subject to
environmental clearance conditions, stipulating the submission
of an action plan for full utilization of fly ash, shall achieve the
same within a period of nine years from the publication of this
The Central and State Government agencies, the State Electricity
Board, the NTPC and the management of the thermal power
plants shall facilitate utilization of ash. Public works
departments, housing boards etc., shall prescribe use of ash and
ash-based products in their schedules of specifications.
All local authorities shall specify in their respective building
bylaws and regulations the use of ash and ash-based products.
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6. Taj Trapezium Notification (1998)
The Central Government has constituted an authority known as the Taj
Trapezium Zone Pollution (Prevention and Control) Authority. This authority is
empowered to monitor the implementation of various schemes for the
protection of the Taj Mahal and protection and improvement of the
environment in the Geographical limits of the Taj Trapezium.
The geographical limits of the Taj Trapezium have been defined in the shape of
a trapezoid between 26 45 N and 77 15 E to 27 45 N and 77 15' on the west of
the Taj Mahal and on the east between 27 00 N and 78 30 E to 27 30 N and 78 30
E. No power plants can be set up within this geographical limit. 7. Ash Content
Under this notification the following thermal power plants shall the use
beneficiated coal with an ash content not exceeding 34 per cent, with effect
from June 1, 2001. This applies to:
Any thermal power plant located beyond one thousand kilometers from the pit-
Any thermal power plant located in an urban area, sensitive area or critically
polluted area irrespective of the distance from the pit-head except any pit-head
The notification has also defined some terms-
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Procedural Requirements for establishing and operating a New
There is a two-stage clearance for site-specific projects like pit-
head thermal power plants and river valley projects. Site
clearance is given at the first stage and final environmental
clearance is given at the second stage. In 1994, in order to
delineate areas suitable for industrial siting and for classification
of different categories-based on their existing environmental
features, a project for the preparation of a districtwise zoning
atlas has been taken up the CPCB in collaboration with SPCB. It is
expected that the zoning atlas for over 100 priority districts shall
be prepared by the year 2000. The priority districts are those
that face rapid industrialization or environmental problems.
These guidelines will also help in identification of appropriate
sites for power plants.
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Site Clearance - There is no tight framework for siting of power plants. Siting of power plants is
decided on the merits of each case. Relevant facts for siting a thermal power plant are:
The site (chimney) should not fall within the approach funnel of the runway of the nearest airport.
The site should be at least 500 meters away from the flood plains of riverine systems.
The site should be at least half a kilometre away from highways and the main railway line.
Also, while locating thermal power plants the EIA should focus on the environmental impact of the
power plant on
National parks and wildlife sanctuaries
Ecologically sensitive areas like tropical forests, biosphere reserves and coastal areas
Archaeological sites of national importance
The EIA report which is submitted after the site clearance contains the following:
Description of site, site map
Land requirements, No objection certificate from State Forest Department if forest land involved
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Thermal power plants
Consent to establish from SPCB (regarding effluents and emissions)
Report on impacts on the environment during construction Collection of ambient air
quality and meteorological data Report on hydrology and water quality
Report on occupational safety and health
Details of transport and handling of raw material
Report of impact on sensitive terrestrial targets
Post commission requirements: After the thermal power plant has been commissioned the
following facts are relevant
Provision for disposal of solid wastes (fly ash)
Carry out the rehabilitation of the displaced population
Monitor emissions and effluents obtain consent to operate under the Water Act
, Air Act, comply with the standards laid down CPCB/SPCB, apply for renewal of consent
after expiry of specified period
Submit water cess return at regular intervals to SPCB
Submit an environmental statement to SPCB every year
Precautionary measures for occupational health and safety
Preparedness for emergency situations
Provide for green belt of 50-1000 m
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While identifying a site for a hydroelectric power plant and making an EIA report the following are
Impact of the project on biodiversity
Impact on archeological/religious sites
Catchment area and treatment of degraded catchment
pre-impoundment census of endangered biodiversity, land use pattern, mineral resources,
groundwater level, living conditions of affected people in the submergence area
Approval from the state forest department if forest areas involved Physical aspects
Possibility of occurrence of landslides on periphery of reservoir
Potential seismic impact
Expected water quality over time and impact of the same on biodiversity Resource linkage Aspects
Loss of optional land use
Mineral deposit loss
Forest reserve/biodversity loss
Monuments inundated Socio-cultural aspects
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Hydroelectric power plants
Public Health Aspects
Issue of new health problems or vector patterns that may arise due to physical change
factors caused by water impoundment
Cost Benefit Analysis
For compensatory afforestation
Restoration of land in construction areas
Control of aquatic weeds in submerged area
Measures to salvage endangered species/monuments
Public health measures
Catchment area treatment/soil conservation measures
Rehabilitation and resettlement of affected people
Whenever the project is given environmental clearance, a set of recommendations and
conditions are stipulated by the appraisal committee. These have to be complied with by
the investor once the project is commissioned. Project authorities are required to submit
semi-annual compliance reports to MoEF to enable the ministry to monitor the
implementations of the recommendations and conditions of the environmental
clearance. The six regional offices of MoEF assist in monitoring environmentally cleared
projects. Cases of non -compliance are brought to the notice of the SPCB for action.
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The Environment (Protection) Rules, 1986
Rule was made under Section 6 and 25 of EPA which empowers the Central Govt. to lay
down the procedure for setting standards of emission of discharge of environmental
In M/s Narula Dyeing and Printing Works vs Union of India, several industrial units
challenged the action of the State Government taken under Section 5 of the EPA. The
State Government gave directions to these industries to stop production activities and
take necessary steps to make the waste water being discharged by the units to conform
standards specified by the Gujarat State Pollution Control Board. According to the
petitioners, the direction under Section 5 of the EPA has been given without their being
given any opportunity of being heard, and that the State Government cannot dispense
with the hearing before issuing the impugned order.
The High Court of Gujarat held that the Government, in exercise of its powers under
Section 5 read with Rule 4 of the Environment (Protection) Rules, 1986 was fully
empowered to dispense with the opportunity being given for filing objections against
the proposed directions in cases where grave injury to the environment occurred. The
release of effluents by the petitioners units had resulted in polluting the irrigation canal
causing extensive damage to the crops and the fields.
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The SPCB can also make an application to the court to seek
direction from the court to restrain a person from causing water
In M/s Delhi Bottling Co.Pvt. Ltd. vs CPCB,
the usage and application of this section has been contested. It
was contended by the CPCB that for passing an order under
Section 33 by the court, it was not necessary that samples of
effluents be lifted and got analysed as per Section 21 of the
However, the court held that the scheme of the Water Act
showed that Section 21 was a provision of general application
governing the matter of lifting samples in all cases including the
cases of obtaining an order under Section 33 of the Act.
The CPCB should, therefore, prosecute the party under Section
41 of the Act for non-erection of the treatment plant.
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Section 47: Burden of liability
Where an offence under this Act has been committed by a
company, every person who at the time the offence was
committed was in charge of and responsible to the company shall
be deemed to be guilty of the offence, except when he or she can
prove that the offence was committed without their knowledge
or that he or she had exercised due diligence to prevent the
offence. The Act provides for punishment also to those who give
consent to the offensive act or connive in the Act, be it the
director, the manager, the secretary or any other official of the
In the case of UP Pollution Control Board vs M/s Modi Distillery,
the question was whether the Chairman, Vice Chairman, Managing
Director and the Members of the Board are liable to be proceeded
against under Section 47 of the Water Act,
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Critique of the Water Act
Water is a Subject in the State list; consequently the Water Act was
adopted under Article 252 (1) of the Constitution of India, which
empowers the Union Government to legislate in a field reserved for the
states, where two or more State legislatures consent to a Central law. All
the states have approved implementation of the Act of 1974.
The Act was amended in 1988 and the penal provisions of the Act were
brought in line with the 1987 amendments to the Air Act. The penal
provisions as discussed earlier are in practice ineffective. Also there is the
question of conflict that may arise when both the Water Act and the
Environment (Protection) Act come into play together.
Under Section 49 of the Act the public can approach the court on violation
of the Act. However, like in the EPA the usefulness of this provision is
debatable since only the authorized Government officials can collect the
samples. Though the State Board is to make available relevant reports to
the complaining citizens, it can refuse to do so if it thinks that the
disclosures would harm "public interest".
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Critique of the Forest Conservation Act
The FCA has considerably helped in preventing
degradation of forests. In recent years the Supreme Court
has also added force to the Act by giving a very broad -
based definition to the term 'forest'. However the Act
does not provide for a blanket ban on diversion of forest
land for non -forest purposes, and the discretionary
powers given to the Central Government does offer scope
for diverting forest land for non -forest purposes, for
reasons which may not entirely valid.
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Critique of the Wildlife Protection Act.
Power transmission lines pass through a number of
protected areas. There have been instances where
wild animals have died due to electrocution from
Though the POWERGRID has laid down guidelines for
transmission, there is a need to have specific
provisions or rules for transmission of power lines
within the WPA itself.
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In 1991, The Public Liability Insurance Rules were issued. These rules
contain the standard administrative procedures for seeking relief and the
documents that are required for making such claims. Under the rules the
powers of the Collector and the extend of the liability of the owner of the
Hazardous substances have been clarified, specially with reference to the
contribution of the owner to the Environmental Relief Fund.
Critique of the Act
The Act and the Rules under the Act do not spell out the relationship
between these enactments and National Environment Tribunal Act, which
has a concurrent jurisdiction over the subject matter. Also, the actual
operational ambit of the Environmental Relief Fund is not clear. There is a
need for a clarification that the relief under this fund is not limited only to
reimbursement of expenses incurred to undo the damage to persons or
property, but also extends to short-term and longterm damage caused to
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Whether a power station is treated as a factory
The Factories Act defines 'factory' as any premises
where 10 or more workers work on a manufacturing
process with the aid of power, or 20 or more workers
without the aid of power. The fact that some workers
are in the powers station and the rest are either in the
substations or zonal stations will not make any
difference in this respect, as all of them take part in
the manufacturing process.
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Critique of the Act
The Industries (Development and Regulation) Act, 1957 and the
Factories Act, 1948, between them encompass almost all of the
industrial production processes. To promote sustainable use of
resources it is, therefore, necessary that they have a holistic
The Factories Act was amended in 1987 and it was expanded and
applied to ‘hazardous processes’ [Section 2 (ca, cb)]. Though the
Act has received an antipollution orientation since the 1987
amendment, it still fails to promote the objective of the
sustainable use of resources. This could be incorporated within
Section 6 where the State Government makes rules for approval,
licensing and registration of factories.
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Critique of the Act
The NETA was born on the recommendation of the Supreme Court in its judgment in MC
Mehta vs UOI (Shri Ram Mills Case).
The Supreme Court recommended the establishment of Environmental Courts to deal
with cases of environmental Pollution, ecological destruction and conflicts over natural
The National Environment Tribunal Act, however, ignores the Supreme Court's
recommendation that an Ecological Sciences Research Group be established and limits its
scope to setting compensation claims arising out of accidents occurring in the process of
handling Hazardous substances.
The NETA does not provide for compensation for factory workers, who are invariably the
first victims in any accident.
It is quite likely that the claimants under NETA might obtain better monetary
compensation than the workers directly involved.
Death and injuries etc., sustained by the workers are governed by the Workmen's
Compensation Act 1923. Section 4 of the Act empowers the Central Government to
exempt from the operation of the Act, Government-owned corporations and local
authorities. This provision can be "discriminatory" in favour of Government owned
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The Ministry of environment and Forests (MoEF), constituted in 1985
is the nodal agency at the central level for planning, promoting and
co-ordinating environmental programmes. The MoEF Formulates
legislation to mitigate and control environmental pollution. A number
of enforcement agencies assist MoEF in executing its assigned
responsibilities. It has six regional offices:
The major functions of the regional offices include:
Follow up the implementation of conditions and safeguards laid down
for projects when environmental clearance is given
Follow up pollution control measures taken by various industries
Collect and furnish information relating to EIA of projects, pollution
control measures, methodology and status, legal and enforcement
measures, environmental protection of special conservation areas like
wetlands, mangroves and biosphere reserves.
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Enforcement of the Environmental Norms
The CPCB was established in September 1974 for the purpose of
Implementation of the Water Act. Later, in 1981 when the Air Act came into
force the powers of the CPCB and SPCBs were expanded to include
enforcement of the Air Act. Executive responsibilities for the prevention
and control of industrial pollution are undertaken at the Central level by
CPCB, which is a statutory body attached to the MoEF. The functions of the
CPCB include promotion of cleanliness of the streams and wells, advising
the Central Government on matters concerning abatement of water
pollution, and laying down standards for water and air quality, and
ensuring compliance with the EPA.
The SPCBs were constituted to implement the Water Act in the states. The
functions of the SPCBs include planning and execution programmes for
prevention and control of water and air pollution, advising the State
Government on matters concerning abatement of water pollution, laying
down standards for water and air quality, ensuring compliance with
various laws, ensuring legal action against the polluters and evolving
techno-economic methods for treatment, disposal and utilization of
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Central Pollution Control Board and State
Pollution Control Boards
Municipalities and Panchayats
Municipalities and panchayats are expected to play an
increasing role in the environmental management at the
District level. Under the 73rd and the 74th Constitutional
amendments the State Government can delegate certain
functions to these bodies.
Under the XIth Schedule of the 73rd amendment, panchayats
would also be responsible for soil conservation, water
management and non-conventional energy sources.
Under the XIIth Schedule Municipalities would also be
responsible for water supply for industrial use, solid waste
management and protection of the environment.
No rules have, however, been made to put this amendment
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National Environment Appellate Authority
The National Environment Appellate Authority was set up
in 1997 to act as a vigilant body to deal with the
representations, complaints, and appeals made against the
decisions of competent authorities established under the
EPA, granting environmental clearance under the EIA
notification. NEAA is also expected to avoid delays arising
out of protracted litigation involving development projects
and affected people.
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Over the last two decades, there has been considerable
development in pollution control activities at the national,
regional and global level. The mode of controlling pollution, in
particular the setting of standards raises debate. In India the
standards have generally been challenged for being too lax, too
stringent, or simply irrelevant.
The MoEF has stipulated general wastewater discharge
standards and emission standards. These standards limit the
concentration and volumes of the effluents and emissions
released into the atmosphere.
There are specific standards for certain industries (thermal
power plants included), and the standards are generally more
stringent for the new plants than the existing ones. Industry-
specific standards stipulated by the MoEF are generally referred
to as Minimal National Standards (MINAS).
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In 1976 the CPCB developed the concept of evolving industry-specific
effluent standards. An attempt was made to identify relevant
pollution parameters, their pollution potential, best pollution control
technology available and the cost of such a technology. Based on
these considerations industry specific effluent standards were
The SPCBs based on the environmental sensitivity of the location
could make MINAS as well as the emission and effluent standards
more stringent. As per the Water Act, MINAS is advisory and is
notified under EPA for implementation by the SPCBs. MINAS evolved
by CPCB with respect to the emission standards has a legal status
under the Air Act.
The CPCB has classified all the major rivers of the country based on
the designated best use criteria. The primary water quality criteria for
sustaining these uses has also been specified. The CPCB has also
specified the National Ambient
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Air Quality standards (NAAQS) for residential, commercial, industrial
and sensitive zones for the country as a whole. Various State
governments ensure that the water quality criteria and ambient air
quality objectives are met.
This is primarily accomplished by making the effluent and emission
standards stricter than those prescribed by the Central Government.
The national ambient air quality is determined on the basis of the
impact of pollutants on the human health, vegetation and property.
Like the location-specific effluent standards, SPCBs can also make the
emission standard s stringent on the considerations of the carrying
capacity of a specific air-shed and the existing pollution level of
ambient air quality.
The CPCB has evolved the methodology of emission monitoring
systems with respect to air pollutants, which are prescribed under
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Air Quality standards (NAAQS)
India has an extensive framework of environmental laws. Its legislative commitment to
environmental policy objectives is highlighted by the inclusion of the provisions in the
Constitution of India. In addition some decisions of the Indian Courts have provided
recognition of environmental rights e.g., the recognition of the Right to Environment as
an inherent part of Right to Life under the Constitution.
This section discusses the reasons for poor implementation of environmental laws. The
conviction rate is extremely poor because of enforcement problems and some lacunae in
the laws . The lacunae in specific legislation have already been discussed in Section I of
the paper. Some reasons for poor implementation of environmental laws are as follows:
1. Relevance of standards laid down: The relevance of many of the standards prescribed is
questionable because MINAS are not disposal-specific. For Example, a standard for total dissolved
solids, chlorine, sulphates, nitrates or flourides has no relevance if the ultimate disposal of the
effluent is in marine or estuarine waters.
There is also an argument against the effluent standard of 30 mg/l of BOD for industrial effluent
considering nine times dilution in the recipient fresh water-body to bring it down to the requirement
of 3 mg/l of BOD in the ambient water. The argument against disposal specificity is that dilution is
not the solution to the problem of pollution. Industries would tend to gravitate to a place where
dilution is available and in the process the stretch of coastal water, or fresh water if high dilution will
be gradually subjected to fast quality deterioration.
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Implementation and Enforcement Problems
2. Inadequate processes for environmental decision-making and
dispute resolution: Compliance is an integral part of the process of
bargaining by which one gains access to resources. Effective
compliance is largely dependent on the extent to which decision-
making processes take into account and reflect the interests of the
An important function of environmental law should be the provision of
a process by which decisions relating to the use of environmental
resources are taken in a manner that provides a full accounting of all
interests, costs and benefits.
There is also a need for a process to prevent and mitigate
environmental conflicts in an orderly fashion.
Environmental disputes are often resolved through the intervention of
the judiciary in constitutional litigation. Reliance on litigation places a
burden on the court system, and also litigation is not accessible to all
the affected groups.
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3. Insufficient infrastructure in MoEF, CPCB and SPCBs for
implementation: Weak dissemination of law and the decisions made
thereunder, insufficient monitoring of compliance because of lack of
monitoring tools and technical and legal capacity to review compliance,
inadequate capacity for effective inspection, taking remedial actions
including following up in court, and a lack of continued legal training
for the enforcement staff are also the factors responsible.
4. Government insensitivity: The Government has failed to show any
sensitivity to the needs and constraints of individual industries. It has
been more concerned about the process of regulation rather than the
impact of regulation. Very little help is forthcoming from the pollution
control agencies in identifying the most feasible technology for
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5. Legal infrastructure: The CPCB is essentially a 'technical advisory body',
which is required only to lay down standards and give permission. There is very
little monetary incentive to lawyers fighting cases for the enforcement
agencies. Strengthening the legal infrastructure in the MoEF and in the Central
and State Pollution Control Boards, in order to ensure improved inspection and
effective monitoring of compliance is, therefore, an immediate need.
6. Cost of compliance : Given the nature of the pollution control laws an
industry finds that cost of compliance is significantly higher than cost of
defiance, making the penalties prescribed under the Acts as ineffective. For
example, the penal provisions for violation of the Water Act are imprisonment
for a term which may extend to three months, or with a fine which may extend
to Rs 5000 or with both, and in case violation continues an additional fine of up
to Rs 1000 for every such violation. Penal provisions alone cannot discourage
violations of environmental laws. It will be useful if it is supported by a system
of incentives for better compliance.
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Climate Change, as a global environmental phenomenon, has
received heightened political attention in recent years. Fourth
Assessment Report (AR4) of the Inter- Governmental Panel on
Climate Change (2007) has stressed the unequivocal nature of
human-induced climate change. AR4 projects that climate change, if
not addressed, may result in rising temperatures, changed rainfall
patterns, and increased severity and frequency of floods, droughts
and cyclones, which can severely impact livelihoods, especially of
the poor in developing countries.
Expert level studies conducted in India indicate that climate change
may exacerbate the problem of existing climate variability in India.
It is projected that, by the end of 21st century, rainfall in India may
increase by 15- 40% with high regional variability. Warming may be
more pronounced over land areas with northern India experiencing
maximum increase. The warming could be relatively greater in
winter and post-monsoon seasons. The annual mean temperature
could increase by 3°C to 6°C over the century.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 40
The Kyoto Protocol of the Convention sets legally binding
targets for GHG reductions by industrialized countries (5.2%
below their aggregate 1990 emissions) during the “first
commitment period”, 2008-2012.
Currently, the international community is engaged in negotiating
and implementing enhanced actions for achieving the objectives
of the Convention and its Kyoto Protocol.
The mandate given to the parties to decide on the enhanced
actions (including the actions of the largest non-Kyoto party
emitter i.e. the US) and the emissions reduction targets of the
developed countries for the 2nd commitment period under the
Kyoto protocol for the post- 2012 period is known as the Bali
Road Map and is the basis of the current negotiations.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 41
Although India’s contribution to global climate change is minimal
and its total CO2 emissions are about 4% only of total global CO2
emissions, India has been conscious of the global challenge of
climate change. India’s strategy for addressing climate change is
reflected in many of its social and economic development
Current Government expenditure in India on adaptation to
climate variability exceeds 2.6 per cent of the GDP, with
agriculture, water resources, health and sanitation, forests,
coastal zone infrastructure and extreme events, being specific
areas of concern.
In fulfillment of the international obligations under the UNFCCC,
India prepares a National Communication (NATCOM) which
gives an inventory of the greenhouse gases (GHG) emissions in
India, and assesses the vulnerability and impacts.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 42
Climate Change and India’s actions
The NATCOM also makes appropriate recommendations regarding
social, economic and technological measures for addressing climate
change. First NATCOM was presented in 2004. The Government is
engaged in preparing NATCOM II, which will be presented to the
UNFCCC in 2011.
Preparation of NATCOM II is an exercise based on an extensive
network of research and scientific institutions in India and draws
upon expertise and assistance from different institutions.
The National Action Plan on Climate Change (NAPCC) coordinated
by the Ministry and implemented through the Nodal Ministries is
aimed at advancing relevant actions in specific sectors/areas.
Eight national missions in the area of solar energy, enhanced energy
efficiency, sustainable agriculture, sustainable habitat, water,
Himalayan eco-system, increasing the forest cover, and strategic
knowledge for climate change form the core of National Action
Dr. Tabrez Ahmad, http://energylex.blogspot.in 43
The National Missions on Solar, Energy Efficiency, Water,
Agriculture and Sustainable Habitat have been approved by the
Prime Minister’s Council on Climate Change.
State Governments are also preparing, under advice of the
Central Government, State Action Plans aimed at creating
institutional and programme oriented capacities to address
These, together with the National Missions will enhance the
climate change related actions in the public and private domain.
An indicative target of increasing energy efficiency by 20% by
2016-17 is already included in the 11th Five Year Plan.
Perform, Achieve and Trade (PAT) scheme will now be
implemented under the National Mission on Enhanced Energy
Efficiency, by the Bureau of Energy Efficiency (BEE) in order to
achieve this goal.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 44
National Missions on Solar, Energy
The scheme will cover over 700 energy intensive industrial units and
will help them reduce their energy consumption. Government has
announced a domestic mitigation goal of reducing emissions
intensity of GDP by 20-25% by 2020 in comparison with 2005 level.
This is in line with the projections of the energy intensity of India’s
output that has shown a declining trend owing to improvements in
energy efficiency, autonomous technological changes and
economical use of energy.
India’s climate modeling studies show that, even with 8-9% GDP
growth every year for the next decade or two, its per capita
emissions will be around around 3-3.5 tonnes of carbon dioxide
equivalent by 2030, as compared with 1-1.2 tonnes, at present. These
will be well below developed country averages by any estimation.
Achieving the domestic goal of lower energy intensity requires
significant resources to be deployed in different sectors of
Dr. Tabrez Ahmad, http://energylex.blogspot.in 45
An Expert Panel appointed by the Planning Commission is examining the possible
ways in which a low carbon strategy for development can be implemented while
ensuring inclusive growth.
The levy of a cess on coal to generate resources for a National Clean Energy Fund
set up by the Government during 2010, recommendations made by the 13th
Finance Commission for award of grants to States linked with environmental
protection including conservation of forest cover, and funds for afforestation
earmarked to the States by Compensatory Afforestation Management and
Planning Authority (CAMPA) represent important steps taken by the Government
in this direction.
Steps have also been taken to increase capacity at the institutional level for
conducting research into climate change science and making necessary
The Ministry has set up a network, namely the Indian Network for Climate Change
Assessment (INCCA) comprising of 127 research institutions tasked with
undertaking research on the science of climate change and its impacts on
different sectors of economy across various regions of India.
The Ministry released, in May 2010, India’s Green House Gas (GHG) Emissions
Inventory for 2007 prepared by INCCA.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 46
The 2007 inventory was brought out in order to increase transparency of
estimates of the GHG emissions in India. With this publication, India became the
first ‘non Annex I’ (i.e., developing) country to publish such updated numbers.
This constitutes a major step forward to improving the frequency of the
preparation of NATCOMs and emissions inventory in India.
The Ministry carried out, in 2010, a major assessment of the impacts of climate
change on four sectors – water resources, agriculture, forests and human
health – in four critical regions of India – the Himalayan region, North- East,
Western Ghats and coastal prepared by INCCA.
The Report was released by the Ministry in November 2010. The Ministry has
also launched an ambitious project on assessment of ‘black carbon’ and its
impact on environment in consultation with other agencies of the Government.
India’s participation in CDM projects continued to see an upward trend during
the year. By the end of 2010, the total number of approved projects in India had
risen to 1887 out of which 590 had been registered by the CDM Executive Board
(EB) of the UNFCCC. The total investment potential of the approved projects is
Dr. Tabrez Ahmad, http://energylex.blogspot.in 47
The Certified Emission Reduction certificates (CERs) for the projects
approved by the EB are 81.28 million. At a nominal value of US $ 10 per CER,
this represents a likely flow of around US $ 810 million. India continues to
occupy the second position globally in terms of projects approved by the
EB as also in terms of the value of CERs earned by the approved projects.
Initiatives taken in 2010-11 Besides following a pro-active policy of domestic
actions, India took several other initiatives during the year to advance
domestic and international actions on climate change.
The Ministry organised, in collaboration with the United Nations
Department of Economic and Social Affairs (UNDESA), a Ministerial
Dialogue on ‘Climate Change: Technology Mechanism’ on 9-10 November,
2010 in Delhi.
High level representatives from 37 countries and international
organizations participated in the Conference to discuss and agree on the
approach to the structure, function and mechanism of the proposed
Technology Mechanism under the Convention for supporting global efforts
Dr. Tabrez Ahmad, http://energylex.blogspot.in 48
The views piloted by India and emerging from the Conference on Technology
Executive Committee (TEC) and Climate Technology Centers and Network
(CTCN) are part of the Cancun agreements on technology and broadly reflect
During the visit of Chinese Premier in December 2010, India and China signed
on December, 16, a Memorandum of Agreement for ‘Cooperation on Green
This MoU was a sequel to the MoU signed in 2009 on “Cooperation on
Addressing Climate Change’, reflecting the growing cooperation and synergy
between India and China on the issues relating to climate change.
As a follow up to the India-China MoU on climate change cooperation (2009), a
joint India-China workshop on ‘Mountain Eco-systems and Climate Change’ was
also organized in Beijing on September 29, 2010.
A team of Indian experts led by M/o. Environment and Forests and consisting
of representatives of Ministry of Earth Sciences, M/o. External Affairs and the
G.B. Pant Institute of Himalayan Environment and Development (GBPIHED)
participated in the workshop.
Efforts were made during the year to promote bilateral cooperation in climate
change with SAARC, ASEAN and AoSIS countries.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 49
Climate Technology Centers and Network
At the SAARC Summit held in March, 2010 in Bhutan, the Prime Minister
announced setting up of a Climate Endowment for SAARC countries.
The India-ASEAN Green Fund set up during 2008, following the Prime
Minister’s announcement made during East-Asia Summit in 2007, was
operationalised in ASEAN Secretariat with the release of initial installment
of funds by India. Rules for operation of the fund were also finalized in
consultation with the ASEAN Secretariat.
Mutual understanding with the Association of Small Island States (AoSIS)
was sought to be enhanced by making an offer of a scholarship
programme to each member country of the Small Island Developing States
The offer is intended to provide technical assistance and capacity building
on climate science and climate change studies to the officials and scholars
from small island developing states.
The offer is proposed to be implemented through the Indian Technical and
Economic Cooperation (ITEC) administered by the MEA.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 50
During 2010, the UN Secretary General set up two high
level panels, one on the issues relating to long term
climate change finance, and the other on issues relating to
global sustainability to advance actions on climate
change. India has followed the developments closely and
has also remained engaged in the meetings of several
international fora such as Major Economies Forum
organized by the US, the Ministerial Dialogues convened
by the Mexico as the President of COP 16, as also several
other multilateral, regional and bilateral initiatives with a
view to advance global actions on climate change.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 51
– The Ozone Depleting Substances (Regulation and Control) Rules,
2000 under the Environment (Protection) Act, 1986 has been
notified in the Gazette of India on 19th July, 2000. These Rules set
the deadlines for phasing out of various ODS, besides regulating
production, consumption, trade, import and export of ODS and the
products containing ODS. The ODS Rules were amended in 2001,
2003, 2004, 2005 and 2007 to facilitate implementation of ODS
phase-out by the enterprises in various sectors.
– These Rules prohibit the use of CFCs in manufacturing various
products beyond 1st January, 2003 except in MDI and other medical
purposes. Other ODS such as CTC, halon, methyl chloroform will be
used upto 1st January, 2010. Further, the use of methyl bromide has
been allowed upto 1st January, 2015. Since HCFCs are used as
interim substitute to replace CFCs, these would be allowed upto 1st
Dr. Tabrez Ahmad, http://energylex.blogspot.in 52
India currently has two fuel quality standards: one that applies to advanced cities and
one that applies to the rest of the country.
Advanced cities require under 50 ppm sulfur gasoline and diesel.
The rest of the country allows up to 150 ppm sulfur gasoline and 350 ppm sulfur diesel.
As of January 2013, the following advanced cities had 50ppm sulfur fuel: Delhi, Mumbai,
Kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Agra,
Solapur, Lucknow, Ankleshwar, Hisar, Bharatpur, Unnao, Raebareli, Aligarh, Jamnagar,
Vapi, Puducherry, and Mathura.
India's regulatory bodies are as flollows:
Central Pollution Control Board (CPCB)
Ministry of Petroleum and Natural Gas (MoPNG)
Ministry of Environment and Forest (MoEF)
Ministry of Road Transport and Highways (MoRTH)
Bureau of Indian Standards (BIS)
Dr. Tabrez Ahmad, http://energylex.blogspot.in 53
In India, the legal foundation for enforcing automotive fuel standards is based on several
The Essential Commodities Act, 1955 gives state governments the right to ensure that all
essential commodities, including petroleum products, are easily available to the public and
meet government standards. It also calls for fines, imprisonment up to one year, and
forfeiture of the right to do business for those who violate the act.
The Air (Prevention and Control of Pollution) Act, 1981 gives State Pollution Control Boards
(SPCBs) the right to prohibit the production or burning of any fuel that is determined to
lead to air pollution.
The Environment (Protection) Act, 1986 does not specifically mention fuels, but does
authorize the central and the state governments to regulate activities that can harm the
environment, under which the burning of fossil fuels could be included.
The Petroleum and Natural Gas Rules (PNGR), 2002 list specific guidelines to be followed
for the importation and/or refinement of fuel in India, and the transport of fuel within the
The Petroleum and Natural Gas Regulatory Board Act, 2006 created the Petroleum and
Natural Gas Regulatory Board (PNGRB), under MoPNG, and is responsible for ensuring fuel
quality standards, from import or production through retail sales. PNGRB is charged with
ensuring that the PNGR are followed. The PNGRB is also authorized to resolve all disputes
that may arise among producers, transporters, retailers, and consumers over fuel related
issues and has legal authority to enforce fuel quality standards at retail outlets.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 54
Implementation of Fuel Sulfur Content Reduction in India
Date Diesel Gasoline
1995 10,000 ppm (nationwide) -
1996 5,000 ppm (Delhi + selected cities)
1998 2,500 ppm (Delhi) -
1999 500 ppm (Bharat II, Delhi, limited supply) -
2000 2,500 ppm (nationwide) -
2001 500 ppm (Bharat II, selected cities) -
500 ppm (Bharat II, nationwide)
350 ppm (Bharat III, selected cities)
500 ppm (Bharat II, nationwide)
150 ppm (Bharat III, selected cities)
350 ppm (Bharat III; nationwide)
50 ppm (Bharat IV; selected cities)
150 ppm (Bharat III, nationwide)
50 ppm (Bharat IV, selected cities)
Dr. Tabrez Ahmad, http://energylex.blogspot.in 55
Technical Standards- Fuel Sulfur Content
India has been adopting European regulations for both
fuels and vehicle emissions. The Euro requirements are
first introduced in Delhi and other major cities, followed by
nationwide implementation. The evolution of diesel fuel
quality is summarized below. India has reduced its diesel
sulfur content from 10,000 ppm in most of the country in
1999 to a maximum content of 350 ppm in 2012.
In thirteen major metropolitan areas the level has fallen
from 2500 ppm to 50 ppm in the same time period.
Another factor that has improved over the same period is
the cetane number, which went from 45 to 51 nationwide.
An additional seven cities are set to sell 50 ppm sulfur fuel
in 2012, and a total of 63 cities (including those already
receiving 50 ppm sulfur fuel) are planned to receive 50
ppm sulfur diesel by 2015.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 56
Indian Diesel Specification required meeting Bharat Stage II, III, & IV Emission Norms
Characteristics Unit Bharat Stage II Bharat Stage III Bharat Stage IV
2001 (selected cities), 2005
Ash, max % mass 0.01 0.01 0.01
Carbon Residue (Ramsbottom) on 10%
% mass 0.3 0.3 0.3
Cetane Number (CN), min - 48* 51 51
Cetane Index (CI), min - 46* 46 46
Distillation 95% vol. Recovery at °C,
°C - 360 360
Flash point Abel, min °C 35 35 35
Kinematic Viscosity @ 40 °C cst 2.0-5.0 2.0-5.0 2.0-4.5
Density @ 15 °C Kg/m3 820-860 (820-870)* 820-845 820-845
Total Sulfur, max mg/kg 500 350 50
Water content, max mg/kg 0.05% vol 200 200
Cold filter plugging point (CFPP)
a) Summer, max
b) Winter, max
Total contaminations, max mg/kg - 24 24
Oxidation stability, max g/mg3 - 25 25
Polycylic Aromatic Hydrocarbon
% mass - 11 11
Dr. Tabrez Ahmad, http://energylex.blogspot.in 57
†This limit is applicable prior to addition of ignition improvers, if used. In
case a value exceeding the limit is obtained on finished fuels in the market,
ASTM D 4046 / ISO 13759 shall be used to establish the presence of nitrate
containing compound. In such case the present limit for carbon residue cannot
be applied. However, the use of ignition improver does not exempt the
manufacturer from meeting this requirement prior to the addition of additives.
*For diesel process from Assam crude, either CN of 45 min or Cl of 43 min and
density of 820-870 shall be applicable
Dr. Tabrez Ahmad, http://energylex.blogspot.in 58
China is the world’s worst polluter. So it should come as no surprise that the country
fares poorly on some important measures of pollution in a new global index of
environmental performance. The shock is that it also stands out from the pack for its
world-beating greenness in other areas on the same index.
The 2014 Environmental Performance Index (EPI), a joint effort by America’s Yale and
Columbia universities, was released at the World Economic Forum in Davos on January
25th. The long-running biennial effort ranks 178 countries on a variety of measures of
environmental performance. New this year are assessments of performance in
wastewater treatment and climate change, as well as the clever use of satellite data
(to track trends in forestry and air pollution) to top up modelling and official
Overall, the report is more cheerful than most green report cards. The experts believe
countries are doing well in improving access to safe drinking water and sanitation, as
well as in decreasing child mortality. However, the global trends are worrying in other
areas like fisheries, wastewater treatment and air quality. Switzerland came out on
top; Somalia came in dead last. China was ranked 118th, a middling ranking that tops
India (155th) but falls well below South Africa (72nd), Russia (73rd) and Brazil (77th).
Dr. Tabrez Ahmad, http://energylex.blogspot.in 59
However, that average masks a huge divergence in China’s performance in two
important areas. Using satellite data the boffins worked out, for the first time, what
global exposures were to fine particulate matter (known as PM2.5) from 2000 to 2012. It
will come as no news to the long-suffering residents of Chinese cities (like Shanghai,
pictured above in a shot taken last month on a day when PM2.5 levels were more than 10
times greater than levels deemed safe), but the country was ranked rock bottom on air
pollution, with India faring poorly as well.
The surprise is that China has done very well on carbon. The experts calculate that it is
the only emerging economy to have reduced the rate at which its greenhouse-gas
emissions have grown in the last decade. This is especially laudable because its economy
grew by leaps and bounds during that period. By improving energy efficiency, phasing
out some inefficient industrial activities and boosting renewable energy, the country has
made a good start on the thorny tasks of decoupling energy use from economic output
and eventually decarbonising the economy.
Greens the world over can breathe a bit easier knowing that China’s commitment to
tackle greenhouse gas emissions is genuine and its ability to deliver results is now
proven. Ordinary people inside China, however, are sure to be bitterly disappointed that
it will be a very long time before those results translate into any easing of local air
Dr. Tabrez Ahmad, http://energylex.blogspot.in 60
Energy efficiency means delivering the same (or more) services for
less energy. Using less energy means power plants generate less,
which reduces greenhouse gas emissions and improves air
quality. Energy efficiency is practiced during the use of the energy in
your home or office.
Clean energy supply includes renewable energy and clean distributed
generation, such as combined heat and power. Many businesses are
installing renewable energy and combined heat and power at their
buildings to save them money, reduce their environmental impact,
and provide greater control of their energy use.
So how can you make a difference through energy efficiency? Just
follow these quick steps to reduce energy use in your home and at
Dr. Tabrez Ahmad, http://energylex.blogspot.in 61
Energy Efficiency & Re-cycling
Buy ENERGY STAR products, when needed and be sure the “stand-by mode”
function is activated.
If every American home replaced their 5 most frequently used light fixtures or
the bulbs in them with ENERGY STAR qualified lighting, we would save close to
$8 billion each year in energy costs, and together we’d prevent the greenhouse
gases equivalent to the emissions from nearly 10 million cars.
Use an ENERGY STAR qualified programmable thermostat that can
automatically adjust the temperature of your home or office when you are
Check with your local utility or use our Special Offers search to see what
incentives or rebates are available for the purchase of ENERGY STAR qualified
appliances, lighting, or HVAC systems.
Seal and insulate your home and office to improve comfort and reduce heating
and cooling costs. EPA recommends Home Sealing to improve your home’s
“envelope” or the outer walls, ceiling, windows, and floors. To improve the
envelope of your home: Add insulation, seal air-leaks, and choose an ENERGY
STAR labeled window if you are in the market for new windows.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 62
Cars are an indispensable fact of life for most of us. By operating and
maintaining our vehicles responsibly, we can balance our desire for
convenient transportation and a clean and healthy environment.
For example, did you know that used oil can be recycled? Used motor oil can
be reprocessed into fuel that warms your family in the winter and keeps
them cool in the summer. It can be burned in furnaces for heat, or in power
plants to generate electricity for homes, schools and businesses. Processed
motor oil can also be used in industrial burners, or re-refined into high-
quality motor oil.
Just two gallons of used oil can generate enough electricity to run the
average household for almost 24 hours.
The petroleum industry provides convenient used oil collection sites across
the country at many of its service stations.
API is proud to promote it's Used Motor Oil Collection and Recycling
website for more information on used oil recylcing.
Recycling used motor oil not only conserves a valuable resource, but it also
keeps our surface waters and groundwater supplies safe from potential
contamination from improperly disposed used oil.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 63
The 2003 Auto Fuel Policy (2000–2015)
Future (2013–2035): A time for action and leadership
Alternative Fuels and New Energy
International Council on Clean Transportation
Liquefied Petroleum Gas Vehicles
Life cycle GHG emissions of biofuels
New Energy Vehicles
Dr. Tabrez Ahmad, http://energylex.blogspot.in 64
Fuel Emission Standards
India has since progressively lowered its permissible vehicular
pollution emission limits for new four-wheeled vehicles following
the path laid out by the European Union.
The Auto Fuel Policy of 2003 laid down a road map for vehicular
emission and fuel quality standards for the remainder of the new
century’s first decade. This road map has been largely implemented.
In 2010, Bharat IV fuel quality standards and vehicle emission
standards for four-wheeled vehicles were implemented in 13 major
cities, while Bharat III standards took effect in the rest of the
country. As of January 2013, Bharat IV standards had been expanded
to about ten more cities, most of which are along fuel supply routes.
For two- and three-wheelers, India followed an independent path
and regulated emissions in a different manner than Europe and
China. This first phase of emission reductions from all on-road
vehicular sources represents great progress,
Dr. Tabrez Ahmad, http://energylex.blogspot.in 65
In addition to the tighter emission standards, the number of buses and three-wheelers running on
CNG increased steadily over the course of the decade, to more than 180,000 in 2010, and these CNG
vehicles have contributed to particulate matter (PM) emission reductions in cities where they have
been deployed. These are further benefits not captured in Figures ES-1 and ES-2.
The emission reductions in this phase have resulted in, and will continue to result in, tremendous
health benefits. Taking into account the premature deaths avoided as a result of lower PM2.5 (fine
particulate matter) emissions alone in the 337 largest Indian cities, this first phase of emission
reductions saved almost 6,500 lives in 2010. The cumulative economic benefits stemming from
averting premature deaths in the 2000–2010 time period were about Rs. (rupees) 150,000 crore2 (U.S.
$30 billion), offering a payback for the investments made during this period.
Yet, the benefits of this phase would have been even greater had the Auto Fuel Policy not decided to
resort to two sets of standards—one for the major cities and a less stringent standard for the rest of
the country. This particularly affects heavy commercial vehicles since commercial trucks are typically
certified and purchased for operation across one or more states. As a result, even though Bharat IV
standards are in effect for commercial vehicles in major cities after 2010, few Bharat IV trucks are
being manufactured and purchased. As some cities are discovering, it is also difficult to prevent the
registration of passenger vehicles in regions outside the city limits subject to Bharat III standards,
even though those vehicles may largely ply their trade within Bharat IV–covered cities.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 66
The 2003 Auto Fuel Policy (2000–2015)
Further, the lack of a comprehensive inspection and maintenance (I/M) program
continues to be a challenge in reducing air pollutants from vehicles. While the country
has made significant investments in the National Automotive Testing and R&D
Implementation Project (NATRiP), which continues to develop state-of-the-art laboratory
facilities for type-approval testing purposes, a similar commitment was not shown on the
I/M front. While conformity of production (COP) program ensures that all new vehicles
meet standards, the lack of an in-use conformity testing program prevents India from
testing a representative sample of vehicles on the road to ensure they are maintaining
their original emission standards.
The 2000–2010 period represents a successful first step in developing a motor vehicle
program based on the 2003 Auto Fuel Policy. Per vehicle emissions have fallen
significantly, and fleetwide emissions have dropped or slowed as well. But in order to
tackle the significant air quality challenges that remain a similar and more ambitious road
map should be established for the next decade. The next sections assess the magnitude
of the current problem and identify needed policy improvements to match the
tremendous growth in India’s transportation sector.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 67
Some of the major initiatives that have been undertaken during the current period are (i)
the expansion of Bharat IV fuel quality to ten more cities in 2012 (shown in Figure ES-3)
and a commitment to supply Bharat IV fuel to 63 cities by 2015, (ii) the establishment of
six vehicle I/M testing centers, and (iii) a proposal for a fuel efficiency standard and
labeling program for passenger vehicles. Other notable recent actions include the
completion of emissions source apportionment studies for six cities by the Central
Pollution Control Board (CPCB)  and the announcement of a National Mission for
Electric Mobility. While a review of the 2003 Auto Fuel Policy has been conducted, its
findings have not been made public.
Current refineries and cities covered by the Bharat IV fuel standard in India Despite all the
progress, though, air pollution in urban areas often exceeds the National Ambient Air
Quality Standards (NAAQS). The CPCB identified more than 70 cities that were not in
compliance with the NAAQS in 2008.  And as CPCB source apportionment studies have
demonstrated, vehicular emissions continue to be one of the main sources of urban air
pollution in India, accounting for up to 40 percent of PM10 and 90 percent of nitrogen
oxide (NOX) emissions in some cities.  Continued growth in the overall vehicle
population is likely to negate the gains of the past decade in the absence of further policy
action, as shown in Figures ES-4 and ES-5.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 68
Finally, the report of the 2003 Auto Fuel Policy Committee made an
important recommendation with respect to creating an “institutional
mechanism for addressing issues of vehicular emissions and fuel
quality.” Some elements of such a mechanism exist independently
today, and a Standing Committee on Implementation of Emission
Standards (SCOE) functions within the Ministry of Road Transport and
But a single, comprehensive institution responsible for vehicle
emissions and fuel quality, such as the National Automobile Pollution
and Fuel Authority that was recommended by the 2003 Auto Fuel
Policy Committee, would simplify and streamline regulatory activities,
as well as bringing a more farsighted vision of emissions regulations
In case the creation of such an agency is not feasible, all vehicle
emission and related fuel quality regulatory responsibilities should be
fully transferred to the MoRTH instead of being splintered among
various agencies and ministries as under the current setup.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 69
1. Mandate lower sulfur content (10 ppm) for all road-vehicle fuels and
standards to Bharat VI and beyond for all vehicle types.
2. Increase the durability requirements of emission regulations to match
levels that manufacturers have already demonstrated the ability to meet in
other jurisdictions, such as the United States.
3. Develop, by April 1, 2015, a national program to select at random properly
maintained and used vehicles and test them against their original emission
standards, along the lines of U.S. Environmental Protection Agency
programs, to be implemented starting April 1, 2017. India is already in the
process of establishing more than ten vehicle testing centers around the
country, which should be used for conducting such in-use vehicle testing.
This will ensure that vehicles are meeting durability requirements and that
noncompliant vehicles are identified.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 70
Numerous specific recommendations follow from the ICCT’s
comprehensive analysis of the policy context and options for
vehicle emissions control in India as follows:
4. Develop a national program to test fuel quality throughout the supply
chain, including retail stations, by April 1, 2015. A national fuel testing lab has
already been commissioned in Noida, but as planned that facility would not
have the authority to take action against noncompliant fuels. Regional fuel
testing labs should be established in all regions of the country and given
authority to take legal action against fuel handlers dealing with
5. Establish a National Automobile Pollution and Fuel Authority (NAPFA), as
recommended by the Auto Fuel Policy Committee in 2002, with power over
environmental regulations for vehicles and fuels, to ensure timely
implementation of the auto fuel policy road map. NAPFA should have the
ability and authority to work with fuel quality and vehicle emissions testing
labs to issue mandatory recalls, levy fines, and take other legal action
against parties dealing with noncompliant vehicles and fuels.
6. Mandate annual vehicle registration for all vehicle types across the
country. Currently, private vehicles need only be registered 15 years after
initial purchase. Annual registration can be linked with PUC testing and
proof of insurance. This will provide India with more comprehensive data on
its vehicle fleet and will enable the government to streamline regulations.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 71
7. Mandate Stage I and Stage II evaporative emission controls by 2017 at all
urban fuel retail stations, in time for nationwide deployment of ultra-low-
sulfur fuels (<10 ppm sulfur). Additionally, mandate on-board refueling
vapor recovery (ORVR) systems for all new vehicles beginning in model-
8. Adopt the 2020 passenger car fuel economy standards, already
developed jointly by the Bureau of Energy Efficiency (BEE) and the Ministry
of Road Transport and Highways (MoRTH), without delay, and extend the
standards to 2025.
9. By 2015, have in place regulations requiring a 2 percent annual reduction
in fuel consumption by light as well as heavy commercial vehicles between
2016 and 2025.
10. By 2017, have in place regulations requiring a 1 percent annual reduction
in fuel consumption by two- and three-wheelers between 2018 and 2025.
Detailed recommendations on emission standards, fuel quality, compliance
and verification programs, fuel switching, and efficiency measures can be
found at the end of individual chapters of the report.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 72
For vehicles, the term “alternative fuels” refers to substitutes for
conventional fuels such as diesel and gasoline. With rapidly
growing vehicle populations and limited oil supplies, many
governments around the world have sought to promote
nonpetroleum and often homegrown
fuels as suitable alternatives. Beyond energy security, though,
authorities must not overlook the environmental impacts of such
vehicles and fuels, in terms of both conventional air pollutants and
greenhouse gases (GHGs). When taking into consideration fuel life
cycle emissions, some alternative fuels may not yield any benefits
over conventional fuels. This chapter provides information on the
environmental advantages and drawbacks of a range of alternative
fuels and vehicles currently deployed, or planned to be, in India.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 73
Overview of India’s Vehicle Emissions Control Program
Alternative Fuels and New Energy
These include compressed or liquefied natural gas (CNG/LNG),
ethanol, liquefied petroleum gas (LPG), and various new
technology vehicles such as conventional hybrid electric vehicles
(HEV), plug-in hybrid electric vehicles (PHEV), battery electric
vehicles (BEV), and hydrogen fuel cell electric vehicles (FCEV).
Alternative-fuel vehicles are designed in different ways, depending
on how they use fuel. Vehicles can be engineered to use one
alternative fuel; dual-fuel vehicles can use either a conventional or
an alternative fuel, stored in separate tanks; and flexible-fuel
vehicles (FFVs) can use either a conventional or an alternative fuel,
or a mixture of both, stored in the same tank.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 74
Not all alternative-fuel vehicles are produced by original equipment
Vehicles originally designed to have conventional fuel engines can be
modified to accommodate alternative fuels.
Generally speaking, OEM alternative-fuel vehicles have better engine
and emissions performance, given that engine design and calibration
are optimized for alternative fuels.
Each of the following sections summarizes international and Indian
experience and policies related to promoting the use of these fuels.
Based on the emissions features of each fuel type, as well as lessons
learned in India and abroad, each section ends with
recommendations. These reflect India’s opportunities in the
development and implementation
of policies that support sustainable alternatives to petroleum-derived
Dr. Tabrez Ahmad, http://energylex.blogspot.in 75
Because of natural gas’s lower energy content per kilogram compared with
gasoline or diesel, NGVs yield less engine power, which may cause difficulties in
climbing, accelerating, or driving with heavy loads. Furthermore, CNG is stored
in specially designed tanks (at 200-bar pressure), which increase vehicle weight
and may displace load or reduce passenger capacity. This can further curtail fuel
In general, these limitations have restricted CNG vehicles to niche applications
such as city buses and other vehicles with fixed routes and secure refueling
Vehicles fueled with LNG, which has much higher energy intensity and therefore
does not require as large a fuel tank as CNG vehicles, are better suited to long-
haul applications, especially for heavy-duty trucks.
As mentioned, developing countries have a growing interest in converting diesel
buses into NGVs to reduce emissions. Where natural gas refueling is difficult,
diesel buses are often modified as dual-fuel vehicles that can run on either. In
this case, however, dual-fuel engines cannot be optimized for use with natural
Thus, the flexibility of dual-fuel vehicles often comes at a cost of lower fuel
economy. Newer technologies, such as high-pressure direct injection, may
improve engine efficiency, but they are associated with high maintenance costs.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 76
In the United States, NGVs are primarily urban buses or refuse truck. The Energy
Policy Act of 1992 included CNG and LNG as alternative fuels and provided tax
incentives for them, their fueling infrastructures, and NGVs.
In the case of light-duty vehicles, the implementation of more stringent
emission standards for new engines over the past 20 years has stimulated the
development of new diesel and gasoline engine and fuel technologies that are
competitive with CNG engines from an emissions standpoint.
As a consequence, interest in light-duty CNG vehicles waned, although a few
manufacturers are again considering NGVs, stimulated by falling natural gas
prices and abundant supplies. Honda is still producing a CNG-based light-duty
Chrysler and General Motors recently announced plans to develop CNG variants
of some of their pickup trucks. There are also more product options on the
Worldwide, NGVs are most popular in South American countries like Argentina
that are rich in natural gas but not petroleum. Rather than providing incentives
for natural gas 24 Most of these incentives have now expired.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 77
Argentina chose to levy a high tax on gasoline, so that natural
gas sells for one-fourth of its price. China, too, has been
promoting NGVs in a number of its southwestern cities.
Natural gas is much cheaper in that region compared with
gasoline and diesel (about 40–50 percent of the price of
Starting in 2000, natural gas became a commonly available
energy source for eastern cities like Shanghai and Beijing as
well, which laid the groundwork for developing NGVs.
By the end of 2008, NGVs were being promoted in 80 Chinese
cities, resulting in more than 170,000 of them on the road and
more than 500 CNG refueling stations nationwide.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 78
International Council on Clean Transportation
Delhi has been at the forefront in introducing CNG heavy-duty vehicles in India.
More than a decade ago, the city built the world’s largest CNG bus fleet after
skyrocketing growth in private vehicle ownership resulted in poor air quality and
severe public health problems.
In response to these problems, the Supreme Court of India issued an order that
required Delhi’s entire bus fleet to be converted from diesel to CNG by March
Other cities have also followed Delhi’s lead in switching their bus fleets to CNG.
These include Visakhapatnam, Indore, Ujjain, Thane, Mumbai, Pune, Pimpri-
Chinchwad, Agartala, Agra, Kanpur, and Lucknow.
In addition to buses, many LDVs also use CNG as a fuel, particularly taxis and
autorickshaws. In 2010, there were more than 354,000 CNG-powered vehicles in
the entire country.
Of these, about 150,000 were in Delhi, with the rest operating mostly in
Mumbai, Hyderabad, Ahmedabad, Surat, Vadodara, Kanpur, Bareilly, Agra,
Lucknow, and Agartala.
In the 2010–2011 fiscal year, in excess of 80,000 new CNG vehicles were sold,
representing 2.7 percent of total passenger vehicle sales in India.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 79
Despite the initial benefits of CNG vehicles, congestion, poor road
conditions, overloading, and lack of maintenance have gradually
eroded their advantages.
Furthermore, as emissions standards become stricter, it will be
tougher for NGVs to comply without aftertreatment systems.
In recent years, it has been recognized that ultra-low-sulfur diesel
and DPFs for diesel vehicles could better reduce emissions than
using CNG without after-treatment systems.
In India, however, ultra-low-sulfur diesel is not scheduled to be
introduced in the near future.
This means that CNG vehicles, especially buses, will remain central
to in many cities’ strategies to control air pollution.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 80
In this section, four vehicle types are considered: conventional hybrid electric vehicles,
plug-in hybrid electric vehicles, battery electric vehicles, and hydrogen fuel cell electric
This section also surveys international experiences in developing and deploying new
energy vehicles. Given the similar characteristics of certain new energy vehicles (for
example, BEVs and FCEVs), they may at times be grouped together for discussion.
HEVs and PHEVs combine an internal combustion engine, a battery, and an electric motor.
HEV technologies can achieve a 30–70 percent increase in fuel efficiency over
conventional vehicles, depending on the technology used, the degree of hybridization,
and driving patterns. Unlike the other three new energy vehicle types, HEVs are not
entirely electric-drive because vehicle propulsion still relies, at least partly, on the
conventional engine. Unlike PHEVs and BEVs, HEVs do not require an electric recharging
BEVs (and some PHEVs) operate entirely on electric mode, meaning that they require no
conventional fuel at all. On the other hand, the batteries in these vehicles must be
recharged, which requires the development of recharging infrastructure.
Large-scale deployment of FCEVs and BEVs can greatly improve air quality in urban areas,
as there are no tailpipe emissions.
The same is true for PHEVs operating only in electric mode. Having zero tailpipe emissions
also means that in-use emissions testing programs can be done away with. This is
especially true for FCEVs and BEVs, which have zero tailpipe emissions throughout their
Dr. Tabrez Ahmad, http://energylex.blogspot.in 81
New Energy Vehicles
Looking at range, FCEVs can travel farther than BEVs on a “tank” of fuel.
They can also beat out HEVs, though this depends on a vehicle’s engine
configuration and fuel economy.
Therefore, FCEVs are best suited for vehicles that traverse long distances.
To date, FCEVs generally have batteries in addition to the fuel cell.
Because of this, they take advantage of regenerative braking to increase
their range, like BEVs and HEVs.
Despite the zero tailpipe emissions about which many new energy vehicles
can boast, ramping up electricity and hydrogen generation for them can
increase upstream emissions, although this depends on the production
Hydrogen can be obtained from fossil fuels or biomass or through the
electrolysis of water.
The diversity of production processes means that upstream emissions can
Dr. Tabrez Ahmad, http://energylex.blogspot.in 82
As with hydrogen, electricity generation can come from a variety of sources.
Life cycle emissions for electric vehicles depend on a region’s electric grid.
For example, a study showed that, for the U.S. grid as currently structured,
replacing a conventional vehicle with a BEV could reduce life cycle volatile
organic compounds, CO, sulfur oxides (SOX), NOX, and PM emissions by 100
percent, 100 percent, 75 percent, 69 percent, and percent, respectively, in
But in rural areas, the study pointed out that BEVs may increase power plant
emissions of certain pollutants (SOX, NOX, and PM); this is because power
plants are usually located away from cities.
Life cycle GHG emissions of BEVs would be 19 percent lower than an
equivalent gasoline vehicle in an area with the typical U.S. mix of generating
sources for the electric grid. But in a state like California, which uses much
more renewable energy and relatively less carbon-intensive gas-fired power
plants, the same shift to BEVs could reduce life cycle GHG emissions by 74
Conversely, in regions where most power generation is provided by carbon-
intensive fossil-fuel-based power plants, life cycle GHG emissions resulting
from switching to BEVs over gasoline vehicles could actually increase.
However, this might change with time if renewable energy sources replaced
fossil-fuel-based power plants.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 83
The development of FCEVs and BEVs still faces economic and
Processes for extracting hydrogen fuel for FCEVs from
renewable sources are still under development and will remain
expensive in the near future. In addition, on-board hydrogen
storage technologies, especially for light-duty vehicles,
continue to be prohibitively costly for the consumer market.
BEVs need to overcome technological obstacles in terms of
battery capacity and costs.
Although low-capacity batteries may be sufficient to operate
cars in cities, with their short driving ranges and low maximum
speeds, they still cannot compete with the 300- plus miles per
tank offered by conventional vehicles.
But battery technology is improving rapidly, and many range
restrictions for BEVs may be overcome in the future.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 84
If large-scale deployment of new energy vehicles happens, existing
regulations, focused on internal combustion engines, must be
modified to account for the new technologies’ distinct features.
Changes called for would be the redetermination of fuel (or energy)
efficiency standards, emissions standards that account for well-to-
wheel emissions, and safety standards adapted to the electric
Electric vehicles will require new standards for recharging systems
and battery recycling.
Lack of a recharging infrastructure could be an initial barrier to
widespread adoption of BEV and FCEV vehicles. But it should be
noted that, while building an adequate infrastructure will require
significant investment, maintaining the existing infrastructure for
gasoline and diesel is also costly and demands vast resources.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 85
The state of California was the first in the United States to promote electric
vehicles in the 1990s. This was done as part of the zero-emission vehicle
(ZEV) mandate in accordance with low-emission vehicle regulations to
improve air quality.
Recently, California has broadened the rationale to include energy diversity
and GHG concerns.
The state is setting a target of 14.4 percent of auto sales being ZEVs by 2025
and 80 percent by 2050.
The United States as a whole, driven mainly by energy security concerns,
accommodates electric vehicles in the EPA’s list of certified alternative-fuel
The country began to provide tax incentives to consumers for purchases of
new HEVs, BEVs, and FCEVs under the Energy Policy (EP) Act of 2005.
The Energy Independence and Security Act (EISA) of 2007 extended the tax
credits to PHEVs. Under the American Recovery and Reinvestment Act of
2009, low-speed neighborhood electric vehicles were also added.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 86
International experience and policies
The United States also provides grants to support
research and development of electric vehicles, as well
as parts and infrastructure.
Qualified vehicles purchased in or after 2010 meeting
a certain emission standards receive a $2500 base tax
credit. An extra $417
tax credit is given for each 5 kW-hours of power the
vehicle’s engine draws entirely from the battery. The
credits will be phased out after the first 200,000 sales
per manufacturer Energy Independence and Security
Dr. Tabrez Ahmad, http://energylex.blogspot.in 87
In his 2003 State of Union speech, President George W. Bush expressed
strong support to FCEVs. But President Barack Obama has not signaled the
same support for hydrogen-powered vehicles. In 2009, President Obama
announced a target of putting a million environmentally friendly vehicles on
U.S. roads by 2015. The state of California has established a goal of reducing
vehicular GHG emissions by 80 percent by 2050. To
meet this goal, California is currently analyzing various scenarios involving
new energy vehicles in the near and long term to see what strategies would
work best. Increasingly, programs are being created outside the United
States to encourage HEVs and electric-drive vehicles. In many cases, the
incentives are technology-specific, meaning that as long as a vehicle is a
HEV or BEV it will be deemed eligible. In other
cases, the incentive is tied to the emissions reduction potential of a vehicle.
For example, in France, the subsidy for various electric-drive vehicles is
integrated into a CO2-based bonus-malus system that applies to light-duty
vehicles of all fuel types. This means that a subsidy of 5,000 euros is
available only to vehicles with tailpipe emissions of less than 60 grams of
CO2 per kilometer.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 88
Under a CO2-based bonus-malus system, a subsidy of up to €5,000
is provided to low CO2 emissions (below 60g/km) vehicles
including various electric-drive vehicles. The government is also
planning to exempt electric vehicles from parking fees
Germany Electric vehicles are exempt from an annual circulation
tax for the first five years after purchase.
Private electric vehicles are exempt from an annual circulation tax.
Company electric vehicles are exempt from the tax for the first 5
years after purchase. From 2011, BEV and PHEV buyers will get 25
percent off the list vehicle price up to a maximum of £5,000.
BEVs, HEVs, and PHEVs are exempt from an acquisition tax and
annual tonnage tax if they meet certain fuel economy and
Dr. Tabrez Ahmad, http://energylex.blogspot.in 89
In January 2013, India unveiled a National Electric Mobility Mission Plan. This
plan anticipates having 7 million electric vehicles on the road by 2020. To
achieve this, the central government has pledged to spend Rs. 13,000–
14,000 crore29 ($2.6–2.8 billion) over the next eight years. The private
sector will spend another Rs. 8,500–9,500 crore ($1.7–1.9 billion) over this
period under the plan.
As a result of recent policy initiatives, electric vehicle sales are expected to
rise. Many companies have expressed an increasing interest in marketing
the cars and trucks in India. However, future trends are difficult to predict,
since promotional policies went into effect only recently. For the time
being, electric vehicle sales in India (including HEVs) remain low. Although
India lags behind China and some European countries in sales of electric
bicycles, this is expected to change in the near future. Electric bike sales
were low in India as late as 2008,
Dr. Tabrez Ahmad, http://energylex.blogspot.in 90
In its development and promotion of electric vehicles, the country
has to consider their overall impact on emissions and public health.
Replacing conventional with electric vehicles means that the
country will have to generate extra electricity, which, with India’s
current grid, will lead to an increase in conventional pollutant
emissions and GHGs.
Therefore, turning to renewable sources to generate electricity will
be necessary to capture fully the benefits of electric vehicles.
The last point is particularly important if electric bike sales increase
significantly. Unlike electric cars, electric bikes may not replace
motorized transport but rather walking and pedal-powered biking.
In that case, electric bike use could lead to higher overall emissions
as coal-fired power plants need to generate more electricity. 29 1
crore = 10 million
Dr. Tabrez Ahmad, http://energylex.blogspot.in 91
200 percent sales tax on new conventional fuel vehicles. But no tax on
electric vehicles. This incentivizes the sales of electric vehicles. China in late
2008 announced its Auto Industry Adjustment and Revitalization Plan, which
asserted that new energy vehicles would be the key to China’s long-term
It also aimed to make China’s automakers world leaders in the development
of electric vehicles.
Building on that, the Ministry of Science and Technology launched a large-
scale pilot program in December 2009 called “10 Cities, 1000 Vehicles.” In
July 2010, the program selected 25 additional cities for public new energy
vehicle deployment and five for private new energy vehicle deployment.
The program plans to introduce at least 1,000 new energy vehicles per year
in each city, primarily by providing financial subsidies for their purchase.
Subsidy amounts vary according to fuel efficiency improvements, the type of
technology used, and cost differences between a new energy vehicle and a
comparable conventional vehicle.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 92
a The actual subsidy level depends on the fuel efficiency gain of
a given HEV.
b The actual subsidy level depends on the type of batteries
used in a given hybrid electric bus.
In addition to pushing for electric cars, China has been a leader
in sales of electric bicycles. As of 2010, an estimated 120 million
electric bikes operate on Chinese roads. The popularity of
electric bikes is also growing in many European countries,
particularly the Netherlands, Germany, France, and Italy.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 93
Environmental issues generally addressed by environmental
policy include (but are not limited to)
air and water pollution,
Dr. Tabrez Ahmad, http://energylex.blogspot.in 94
• Managing the environment; NEPIs have begun to be adopted by
advanced societies in recent years.
• NEPIs are said to have largely replaced the dependence on, and
requirement for, environmental regulation. Instruments of
environmental policy include;
Climate Change Levy
Information and Awareness schemes
100% Capital Allowances Scheme
Dr. Tabrez Ahmad, http://energylex.blogspot.in 95
New Environmental Policy Instruments
• The Landfill Tax is a charge on the disposal of waste to
landfill. It aims to encourage waste producers to produce
less waste, to use alternative methods of waste disposal,
and to recycle.
• The Climate Change Levy is a charge on energy use and
applies to all parts of the business sector. The aim of the
levy is to encourage business to develop and use
• energy efficient technologies
Dr. Tabrez Ahmad, http://energylex.blogspot.in 96
New Environmental Policy Instruments
Some businesses can agree to improve energy efficiency or
reduce emissions through Climate Change Agreements
(CCAs) in return
for a discount to the levy.
It has been criticised by parts of business and some
environmental groups who would prefer a carbon tax.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 97
New Environmental Policy Instruments
The 100% Capital Allowances Scheme is available for
companies investing in energy efficiency technologies.
It is a tax relief on investment in a range of Government
approved energy-saving equipment.
Capital expenditure can normally be deducted from tax over
a period of time
Dr. Tabrez Ahmad, http://energylex.blogspot.in 98
New Environmental Policy Instruments
The UK Emission Trading Scheme is a scheme where
participants can trade with greenhouse gas emission
A total acceptable emissions level for all participants is
determined, which is then divided into units and distributed
Allowances can be bought and sold to meet emission targets.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 99
NEPI in Practice
Participants who reduce emissions and have surplus allowances
can sell their permits to others that find emissions reduction
more expensive or difficult.
A similar EU-wide emission trading scheme commenced in
Dr. Tabrez Ahmad, http://energylex.blogspot.in 100
NEPI in Practice Cont.
The Renewable Obligation requires electricity suppliers to
supply a specific proportion of their electricity from renewable
sources such as wind or wave power.
Again, credits can be traded to encourage the uptake of
Dr. Tabrez Ahmad, http://energylex.blogspot.in 101
NEPI in Practice Cont..
Sustainable energy is the provision of energy that meets the
needs of the present without compromising the ability of
future generations to meet their needs.
Sustainable energy sources include all renewable energy
sources, such as
Dr. Tabrez Ahmad, http://energylex.blogspot.in 102
The Future-Sustainable Energy
It usually also includes technologies designed to improve
Dr. Tabrez Ahmad, http://energylex.blogspot.in 103
The Future-Sustainable Energy
The main sources of air emissions (continuous or non-continuous)
resulting from offshore activities include:
Combustion sources from power and heat generation,
Use of compressors,
Pumps, and reciprocating engines (boilers, turbines, and other engines)
on offshore facilities including support and supply vessels and
Emissions resulting from flaring and venting of hydrocarbons
Dr. Tabrez Ahmad, http://energylex.blogspot.in 104
What is Causing Climate Change
According to Energy Information Administration (EIA), nearly
2% – 3% of all extracted oil is lost during extraction and
Statistics show that more than half of accidental oil spills can
be attributed to tanker shipments.
75% of oil spills can be attributed to human error.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 105
What is Causing Climate Change
Renewable energy and energy efficiency are
sometimes said to be the “twin pillars” of
sustainable energy policy.
Both resources must be developed in order to stabilize and
reduce Carbon dioxide emissions.
Dr. Tabrez Ahmad, http://energylex.blogspot.in 106
Mitigating Climate Change -
Renewable energy (and energy efficiency) are no longer niche
sectors that are promoted only by governments and
The increased levels of investment and the fact that much of
the capital is coming from more conventional financial actors
suggest that sustainable energy options are now becoming
Dr. Tabrez Ahmad, http://energylex.blogspot.in 107
Mitigating Climate Change -
The Solutions - Alternative Sources of Energy
Dr. Tabrez Ahmad, http://energylex.blogspot.in 108
Hoover Dam, USA
Lake Manapouri New Zealand
Pinnacles Hydro, Virginia, USA
The Solutions - Alternative Sources of Energy
Dr. Tabrez Ahmad, http://energylex.blogspot.in 109
Photovoltaic cells - Nellis Airforce Base
Solar Two – Dagget - CASolar water heating
The Solutions - Alternative Sources of Energy
Dr. Tabrez Ahmad, http://energylex.blogspot.in 110
Liaodong Bay, China
The Solutions - Alternative Sources of Energy
Tidal & wave
Dr. Tabrez Ahmad, http://energylex.blogspot.in 111
240MW La Rance Estuary, France
Pelamis - Aguçadoura wave farm - Portugal