Green Watch is a youth initiative of few of the researchers, marketers in environment industry. Importance of environmental protection, afforestation, biodiversity, conservation of natural resources has become crucial these days. Environmental degradation, depletion of natural resources, carbon footprint, GHG emissions, natural disasters etc. have become cause of immense concern in front of world community. It is the responsibility of all the stakeholders to save mother earth against all the evil business practices happening worldwide. There is a lack of knowledge and awareness about various ill effects, human and other species can face due to environmental degradation. Compliance of green policies and careful consideration of all the factors relating to sustainability is the need of the hour. Gradually the environmental policies, regulation and environmental policy compliance are getting stringent. The initiative thus takes to report responsibly to enhance socio ecological knowledge.
2.
Editor’s desk
Green Watch is a youth initiative of few of the researchers, marketers in environment
industry. Importance of environmental protection, afforestation, biodiversity, conservation
of natural resources has become crucial these days. Environmental degradation, depletion
of natural resources, carbon footprint, GHG emissions, natural disasters etc. have become
cause of immense concern in front of world community. It is the responsibility of all the
stakeholders to save mother earth against all the evil business practices happening
worldwide. There is a lack of knowledge and awareness about various ill effects, human
and other species can face due to environmental degradation. Compliance of green policies
and careful consideration of all the factors relating to sustainability is the need of the hour.
Gradually the environmental policies, regulation and environmental policy compliance are
getting stringent. Various initiatives, policies and programmes are undertaken in the
process of disseminating the information about environmental impacts and make the
stakeholders aware about it. Consideration of people, planet and profit (3Ps) provides the
basis of sustainable development. Satisfaction of all the stakeholders and care for
environment is the strategy for any business to sustain in a long run. Policy of reduce, reuse
and recycle should always be in focus in the business processing. For a prosperous green
world, governments, businesses and civil society organizations with other stakeholders
must come forward to tackle this challenge of climate change.
The initiative thus taken by Green Watch in order to disseminate information and
knowledge, enhance awareness about sustainability management practices all over among
all the stakeholders. This global monthly update would try to report various activities,
initiatives, green innovation and technology, case studies, promotion of green enterprises,
policy analysis, address the roles regarding natural resources management, renewable
energy, sustainable development, green marketing, responsible business management etc.
Vision
To become an international environmental knowledge dissemination platform for various
stakeholders in the process of making a green and prosperous planet
Mission:
To make the community aware about environmental issues
To motivate green enterprises and provide a platform to share, network and
broaden the scope of green business operations
To contribute in the process of meeting millennium development goals (MDGs)
Editor
4.
1. Sustainability: going back to the nature!
‐Dr. P. Koshy1
Going out and travelling in public transport, in order to make arrangements for Green
Enterprise Summit, that we planned to organise on June 23 in New Delhi, faced a setback
owing to extreme heat, some of us getting dehydrated and if not a sun stroke! Thus, we
postponed the Summit to August 4. We were unable to move in the sun to make the
arrangements. Many suggested organising it in June would be disastrous as there would be
very low turnout. My colleagues at Samadhan Foundation were also finding it difficult to
face the sun.
Climate change, depletion of ozone layer, green house gases etc are not few key words
related to environmental sciences but a reality.
Summer was too harsh for the people across India this year, especially in the Northern
region. Together with power cuts and power shortage, life was really miserable. People
often refuse to come out during the day time, except those who have no other option, who
are poor, rickshaw pullers, informal sector workers, manual labourers, marketing and sales
people and several others who have no other option other than that. Climate has changed
so much. Winter in Delhi was really so harsh last time. Anita, my wife, who is a journalist in
Muscat, came to Delhi to enjoy the winter season kept on telling me that ‘she is finding it
difficult’ and was ill throughout her vacation.
Climate change is a reality! What is happening now seems to be a test dose! The climate
and temperature would be at extreme poles in the years ahead.
Therefore, living an environment friendly life is something that is being advocated. What
can we do at individual levels to address the issue? It could be from using public transport,
whenever it is possible to avoiding printing of unnecessary papers that we can surely be
avoided are just two examples. Adoption of green practices can come into all aspects of our
life. It is not a question of adoption for a few polluting industries alone.
1Dr. P. Koshy is director of Institute of enterprise development & research. He has great interest and has been
working for sustainable development and green practices for many years. He can be contacted at
caushie@gmail.com
7.
2. Electronic Waste Generation in India
‐Bhavesh Jha2
Abstract
Increasing use of information technology and day to day new innovations in technological
sector has increased a hidden burden on the social and environmental front. Changing
lifestyles and increasing demand of white goods around the world have increased
technological obsoleteness every day. Managing outlived waste electrical and electronics
equipment have become a big challenge for the government and private sector entities.
With a boom in IT sector and rapid industrialisation, Indian electronic waste market is
increasing at a rate of 20% per annum. Different studies show about this increasing trend
in the major cities. Electronic waste inventory management at the local level is a big
headache for governments. Most of the electronic wastes come to informal sector recyclers.
Many of the reasons include a better price for consumer. But the handling, abstraction and
disposal system of an informal recycler is very unhygienic for the environment. Strict
enforcement of different laws on producers’ responsibility and awareness generation
among the huge informal sector workforce about the hazardous impact of e waste, safe
handling practices etc. are of immense importance. Governments and nongovernmental
organisations will have to work on a strategy to mitigate the negative impacts of electronic
waste in the society.
Key Words: Consumerism, WEEE, Technological Obsoleteness, Electronic Waste, Techno
Trash, Waste Inventory, Environmental hazards, Waste Scenario, Management
Consumerism and E waste
The increasing economic growth and changing consumption trends worldwide have
resulted in a significant rise in the disposable incomes and consumers’ propensity to spend.
The advancement in technology and changing lifestyle, status or perception of consumers
has driven this demand of electronic items. Consumers’ dependency on information and
2 Mr. Bhavesh Jha is an MBA in Business Sustainability Management (MBA) from TERI University, The Energy
& Resources Institute. He has a keen interest in environment and sustainable development, Environmental
and social impact assessments, innovation, social entrepreneurship etc. He is working in environmental
sector. He can be contacted at bhaveshjha08@gmail.com
8.
communication technology has been increasing very rapidly. The new innovations in
information technology because of the rising demand for higher efficiency and productivity
in the businesses and work have become a matter of day to day life. Technologies which
were new yesterday have become obsolete for today. The increase in demand for “White
Goods segment” i.e. on consumer durables such as television sets, microwave ovens,
calculators, air‐conditioners, servers, printers, scanners, cellular phones, computers etc. is
for obvious. Thus, there can be broad range of waste electric and electronic goods which
have outlived their use, ready for disposal. These contain chemical materials considered
hazardous for human well beings and natural environment. The increasing rate of waste
electronic products and additionally the illegal import of junk electronics from abroad
create a complex scenario for solid waste management in India.
According to Ministry of environment and forest (MoEF), E‐waste is such waste comprises
of wastes generated from used electronic devices and household appliances which are not
fit for their original intended use and are destined for recovery, recycling or disposal.
Indian e waste trends & Scenario
The Indian electronic waste industry is booming at a very rapid pace. It is expected to be
increasing at a rate of 20% annually. With increasing per capita income, changing life styles
and revolutions in information and communication technologies, India is the second largest
electronic waste generator in Asia. India is generating around 4, 00,000 tones of electronic
waste per year according to Ministry of Environment and Forest MoEF. Not only this, it
gets around 50,000 tones of e waste through illegal means of imports. According to a report
on electronics market, TATA Strategic Management Group says that India is expected to
have 11% share in global electronic market by 2020.
MoEF’2012 report says that Indian electronic waste output has jumped 8 times in the last
seven years i.e. 8, 00,000 tones now. India has majorly two types of electronic waste
market called organized and unorganized market. 90% of the electronic waste generation
in the country lands up in the unorganized market. And out of this only 5.7 % of e waste is
recycled. Electronic waste accounts for 70% of the overall toxic wastes which are currently
found in landfills which is posing toxic chemical contamination in soil and other natural
9.
resources. Another report from Central Pollution Control Board CPCB says that around
36,165 hazardous waste generating industries in India accounts for 6.2 million tones of
toxic wastes every year. Indian PC industry is growing at a rate of 25% annually as per
MAIT study.
Out of the total electronic waste generation in India, only 40 % of these are taken into the
recycling processes and rest 60% remains in warehouses due to inefficient and poor
collection systems. Generally, people hand over electronic waste to unauthorized recycling
centres/ scrap dealers etc. for quick money. The e‐waste scrap is managed through various
management alternatives such as reuse of equipment from second hand dealers, back yard
recycling (manual dismantling and segregation into plastic, glass and metal) and finally into
the municipal dumping yard. MAIT (Manufacturers Association for Information
Technology) study says that waste from discarded electronics will rise dramatically in the
developing world within a decade, with computer waste in India alone to grow by 500 per
cent from 2007 levels by 2020. Over 100,000 tonnes from refrigerators, 275,000 tonnes
from TVs, 56,300 tonnes from personal computers, 4,700 tonnes from printers and 1,700
tonnes from mobile phone.
Techno‐Trash
The electronic waste due to Computer waste also called techno trash is becoming most
significant of all e‐waste due to the quantity as well as the fast generation rate. The
computer hardware sector has displayed an unusual growth in the past few years
maintaining pace with the rapid growth in the software sector. The continuous innovations
and technological up gradations in the hardware segment, obsolescence risk remains a key
area of concern for companies that have made huge investments in their IT systems.
Management
Managing Electronic waste has become a very big challenge. The increasing environmental
concerns and ill effects of electronic waste on natural resources (soil, air, water etc.) and
community at large has become an important issue to deal with. The governments and
private sector organisations will have to play a crucial and responsible role in order to
properly manage electronic waste. Proper inventorisation and management at local levels
10.
has been very necessary in order to reduce the negative impacts of e waste in human
livelihood. Government and private players can tie up with different NGOs working in this
sector and get consultation with different E‐waste experts. Through a proper assessment of
unorganised small scale industrial houses, they may get the actual loopholes in the system.
Safe handling and disposal trainings should be provided to the unorganised recyclers.
Different awareness programmes and reach to the grass roots level unorganised sector
recyclers can play a pivotal role in efficiently managing e waste.
References
i. MAIT‐ GTZ E Waste Study Summary http://ewaste.mait.com/wp‐
content/uploads/2012/04/MAIT‐GTZ‐e‐Waste‐study‐summary.pdf, (Online)
ii. April 4, 2012, The times of India (http://articles.timesofindia.indiatimes.com/2012‐
04‐04/pollution/31286986_1_total‐e‐waste‐automatic‐dispensers‐electronic‐tools),
(Online)
iii. E Waste Management Report, UNEP;
http://www.unep.or.jp/ietc/GPWM/data/T3/EW_1_2_WEEE_EwasteMngtRprt.pdf,
(Online)
iv. E Waste in India; Toxics link; http://www.toxicslink.org/docs/06040_repsumry.pdf,
(Online)
v. Sustainable Development in India: MoEF, 2011,
http://www.uncsd2012.org/content/documents/Sust_Dev_Stocktaking.pdf,
(Online)
11.
3. Carbon Trading In India – Issues and Prospects
‐Mr. Suman Roy Barman3
‐Mr. Amlanbrata Chakraborty4
Abstract
Global warming is changing the global climate much faster, affecting living organisms.
Environmentalist, policymakers and general public are emphasizing on global policy for
protecting natural environment. But despite such emphasis a uniform consensus is yet to
be made. Emission of Carbon dioxide to a huge quantity is mainly responsible for Green
House Gas (GHG) production as well as global warming. Carbon trading is the way through
which global warming can be reduced to a large extent. Carbon trading is thought to be an
alternative to limit the emission level of GHG, as resolved in the Kyoto protocol. The main
issue of Kyoto protocol has been to control emissions of Green House Gases (GHG) from
various industrial units throughout the world. The purpose of this paper is to analyze
prospects of carbon trading in India as well as the related issues.
Key Words: Carbon trading, GHG, global climate, global warming, Kyoto protocol
Introduction
In recent years global warming has been the main cause of global climate change. The term
global warming is a process. It is stated that the sun's radiation comes along with light and
heats up our planet. Radiation that is coming is absorbed and it warms the earth and goes
back into space in the form of infrared radiation. Some of the outgoing infrared radiation is
actually trapped inside in our atmosphere. Due to this phenomenon, our environment
maintains certain temperature but problem occurs when the majority of the infrared
radiation is trapped inside atmosphere and it increases the temperature and atmosphere
worldwide. This phenomenon causes climate change. Global warming is having serious
affects and consequences and these are sea water level rise, droughts, floods, storms, and
heat waves and tsunami. Developing countries are usually less prepared in facing
3 Mr. Suman Roy Barman is a research scholar, Dept. of Management, Monad University, Uttar Pradesh. He can
be contacted at srb_agt@rediffmail.com
4 Mr. Amlanbrata Chakraborty is a research scholar, Dept. Of Commerce, Tripura University, Tripura. He can
be contacted at chakrabortyamlanbrata606@gmail.com
12.
environmental consequences. Developing countries are likely to be affected by volatile
crop production and ecosystem. The factors contributing to global warming are excessive
emissions of carbon dioxide and other GHGs such as methane, nitrous oxide, sulphur
hexafluoride, hydro fluro carbon. To save the planet from the impact of climate change, it is
necessary to lessen the levels of emissions of GHG to a large extent. To accomplish the
objective the concept of CDM (Clean Development Mechanism) came into existence.
In 1997, the Kyoto protocol organized by the United Nation's Framework Convention on
Climate Change in Kyoto with an aim to reduce emissions of green house gases and 184
countries became committed to that protocol. The agreement came into force on 16th
February 2005. It was decided that, if commercial industries emit more than the permitted
limit of carbon dioxide, should lower their emissions as per the prescribed limits,
otherwise they should buy carbon credits certificates. There is a provision that carbon
credits can be sold or bought in the market; if not then carbon tax will be charged. It is
presumed that developed countries have been mainly responsible for the high levels of
greenhouse gases emissions. So on basis of that emission level accountability is likely to be
assigned. The major resolution of Kyoto protocol is carbon trading, Clean Development
Mechanism (CDM) and Joint Implementation (JI).
Objectives
The objectives of the present paper are:
1. To study the issues and challenges associated with carbon trading in India.
2. To know the prospects of carbon trading of Indian Industries.
Review of Literature
S.P Gonchaudhury, green environmentalist of India and also the Managing Director of West
Bengal Green Energy Development Crop said, "The sentiments would be bullish for carbon
trading, Barak Obama, the US President shows a bit of aggressiveness on the issues".
Tim Groser, Climate Minister of New Zealand stated, "it is time for green groups around the
world to start to analyze climate change problem on the basis of not of the rhetoric of the
90s, but sum numerical analysis of where the problem lies today".
13.
Lord Nicholas Stern, former World Bank’s Chief Economist also opined that, "poorer
countries along with China and India must step up to their responsibilities. It is a brutal
arithmetic – the changing structure of the world’s economy has been dramatic. That is
something developing countries will have to face up".
Research Methodology
Secondary data has been used from various sources to analyze the current position of
carbon trading in India. The descriptive study has been used in this paper.
Carbon Trading Throughout the World
The United Nations Framework Convention on Climate Change (UNFCCC) has divided
countries/signatories of the Kyoto protocol under two major groups. Annex– 1 Countries,
including United States of America, United Kingdom, Japan, New Zealand, Canada, Australia,
Austria, Spain, France and Germany etc.
Fourty‐one countries agreed to reduce greenhouse gas emissions by 5.2% below their 1990
emissions levels. Annex– 2 countries, which are in a sub group of Annex‐1 countries,
include 24 countries but except countries with ‘Economies In Transition’ (EITs). Annex – 2
countries are committed to buy emission credit from developing countries if they fail to
reduce predetermined emission levels. Developing countries fall under the category of
Non‐Annex‐ 1 countries, including India, Sri Lanka, Afghanistan, China, Brazil, Iran, Kenya ,
Kuwait , Malaysia, Pakistan, Philippines, Saudi Arabia, Singapore, South Africa etc. A
number of 145 countries do not have any immediate restrictions under the UNFCCC.
However this classification is aimed towards a number of certain purposes.
i. To avoid restrictions on growth, as pollution is strongly linked to industrial growth, and
developing economies could possibly grow fast.
ii. To restrict above mentioned countries in selling emissions credits to industrialized
nations to permit those nations to over ‐pollute.
iii. iii. To avail of money and technologies from the developed countries as listed in
Annex –2.
14.
Signatories of the Kyoto protocol (Annex – 2 countries) committed to limit emissions and
emission reduction targets. These predetermined targets are termed as Assigned Amount
Units (AAUs), intended to meet stated objectives during 2008 – 2012. Emission trading
allows countries; those have emission units in excess, to sell these excess units to countries
those are over their targets. A Removable Unit(RMU) means an emission allowances which
are produced in addition to Assigned Amount Units (AAUs), as a result of an increase in the
National Sink Performance5 Aforestation and Reforestation are the parameters based on
which ‘A Removable Unit’ (RMU) is calculated. After completion of Joint Implementation
(JI) projects between two industrialized countries, Emission Reduction Units (ERU)
certificates are issued. A Certified Emission Reduction (CER) certificates derive after
successful completion of CDM projects. Every signatories under the Kyoto protocol are
needed to maintain reserves along with ERUs and CERs.
Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydro fluorocarbons (HFCs),
perflurocarbons (PFCs) and sulphur hexafluoride (SF6) are main six greenhouse gases
,those are required to be reduced by the countries as was agreed in Kyoto. Quotas have
been fixed for all countries (except Non‐Annex 1 countries) to emit the GHGs in the air. To
encourage green environment friendly business activities, carbon credits and carbon offset
were introduced. The concept of carbon credit or carbon emission allowance developed in
implementation of Clean Development Mechanism (CDM). One carbon credit permits one
tone of carbon dioxide (CO2) or other GHGs to be emitted in the air. Let us consider an
example,a coal‐based company which is generating power, is in fact generating one tone
carbon dioxide for each one kilowatt power. The same company may produce one kilowatt
power through windmill then it reduces one tone CO2. For one tone reduction in
generation of carbon‐ ‐dioxide one carbon credit or carbon emission allowance to be given
to the country which reduced carbon dioxide emission, in way of certificates, who less
pollutes the environment by one tone carbon dioxide. Industries those exceed or cross the
limits of prescribed quotas must buy carbon credit for excess discharge of GHGs, while
5
A carbon sink is a natural or artificial reservoir that accumulates and stores some carbon‐containing
chemical compound for an indefinite period. The process by which carbon sinks remove carbon dioxide (CO2)
from the atmosphere is known as carbon sequestration. available in
http://en.wikipedia.org/wiki/Carbon_sink
15.
those below prescribed limits can sell their carbon credits. Under international emission
trading mechanism countries have been enabled to trade in the international carbon
trading or carbon emission allowance market. For this purpose exchanges (like stock
exchange) have been established.
According to Table 1 Total number of projects registered with UNFCCC is 7128 up to July
2013.Total Number of registered projects in India is 1342 and total number of CER s
issued to Indian Projects is 182.55Mn.China covers 51.64% of total number of projects
registered with UNFCCC, India accounted for 18.83% and Brazil covers 4.21% of the total
registered projects during 31st July, 2013. Carbon trading encouraging worldwide
industries to reduce harmful emissions of greenhouse gases to make the planet more eco‐
friendly and thus industries are becoming more financially sound by selling carbon credits.
From the Figure1, it is evident that United Kingdom (31.07 % ) is the major investor in
CDM followed by Switzerland ( 20.78 % ) and Japan (9.47 %) respectively. Many industries
showing their interest to adopt carbon trading toll and governments are also taking
initiatives to reduce greenhouse gas emissions. Carbon trading is a collective global effort
to conduct green business with a minimum adverse effect on our environment. According
to the Bloomberg New Energy Finance (BNEF) report, global carbon market fell by 36% in
2012 to 61billion euro. The Table 1 also indicates the position of CDM projects. China leads
with 3681 registered projects followed by India 1342 projects and Brazil 300 projects
respectively.
16.
Figure 2 shows China is the biggest CER supplier in Asia. India and South Korea hold
second and third positions respectively. According to FIGURE 3, China holds no.1 position
with 59.9 % of CER supply followed by India 14.7 % and Republic of Korea with 9.1%
respectively. As on 31st of July 2013, data released by UNFCCC‐ ‐1,365,586,552 CERs
were issued. Out of 7590 CDM project 7128 projects are registered, 89 projects are
requested for registration, 343 projects are pending for publications and 28 projects are
requested for review whereas 2 are requested for corrections.
17.
Indian Scenario in Carbon Trading
As per the Kyoto protocol to the United Nations Framework Convention on Climate Change,
India falls under Non‐Annex 1 countries. UNFCCC has not impose any targets on India as it
is a developing country. India signed and approved the protocol in August, 2002 and has
been playing a major role in reduction of greenhouse gases by accepting Clean
Development Mechanisms (CDMs). India has become a global leader in the global carbon
credits market. Data issued by IDBI Bank as on 31st of July 2013, India had 1342 registered
projects approved by UNFCCC and 43 new CDM projects from India were registered with
UNFCCC. During the month 0.8 million CERs where issued to Indian CDM projects. Indian
CDM projects have cumulatively received 182.55 million CER as at the end of July 31,
2013.According to environment and forests Ministry of India, it has already made
investments to generate above 30 million carbon credits annually up to 2012. More than
90% of its trade depends on the US and European Union's issuance of carbon emission
reduction (CER) certificates or carbon credits.India is the world's second‐largest carbon
dioxide discharger and it is expected that within 2020 GDP growth will be between 8 and
9%. By 2020 India is expected to contribute 6% of global emissions. World Bank released
that the total value of the carbon market grew by 11% in 2011. Last year global carbon
18.
credit trading was estimated at $ 5 billion. India has surplus carbon credits to sell to
developed countries. Industrial harmful products are mainly responsible for increase in
greenhouse gases by 60 to 70%, which adversely affect the ozone layer. Steel, cement,
power, textile, fertilizer etc. Industries emit greenhouse gases in the air. Chemical plants,
windmill, biodiesel, bio gas, waste disposal units, plantation companies can generate
carbon credits and earn money. Many Indian companies are showing their interest in CDM
to enjoy the benefits of carbon trading. Few of them are as follows:
1. Jindal Vijay Nagar Steel: It has announced by the plant that with the next 10
years it will be able to sell $ 225 million worth saved carbon. This was made
possible as their plant uses the corexfurance technology which restricts 15
million tone of carbon emits into the atmosphere.
2. Powerguda in Andhra Pradesh: The village in Andhra Pradesh sold 147 MT
equivalent CO2 credits. This was possible by extracting biodiesel from 4500
pongamia trees in respective village.
3. Handia Forest in Madhya Pradesh: In Madhya Pradesh it is estimated that a
number of 95 very poor rural villages would jointly contribute US $ 300,000
every year from carbon emissions by restoring 10,000 hectares of degraded
community forests.
Recently the UNFCCC has approved world’s largest Concentrated Solar Power (CSP) project
of Reliance Power as a part of emissions of trading scheme. Reliance Power has already got
CDM registration. This will allow the project to generate and sell CERs and in turn Reliance
Power will earn revenues. Its power production capacity is expected to be more than
12,000 MW with a potential ability to generate 60 million carbon credits. The Reliance’s
CSP project in Rajasthan is the largest investment of this kind has ever been made by any
private entity.
The Multi Commodity Exchange (MCX), largest commodity exchange of India has initiated
futures trading in carbon credits on January 2000. From 11 April 2008, National
Commodity and Derivatives Exchange (NCDEX) also has been initiated carbon trading. It is
expected that the National Commodity and Derivatives Exchange will help Indian
companies to earn more CERs from the rest of the world. According to IDBI, Carbon
19.
Development Newsletter of August 2013, India has registered 1342 projects with UNFCCC
and 182.505 million CERs already have been issued to those registered projects.
Future Impact on Carbon Trading
First phase of Commitment made by the countries of Kyoto protocol ended on 31
December 2012. Many questions have been raised about the future of the Clean
Development Mechanism (CDM). This doubt was made clear in Durban where it was
decided that Kyoto protocol will be continued to the end of 2015 and thereafter new
instrument will be adopted for carbon trading. Since the Cancun climate conference, which
was held on Mexico from 29th November to 10th December 2010, CDM has been
witnessing several reforms which would change this mechanism over time. These changes
were further strengthened in conference of the parties ‘COP 17’ in Durban and ‘COP 18’ in
Doha. These changes will enhance future of carbon trading in international scenario.
The European Union was committed to reduce 20% greenhouse gas emissions by 2020
from the 1990 level as against target of 5.2% set by Kyoto protocol by 2012. But few
member countries European Union have gone against the commitment and have asked to
set a lower target. If it is considered to reduce the emission level then it will affect
worldwide carbon trading. The report released by World Bank and the carbon expo at
Cologne, Germany describes how even worldwide economic turbulence, global carbon
market increased in 2011. The largest segment of the carbon market was that of EU
Allowances (EUAs) valued at $ 148 billion. There was also a substantial increase in the
volume of secondary Kyoto‐ ‐offsets (which grew by 43%, to 1.8 billion tones of CO2 valued
at US $ 23 billion) fueled by increased in the Certified Emission Reduction (CER) market
and in the nascent secondary Emission Reduction Unit (ERU) market. With the end of the
past commitment period of the Kyoto protocol in 2012, the post – 2012 primary CDM
market increased by a robust 63%, to US $ 2 billion despite depressed prices and limited
long‐term visibility.
20.
The major carbon credit trading agency Lehman Brothers, USA immediately after filing
bankruptcy protection in September, closedown its carbon trading activities and many
others followed it giving a knockout blow to the carbon credit market. Figure 4 shows 33 %
respondents expect that India’s CDM market will grow where as 27% thinks that CDM
market will fall. 37 % respondents opined that there will be no considerable change and 5
% respondents were unsure about change in rate of Indian projects registered with
UNFCCC after Second commitment period of Kyoto protocol.
According to environment ministry official of India, initiatives are taken to earn 450 million
carbon credits by 2020. The total value of the carbon market grew by 11% in 2011, to US $
176 billion and transaction volumes reached a new high of $ 10.3 billion of carbon dioxide
equivalent (CO2e) according to World Bank releases State and Trends carbon market
report 2012.
Meanwhile there are allegations about malpractices in Carbon Trading in India. According
to Ayeshea Perera, "Millions of carbon credits traded by India and used to offset emissions
in the developed world may not actually exist." She also added that A Wikileaks cable from
2008 has revealed that a number of projects that trade in carbon credits were ineligible to
do so and are not therefore trading in ‘real’ credits. The cable says most of the carbon‐offset
projects in India fail to meet the CDM requirements set by the UN Framework Convention
on Climate Change. It also describes the UN’s validation and registration process as
“arbitrary”.
21.
Conclusion
Carbon Trading must not be seen as a compensatory measure of developed countries to
developing countries. The largest pollutant of environment is industrial sector as well as
transport and communication .If it is thought that developed countries will continue to
increase industrialization in different states and developing as well as underdeveloped
countries will compensate on their behalf, could not be a prophetic thought. Environmental
pollution is not a regional issue, it is a global issue. So the process of industrialization and
system of manufacturing should develop in an environment friendly way so that
environment pollution could be controlled. If nature moves out of control as has been
witnessed in various parts of the world, then carbon trading will be useless and whole
affect will be upon agricultural and allied commercial activity. In case of India a
comprehensive Carbon trading policy is yet to be framed. It is most important, that such
policy framework should immediately make.
Reference
1. "India awaits Obama’s stand on green energy for carbon trading prospects" by Indronil
Roychowdhury : Kolkata, Dec 25 2008
available in http://www.financialexpress.com/news/india‐awaits‐obamas‐stand‐on‐
green‐energy‐for‐carbon‐trading‐ prospects/402646 accessed on 4.Sptember 2013.
2. "Lord Stern: developing countries must make deeper emissions cuts" by Fiona Harvey,
The Guardian, Tuesday 4 December 2012 available in
url:http://www.theguardian.com/environment/2012/dec/04/lord‐stern‐developing‐
countries‐deeper‐ emissions‐cuts
4. ibid.
5. "Kyoto Protocol" Retrieved Sptember 4, 2013from
http://en.wikipedia.org/wiki/Kyoto_Protocol
6. "Wikileaks: How India is manipulating
carbon credits" by Ayeshea Perera
Retrieved Sptember 4, 2013from http://www.firstpost.com/politics/wikileaks‐how‐
india‐is‐manipulating‐carbon‐credits‐ 94984.html
7."Carbon sink" Retrieved Sptember 4,2013fromhttp://en.wikipedia.org/wiki/Carbon_sink
22.
4. Green Marketing: Strategic step towards business excellence
‐Bhavesh Jha6
Abstract
Green or eco‐friendly products are products friendly to the environment and have a very
little or nil impact on the environment. In the last few decades, the stricter rules and
regulation and global pressure to mitigate and decrease the carbon emissions all over has
encouraged the corporate to look into the issue of depleting natural resources and
environmental diversity. These days, Green has become a password for companies to
promote their products and services in the market. The study shows the consumers'
perception about green or eco labelled products and their buying behaviour trends
according to the availability or capability of the consumers. Obviously, an ethical business
operation, production, and marketing of green products pursue a consumer to change his/
her buying decision and their perception about the products. Corporate may see this as an
opportunity to enhance their brand value and make a competitive edge over their
competitors. The respondents say about the gaps in innovation, research and development
practices of government and corporate and how they eyewash consumers by the name of
green and sustainable products/ services, especially in the developing and underdeveloped
economies. Through a proper investment in research and development only, corporate and
governments would be able to enhance their environmental efficiency and cost
effectiveness in the market. Awareness and availability of green products and services and
its positive bearing on the ecological diversity of economy can play a significant role. There
is a need of stricter policy measures and regulations, third party affect assessment and
environmental auditing on the produced products. An interactive platform with the
consumers in this regard to communicate and eradicate the negativity from their minds can
play a big role in introducing a sustainable livelihood in the society at a micro level.
JEL Classification: D11, E21, K32, L1, M31
Key Words: Sustainable consumption, Eco friendly Products/ Services, Perception
Building
6
Mr. Bhavesh Jha is an MBA in Business Sustainability Management (MBA) from TERI University, The Energy
& Resources Institute. He has a keen interest in environment and sustainable development, Environmental
and social impact assessments, innovation, social entrepreneurship etc. He is working in environmental
sector. He can be contacted at bhaveshjha08@gmail.com
23.
1. Introduction
Market always looks for an opportunity and comes up with new products or services with
new package to meet the needs and wants of consumers. Green has become a password
these days for almost each product or services to play upon. No doubt greening products/
process/ services has become very significant due to the increasing carbon emission and
global warming's negative affect on the society and environment. Gradually the green
oriented awareness among the people and their consciousness about the environmental ill
effect would play a crucial role in forming a perception about green and an eco‐friendly
product. The perception would lead to a responsible purchasing pattern and thus the green
would become a hot cake in the market. Products with less carbon emission in their
formation have been in demand. Green products and services obviously provide a value to
a customer. In addition, it puts an extra burden on the pockets of consumers. The study
shows the impacts of green products or services and different marketing variables like
product, packaging, distribution, promotion etc., in the consumption trends and buying
behaviour. This would also deal with other factors associated with the buying decision
process for a consumer to consume a green product or service.
2. Literature Review
American Marketing Association defines green marketing as marketing of products and
services safe to environment. This consists of a large no. of activities under marketing mix.
The elements like product, place, pricing, promotion and distribution are primarily
considered in the process of offering green products and services for environmental and
social benefits viz. to reduce waste, increase energy efficiency, decrease toxic emissions etc.
Over the few decades, consumers’ environmental concerns have risen (Gerard and
Edmund, 1998). This concern has pushed corporate to respond with environment friendly
products, processes, promotion and distribution. Now green marketing has become a part
and parcel of the overall corporate strategy (Menon and Menon, 1997). Hwang, McDonald
and Oates (2008) found attitude/ behaviour gap or values/ action gap, where around 30%
of consumers reported to have concern for environmental issues. But still people are
struggling to translate this concern into their purchases due to various factors viz.
Consumers'
demographics
(Age, gender,
Education etc.)
Green
Marketing
elements
(Product,
packaging,
Distribution,
promotion etc.)
Influencing
Purchase
Decision
24.
availability, options, value of money, unawareness about the benefits etc. Increasing
environmental knowledge and information about the ill impacts of natural resources
degradation has encouraged this consciousness in the marketplace. The increasing green
market segment pushes the confidence of corporate to increase their green activities in the
products’ offering process. Jacquelyn Ottman in his book, ‘Green Marketing: Opportunity
for Innovation’ says that environmental considerations must be integrated into all aspects
of marketing from the product development process to the communication channels and
should be inclusive towards all the stakeholders. Consumer satisfaction, product safety,
social acceptance and sustainability of products are few benefits of green marketing
strategy (Peattie, 1995). Green marketing strategy provides differentiation in terms of
competitiveness, long term sustainable presence, synergy and brand visibility in the
market. The paper has been written to understand consumer buying behaviour for eco
friendly products and address the concerns for environmental degradation.
3. Green or Responsible Consumption
Responsible consumption is an ethical response of a consumer for a particular product or
service. Responsible consumption covers a macro view related to different activities in
both productions and consumption patterns. Some of the processes include recycling of
materials, efficient use of energy, protection of environment and the preservation of
biodiversity etc. Thus Green consumption starts with purchasing products essential and
environment friendly. These products are not harmful to human health and, save different
kinds of expenses like expenses on power, fuel and disposal. As the awareness about green
products and services is increasing, the responses from the consumer have been very
favourable. Promotions on greener lines have been capturing market rapidly. The
responsible consumption could not only preserve our environment but also boost our
economy in an inclusive manner.
In this regards, some of the responsible behaviour of consumers and guidelines
for a responsible consumption can be exhibited as:
i. Do not purchase unnecessarily. Reconsider before you purchase a
product: Since production, process needs a big quantity of resources or
expenses, which can be saved, and the wastages as left products can be
reduced.
ii. Choose a product which is more environments friendly: Different green
labels are available to make you aware about the substances used in the
production. Different substances like heavy metal, chlorinated organic
compounds etc. are very harmful to environment and society.
iii. Prefer a product for which raw materials have been obtained with a
minimum environmental destruction: In the process of obtaining raw
materials, the conducts of businesses have been very unethical. Companies
25.
miss‐utilize the natural resources and they have no sense of responsibility
attached with their operations.
iv. Choose a product which is more energy efficient: Products using natural
resources like oil or electricity (thermal power) should always be chosen
on the basis of their energy consumption. Different energy ratings by BEE
(Bureau of Energy Efficiency) in this regards should be always considered.
v. Choose a product which is easy recyclable: In order to reduce waste and
its implications on the earth and natural environment. We should always
consider a product which can be easily recycled and does not have a
negative impact on disposal.
vi. Always try to choose a recycled product: Production of a new product
with recycled resources or scraps or wastes are called recycled products.
Gradually with increasing awareness levels and responsible consumption
trends in the market would broaden the market of producing recycled
products.
4. Importance of Green Products/ Services
Green marketing consists of different activities to satisfy the consumers’ need or wants in
the market. Different elements are product itself, packaging, and distribution and
promotion activities. Green marketing and green labelling has become an important factor
for products or services to sustain in the market. Greening the process in making a product
gives an edge over the competitiveness not only in the form of cost effectiveness but also
better brand building and value generation in the market. Green push for a product gives a
new life and more orientation to a product for its consumption. As increasing awareness,
concerns and importance about eco friendly goods among the consumers increasing, the
importance of consuming product with green label has to increase at a rapid pace. The
responsibility of corporate in projecting green products and its value has been of immense
importance in this situation. Corporate have started working responsibly on sustainable
solutions with less carbon emission and lesser impact on the environment.
5. Case Study: Responsible consumption
Perception of a consumer always likely to change for an available green product/ service
which can be evaluated through their buying decisions making. The questionnaire dealt
with different questions about their awareness on this issue, their motives behind
consumption and most importantly the suggestions for different governments/ corporate.
The inferences have been clubbed to get more informative analysis. An open and two way
discussion and information sharing based on questionnaire facilitated in drawing some of
the inferences because of their responses.
a. Objective
26.
The main objective of the study is “to assess the impact of green products or services on
consumption trends” and “to assess different factors behind the green buying pattern of a
consumer”
b. Methodology
i. Questionnaire: A questionnaire comprised of 15 questions has been
used to assess the buying behaviour and consumption trends for any
econ friendly product/ services of a consumer.
ii. Focussed Group discussions
iii. Sample Size: 40 people have been chosen for this study from various
socio economic profiles in different parts of Delhi
iv. Age Group: The age group of the respondents varied from 21 to 30
years. The respondents consist of students and professionals.
c. Viewpoints of Respondents
Q’s:
1. Do you concern for environmental pollution?
2. Do you know about global warming?
3. Do you think that the quality of natural resources around you have been worse?
Almost all the respondents are aware about the depleting natural resources, they (80%
respondents) have a concern for environmental pollution and 90% respondents know
about global warming and its ill effect. Around 60% respondents says that the quality of
natural resources have gradually depleting. 15% respondents have not given answers since
they are not interested in this survey and they simply says that they are students and not
responsible for global warming and environmental degradations.
Q’s:
4. Do you think that global warming and its impact plays a negative role on the
society and environment?
5. Do you know about green/ eco‐friendly products?
6. Do you think that awareness among the people about green products and
90%
10% Know
about
Global
Warming
Don't Know 60%
40%
Quality of
Natural
resources
depleted
in the last
few years
Don't know
27.
services is very less?
Global warming plays a very negative role in the social and environmental development
process. The depletion of natural resources, increasing health hazards due to
environmental pollution are known to all and almost all the respondents have favoured
this direct relation of environmental degradation and a negative impact on society. Almost
all the respondents know about the green products but only through word of mouth or
news. Some of them say that it is only available for high end consumers and some have
never seen what exactly a green product is.’ There is a lack of availability in the market and
if available its cost is extremely high’; One respondent says. All the respondents have talked
about awareness about these issue very limited. The awareness campaigns and knowledge
is not available in open public domain and still there is a huge lack of information among
the actual consumer about this issue.
Q’s:
7. Do you think that your consumption pattern can play a big role in order to
mitigate the adverse environmental impact?
8. Are you willing to change your lifestyle to reduce the damage on the
environment?
Most of the respondents around 70% respondents don’t think that their step towards a
green consumption would play any role in mitigating the issue. Also they are not
responsible for what is happening. The government and corporate are responsible to take
decision on this issue and they should take strict measures and policy implementation to
cut the carbon emission in the production process. Same no. of respondents (70%
responses) says that they are not willing to change their lifestyle. They all are surviving at a
very low lifestyle and they can’t change since most of them are students and early
professionals who are not in a position to spend lavishly on these costly issues.
Q’s:
9. Are you willing to buy a more environmentally product with an eco‐label on it?
10. Have you ever purchased any eco‐friendly product?
30%
70%
Individual
livelihood pattern
would make any
change in
mitigating the
issue
70%
30%
Not willing to
chage
lifestyle
Willing but
how
28.
11. Does a higher price for a green product make a change on your decision making
process?
All the respondents are willing to purchase an eco friendly product. But it should be
available in the market at a competitive cost. 50 % (20 respondents) of the respondents say
that they have not yet purchase any green product. This shows their lack of information
about different eco labelling information on products and knowledge gap on this issue. A
higher price for eco friendly product always plays a crucial role in forming the buying
decisions. “The cost of a green product should be affordable also”; many respondents
quoted.
Q’s:
12. Do you think it is your moral responsibility to purchase a green product?
13. Do you think that government and corporate should more invest in innovation to
lower down the cost of producing a green product?
“Yes, it is our collective and individual responsibility to consume green products only.” 45
% (19 respondents) of the respondents say. They also say that consumers are not at a
decision making position and corporate/ producers have to play a pivotal role in producing
green products at a reasonable cost. It is the responsibility of the governments and
corporate to invest in the innovation, research and develop green solutions for the needs
and wants in the market.
50%50%
Not yet
purchase any
Green product
Yes, they have
but don't know
whether it is
green or not
45%
55%
Moral
responsibility to
consume green
products
Don't know
30.
Fisher's
Exact Test
.139 .139
Linear‐by‐
Linear
Association
2.600 1 .107
N of Valid
Cases
40
Interpretation:
Table‐i provides required information of Chi‐square test. The value of Pearson Chi‐Square
is 2.667 and associated significance value is .102(which is less than 0.05) with 1 degree of
freedom. Therefore, null hypothesis (H01) is rejected and our hypothesis (HA1) is accepted.
Table‐ii: Hypothesis Testing (Chi‐ Square test)
Value df Asymp. Sig.
(2‐sided)
Exact Sig.
(2‐sided)
Exact Sig.
(1‐sided)
Pearson
Chi‐Square
.127a 1 .722
Continuity
Correctionb
.000 1 1.000
Likelihood
Ratio
.128 1 .720
Fisher's
Exact Test
1.000 .505
Linear‐by‐
Linear
Association
.124 1 .725
N of Valid
Cases
40
Interpretation:
Table‐ii shows that the value of Pearson Chi‐square test is .127 and associated significance
value is .722 (which is less than 0.05) with 1 degree of freedom. Therefore null hypothesis
(H02) is rejected. Our hypothesis (HA2) is accepted and stands positive.
Table‐ iii: Hypothesis Testing (Chi‐ Square test)
Value df Asymp. Sig. Exact Sig. Exact Sig.
31.
(2‐sided) (2‐sided) (1‐sided)
Pearson
Chi‐Square
4.177a 1 .041
Continuity
Correctionb
2.947 1 .086
Likelihood
Ratio
4.304 1 .038
Fisher's
Exact Test
.055 .042
Linear‐by‐
Linear
Association
4.073 1 .044
N of Valid
Cases
40
Interpretation:
Table‐ iii depicts that the Pearson Chi‐Square value is 4.177 and associated value is .041,
which is less than 0.05 with 1 degree of freedom. Hence, null hypothesis (H03) is rejected
and alternative hypothesis (HA3) is accepted.
7. Limitations
The study has some limitations. The limitations can be exhibited as
i. Small size of sample
ii. Many other related and important parameters are missing like features of making a
product green, their associating factors, energy savings, environmental ratings etc.
iii. Many times the respondents are not the decision making persons, so it may be a
hypothetical decision to consider his/ her responses.
8. Conclusion
Increasing awareness about the environmental degradation and its ill effect, consumers
have started consuming eco‐friendly products/ services. The main constraint in buying
eco‐friendly products has been the high cost. Also the companies producing products in the
name of environmentally friendly has been eyewash for the consumers and they don't rely
upon the fake promotional activities in the name of green. Consumers want their full value
of money to be utilised with perfect efficacy. In the buying decision process, they want their
perception to be valid about the product/ organisation. Most of the consumers if satisfied
with the brand and their ethical code of conduct then their perception are unchangeable
and they buy green labelled product. Green product and green marketing push the
consumers to consume satisfactorily. There is still a huge communication and information
32.
gap about green/ eco friendly products. The responsible consumption and buying decision
making process depends upon various factors such as cost proposition, perception and
validity of products' promise, availability of products etc. Most of the green products are
not available or if available are available for high end consumers. Government and
corporate have to play a crucial role and through research, innovation and development of
green solutions can play a pivotal role in pushing consumers to follow a more responsible
consumption pattern. Through innovation and technologies, producers need to produce
green products at a competitive cost. The corporate should not involve in any kind of
negative eye washing. Corporate needs to enhance their ethical conducts of business and a
transparent mechanism to tackle these issues. Governments and policymakers should also
take stricter rules and regulations to promote green practices in business operations.
Moreover spreading awareness about greens products is much more important as this
concept is not known by the citizen and therefore there is dire need to spread the
awareness among the society through regular seminars, print media, television media etc.
This responsibility of making consumers aware about the green products is also on
companies marketing these products. Though they have finest of product but without
awareness, their products are not reaching to the ultimate customers.
9. References:
i. Greendex 2012: Consumer Choice and the Environment – A Worldwide Tracking
Survey. July 2012 (Online)
ii. Chan, R. Y. K. (1999). Environmental Attitudes and Behavior of Consumers in China.
Journal of International Consumer Marketing, Vol. 11, No. 4
iii. Green Brands, India Insights, 2011
34.
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