Carbon Credits & Potentials in India

7/28/2019 Carbon Credits & Potentials in India

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GHGs & Global Warming

Green House Effect

Increased concentration of carbon dioxide, methane and

nitrous oxide, ozone, chlorofluorocarbon, hydro

fluorocarbon, Per fluorocarbon

Enhanced Greenhouse Effect


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Green House Gases

1 Carbondioxide

2 Methane

3 Nitrous Oxide 4 Water Vapour

The presence of this Gases is necessary tokeep the earth some 30 degree celsius

warmer than otherwise it would be.


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Enhanced Green House Effect

Rising Concentration of

CO2

METHANE

NITROUSE OXIDE

Chlorofluorocarbon

Hydroflurocarbon

Per fluorocarbon

These gases are increasing the Atmospheretrapping of the Infrared radiation emitted fromthe Earths Surface leading to Global Warming


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GHG Emission 2004

INDUSTRIAL

ROAD TRANSPORT

27%

25%

OTHER TRANSPORT 15%

WASTE 9%COMMERCIAL 5%

RESIDENTIAL 6%

AGRICULTURE AND LAND USE 4%


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Carbon Credits

Collins English Dictionary - a certificate showing that a

government or company has paid to have a certain

amount of carbon dioxide removed from the environment

Investopedia investment dictionary - a permit that allows

the holder to emit one ton of carbon dioxide, which can betraded in the international market at their current market

price


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Carbon Credits are a component of National andInternational attempt to mitigate the growth inConcentration of GHG.

1 CCs = 1 metric ton of CO2

Carbon credits are certificates awarded tocountries that are successful in reducingemissions of greenhouse gases.


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Carbon credits are generated as the result of anadditional carbon project. Carbon credits canbe created in many ways but there are two

broad types: 1. Sequestration (capturing or retaining

carbon dioxide from the atmosphere) suchas afforestation and reforestation activities.

2. Carbon Dioxide Saving Projects such as useof renewable energies
http://www.science.org.au/nova/054/054glo.htmhttp://www.science.org.au/nova/054/054glo.htm


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EXAMPLE

If an environmentalist group plants enough trees toreduce emissions by one ton, the group will beawarded a credit.

If a steel producer has an emissions quota of 10 tons,but is expecting to produce 11 tons, it could purchasethis carbon credit from the environmental group.

The carbon credit system looks to reduce emissions byhaving countries honour their emission quotas and

offer incentives for being below them.


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Kyoto Protocol

The Kyoto Protocol is a protocol of the United Nations Framework Convention on

Climate Change that set binding obligations on the industrialized countries to reduce

their emissions of greenhouse gases.

The targets apply to carbon dioxide (CO2), methane, nitrous oxide, sulphur

hexafluoride, hydrofluorocarbons & perfluorocarbons

Annex I countries agreed to reduce their GHG emissions by 5.2% during 2008-2012 as

compared to the base year, which is 1990

You cant reverse the global warming, but

you can make the culprits pay


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KYOTOS flexible mechanism

* JOINT IMPLEMENTATION

Developed + Developed Countries .

*CLEAN DEVELOPMENT MECHANISMDeveloped Country can Sponsor GHG

reduction projects in a Developing Country

*INTERNATIONAL EMISSION TRADINGTrade in the International Carbon Credit market


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Clean Development

Mechanism (CDM)

It is a mechanism that allows entities from countries with

emission reduction targets (Annex I countries) to invest in

emission reduction projects in developing countries to earn

Certified Emission Reduction (CER)

One allowance or CER is considered equivalent to

one metric ton of CO2 emissions


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CDM in India

Right from the inception of CDM projects by UNFCCC, India has

taken active part in this respect

May, 2011 - 645 CDM projects registered with the UNFCCC with

issuance of 93834 kCERs

Maximum number from energy sector i.e. 87.83% of total

projects in India

98% by private Corporate including Reliance, Tatas, Birlas,

Ambuja, ITC etc.

R i i h i f b ill hi


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Raising the price of carbon will achieve

four goals.

1] It will provide signals to consumers aboutwhat goods and services are high-carbon onesand should therefore be used more sparingly.

2] It will provide signals to producers aboutwhich inputs use more carbon (such as coaland oil) and which use less or none (such asnatural gas or nuclear power), therebyinducing firms to substitute low-carboninputs.


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3] It will give market incentives for inventors and

innovators to develop and introduce low-carbon

products and processes that can replace the

current generation of technologies.

4] A high carbon price will economize on the

information that is required to do all three of

these tasks. Through the market mechanism, ahigh carbon price will raise the price of products

according to their carbon content.


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CDM Projects in

Maharashtra


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Adani Power Maharashtra Ltd, Tirora,

Gondia district

Subsidiary of Adani Power Ltd

Power Generation Projects located at Tirora Town , Gondia.

Uses coal-fired supercritical technology for thermal powergeneration

Aims at reduced consumption of fossil fuel and emissions ofassociated GHGs

Targets to earn CERs of 11,930,172 over 10 years from 2011to 2021


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Maharashtra Energy Development

Agency, Satara district

*Chalkewadi Village

Main purpose to generate electrical energy using

wind power resources

Targets to earn CERs of 68000 tons over 10 years


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Conclusion

Trading of Carbon Credits & CDM is an effective way ofreducing of GHG emission.

Even India has been for it since its inception. With its

development activities India will be facing serious electricity

crunch in near future.

To fulfill the demand & protect environment there is need foruse of renewable energy.

CDM can be one solution for both these problems.


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Ellora Time Ltd., Satara district

leading manufacturer of Wall colcks, wooden

clock, time pieces, calculators, telephone etc.

Projects in villages of Satara district

Targets to earn CERs of 223,650 tons over 10

years

Carbon Credits & Potentials in India

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