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INTRODUCTION The mankind has witnessed the tremendous advancement in Science and Technology, modernization and industrialization in the last 100 years, which was not seen for millions of years. Energy had been a key issue to industrialization and he sought after Fossil fuels like Petroleum and Coal. This came together with Pollution of Environment be it Air, Water, Earth, including vegetation and Animal kingdom. Burning Fossil Fuel over the last 200years, we have added 400 Gigatonnes of Carbon Dioxide into the atmosphere. (1 GT = 1000 million tones.) The Plants have been able to absorb only 200GT and the balance in still there in the atmosphere. This is the primary cause of Global Warming and Climate Change. The effects of Global warming is now felt by mankind through Climate changes, melting of Ice caps in Artic Zone, rise in the sea level reducing the land area, threat to marine life etc. The solution to the Global Warming lies in the |
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| development of the Green cover or Forest cover to absorb the excess CO2, together with harnessing Renewable sources of Energy in lieu of Fossil fuel so as to arrest the pollution level from further increasing. Sustainable Development of our Textile Industry depends upon the source and Cost of Energy, as the Industry has become highly Power Intensive. At present we are dependant on Grid Power, which is primarily Fossil Fuel based, polluting Environment. In addition our Mills offers direct employment to millions of workers and indirect employment to millions of agriculture families’ thro cotton purchase annually. These families primarily depend on our Mills for their sustenance. Therefore our Mills need to constantly strive for Sustainable development of the Units in the interest of these dependant families. Sustainable Development of the Nation in general and our Industry in particular can be achieved through opting for Renewable Energy programs such as Wind, Biomass, Solar, and Mini Hydel, etc. Renewable Energy contributes both towards sustainable development as well as Environment protection by sheer virtue of its inexhaustible nature. Renewable Energy Sources will offer long term Energy Security to our Mills as well as contribute to Environment thro Clean Energy. In turn this will save for our Nation equivalent Grid power for which Country has to import Fossil fuel be it Coal or Petroleum. WHAT IS CDM? Kyoto Protocol and CDM While global warming has been a subject of discussion and concern of the global community since 1987, it was at RIO, Convention in 1992 a special purpose vehicle was instituted to the study the impact of Global Warming and suggest measure to arrest further deterioration of the environment. In the year 1997, at the Third Conference of Parties (COP 3), to the United Nations Framework Convention on Climate Change (UNFCCC) in Kyoto Japan, a protocol was proclaimed, to reduce the carbon emissions by at least 5% less than the benchmark year 1990. Kyoto Protocol demands the developed nations to reduce their carbon emission at least by 5.2% less than that of the year 1990, by the end of year 2012, the commitment period starting 2008.The protocol also defines Clean Development Mechanism (CDM) to facilitate the developed nations to achieve the objective. CDM offers opportunities to developed nations to undertake Clean Energy Programs in Developing Nations (developing nations do not have emission deduction obligation) and take credit of such emission reduction to their account and comply with the protocol. Thus carbon has become a tradable commodity. Carbon emission, a major cause of global warming is primarily due to use of fossil fuels such as coal and petroleum in Thermal Power Plants and automobiles. Therefore any project undertaken to improve the energy efficiency in the utilities, or renewable sources of energy or clean energy projects supporting emission reduction qualify carbon credit. |
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To get certified potential CDM projects need to undergo series of following steps: STEP I (Preparation of PDD) Upon identifying eligible project, the project developer has to prepare a Project Design Document (PDD) in the prescribed format. STEP II (Approval by DNA) Submit the PDD to Designated National Authority (in our case it is Ministry of Environment and Forest) for approval. STEP III (Validation) Then submit these documents (PDD and approval from DNA) to a third party agency known as Designated Operational Entity (DOE) for Validation. There are few DOEs in India like DNV, TUV, JQA, and SGS. STEP IV (Registration) After validation, the DOE forwards its reports to the Executive Board, which normally registers the project as a CDM project within eight weeks. ADMINISTRATION FEE FOR CDM PROJECTS
STEP V (Monitoring) Monitoring is the systematic surveillance of project performance by the project developer. For this purpose, a transparent and reliable monitoring plan must be specified to collect and archive all data needed to estimate GHG emission occurring within the project boundary, determine the baseline emissions, and determine leakage. STEP VI (Verification) Verification is the periodic independent review and ex post determination by the DOE of the monitored emission reductions resulting from the CDM project. In case of small-scale projects, the same agency that did the Validation can perform the Verification too. STEP VII (Certification) Certification is the written assurance by the DOE that the project has achieved the emissions reductions as verified. STEP VIII (Issuance of CER) Within fifteen days of the DOE making its certification report public, the Executive Board issues the necessary CERs. A registry for the issuance and tracking of CERs is under development by the Executive Board. The project developer has two options for the period of receiving credits:
Time Lines required to carrying out various activities shall be: Development of PDD : 3 months from date of agreement Validation : 4 months from date of submission of PDD Registration : 2 months from the date of Validation Verification and Certification : 2 months from Registration HOW CAN CDM BENEFIT YOUR PROJECT? As a result of the Kyoto Protocol, carbon has become a tradable commodity with an associated value. One tonne of CO2 (carbon dioxide) reduced through a CDM project, when certified by a designated operational entity, is known as a CER (certified emission reduction), which can be traded. Revenue from CERs can form part of your project’s annual cash inflow, equity, or debt. PROJECTS THAT CAN BENEFIT FROM CDM FINANCE All CDM projects must result in a net GHG reduction, as in the case of energy efficiency improvement, renewable energy generation, or carbon sequestration through a forestation and reforestation. Typical CDM projects fall into the following categories.
THE POTENTIAL OPPORTUNITIES FOR INDIA There are varying estimates of the potential opportunities under the CDM. Earlier studies expected annual flows of as much as 1 billion dollars into India. However, the United States’ refusal to ratify the Kyoto Protocol has reduced the demand for CDM considerably. If India can capture a 10% share of the global CDM market, annual CER revenues to the country could range from 10 million to 300 million dollars (assuming that CDM is used to meet 10%– 50% of the global demand for GHG emission reduction of roughly 1 billion tonnes of CO2, and prices range from 1– 6 dollars per tonne of CO2). As the deadline for meeting the Kyoto Protocol targets draws nearer, prices can be expected to rise, as countries/companies save carbon credits to meet stricter targets in the future. ACHIEVEMENTS IN KARNATAKA India is fortunately endowed with large potential of all forms of renewable energy sources, which has carbon avoidance potential. The preliminary estimates show that the capacity expected to be installed by the end of 10th plan would result in avoidance of about 16 million tonnes of Carbon every year. The capacity at the end of 11th plan would result in annual avoidance of about 27 million tonne of carbon. The notional yearly carbon avoidance by the present installed capacity has been estimated at about 7 million tonnes. Karnataka has been blessed with a huge potential of Renewable Energy (RE) sources of more than 10,000 MW primarily in the sectors of wind, small hydro, co-generation and biomass. So far more than 5000 MW of RE projects have been allotted to private entrepreneurs. Out of which 1000 MW and odd MW of power is presently being generated. In terms of energy content about 1500 Mu are being pumped into the grid. By the end of 10th plan i.e., by 31/3/07 it is expected that the installed capacity in the RE sector would be about 1500 MW and by the end of 11th plan period i.e., 31/3/12 it would be about 2500 MW. In addition stand alone, RE systems such as solar, wind, solar hybrid, biomass gasifiers, etc. would contribute towards substantial reduction of GHG. Hence there is a large scope for realizing the CDM benefits in the state. CONCLUSION The Developers are encouraged to develop Renewable Energy Programs towards Sustainable Development and participate in CDM and avail Carbon Credits. In addition they can boast of contribution to Environment by the measured quantum of CO2 reduction through their projects. With an installed capacity of 8197 MW from renewable energy sources in India, huge potential exists for the carbon emission reduction (CER). Karnataka with an installed capacity of about 1600 MW, is the front runner in this field. Potential buyers of the CER certificates can approach Karnataka Renewable Energy Development Limited which has been nominated as the designated agency for CDM. Few bagasse based cogeneration projects and wind projects coming up in Karnataka have already been issued CER certificates from UNFCCC. Many other projects which are renewable in nature are in the pipeline to avail the CERs from UNFCCC. |
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