Green Growth and Development Quarterlybookstore.teri.res.in/docs/journals/Green Growth... · in conversation with dr tcA Anant, Prof Sir Partha dasgupta, and dr Pronab Sen on measuring

Volume 1 • Issue 3 • April 2013

Green Growth and Development Quarterly

The Energy and Resources Institute

© All rights reserved. No part of this publication may be reproduced without the prior permission from The Energy and Resources Institute (TERI) or respective authors.

Editor-in-chief R K Pachauri, Director General, TERI

Editorial teamShailly Kedia, Associate Fellow, TERIRitu Singh, Research Associate, TERIRitika Sehjpal, Research Associate, TERI

Photo creditThe coverpage is based on artwork by Chandra Shekhar Sain, an artist from Jaipur, Rajas-than. The art portrays the Chipko Movement of India which is of significance throughout the world’s environmentalist circles for its success against deforestation. This clay art is a part of mural for International Centre for Environmental Audit and Sustainable Development, Jaipur.

AcknowledgementsWe gratefully acknowledge Department for International Development (DFID) for providing support for this newsletter. We acknowledge Rajiv Sharma, Santosh K Singh, R K Joshi, Hemambika Varma, and Shilpa Mohan from TERI Press. We acknowledge M K Bineesan from the Green Growth and Development Division for his support at various points.

Published by The Energy and Resources Institute (TERI)TERI Press Tel. 2468 2100 or 4150 4900Darbari Seth Block Fax 2468 2144 or 2468 2145IHC Complex India +91 • Delhi (0) 11Lodhi Road Email [email protected] Delhi – 110 003 / India Web www.teriin.org

Foreword by editor-in-chieF 5

interviewin conversation with dr tcA Anant, Prof Sir Partha dasgupta, and dr Pronab Sen on measuring wealth 7

SPeciAl FeAture Poll on inclusive green growth for sustainable development 11

internAtionAl cASe Study biotrade and imperatives for a green economy in Peru 13

ArticleSSustainable lifestyles: towards greener growth 18 Sapan Thaparharnessing opportunities for energy-efficient technologies and joint crediting mechanism in the indian context 27 Prosanto Pal, Kenta Usui, Kazuhisa Koakutsu, and Girish Sethi

Green AnAlySiS commercial energy flows in india 38

Green ShowcASe recognizing bold and unconventional thinking 41linking climate action and poverty alleviation: An approach to informed decision-making 45

Green From the GrASSrootS vital link between communities and the government 49new directions: Solar energy in Africa 53

book review Greening rural development in india 56

Green GloSSAry 60

Green uPdAteS 62

contents

Green Growth and Development Quarterly • Volume 1•Issue 3• April 2013 5

Foreword by editor-in-chieF

In recent years, considerable attention has been provided to the subject of green growth, and this topic was addressed in general as well as frequently in the UN Conference on Sustainable Development, generally referred to as Rio+20. The

document agreed on at Rio+20, “The Future We Want” makes pointed reference to a green economy, but understandably does not lay down specific targets or tasks for countries to attain the objectives of green growth and development. In the recent, Human Development Report for 2013 produced by UNDP, Professor Amartya Sen stated, “Gross domestic product (GDP) is much easier to see and measure than the quality of human life that people have. But human well-being and freedom, and their connection with fairness and justice in the world, cannot be reduced simply to the measurement of GDP and its growth rate, as many people are tempted to do”.

Bhutan, which has been at the forefront of defining a new economic paradigm, namely the concept of “gross national happiness” was involved in a high-level meeting on “Well-being and Happiness” held at the United Nations Headquarters in New York in April 2012. The Prime Minister of Bhutan, Mr Jigmi Y Thinley, wrote on the occasion and published in the proceedings of this meeting the following view. “The present GDP-based system, they recognized, was devised prior to any knowledge of climate change or the finite limits of the earth’s resources, and it prioritizes material growth and consumption at the expense of nature and people. This system has depleted resources, degraded ecosystem services, accelerated greenhouse gas emissions, diminished biodiversity, and now threatens the survival of humans and other species. It has created yawning inequities, and is generating global economic insecurity, indebtedness, instability, and conflict.”

There is now an urgent need to evaluate our systems for measuring economic well-being and progress. Growing knowledge in areas like climate change and the extent of negative externalities that economic activities impose on the ecosystems of this planet makes it possible for us to come up with improved metrics. There is, of course, every reason to believe that devising any new set of metrics will be a complex challenge, but to continue measuring GDP in the conventional manner could be an indicator

Green Growth and Development Quarterly • Volume 1•Issue 3• April 20136

Foreword

for misdirecting human activities and continuing with existing flaws to compound some of the problems that we have today. These include the growing challenge of climate change, the acidification of the oceans, the pollution of our rivers and lakes, deterioration of air quality and soil degradation, which is a function of natural as well as human factors.

While it might not be possible, at least in the near term, to come up with a single measure by which we can assess the welfare of human society, there is clearly a need at least as a first step to supplement the measure of GDP with other indicators, so that we get a comprehensive assessment of the status of human welfare from time to time and place to place. We also need to integrate the wealth of natural resources with what is now easily measured as material wealth constructed by human action. Debates such as those stimulated by this publication need to be intensified and converted into rigorous research, so that our knowledge results in more comprehensive and accurate measures for assessing human welfare and the state of this planet accurately.

R K Pachauri Director-General



In conversation with Dr TCA Anant, Prof Sir Partha Dasgupta, and Dr Pronab Sen on measuring wealth

Dr TCA Anant Secretary, Ministry of Statistical Planning and Implementation

interview

TERI: Congratulations for conveying the report titled, ‘Green National Accounts in India: A Framework’, which is seen as a positive step on behalf of your ministry and Government of India. What do you envisage as future steps, now that the report has been released?Dr TCA Anant: Formally the call has to be taken by the government with due processes which will entail consultation by many government agencies—ministries and department—involved. There will be a number of areas involved in which further research and dialogue would also be required. The work plan will be at different levels, as only certain types of data will be available in short time horizon. I would like to emphasize that the title of the report is a bit of a misnomer—what the report does

The report ‘Green National Accounts in India: A Framework’ dives into the conceptual foundations of economic evaluation for measuring wealth. Government of India, in recognition of the emerging need of a Satellite System of National Accounts (SNA), had set up an Expert Group under Ministry of Statistics and Programme Implementation (MOSPI) in August 2011, Chaired by Prof. Sir Partha Das Gupta with the mandate of developing a framework for green national accounts, identification of data gaps, and preparation of a road map to implement the framework. The Green Growth and Development Quarterly editorial team interacted with and interviewed various members of the Expert Group. Dr TCA Anant (Secretary, MOSPI), Sir Partha Dasgupta (Frank Ramsey Professor Emeritus of Economics, University of Cambridge), and Dr Pronab Sen (Chairman, National Statistical Commission) gave insights on strengthening statistical reporting to factor environment sustainability and inclusive growth.

interview


is to suggest a framework through which wealth can be measured. Data may not be available in the framework and in the timeframe as articulated in the report. The next step would be short-term and long-term action-plans which the government will have to decide.

TERI: The report emphasizes a lot on the concept of ‘stocks’ that is wealth can be measured through quantity of stocks (productive assets, human capital, and natural capital). The ecological economics school of thought inspired by Nicholas Georgescu-Roegen's ideas discusses the concept of fund elements—which is an assembly of stocks in a pattern that contribute to ecological processes and hence also contribute to a wide range of ecosystem services. Do you think the time has come, when social scientists should work more with natural scientists?Sir Partha Dasgupta: Yes, eventually that would be the way. One would have to move towards more inter-disciplinarity. Currently, there are small interdisciplinary studies that look at human-nature interactions. A lot of the valuation techniques currently in use are derived from the concept of ‘amenities’ and services such as eco-tourism being offered by conservation parks. This is also due to the fact that in the United States of America, there was lot of funding that was available from agencies responsible for conservation and tourist parks. However, techniques such as contingent valuation measurement (CVM) would fall short of estimating the prices of ecosystem services of a forest, for example, in controlling soil erosion and hence enhancing productivity. It is not useful to apply 'willingness to pay' techniques, for instance, to ask a farmer on the importance of forests that could enhance ecosystem services in terms of soil preservation—hence ecosystem models and working with thresholds would be the way to go ahead.

TERI: How will the proposed framework be sensitive to the location specific discount factor to estimate the net present value of same natural assets in different parts of the country in different social and political contexts?Dr Pronab Sen: A shadow price is envisaged to be estimated at the national level. This shadow price can be a centralized shadow price after taking inputs from the different state level shadow prices. A centralized shadow price might not make all states equally happy. But in framing the centralized shadow price, inputs from different state specific locations will be taken. A framework of harmonization will be worked out to come up with a centralized shadow price after consultation with state level statistical departments. Based on consultation, harmonization could be based on aggregation and weights—state departments will provide the requisite asset and location specific data to arrive at a national level shadow price.


TERI: There exists a centrally sponsored scheme (CSS) titled, ‘India Statistical Strengthening Project by MOSPI’. Do you feel the identified statistical indicators in the CSS will help in measuring wealth by states?Dr TCA Anant: The 20 indicators specified so far are general and the states already implementing these may not necessarily have factored their requirements as contextualized in the green accounting report. The capacity of states to contribute to systems such as compendium of government statistics will help in improving statistical system in future. Also states have shown interest in contributing to the compendium of environment statistics. Statistics is a dynamic process just like development; system will have to be strengthened taking in account the situations and therein identifying what is measurable.

TERI: How will MOSPI engage with stakeholders including the state government, civil society, and especially business and industry? Do you feel statistical agencies need to engage more closely with stakeholders?Dr TCA Anant: As far as stakeholders are concerned, MOSPI has to engage with all stakeholders. MOSPI as an agency is mainly a data provider. Characteristic of stakeholders as far as MOSPI goes are of two types—as data providers and as data users; MOSPI engages with stakeholders who use and provide data. Business is also an important data provider. MOSPI has to engage with businesses for data provision and to ensure timeliness, quality, and consistency. Stakeholder engagement is important from data-user and data-provider perspective. The ministry does that through technical advisory group and working groups. One example is the National Accounts Advisory Group which has representatives from ministries and academics. Another source of consultation and engagement is through the Planning Commission. When a ministry makes plans and schemes, data is made available to them according to the request made by the ministry. Sometimes specific requests are also made to collect new data. The ministry has to engage more with stakeholders especially with businesses through associations as data providers and users.

TERI: What in your opinion would be required to strengthen environment reporting and statistics in India?Dr TCA Anant: Geographic information system (GIS) is one of the most exciting developments taking place. We have to look at a more formal spatial data system. A different data culture has to evolve for mapping physical and socio-economic characteristic at the state and district levels. For the same, geo-tagging of all data may

interview


be required. For example, for data related to industry, agriculture, and socio-economic characteristic, a separate category of geo-tagged data for the state and country can be done. It will require involvement of state governments and their agencies. Overall there exist a GIS initiative by the Department of Science and Technology (DST), but a lot more can be done. Karnataka is currently mapping government initiative in GIS framework. Shifting of all data production in such framework can nevertheless be challenging. Geo-tagging can be done for data at finer levels, to understand biophysical and socio-economic characteristics. Currently, the tagging level is too coarse. A more ground-up geo-tagging is needed to be done.


Poll on inclusive green growth for sustainable

development

special Feature

A poll on inclusive green growth was conducted during the Delhi Sustainable Development Summit (31 January 2013–2 February 2013) and other events. This activity was a part of the project1 on low carbon development in India supported

by the United Nations Development Programme (UNDP). The poll was conducted by students of the TERI University2. The poll captured opinions of experts on the subject of inclusive green growth for sustainable development and a total of 124 respondents were approached in person during various events of the Summit and other events at TERI. The respondents whose opinions were captured made a fair representation from government, multilateral organizations, civil society, media, business and industry, and research and academia. Out of the 124 respondents, 39 per cent of them were from OECD (Organisation for Economic Co-operation and Development ) countries and 61 per cent from non-OECD countries. Also, the respondents represented a good geographical scope with representations from countries of South Asia; East Asia and Pacific; Europe and Central Asia; America and Caribbean; Sub-Saharan Africa; and Middle East and North Africa.

Majority of respondents—around 86 per cent—felt that green growth has the potential to promote inclusiveness. This is an issue that has been much deliberated in international dialogues. Another issue relevant to the fundamentals of growth and development is the measure of progress and wealth. There has been a growing recognition that contemporary national accounts and gross domestic product do not provide a basis for valuation of natural and human capital. Quite in accordance to this notion, about 85 per cent respondents recognized the need for alternative growth metrics to supplement the Gross Domestic Product. Recently, on 5 April, 2013, the Prime Minister of India, Dr Manmohan Singh released a report titled ‘Green National Accounts in India: A Framework’.

1 Project website: http://www.teriin.org/projects/locci/2 Students from TERI University include Akhil Aggarwal, Tshotsho Borat, Paavani Sachdeva, and Mahima Vasishth.

Aparna Vashisht is gratefully acknowledged to have guided the students for conducting the poll.


special feature

No 12%

Maybe 9%

Yes 79%

Is international cooperation important for a country’s

low carbon development strategy?Can low carbon development strategies be

profitable for businesses?

No 12%

Maybe 20%

Yes 68%

Regional partnerships and international cooperation have always been recognized as an instrument to promote sustainable economic and social development. The poll embarked upon this aspect as well and it was found that 79 per cent of the respondents perceived international cooperation to be important for a country’s low carbon development strategy. A mixed response from the respondents was captured; on being asked if they see low carbon development strategies to be profitable for businesses—to this 68 per cent respondents gave an affirmative response; however 20 per cent respondents felt that as yet they do not see low carbon development strategies being a profitable option for the businesses. This underlines that there is a need for the governments to promote forward-looking consciousness to mobilize active support for low carbon green growth and bring all the concerned stakeholders including private businesses and civil society on board.

Can green growth has the potential to promote

inclusiveness?

No 6%

Maybe 8%

Yes 86%

Is there a need for alternative growth metrics to

supplement the Gross Domestic Product?

No 7%

Maybe 8%

Yes 85%


Biotrade and imperatives for a green economy in Peru

Luz Barreto

international case study

Peru is a Western South American country, bordered by the South Pacific Ocean on the west, Ecuador and Colombia in the northern side, Bolivia in the southeastern region, Chile in the southern region, and Brazil in the eastern side.

The main spoken language is Spanish. Peru is one of the world's richest countries in terms of natural resources and has 84 of the world’s 104 known ecosystems. The Convention on Biological Diversity considers Peru as one of the top ten world’s mega-diverse countries, for its rich biodiversity in ecosystems, species, genetic resources, and high cultural diversity. Peru is recognized internationally as the leading exporter of organic coffee1 and bananas, the second largest producer of organic cocoa and one of the largest producers of nutraceuticals, and functional foods and various Andean grains.

Peru has been catalogued as one of the best economic performing country in Latin America. According to the Central Bank of Peru (2012), the economic growth has been

1 Ministry of Foreign Trade and Tourism (MINCETUR), 2010

Products from the diversity including quinoa, quihuicha, chuño.

Photo credit: PromPeru



steady in the last thirteen years. The average GDP growth rate was 5.7 per cent during 2000–2010 where as it was 6.9 per cent in 2011, and 6.5 per cent was estimated for 2012. The sectors that contribute most to the Peruvian economy are: industry (36.9 per cent ), manufacturing (16.2 per cent ), exports (27.3 per cent ), and agriculture and livestock (7.8 per cent ). However, these sectors are dependent on the domestic production condition that is highly vulnerable to climate change in addition to their international price situation. In reference to trade, the sectors that lead the Peruvian exports are hydrocarbons and mining, followed by traditional agriculture (approximately 65 per cent of the national agricultural industry depends on local biodiversity resources).

According to the Peruvian Ministry of Environment2, biodiversity in the country has supported various sectors of the economy, particularly industries such as agriculture, pharmaceutics, tourism, fishing, and manufacturing. It has contributed 22 per cent to Peru’s GDP and 24 per cent to its total exports (2009). Apart from contribution to GDP, the biotrade sector provides essential environmental services like fertile soil, clean air, and water supply. It is also projected that Biotrade in Peru, by 2020, has the potential to add more than 250,000 new jobs and provide carbon sequestration revenues from USD 154 million to USD 750 million as a part of Reducing Emissions from Deforestation and Forest Degradation (REDD) (ProNaturaleza and UNEP, 2012).

Peru’s biodiversity has a key role in national economy for a large part of the population. Peru acquires 13 per cent of the Amazon rainforest, spread in 70 million hectares. The Peruvian Amazon region offers an interesting potential derived from its rich native biodiversity, to develop new products and services for local, national, and international markets. The Andean and Amazonian food baskets include a unique range of vegetables and fruits, high in proteins and vitamins and offer a wide range of medical applications. Biodiversity is one of the most important sources of employment—the agricultural sector employs one-third of the nation’s economically active population.

Trade of biodiversity-based products have a high value-adding potential and generate local income by involving local and indigenous communities while also contributing to the conservation of biodiversity. Peruvian government has made consistent efforts and has encouraged various initiatives for protection of the biodiversity. One of them rests on The National Biodiversity Strategy and Action Plan (NBASP), which aims for, “the conservation of biodiversity, sustainable use of its components, fair and equitable sharing of the benefits arising from their use, adequate access to those resources, appropriate transfer of pertinent technologies, taking into account the rights to those resources and technologies, as well as appropriate financing”.

2 Ministry of Environment (MINAM), 2009


In an effort to encourage the sustainable use of biodiversity, the government initiated ‘The Biotrade National Promotion Programme’ in 2001, which aimed at promoting the development of associative mechanisms contributing to the generation of value-added export supply for the consolidation of markets in the first instance and subsequently entering new market niches. This initiative is based on an inter-institutional coordination with the National Biotrade Commission, a platform comprising public and private sector institutions that contribute to the development of Biotrade in Peru.

The Programme has offered an excellent opportunity to producers and farmers of bio products. The bio products trade has contributed to rural development and poverty reduction in the vulnerable areas. As a result the production of bio products that are traded has increased gradually to 20 per cent since 20043 and it has been estimated that for 2020, the sector will grow at 40 per cent (ProNaturaleza4 and UNEP, 2012). At present, this sector is the source of income and employment for more than 10,000 agricultural workers. Due to fair-trade prices, the producers and the farmers fetch better prices (relatively 30 per cent higher) for their products which have translated into better living standards. Moreover, the premium fund has been used to help families with expenses such as school tuition and home improvements. Besides, it has helped in strengthening cooperatives and associations through rental payment for office space and salary of staff.

3 M Peru’s Export and Tourism Promotion Board (PromPeru, 2011)4 Peruvian Foundation for the Nature Conservancy (ProNaturaleza)

“Peru has the potential to become a leader and a model for other countries to follow, in their transition to a green economy, due to its abundant natural resources, which have the capacity to create a unique array of products, whilst offering economic benefits to the poor and protecting the environmental assets on which they depend for their livelihoods”, United Nations Environment Programme (UNEP), 2012.

Photo credit: © UNEP, 2012



The Programme has strengthened the small and medium enterprises (SMEs), rural associations and communities through trade promotion services, including market information collection, product development, quality improvement, certification, labelling, trade fair participation, and matchmaking.

Despite the efforts, certain challenges continue to curb full-potential growth of local businesses and small-scale producers in rural areas. The benefits derived from the richness of Peru’s ecosystems and the gradual economic growth has not been equally distributed among the Peruvian people. For instance, Andean highlands have the highest poverty rate in the country; although they have some of the most important biodiversity-based resources. For all these reasons, there is an important challenge to use the resources in a sustainable way, economically, socially, and ecologically. Today’s challenge is to continue strengthening the awareness concerning social and environmental responsibility issues, to guide businesses under the framework and principles of sustainable Biotrade, to ensure sustainability over time, as well as to promote better income generation throughout the entire value chain and to enhance the understanding about the relationship between products, industry, and market potential. All of these activities should include working in coordination with the private sector and with the support of international organizations.

Government social initiatives and policies need to be put into place to improve the situation of groups of Biotrade. It is necessary to establish and implement appropriate conditions which include increased availability of finance, enhanced investments in R&D activities, prioritizing the development of value-added products, assist producers and companies in selling within domestic market, capacity-building through training to improve the ability of enterprises to design and implement successful marketing, promotion and export strategies, promote awareness campaigns about international market standards and to use proper skills to improve the production process, especially towards the conservation and sustainability of the biodiversity.

The Peru’s Biotrade sector offers tremendous potential to adopt the green economy vision and benefit from its results in terms of improved livelihoods, social equity, and protection of the environment. The future of this sector remains positive, as long as stakeholders including the private sector, public sector, and the communities make joint efforts towards the commitment of the Peruvian Sustainable Trade.


Bibliography

Brack Egg, A. (2004). Peru: Biodiversity, Poverty and Commerce. Lima, Peru: UNDP.

The National Biodiversity Strategy and Action Plan (2001), Peruvian National Environmental Council (CONAM).

ProNaturaleza and United Nations Environment Programme (UNEP), 2012, Green Economy Sectoral Study: BioTrade - A catalyst for transitioning to a green economy in Peru

Luz Aurora Barreto Montesinos, Senior International Cooperation Coordinator,Asociación de Exportadores – ADEX, Peru

Email: [email protected]


Sustainable lifestyles: Towards greener growth

Sapan Thapararticles

Introduction

Today, India is being considered on the cusp of entering the comity of developed nations, supported by its high gross domestic product (GDP) growth. This has led to an overall development of the country as is evident from the rise in energy

consumption levels across all strata of Indian society. India may be among the top five GHG emitters globally but it has low per capita

greenhouse gas (GHG) emission levels at 1.5 tonnes per annum (MoEF 2007); which is lower than the world’s average. Energy consumption in relation to price trends has also been inelastic (Sahu, 2008).

If we compare GHG emissions of an average Indian urbanite, it is much higher than his/her rural counterparts. People in rural areas have a greater dependence on the natural resources whereas urbanites are dependent on services that consume more of fossil fuels leading to higher GHG emissions. Moreover, millions of Indians classified as “below poverty line”, spend less than 1.25 dollars in a day; the number being 37 per cent of Indian population nationally (Census 2011)1.

Increased consumption and urbanization will be the two key factors which will underlay the growth in India. It is projected that the number of urban dwellers would rise to 540 million (Padam, 2003) by the end of 13th plan period (2021–22), thereby increasing their share to 37 per cent of the total population from the current level of 31 per cent (Census 2011). The primary reason for the above mentioned situation will be migration of population from villages to urban areas (towns/ cities) as agriculture with its meagre share in our GDP, cannot support over 60 per cent of India’s population. As per a study done by FICCI (Federation of Indian Chambers of Commerce and Industry), about 65 per cent of Indian population depends directly on agriculture and it accounts for around 22 per cent of our GDP2.

1 http://articles.economictimes.indiatimes.com/2009-12-11/news/28407054_1_poverty-ratio-urban-population-urban-areas

2 www.ficci-b2b.com/sector-overview-pdf/Sector-agri.pdf


Unfortunately, the development model being followed in metropolitan India is akin to the western world (high carbon trajectory), which has been the principle cause of GHG emissions due to anthropogenic activities. Also, there may be a strong correlation between higher rate of human development index (HDI) and energy consumption (Martinez 2008); hence a key question is around decoupling of social progress, economic growth, and energy consumption. This is a complex issue as economic growth has led to both increase in greenhouse gas emissions as well as rise in social inequality. India is extremely vulnerable to climate change and is already witnessing its ill-effects, be it changing patterns of weather, irregular rainfall, infestation of vector borne diseases, impact on agricultural production (Ranuzzi, 2012) etc. Hence, actions by governments and other major groups will not be enough: individuals and their lifestyles will play a pivotal role.

GHG emissions of an average Indian urbanite

We now empirically compute the GHG emissions on account of energy consumption of an urban Indian citizen and discuss some easy-to-adopt mitigation measures, with inspiration from rural citizens. (A) Electricity: Among all the sources, power generation from fossil fuel-based plants

(coal and natural gas) generates maximum GHG emissions. In the case of India, this figure is 38 per cent (MoEF, 2007). Though the per capita consumption level in India is 879 units (figures for 2011–12, CEA), the figure for an urban household is four times this figure. The domestic sector consumes over 35 per cent (BEE, 2007–08)3 of the total electricity in India. It is due to the extensive dependence upon gadgets and equipments for our everyday needs, such as air-conditioners, computers, lighting fixtures, television, water filter, and cleaning systems. A consumption of 400 units per household (of 4 members) per month would lead to per capita GHG emission of 1123 kg CO2 equivalent (CO2e) per capita per annum taking the GHG emission factor at 0.934 kg/ unit.

Mitigation Measures: Bureau of Energy Efficiency (BEE) has been advocating use of Star-rated equipment; this scheme currently covers 14 appliances. With respect to lighting, use of compact fluorescent lamp (CFL) has already made its mark and we are moving towards light-emitting diode (LED) based lighting systems. Each one of us should engage with service providers to make our habitat as green as possible.

3 18th electric power survey forecast - Central Electricity Authority; Available from www.cea.nic.in/more_upload/eps_18th_agenda_final_rev.pdf

4 CO2 Baseline Database, User Guide Version 8.0, January 2013, CEA


articles

The list below provides some of the easy to adopt low-cost measures: • UsingStar-ratedenergy-efficient appliances• Replacing electric geyser with solar water heater (saves 1000 units per

annum)• Usingrooftopsolarsystems(somecommercialroofsinGujarathavealready

been explored5)• Usingkilowattscalewindturbines(Verticalaxismachines)• Usingoccupancysensors(whichshallswitchofflightsautomatically)• Painttheroofsinwhitetoincreasethealbedofactor(reflectbackheat)• Highinsulationwindowsandair-proofingofrooms• Switchingoffallappliancesfromthepowerplug• AppropriatepositioningofACand its temperaturecontrol, supportedby

sun-shading (1 degree increase in thermostat reduces energy consumption by 3–5 per cent6)

(B) Kitchen: Urban India relies on liquefied petroleum gas (LPG) for cooking purposes, with piped natural gas (PNG) services initiated in some cities. As per Census 2011, over 65 per cent of urban households use LPG as a cooking fuel. An average Indian urban household (with 4 members) uses 0.5 kg gas per day7. The GHG emission factor of LPG is 1.72448 kg/ l, thus leading to GHG emissions of 79 kg CO2 per capita per annum. One could propose waste management measures for urban households.

Mitigation Measures: Even though Petroleum Conservation Research Association (PCRA) has come out with several fuel saving tips, there are other measures to reduce the consumption of cooking fuel. A family of 4 members generates around 600 gram (Seenappa, 2011) of organic kitchen waste on a daily basis (leftover food, fresh peels of fruits and vegetables, soiled tissue, scraps of meat and bone, used paper baggage, soiled cloth, etc.). Now, there are family size biogas plants which can be installed in our kitchens. Companies like Sintex have come out with a plastic made family size biogas plant9, which is small in size, portable and easy to install in our kitchens. The output, in form of methane, can be purified and plugged to one of the burners of the gas stove, which can be modified to use the gas as a cooking fuel, resulting in a payback period of less than 2 years. The remains (fertile

5 http://www.rooftopsolargujarat.com/gpcl_rsg/developer.html 6 http://www.ndpl.com:84/DSM/home_tips.jsp 7 http://articles.timesofindia.indiatimes.com/2011-09-01/delhi/29953256_1_png-gas-under-government-control-

indraprastha-gas 8 CarbonNeutral Company, http://www.carbonneutral.com/ 9 http://www.sintex-plastics.com/greenproducts/greenproduct.htm


organic manure) can be used in the kitchen garden for soil nourishment.

(C) Intra-City Travel: On an average an urban Indian travels about 50 km in a day. As can be seen from the growing propensity to travel by personal vehicles (burgeoning sales of cars and bikes), it is associated with GHG emissions and other forms of air pollution [NOX, SOX, PM (particulate matter)]. Assuming that an urban dweller belonging to a middle class family uses a car for travelling (for going to office, institution, for business purposes, and colleges), the total GHG emission would come out to be 2300 kg CO2e per capita per annum, using central pollution control board (CPCB, 2007) emission factor of 0.1265 kg/km (petrol driven car, BS-II version).

Possible Solution: Public transport systems like metro, bus rapid transport (BRT), and buses are associated with very low levels of GHG emission factors and they enables mobility of large number of people, creating equity in road space (public places). However, not many people are willing to use them due to security, convenience, and comfort associated with personal vehicles. Thus, it is essential that public transport should be strengthened with last-mile linkage through cycle-rickshaws (which can even be propelled by batteries charged by solar panels). While using personal vehicles, it should be ensured that they are being maintained to deliver high levels of mileage. Parameters like air-pressure (in tyres), fuel quality, and optimum driving speed are some other aspects to be considered. In case of purchase of new vehicles, electric vehicles can be thought of as an option (e-bikes have already become popular in smaller towns and cities). If we traverse a little back into history, cycle was the most common means of transport. Cycle is also thought of as environmental friendly and a healthy mode of transport. Some European countries have dedicated streets as cycle tracks10 making it easy for the commuters to use bicycles. Therefore, future cities in India should be planned in such a manner which will promote bicycles for intra-city travel.

(D) Inter-City Travel: We are often required to travel as a part of our official work or for vacations, etc., and we use the mode for travelling, such as, air, rail, and bus. Among these three services, air transport emits the maximum amount of GHG emissions, road comes in the second place while rail transport generates the least amount of emissions. GHG emission factor of air travel is 0.296 kg/ p km11

and for rail travel it is 0.0096 kg/ p km12. If we take a round trip between Delhi

10 http://www.eurovelo.org/ 11 Estimating GHG emissions of Indian domestic airlines, IIM-A Study Report12 Indian Railways, 2006, http://www.indianrailways.gov.in/deptts/stat-eco/Stat_index-06_07.htm


articles

and Mumbai (1,300 km distant), by both rail and air mode, twice in a year, the total GHG emissions would be 795 kg CO2e (770 for air + 25 for rail) per capita per annum.

Mitigation Measures: High speed inter-city rail connectivity is required to shift people from road to rail. In recent times, due to paucity in services of rail, cargo has shifted to trucks. As such, rail freight needs to be upgraded to take higher share from the road network. Further, in the age of information technology, the use of video conferencing, enabled by 3G/4G networking, can obviate the need for actual physical travel.

(E) Waste Water: Methane emissions from a septic tank system (through the venting pipe) is one of the silent sources of emission, which deserves a special mention as methane is 23 times more potent (higher GWP) than CO2. Over 5.5 crore households in India use septic tanks for disposal of human waste (Census, 2011). It is estimated that methane emissions on account of septic tanks is 33.3 gm per capita per day (Valbuena et.al., 2011)13 , leading to emissions of around 1 kg/month, equivalent to GHG emissions of 280 kg CO2e per capita per annum. In case of a sewerage system, it requires energy and water intensive cleaning process, which requires an intensive network of wastewater carrying pipelines to carry the inflow to a centralized sewage treatment plant (STP) located nearby a water body. This causes methane related emissions as they are released due to aerobic fermentation process.

Mitigation Measures: One of the easiest ways is to tap the methane emission is by capturing the emissions coming through the vent stack of the septic tank of a household. Methane can be cleaned by scrubbing process and utilized as a cooking fuel by connecting the vent pipe to the kitchen.

(F) Paper Consumption: Due to the rapid increase in the rate of literacy levels in India, the consumption of paper has jumped manifold during the past decade14. This includes stationery use, utility bills, books, newspapers, and magazines. Paper is also used extensively for manufacturing disposable cups. It is estimated that GHG emissions on account of use of virgin paper is 1.8670/kg paper (Centre of Design, RMIT University). Assuming usage of 8 pages per day (250 pages a month), a total of 6 rims (500 pages each) would be required per annum. A rim weighs 2.5 kg, and 6 rims would weigh 15 kg, making the total emissions equal to 30 kg. When we

13 Methane, Carbon Dioxide, and Nitrous Oxide Emissions from Septic Tank Systems, Environmental Science & Technology (pubs.acs.org/est)

14 http://openmarkets.in/1005/hike-in-paper-use-will-increase-the-education-expenses


talk about paper cups, considering a serving of 2 cups per day, the total servings in a year would be 730. According to a research paper from ‘Carbon Clear15, GHG emissions for 2,000 servings would come to 1.1 tonnes CO2. Hence, emissions for 730 servings would come be 400 kg CO2e. Therefore, the total emissions due of use of paper (both stationery and cups) would come to 430 kg CO2e per capita per annum.

Mitigation Measures: Recycling paper has been the hallmark of Indian ethos and we have been using the services of the scrap dealer since times immemorial. This practice should be further promoted along with waste segregation. In case of printing a document, default duplex setting (double-side print) can be considered. The paper being used should be Forest Stewardship Council (FSC) certified. Moreover, usage of jute bags should be encouraged instead of plastic bags. In the case of utility payments, people should opt for electronic bills (since most of us have email accounts) and the payments should also be made electronically (to avoid paper receipts). Regarding books, nowadays, e-editions of many magazines are available, which can be read with the help of electronic notebooks, tablets etc. The Government has distributed ‘Akash tablets’ to students. Lastly, to avoid usage of disposable paper cups, use of bone-china glasses should be promoted which is highly durable.

(G) Solid Waste: Emissions from waste is another important source which contributes towards compounding the problems of municipal solid waste (including collection, transportation, and site identification). The consumerist culture of the society has led to an increase in the use of products than ever before. It is difficult to fathom that a superstore stocks several thousand different types of articles, all of which (except for consumables) have a certain life span, after which they need to be discarded. It is estimated that on an average, a resident of Delhi generates 0.650 kg of waste per day16 , leading to an annual emission of 200 kg CO2e per capita per annum, taking the emission factor to 0.8421 kg CO2/kg of waste (figure for developing countries by Carbon Neutral Company).

Mitigation Measures: As enunciated above, the dictum of 3Rs—Reduce, Reuse, and Recycle should be followed in letter and spirit. Separate bins for biodegradable and non-biodegradable waste should be made available to ease the process of collection and recycling. Kitchen waste and grey water can be used for generation of biogas (which can be used as a cooking fuel). Paper can be recycled through scrap dealers.

15 Disposable Cups vs Reusable Cups, www.carbon-clear.com 16 http://swmindia.blogspot.in/2012/01/municipal-solid-waste-msw-generation-in.html) Give complete references


articles

Based on the above seven sources, the total GHG emissions associated with an urban citizen in India would come to around 5020 Kg CO2e, as depicted in Figure 1.

Summary and discussion

The analysis in this paper is summed in Table 1. The figure of 5.2 tonnes of CO2e per capita per annum associated with an urbanite is more than 3.5 times the national per capita average of 1.5 tonnes of CO2, and over 9 times (0.575 tonnes) the per capita emissions associated with their rural counterparts (20 per cent population categorized as rich). It is also important to put a disclaimer that average values do not capture differences existing between individuals and communities.

Electricity 22% (1123 kg CO e)2

Inter-city travel 15% (795 kg CO e)2

Waste water 5% (280 kg CO e)2

Paper 8% (430 kg CO e)2

Waste 7% (200 kg CO e)2

Cooking fuel 2% (79 kg CO e)2

Intra-city travel 44% (2300 kg CO e)2

Figure 1: GHG emission associated with an urban citizenSource: Based on author’s calculations

Table 1 Per capita emissions summary

Sources Per-Capita CO2 emissions (tonnes)

World 4.38

India 1.5

Indian Urbanite 5.20

Source: International Energy Agency 2009; Author calculation


This amply points to the need that urban citizens need to play a greater role in ensuring sustainable growth of India by adopting an environmentally benign lifestyle taking leeway from some of the ideas presented so as to de-couple growth from environmental degradation. In a nutshell, urbanites can learn from their rural counterparts on traditional ideas of harmonizing lifestyle with nature and in turn disseminate knowledge on the use of low-carbon technology, marching together for a cleaner and greener India.

Bibliography

Abdula R, Fang K, Gorham R, Vale C. (Undated). The Transport Sector. South Asia: Shared Views on Development and Climate Change.

Bardhan, P. (2009). “Notes on the Political Economy of India’s Tortuous Transition”, Economic & Political Weekly, December 5.

Central Electricity Authority (CEA). (2013). CO2 Baseline Database for the Indian Power Sector, User Guide, Version 8.0, Government of India Ministry of Power,

Garg A, Vidhee A. (2011). Carbon competition up above: estimating greenhouse gas emissions of Indian domestic airlines, Greenhouse gas measurement and management, 93–104, Taylor & Francis

Georgescu-Roegen N. (1960): “Economic theory and agrarian economics.” Oxford Economic Papers New Series, 12(1):1–40.

GoI (2010). Government of India’s inputs to the United Nations Conference on Sustainable Development (UNCSD) 2nd Preparatory Committee. Bardhan P. (2009): “Notes on the Political Economy of India’s Tortuous Transition”, Economic & Political Weekly, December 5.

IEA. (2009). Statistics by the International Energy Agency. Available at http://www.iea.org/stats/index.asp

IEA. (2009). Statistics by the International Energy Agency. Available at http://www.iea.org/stats/index.asp

Martinez, D M, and Ebenhack, B W. (2008). Understanding the role of energy consumption in human development through the use of saturation phenomena. Energy Policy, 36(4), 1430-1435.

MoEF. (2010). India: Greenhouse Gas Emissions 2007. New Delhi: Ministry of Environment and Forests (MoEF), Government of India.


articles

MoEF. (2010). India: Greenhouse Gas Emissions 2007. New Delhi: Ministry of Environment and Forests (MoEF), Government of India.

MoEF. (2007). India: Greenhouse Gas Emissions. Delhi: MOEF, Government of India.

National Productivity Council (NPC). (2007–08). Energy Management Group. State-wise Electricity Consumption & Conservation Potential in India

Padam, S S. (2003). Urbanization and Urban Transport in India: The Sketch for a Policy. Pune: CIRT, Bhosari, Pune.

Ranuzzi, A S. (2012). Impact of climate change on Agriculture and food security. ICRIER, Policy Series, 1–33.

Sahu, S. (2008). Trends and Patterns of Energy Consumption in India. Munich Personal RePEc Archive (MPRA), 1–32.

Seenappa, S N. (2011). Transformation of Wet Garbage of Indian Urbanites at Household Level. Universal Journal of Environmental Research and Technology, 169-175

UN-HABITAT. (2010). State of World’s Cities 2010/2011: Bridging the Urban Divide. Nairobi, Kenya, Earthscan

Valbuena, L R, Leverenz, H, Cappa, C. D, and Tchobanoglous, G. (2011). Methane, Carbon Dioxide, and Nitrous Oxide Emissions from Septic Tank Systems. Environmental Science and Technology, 2741-2747.

Sapan Thapar is a certified Energy Manager with a decade long experience in the areas of energy efficiency and renewable energy. He is currently with IREDA.

The views expressed above are solely attributed to the author.Email: [email protected]


Harnessing opportunities for energy-efficient technologies and

joint crediting mechanism in the Indian context

Prosanto Pal, Kenta Usui, Kazuhisa Koakutsu, and Girish Sethi

Introduction

The clean development mechanism (CDM) under the United Nations Framework Conventions on Climate Change (UNFCCC) has been a major driver of low-carbon investments in India. As on November 2012, India had 959 registered CDM projects.

However, the price of CDM’s product— “certified emission reductions (CERs)” that can be traded in international markets—is currently very low. It is less than EUR 0.5 per tCO2, and hardly provides incentives for development of greenhouse gas (GHG) reducing projects. The price is likely to remain low for India because from 2013 the European Union, a primary buyer of CERs, will only accept credits originating from least developed countries (LDC). Some countries are exploring bilateral crediting schemes, in which two type of countries—developed and developing—sign an agreement to implement carbon-reducing projects in the developing country and generate offset credits to be used by developed country. Joint crediting mechanism (JCM) being proposed by the Government of Japan is one of them.

The article aims to assess the applicability of selected Japanese low-carbon technologies in the Indian context. It identifies a few energy-efficient technologies/projects having a good potential to be upscaled in India with assistance that could be availed under the JCM scheme which is currently under discussions between the Governments of India and Japan. In the article, case-studies of two energy-efficient technologies are presented. This article will be useful for policy-makers and private sectors both in India and Japan and for other stakeholders interested to engage in the proposed JCM scheme.

JCM and its modality

JCM is one of the international carbon offset mechanisms which can potentially assist India’s domestic policy objectives of energy efficiency improvement and GHG emission


articles

Figure 1: Broad Institutional framework of JCMSource: Government of Japan

(2013), modified by author

reduction. This scheme aims to accelerate the deployment of low-carbon technologies in developing countries and generate GHG-reduction credits that will be transferred to Japan. In exchange Japan will provide necessary support, such as technologies and financing, to implement the projects. The broad institutional framework for the JCM is depicted in Figure 1.

JCM resembles the CDM but has three distinct features (see Table 1). Firstly, it aims to provide an upfront financial assistance before the project implementation. This is an important difference for investors, as it eliminates the multi-year waiting period to receive the credits, as well as the price volatility risk of the credits. Secondly, the methodology employed under JCM is expected to be simpler and more practical than the CDM, thereby minimizing the monitoring cost. Thirdly, it covers broader range of activities and technologies, which are defined by agreement between two governments.

Table1 Difference between JCM and CDM

Category JCM CDM

Governance “decentralized” structure (each government, joint committee)

“centralized” structure (Conference/Meeting of the Parties CDM Executive Board)

Sector/project coverage Broader coverage; greater consid-eration for local circumstances

Specific projects are difficult to implement in practice (e.g., Ultra super-critical coal-fired power generation)

Eligibility of projects “positive list” “benchmarking” other methods

“additionality” approach

Source: Government of Japan, modified by author

Japanese

Government

Host Country

Government

Joint Committee

Project Participants Third party entities

-Develops/revises the

rules and guidelines

Implementation and monitoring

of projects

-Validate projects

-Verify amount of GHG emission

reductions or removals


Initially, the Japanese government is expected to provide financial subsidy to the project participants, although the details are still being discussed. In exchange, the credits from the JCM projects will be transferred to Japanese government. The credits’ destination will be limited to Japan at the initial stage of JCM operation, but it may evolve into more freely tradable credits in the future.

The Indian policy context for JCM

Eight missions were setup to undertake activities under the National Action Plan on Climate Change (NAPCC). One of the missions under NAPCC is the National Mission for Enhanced Energy Efficiency (NMEEE). The Perform, Achieve, and Trade (PAT) mechanism was launched under the NMEEE and the goal of PAT is to mandate specific energy efficiency improvements for designated consumers (DC) as per the notification of Gazette of India, published on 19 March 2007. The DCs in the industrial sectors were shortlisted, based on their annual energy consumption expressed in terms of tonnes of oil equivalent (toe). A total of 477 DCs across eight sectors were notified.

PAT is expected to accelerate the adoption of low-carbon technologies among Indian industries. The policy will also complement the efforts being made under various multilateral/bilateral processes to promote adoption of low-carbon technologies. The unit-specific SEC (specific energy consumption) benchmark established under PAT can serve as a baseline for new international mechanisms/schemes like JCM. Manufacturers of energy-efficient technologies in Japan can benefit by engaging proactively with the large energy-intensive industries in India since they would be interested to adopt new technologies for meeting PAT targets.

As can be seen from Table 2, a number of JCM feasibility studies have been conducted on energy efficiency, waste heat recovery, and renewable energy technology in India. Some of the studies have been undertaken by New Energy and Industrial Technology Development Organization (NEDO) with support from Ministry of Economy, Trade and Industry (METI), and others have been undertaken by Global Environment Centre foundation (GEC) with support from the Ministry of the Environment (MOE) of Japan.

Based on availability of data related to GHG reduction, economic indicators, scalability and cases, two technologies are selected as case-studies for detailed analysis. The two case-studies that will be elaborated in the following sections are:P High performance industrial furnaces for aluminium industryP Efficiency enhancement of coal-fired thermal power plants


articles

Table 2 JCM feasibility studies conducted in India

Year Title Project Type Supplemental Information

Ministry in Charge

2012 Bagasse-based Power Generation including Waste Heat Utilization

Biomass Bagasse MOE

2012 Highly Efficient Coal Power Plants (Ultra super critical) Energy efficiency Supply side METI

2012 Energy Efficiency Technologies for Integrated Steel Works Energy efficiency Factory METI

2012 Highly Efficient Servers at Data Centers Energy efficiency Commercial & household

METI

2012 Run-of-river micro hydro power project Renewable energy Hydro power METI

2012 Coal Drying Technology (Low Temperature Waste Heat Recovery)

Waste gas/heat utilization

— METI

2012 Energy Efficient Air Conditioners (HFC 32) HFC — METI

2011 Utilization of LED Lights at Office Buildings Energy efficiency Commercial & household

MOE

2011 High-Performance Industrial Furnaces to Aluminium Industry Energy efficiency Factory MOE

2011 Steel Sinter Process Energy efficiency Factory METI

2011 Energy Efficiency Technologies for Integrated Steel Works Energy efficiency Factory METI

2011 ACCC Technology (Automatic coal control system ) in Coking Process

Energy efficiency Factory METI

2011 Highly efficient coal power plants (Ultra super critical) Energy efficiency Supply side METI

2011 Coal fired thermal power plant Energy efficiency Supply side METI

2011 IGCC (Integrated coal Gasification Combined Cycle) Energy efficiency Supply side METI

2011 Installing Energy Efficiency Servers and Software to many Data Centers

Energy efficiency Commercial & household

METI

2011 BFG (Blast furnace gas) firing GTCC (Gas Turbine Combined Power Plant) in a steer plant


2011 Photovoltaic power generation Renewable energy PV METI

2011 Run-of-river micro hydro power Renewable energy Hydro power METI

2010 Highly efficient coal power plant (Ultra super critical) Energy efficiency Supply side METI

2010 Introduction of energy efficient technologies at iron and steel plant


Source: Compiled from http://www.nedo.go.jp/english/other_20120620.html and http://gec.jp/main.nsf/en/Activities-Climate_Change_Mitigation-nmfsrepDB-List


High performance industrial furnaces for aluminium industry

Aluminium is the largest non-ferrous metal industry in the world. The demand for aluminium has been increasing briskly with the growing demand for aluminium in automotive, power transmission and distribution, building, construction, packaging and domestic sectors. India ranks fifth in the world in terms of bauxite reserves and has about 6 per cent of the world’s proven bauxite reserves. The estimated 3 billion tonnes of bauxite in India is concentrated mainly in the three states: Bihar, Karnataka, and Orissa.

In India, there are five producers of primary aluminium—NALCO, BALCO (now Sterlite), HINDALCO, Vedanta, and Jindal. The total installed capacity of primary aluminium in the country is about 1,856,000 tonnes/year. The secondary aluminium industry is also characterized by the presence of a large number of small and medium-sized companies.

High performance furnaces are industrial furnaces that are equipped with regenerative combustion devices and burners. The technology ensures significant energy savings by utilizing heat from exhaust gases to preheat the combustion air in order to achieve a high temperature. Additionally, it also enables low NOx operation and homogenous heating. The technology has been successfully demonstrated in Japan and about 1,300 high performance furnaces were in operation till 2010. Based on site surveys conducted under the study in India, it was found that the technology can be applied to a range of aluminium units in the large, medium, and small scale sector. The various manufacturing activities where energy can be saved by adoption of the technology include:P Virgin metal ingot units using melting and holding furnaces and soaking pitP Secondary (re-melt) ingot units using melting furnaceP Wire rod and bar, sheet and foil manufacturing units using annealing furnaceP Extrusion units using melting and reheating furnaceP Castings units using melting furnace

A feasibility study conducted by Japan Industrial Furnace Manufacturers Association in collaboration with Mizuho Corporate Bank Ltd and Evaluseserve UK Ltd examined the possibility of reducing emissions of greenhouse gases by implementing high performance furnaces in primary and secondary production of aluminium in India. The study also evaluated the co-benefits of global warming and environmental pollution measures.


articles

Benefits and potential of technology

Detailed study of energy savings and feasibility were conducted. The results of the field studies are summarized in Table 3. The simple payback period on investment in the technology is estimated to be between 2–5 years depending on the application and scale of operation. The payback period was most attractive in the case of casting and forging an extrusion unit and was least attractive in case of virgin metal ingot units.

The study estimated that an emission reduction of about 187,200 tonnes/year can be achieved at present, over and above the mandatory 5.6 per cent reference set by PAT in the Indian aluminium sector. The process-wise break-up of the GHG reduction under this scenario is provided in Table 4.

Scalability

The per capita consumption of aluminium in India is low (only 1.3 kg) as compared to the world average (about 12–15 kg)1 . But, it is expected that the aluminium’s demand and production is likely to grow steadily in the future.

Table 3 Site-specific energy savings and feasibility of different technologies

Manufacturing process Object of conversion to high-performance industrial furnace

Annual energy saving (GJ/y)

CO2 reduction (t/y)

Payback period (years)

Virgin metal ingots Melting & holding furnace 10,174 793

Soaking pit 14,718 875 5.0

Re-melted metal ingot Melting furnace 11,599 834 4.5

6,307 451

8,953 642 4.5

Wire and bar, sheets and foil Annealing furnace 4,798 376 5.0

Extrusions Melting furnace 20,619 1,548 3.6

Reheating furnace — — —

Castings Melting furnace 11,880 854 3.0

5,515 395

8,698 624 3.9

Source: Japan Industrial Furnace Manufacturers Association (2012). New mechanism feasibility study for energy efficiency improvement by introducing high-performance industrial furnaces to aluminium industry in India

1 http://ibm.gov.in/IMYB%202011_Aluminium.pdf


At present, only large aluminium industries (consuming above 7,500 toe/annum) are covered under the PAT scheme. There are only ten plants large enough to be included under PAT. Hence, under the present form, the PAT scheme offers no incentives for reducing energy consumption to secondary aluminium producers, who are primarily in the small and medium scale. Since high performance industrial furnace technology is applicable for the secondary aluminium produces, the adoption of the technology will not be facilitated by implementation of PAT. However, there is a possibility that the threshold energy consumption limit within PAT scheme will be brought down in 2014. If this happens, the adoption of technology can be accelerated among secondary aluminium producers.

There are a large number of small- and medium-sized secondary aluminium industries in India, where the technology can be applied. However, the relatively higher payback period for the technology is likely to be a barrier to its adoption in India. A survey of typical payback periods which the industry in India look for from new technologies, was conducted under the study. The results of this are summarized in Table 5.

However, there is likely to be a good replication potential for this technology in India, if the capital cost is brought down by indigenization, and local support systems for servicing and maintenance are put in place. Moreover, installation of a few pilot plants in India will accelerate technology adoption.

Table 4 GHG reduction potential

Production process Annual Production (10,000 t/y) CO2 emission reduction (10,000 t/y)

Present 2020 (max) Present 2020 (max)

Virgin metal ingot 155 1,000 8.93 57.6

Secondary (re-melt) ingot 33 180 1.37 7.5

Wire and bar

Sheets

Foil 112 618 6.12 33.8

Extrusions 25 48 1.09 2.1

Castings 20 72 1.21 4.4

Total -- -- 18.72 105.4

Source: Japan Industrial Furnace Manufacturers Association (2012). New mechanism feasibility study for energy ef-ficiency improvement by introducing high-performance industrial furnaces to aluminium industry in India


articles

Efficiency enhancement of coal-fired thermal power plants in India

Coal-fired thermal power plants account for the majority of power produced in India. There is a good potential to reduce CO2 emitted by these plants by renovation and modernization of the boiler and turbine systems. In addition, washing off the coal will lead to a reduction in their ash content and will help in improving the overall efficiency of the boiler.

The overall installed power generation capacity in India is about 209 GW, of which 67 per cent is through thermal, 19 per cent is through hydro, 12 per cent is through renewable sources, and 2 per cent is through nuclear. Of the total power generation capacity 87 GW is controlled by the state governments, 62 GW is owned by central government, and 60 GW is in the private sector2.

NTPC is by far the largest power utility in India that has an installed capacity of 29 GW. Some other large power producers in India include: National Hydroelectric Power Corporation (NHPC), Tata Power, Reliance Power, Adani Power, Damodar Valley Corporation, Nuclear Power Corporation of India Limited (NPCIL), and Torrent Power.

Table 5 Payback on investment desired by entities in India

Class Company Payback period Remarks

Virgin metal NALCO -- No particular benchmarks, etc. for equipment investment

HINDALCO 5 years or less Do not particularly set the payback period as a benchmark

Secondary metal NAMO Alloys -- Most important consideration in capital investments is cost.

Castings RICO AUTO <2 years 3-5 years is excessively long

Endurance technologies Within 3 years For new melting furnace

Forgings Vanaz Engineers 2–3 years Intend to implement an equipment expansion plan in 2–3 years.

Extrusions Superfine metals 2–3 years Planning to expand business—3 years from now.

NPOs FICCI Within 3 years As a general business case

PCRA(Petroleum Conservation Research Association)

Within 3 years General standard for capital investment in India

Source: Japan Industrial Furnace Manufacturers Association (2012). New mechanism feasibility study for energy efficiency improvement by introducing high-performance industrial furnaces to aluminium industry in India

2 http://www.cea.nic.in/reports/planning/power_scenario.pdf


A study to evaluate the energy efficiency enhancement of coal-fired thermal power plants in India was conducted by NEDO3 with support from Idemitsu Kosan Co. and Mizuho Corporate Bank. The study evaluated combustion optimization, retrofit of boiler auxiliary machinery, turbine rehabilitation, and coal cleaning at NTPC Ltd, Vindhyachal Super Thermal Power Station (210 MW). In addition, preliminary estimate of GHG reductions were made.

Benefits and potential of technology

The study estimated that it is possible to improve the efficiency of the power plant by washing off the high ash coal using a high efficiency washing system. The results of improvements in coal washing are summarized in Table 6.

A combustion simulation analysis was undertaken to determine the optimum operating conditions of the boiler and boiler auxiliaries. The results of the simulation study showed that one of the causes of lower efficiency was the higher flue gas temperatures. The following retrofit options were identified in the turbine:P Upgradation of the steam path in the turbine. This will enhance the heat rate.P Revamping of the governing system. This will lead to easier maintenance and

better controllability.P Revamping of the generator and enhancement of its capability.

Internal interest rate and payback year were also evaluated. Table 7 shows the summary results assuming zero CO2 price. If the CO2 price is taken as EUR 10 /tCO2, the payback period of the boiler/turbine can be improved by 2–3 years.

Table 6 Efficiency improvement

Baseline Case 1 Case 2

Ash Content 34.6% ash 30% ash 25% ash

Gross Efficiency 35.25% 35.85% 36.60%

PLF (Plant Load Factor) 95.30% 97.30% 99.80%

Axially Consumption 7.50% 7.35% 7.16%

Net Efficiency 32.61% 33.27% 34.10%

Effects - 0.66% 1.49%

Source: http://www.nedo.go.jp/content/100494428.pdf

3 http://www.nedo.go.jp/content/100494428.pdf


articles

The energy efficiency improvements can lead an overall improvement in the efficiency by 3.85 per cent which translates to a GHG reduction of 224,000 tCO2/year/unit. The overall GHG reduction potential for India was estimated to be 101.6 million tCO2/year as shown in Table 8.

Scalability

From this NEDO-financed study, it is clear that there is considerable potential for adoption of the energy-efficient technologies for coal-fired thermal power sector. However, the poor financial health of State Electricity Boards (SEBs) coupled with the small-size and vintage of these plants would be a barrier to its adoption among state-government owned power plants. The technology holds promise for the private sector and central government owned power plants. The central government undertaking, NTPC Ltd, in which the feasibility study was conducted, has already shown interest to adopt the proposed changes in their plant. There are more than 60 units in India that are similar to the one at NTPC. There is a good potential to upscale the technology among these power producers.

Table 7 IRR and payback of improvements in efficiency

Coal washing (coal mine)

Coal washing (power producer site)

Boiler Turbine

Internal rate of return (IRR)

36.4 % 1.0 % 14.6 % 8.5 %

Payback period 2 – 3 years 17 – 18 years 7 – 8 years 12 – 13 years

Source: http://www.nedo.go.jp/content/100494428.pdf page 284

Table 8 Efficiency improvement and GHG reduction potential

Efficiency improvement GHG reduction, tCO2/year/unit

GHG reduction in India, tCO2/year

Coal washing 1.49% 97,000 39.4 million

Boiler 0.49% 29,000 13.3 million

Turbine 1.87% 108,000 48.9 million

Total 3.85% 224,000 101.6 million

Note : GHG reduction per unit is for a coal-fired plant of 210 MW. GHG reduction in India is based on the assumption that India has 99.503 MW capacity of coal-fired power plant.Source : http://www.nedo.go.jp/content/100494428.pdf Page 283


Conclusion

Bilateral mechanisms, like JCM, have a particularly important role to play in promoting energy-efficient technologies among industries in developing countries like India. There are a number of large-scale energy-intensive industries in the country. Most of these units are keen to implement energy-efficient technologies in order to meet their energy reduction targets under domestic policies like the PAT and also for improving their competitiveness. With the dramatic erosion of carbon prices in recent time, CDM hardly attracts financing for energy-efficient technologies. Due to their flexibility and favourable conditions, mechanism like JCM hold promise for filling the void left by multilateral mechanisms for supporting developing countries.

The case-studies of energy-efficient technologies presented are technically attractive and economically feasible. There is a good potential to upscale these efficient technologies by a proper blend of carbon finance and capital grants. The success of bilateral mechanisms will depend on a range of domestic factors such as supportive institutional and regulatory framework, awareness generation, and capacities to manufacture and service the equipment locally. Promoting these low-carbon technologies through bilateral and domestic actions will contribute towards the overall objective of sustainable growth in developing countries.

Prosanto Pal (corresponding author) is a Senior Fellow, Industrial Energy Efficiency Division, TERI


Kenta Usui is a Researcher, Market Mechanism Group, Institute for Global Environmental Strategies (IGES)


Kazuhisa Koakutsu is the Deputy Director, Market Mechanism Group, Institute for Global Environmental Strategies (IGES)


Girish Sethi is a Senior Fellow,Industrial Energy Efficiency Division, TERI



Energy is a key driver for growth and development. The commercial energy supply is heavily dependent on fossil fuels in India as depicted by the Sankey diagram in Figure 1. The figure represented is sourced from TERI Energy Data Directory

Yearbook 2012/13 (TEDDY) and shows commercial energy flows in India for 2009–10. It gives an annual overview of the developments in the energy supplying and consuming sectors as well as the environment sector.

As can be seen in the Sankey diagram, coal and oil together accounted for 86 per cent of the total primary energy supply in 2009/10 (TEDDY 2012/13). More than 60 per cent of the coal produced is consumed by the power sector for electricity generation. The current energy system in India is highly dependent on fossil fuels. Given our limited and unevenly distributed supply of non-renewable energy sources, it is extremely difficult to meet the demand by relying on fossil fuels. Renewable energy sources can play an important role in this regard. Harvesting the renewable energy in a decentralized manner is one of the options in meeting the challenges of providing energy access to India’s rural areas and in reducing consumption of fossil fuels, which is essential for future energy security of the country.

India is a country at an important development phase with growing energy demand as well as socio-economic implications, such as a young working population. Demand for energy is bound to increase due to growth in population and increasing economic activities. Resource augmentation and growth in domestic energy supply has not kept pace with the increasing demand for energy. The higher the consumption of fossil fuels the higher will be the greenhouse gas emissions, particularly carbon dioxide (CO2) which contributes to global warming. A sustainable energy future will be directed to raise living standards, provide access to modern energy services, use energy more efficiently, protect the global environment and ensure reliable energy supplies for which green growth must play a key role (OECD 2012). India has to bring about a major transformation in the energy sector that would include strategies relating to structural

Green analysis

Commercial energy flows in India

Rinki Jain


Nu

cle

ar

1.6

En

erg

y lo

ss fr

om

po

we

r ge

ne

rati

on

14

3.3

9 m

toe

Re

ne

wa

ble

3.2

3

Hyd

ro 8

.96

Na

tura

l ga

s

48

.18

Ele

ctri

city

gen

era

tio

n

19

5.7

2

mto

e

14

3.3

9

23

.4

1.6

3.2

3

8.9

6

15

6.5

0

6.20

87.

43

13

9.3

2

10.2

7

2.38

1.07

Co

al a

nd

lign

ite

25

2.1

9

Pe

tro

leu

m

pro

du

cts

14

5.5

2

1.06

8.2

6

2.1

8

0.2

2

0.1

5

0.4

2

4.19

19

.23

28

.95

23.97

28

.80

24.8

9

54

.28 1

5.4

1

12.7

2

21.3

4

12

.20

5.0

7

Net availability (mtoe)

Final consumption (mtoe)

Ag

ricu

ltu

re

23

.14

mto

e

Re

sid

en

tia

l

37.

30

mto

e

52

.33

Co

mm

erc

ial 6

.13

Ind

ust

ry

13

7.9

8

mto

e

Tra

nsp

ort

55

.34

mto

e

Oth

er

en

erg

y

30

.25

mto

e

No

n e

ne

rgy

26

.15

mto

e

Figu

re 1

: Com

mer

cial

en

ergy

flow

in In

dia

Sour

ce: T

EDDY

201

2/13


Green analysis

as well as distributional aspects. It is, therefore, imperative for India to implement green growth strategies and promote sustainable energy systems in the country.

References

OECD. (2012). Energy, Green growth studies. OECD Publishing.TEDDY. (2013). TERI Energy Data Directory and Yearbook. New Delhi: The Energy and Resources Institute.

Rinki Jain is Research Associate,Green Growth and Development Division, TERI



Recognizing bold and unconventional thinking

Shailly Kedia

Green showcase

The world today is said to be marked by two sets of crises. The first set includes crises like ecological upheavals, resource insecurity,

and poverty. The second set of crises includes the declining ‘legitimacy of knowledge’ of the very intellectual and theoretical frameworks that have been used so far to justify the order that have led to multiple crises in the former set. This necessitates the need for discourses that question the assumptions of current scientific processes.

Nicholas Georgescu-Roegen (Constanta, Romania, 4 February 1906— Nashville, Tennessee, 30 October 1994) pioneered, through his scholarly contributions, in reminding the global knowledge community of mankind’s special mode of existence as one of the biological species on this planet. He emphasized on the need to account for ‘inconvenient variables’ like energy and matter flows, fund elements, and processes like institutional inertia in the analysis of ecological and social systems. Being professionally surrounded by neoclassical economists, he had the courage and conviction to take a refreshingly different line of scholarship and intellectual endeavour. His philosophical writings emphasized on incorporating ethics into the formation of a new world organization. Having a deep epistemological understanding of theories related to the economic processes, he proposed that there were infinite types of economies—each having a different economic theory and solution. Professor Elinor Ostrom’s intensive empirical work has also validated that there can be “no single panacea”.

Georgescu-Roegen repeatedly sought to warn his fellow academicians about inadequate recognition of the constraints in a finite biosphere in the Newtonian equations that dominated (and in many ways still dominate) the economics’ discipline.

Mankind’s true problem at any time is not even economic in the usual sense of that word. The problem is bioeconomic.

Nicholas Georgescu-Roegen (in Pachauri [1980])


Green showcase

Figure 1: Entropy and economic processes

Inspired by Georgescu-Roegen (1977)

He offered valuable insights about the relevance of the application of thermodynamic law to the economic processes by considering the earth as a closed system (with energy exchange and limited matter exchange). The Entropy law elaborated in his 1971 seminal work entitled, “The Entropy Law and Economic Process” provided much more than metaphorical discussion and gave a deeper meaning that was vital to the foundation of a new school—ecological economics. Georgescu-Roegen’s contribution has started gaining increasing recognition in ecological economics and other niche disciplines like industrial ecology. Thus, Georgescu-Roegen’s work has offered/ continues to offer much scope for disciplinary symbiosis through co-evolution and convergence of various disciplines.

On the occasion of 106th birth anniversary of Georgescu-Roegen (4 February 2012), TERI announced the Georgescu-Roegen Annual Awards. The Awards have been instituted to honour, remember, and rekindle the wisdom of Georgescu-Roegen, an individual who had the courage and conviction to challenge conventional knowledge frameworks and prescribe a refreshingly different line of scholarship and intellectual endeavour. Through this initiative, TERI hopes to inspire bold thinking and innovative practices that the world needs today.

The awards have two categories – (1) unconventional thinking; and (2) bioeconomic practice. The award in “unconventional thinking” category are presented for contributions in academia, and publication of research, and literature that reflect unconventional thinking exemplified by Georgescu-Roegen. The award in “bioeconomic practice” are presented for contributions in initiatives such as policy-making, businesses, and grassroots interventions.

En

trop

y incre

ase

s with

time

Energy

Universe

Earth

Matter


The awardees are decided by a nomination-selection process with a jury comprising of distinguished thinkers and innovators who share Georgescu-Roegen’s vision. The esteemed jury comprises the following individuals—Herman Daly (Emeritus Professor, School of Public Policy, University of Maryland); R K Pachauri (Director-General, The Energy and Resources Institute [TERI], and Chairman, Intergovernmental Panel on Climate Change); Joan Martinez-Alier (Professor of Economics and Economic History, Autonomous University of Barcelona); John Gowdy (Rittenhouse Teaching Professor of Humanities and Social Sciences, Department of Economics, Rensselaer Polytechnic Institute); Rajeswari Raina (Scientist, National Institute of Science Technology and Development Studies); Marina Fischer-Kowalski (Director, Institute of Social Ecology, Alpen Adria Universitaet); and Deepak Malghan (Assistant Professor, Public Policy, Indian Institute of Management, Bangalore).

The first Georgescu-Roegen Awards were presented during the valedictory session of the Delhi Sustainable Development Summit on 2 February, 2013. Accion Ecologica and Oilwatch got the prize in the Bioeconomic Practice category. Accion Ecologica was founded in Quito in 1986 by three young women biologists–Esperanza Martinez, Elizabeth Bravo, and Ivonne Yanez. It is an environmental justice organization that has been instrumental in struggles in defence of mangroves and indigenous people. Acción Ecológica in 1995 joined with Environmental Rights Action (ERA) from Nigeria to form Oilwatch, which now has some 40 associated members around the world. This network, coordinated by Nnimmo Bassey, propagates the idea of ’leaving oil in the soil‘ in areas of great biodiversity value and where human (and indigenous) rights are threatened. Esperanza Martinez (Founder, Accion Ecologica; and Co-founder, Oilwatch) received the award on behalf of the two organizations.

Prof. Kozo Mayumi got the prize in the Unconventional Thinking category of the Annual Georgescu-Roegen Awards instituted by TERI. Mayumi graduated from the Graduate School of Engineering at the Department of Applied Mathematics and Physics of Kyoto University. Between 1984 and 1988, he studied at the Department of Economics of Vanderbilt University under Prof. Nicholas Georgescu-Roegen’s supervision. Mayumi has been working in the field of energy analysis, ecological economics, and hierarchy theory based on complex systems thinking.

Salman Khurshid (Minister, External Affairs), Montek Singh Ahluwalia (Deputy Chairman, Planning Commission), and Dr R K Pachauri (Director-General, TERI) presented the Georgescu-Roegen Awards.


Green showcase

Bibliography

Georgescu-Roegen, N. (1977). The Steady State and Ecological Salvation: A Thermodynamic Analysis, Bioscience, Vol. XXVII, pp. 266–270.

Pachauri, R (1980). International Energy Studies (Foreword by Nicholas Georgescu- Roegen). Wiley Eastern, New Delhi, India.

Shailly Kedia is an Associate Fellow, Green Growth and Development Division, TERI



Poverty remains one of the most pressing developmental issues today and its reduction remains on the mandate of many countries and development organizations. The multidimensional nature of poverty has a bearing on other

aspects of life and when compounded with climate change, the challenge is more severe. Across countries, millions of world’s poorest people are being forced to cope with impacts of climate change through increased exposure to drought, more intense storms, floods, and environmental stress.

TERI undertook a study on ’Linking Climate Action and Poverty Alleviation: An Approach to Informed Decision Making’, with support from the Energy Environment Group (EEG) of the United Nations Development Programme (UNDP). The study developed a framework to map the inter-linkages between climate change and poverty reduction and highlighted the complexities in developing such a framework (Figure 1). The conceptual framework developed for this was aimed firstly at, identifying opportunities for poverty alleviation actions for GHG mitigation and adaption to climate change in varied socio-economic contexts and secondly enabling policy-makers to systematically introduce poverty alleviation as a choice criterion in selecting from a range of mitigation and adoption options.

An ‘Action Impact Matrix’ is developed for considering each intervention in the programme that has an impact on different dimensions of poverty. Each intervention is identified for the row it fits into depending on whether the intervention creates an opportunity or builds capability, reduces vulnerability or empowers people. After deciding the row, the intervention is put under the column for the dimension it affects.

Linking climate action and poverty alleviation: An approach to

informed decision-makingTERI study showcase1

1 This article provides an overview of the detailed study titled, " Linking Climate Action and Poverty Alleviation: An Approach to Informed Decision Making" supported by the Environment and Energy Group (EEG) of the United Nations Development Programme (UNDP). The TERI team consisted of Dr Leena Srivastava, Dr Arabinda Mishra, Ms Jaya Bhanot, Mr Anirban Ganguly, Dr Atul Kumar, and Ms Prima Madan. This article has been compiled by Ritika Sehjpal.


Green showcase

In this manner, an intervention occupies a cell in the matrix. Though the different dimensions of poverty have been defined as exclusively as possible, it is possible that one intervention may affect different poverty dimensions, or the intervention may have been designed in a manner to have an impact on more than one poverty dimensions.

Alleviation poverty is a global challenge given

the scale of the problem, its multidimensional

character and the complex interplay of multiple

drivers that are highly context specific.

Building resilience in poor communities is a

key response strategy to counter the impacts

of climate change. The substantial financial

resources expected to be generated for both

mitigation and adaptation must explicitly and

meaningfully cater to the needs of the poor.

Climate change adds to this

challenge as an added stress

Climate resources can also accelerate

poverty alleviation

The Challenge ... And the opportunity

Linking the challenge with the opportunity requires realignment of adaptation and mitigation programmes

for poverty allevaiation. We propose a structured approach to achieving this in 3 stages:

Creating opportunities

and building assets

Income and

consumption

Productivity

Security

Reducing

vulnerability

Empowerment

Non-alienation and

Inclusivity

A Mapping Tool (the action impact matrix)

to link specific action components of a given

adaptation and mitigation programmes with

different poverty dimensions

A context template to identify the relevant poverty dimension(s)

and to isolate the range of policy action for achieving identified

poverty alleviation outcomes

An integrated climate and development planning framework

using well defined choice criterion along

with bottom-up validation processes

Figure 1: Framework developed to map the inter-linkages between climate change and poverty reduction

Source: TERI study


The direction of the impact of programme interventions on the various poverty dimensions can be seen easily from the matrix depending on whether the intervention has a positive effect on reducing poverty or exacerbates poverty in its one or many dimensions.

An illustration of the ‘Action Impact Matrix’ has been prepared for the National Watershed Development Programme for Rainfed Areas (NWDPRA). Watershed programme aims to boost rural development with a coherent strategy of involving local stakeholders and communities at multiple scales and zones while addressing cross ecosystem issues and interactions related to farming and natural resources.

The NWDPRA is one of the programmes under the Ministry of Agriculture, Government of India, which has been strategically developed for holistic and sustainable development of rainfed areas of the country based on an integrated watershed management approach. The NWDPRA was launched during the Eight Five Year Plan2 in 25 States and two Union Territories; the project continued during the Ninth Five Year Plan in all 28 States (including the then newly formed States of Uttaranchal, Jharkhand, and Chattisgarh) and two Union Territories of Andaman and Nicobar Islands and Dadar and Nagar Haveli.

The main activities of the NWDPRA can be classified as management activities and development activities. For the development of natural resources in the watershed, activities included soil and moisture conservation activities, dryland horticulture, runoff management structures etc., which led to creation of new (natural) assets and improvement in the quality of existing (natural) assets. Therefore, in the matrix, they

Table 1 Table of summary from NWDPRA Analysis

Family income Person-days Migration Irrigation

Magnitude Equity Magnitude Equity Magnitude Equity Magnitude Equity

NRM + - / + + - / + + + / - + - / +

Farm - + / - + + / + + + / + + + /+

Livelihood + + / - + + / + + + / - + + / +

Asset + + / + + + / + + + /+ + - / +

Community organization NA + / - + - /+ + + / - + - / +

Source: TERI study

2 Economic planning in India is carried through its five-year plans, developed, executed and monitored by the Planning Commission.


Green showcase

appear in the row on creating/improving new assets. Further, improvement in the quality of soil and land is expected to increase agricultural productivity and through it, agricultural income. Thus, these activities have been placed in the income and consumption column of the matrix.

The sign in the magnitude column (Table 1) indicates direction of overall impact as expenditures in the different intervention categories rise. A positive sign indicates that as expenditures rise, the volumes of the impacts increase while a negative sign indicates the reverse. We note that a negative sign does not mean that the impact is negative; it rather means that a higher expenditure has resulted in a relatively lower increase in the impact.

As an example, let us consider the impact of natural resource management related expenditures on family income. In this case, we have a negative sign for relative improvement and a positive sign for absolute improvement. This means that while overall (that is, across the two levels of expenditure), the poor benefit more than the rich; the rich make larger gains in percentage terms (over the ‘base value’) than the poor as expenditures increase. The key observations from the analysis were:P The impact of all interventions on additional income, migration, and irrigation

increase with increase in expenditure.P Higher levels of spending lead to relatively higher levels of benefits for people of

lower strata of the society.P Equity impacts of the interventions are uncertain with some interventions resulting

in improved equity in an absolute sense and others in a relative sense.

For the donors and government, it can be concluded from the study that it is reasonable to expect that spending on interventions relevant to climate change and poverty can lead to better targeting and benefits for the poor and vulnerable.


Vital link between communities and the government

Dr Lasya Gopal

Green From the Grassroots

Background

Migration was a common feature in the Jalageri subwatershed area in Badami taluk in Bagalkot district of northern Karnataka, especially for the landless people, who struggled to make their ends meet. Though many

of them had yearned to stay back in the villages, due to resource scarcity and no livelihood options available, they were forced to migrate to other areas. The Integrated Watershed Development Programme (IWMP) introduced in the year 2010 in Jalageri subwatershed area, brought a ray of hope to the community as the programme converted a large part of waste and fallow land into cultivable land by implementing soil and water conservation measures and thus mitigating migration by providing enough employment opportunities to the community.

The IWM programme follows a bottoms-up approach with the aim to conserve natural resources in resource scarce semi-arid areas, along with a specific emphasis on improving the livelihoods of the rural poor. It also aims to involve the watershed community in planning, implementing, and monitoring the post project management and necessitates the building of strong community-based institutions, for which services of grassroots Non-Government Organizations (NGOs) are elicited.

TERI’s role

TERI is responsible to carry out the Monitoring, Evaluation, Learning, and Documentation (MELD) in the project. As a MELD agency, TERI’s primary role is to facilitate effective implementation of the project and guide the NGOs to build the capacity of the community groups like Self-Help Groups (SHGs), Water User Groups, and Watershed Committees. TERI’s mentoring has motivated the NGO in Jalageri subwatershed area to facilitate bank linkages to 26 SHGs which has enabled about 300 landless and marginalized women to turn into budding entrepreneurs, thus providing them the vital link to combat poverty and improve their livelihood.


Green from the grassroots

Hole Hucheshwara Education and Rural Development Society, an NGO, has joined hands with the IWMP in Badami taluk, Bagalkot district. As per the programme when the NGO initiated work in the Jalageri subwatershed, they observed a particular interest of the landless community towards setting up small enterprises for their livelihoods. “With no other source of income, other than labour work, the landless community became our priority as they were the most vulnerable group. We assisted in the formation of self-help groups for these women as the first step” explains Munesh Nagaral, staff of the NGO. So, 20 new SHGs were formed and 16 existing groups were adopted with a total of 569 women members, of which 280 women were below poverty. These groups were spread out in five villages namely, Neerabudhihal, Yandigeri, Jalageri, Anwal, and Kadarakoppa.

Further, TERI observed that while the women did not lack skill and passion, investment for an enterprise was the major hurdle. At this juncture, a possibility thought to resolve this was to link these groups to the local banks and other financial institutions. Thus, TERI suggested the NGO to visit financial institutions and government departments in the vicinity and brief them about the IWMP and also invite them to the subwatershed area to meet the SHG members.

Persistent efforts

The NGO staff visited all financial institutions like NABARD, Prathamik Krishi Pathina Sahakari Bank, Karnataka Grameena Vikas (KGV) Bank, and also government departments like the Scheduled Castes-Scheduled Tribes Corporation and Minority Corporation to brief them about the IWMP and the importance of bank linkages or providing financial support to these groups to help them start the enterprises that might prove to be the turning point for many poor families and particularly women. Initially the response was not very positive, but persistence prevailed. The bank managers visited the watershed area and interacted with the SHG members, who convinced the managers about the purpose of the IWMP and they agreed that economic development of the poor, especially women was crucial to reduce migration among the community. On the parallel a series of training programmes were conducted to strengthen these groups in the villages. Focus was also laid on the importance of revolving the saving amount through internal lending and initiating income generation activities.

Wave of support

NABARD was the first institute to support these SHGs. Eleven SHGs from four villages were advanced a loan of Rs 2,505,000 which benefitted about 138 women. Neelvva M Kali, Member, Durgamatha SHG in Neerabudhihal said “NABARD has supported


Figure 1: Farida Begum Nadaf with her petty shop (left); Noorjan Bee Masuthi in her poultry farm (right)

Figure 2: Poornima Hulur with her customers (left); Members of Renuka devi SHG, Bendigeri making bamboo products (right)

our group with Rs 300,000 which is like a dream come true. This has been possible only through IWMP and the guidance of TERI and the NGO.” Rajshekhar Bijapure, District Watershed Development Officer (DWDO), Bagalkot quoted that “A wave of support has followed from different institutions and we have been able to get support for 26 out of the 36 SHGs of about Rs.4,042,000, which has benefitted about 299 poor, marginalized and landless women. Each beneficiary has availed a loan amount of Rs 13,000 on an average and earns a minimum net profit of Rs 3,000 per month. This is a commendable achievement and a proud moment for all of us”.

Apart from these, Prathamik Krishi Pathina Sahakari Bank provided loan to eight SHGs in Kadarakoppa and Neerabudhihal village of about Rs 247,000, which was used by 68 women to start small enterprises. The Karnataka Vikas Grameena (KVG) Bank advanced Rs 550,000 to four SHGs in Yandigeri and Anwal villages, which was utilized by 47 women members to start income generation activities such as tailoring, dairy, and small business. “The KVG Bank has been here from such a long time, and we never had thought, they would give us such a huge amount of loan to our group. This kind of support is immensely useful to poor people like us. Our group members have been able to take up various activities like goat rearing, cattle rearing etc.,” affirms Ratnamma. M Patted, Member, Shivayogini SHG.



The SC–ST Corporation came forward with a loan of Rs 200,000 with an additional subsidy of Rs 200,000 to Valmiki SHG in Jalageri village. This group consisted entirely of landless women labourers belonging to SC–ST community. Similarly, the Minority Corporation gave a loan of Rs 220,000 to Bibi Fathima SHG in Anwal village. Sharada Devi SHG in Jalageri received the loan from the District Central Cooperative Bank (DCC Bank) through the Swarnjayanti Gram Swarozgar Yojan (SGSY) scheme in which Rs 320,000 was a loan while Rs 120,000 was subsidy. As Tasleema Khanapur, Member of Bibi Fathima group says “We were not even aware of the Minority Corporation. We are indebted to IWMP, TERI, and the NGO for having shown us a way to earn additional amount and make our lives better”.

“With the timely guidance and encouragement of TERI and the NGO, we have taken a firm step towards a secured livelihood. The activities have made our villages come alive and we no longer solely depend on rainfed agriculture. Many families who had migrated, have come back home. We aim to achieve economic self-reliance and also conserve our resources” signs off Heena Bhanu Dhange, President of the Neerabudhihal Gram Panchayat.

Dr Lasya Gopal is an Associate Fellow,Social Transformation Division, TERI


Figure 3: Rani Chikpatti making snacks with her husband


New directions: Solar energy in Africa1

Anandajit Goswami

The Energy and Resources Institute (TERI) has moved forward with its Lighting a Billion Lives (LaBL) campaign in India and has extended it to different parts of Africa. This campaign has been able to provide solar lanterns to various rural

households with the strong support of self-help groups, band of entrepreneurs at the village level. Operation, maintenance, continuous upgradation, and provision of lanterns to households in need, has been possible due to continuous coordination between a lab-based technology team and grassroot entrepreneurs. These entrepreneurs have been created with the support of self-help groups led by women in many field sites. TERI has been active in solar energy-based interventions in rural villages of India, Kenya, Mozambique, Uganda, Ethiopia, Sierra Leone, Malawi, and Cameroon to address the energy needs for lighting purposes of rural households. Solar energy has been harnessed to provide energy to charge mobile phones, run computers, purify water, extract honey, grind turmeric, and split bamboo. Through decentralized solar energy provisions, these villages have been able to grow economically and protect their environment.

Light for communities in Kenya

Solar Multi Utilities (SMUs) in Kenya provide various energy services and are managed and operated by the local entrepreneurs. Business model of these SMUs are a kind of ‘fee-for-service’ model wherein energy services are provided to community and small businesses for a nominal rent. A part of the rent is used to cover operation and maintenance costs of the SMU. And the remaining part of the rental becomes an entrepreneur’s monthly income. As a part of the project, a multifunctional enterprise development organization (MFEDO) is also established. MFEDO is the hub of training and becomes the focal point for livelihood enhancement and income generating activities. MFEDO comprises of people from the village community and are selected after assessing their entrepreneurial acumen. Further, in order to strengthen their

1 Note: This article has benefitted substantially from review comments of Mr Taylor Gregoire Wright



business activities, efforts are initiated towards generating a revolving fund with support from local micro-financing organizations (such as Kenya Women’s Finance Trust in Kenya) which can be used by the entrepreneur(s) in future. Detailed sustainability plan is developed during the feasibility study stage of the project by consulting with local energy departments and project partners to ensure the project sustainability.

Bringing light to Mozambique

TERI and Ajuda de Desenvolvimento de Povo para Povo (ADPP), a local NGO in Mozambique, have partnered to set up around 50 solar charging stations in Cabo Delgado and Maputo provinces of Mozambique.

This partnership project aims to give quality illumination from clean energy to 18,000 rural people and thereby help children’s education and build opportunities for increased livelihoods through energy service generation. This initiative is supported

The solar programme in Umeme district in Uganda has been supported and implemented by Actis and Umeme (Uganda’s electricity distribution company) as part of their corporate social responsibility efforts. TERI has provided knowledge and technical support to make clean lighting accessible to greater number of rural people in Uganda. In addition to ensure and sustain the financial and logistical viability of the charging stations, TERI has trained Umeme technicians on various aspects of installation, operation, and maintenance of the solar PV systems, lanterns, and mobile phone charging system. The provisioning of lighting has enhanced education of rural children and generated business opportunities for households.


by the European Union Energy Facility and Energy and Environment Partnership (EEP) programme of Southern and Eastern Africa Development Bank.

Lighting a Billion Lives (LABL) in Uganda

Uganda has become the fourth country in Africa (after Mozambique, Sierra Leone, and Kenya) to benefit from the Lighting a Billion Lives (LaBL) campaign. So far, six solar charging stations (SCS) have been established. Each of these charging stations has the capacity to charge 100 lanterns. A solar mobile phone charging facility has been built in the solar charging station of the Kwarkwar village of Uganda.

Thus, through a series of initiatives and by sharing its experiences from India and working with local partners in African villages, TERI has been able to humbly contribute to providing clean and decentralized energy services for rural people in villages of Africa.

Anandajit Goswami is an Associate Fellow,Green Growth and Development Division, TERI



Greening Rural Development in India

Ritu Singh

book review

The healthy state of environmental resources is vital for India, where 70 per cent constitutes rural population who significantly depends on natural resources for subsistence and livelihood. The poor amongst them are the most vulnerable

to the impacts of climate change and natural resource degradation. The rural development schemes implemented, aim to reduce poverty, generate employment, develop infrastructure, and improve social security. Studies indicate that there has been evidence in terms of positive linkages between economic and social pillars as a result of these schemes. However, without considering the environmental pillar, the goal of sustainable development cannot be realized.

Report on Greening Rural Development in India by UNDP summarizes potential of the six major rural development schemes of Ministry of Rural Development (MoRD) and Ministry of Drinking Water and Sanitation (MWDS) to assess their potential in delivering environmental benefits. Greening rural development schemes as discussed in the report are in the context of maintaining critical ecosystem services, strengthening climate resilience of production systems, livelihood, and habitats and making public expenditure more effective. Thus, greening rural development schemes would lead to inclusive and sustainable economic growth as envisaged in 12th five year plan (2012–2017). What is even more crucial is that there is a need for metrics to measure, evaluate, and monitor the results of these green interventions.

The six programmes include Mahatma Gandhi National Rural Employment Guarantee Programme (MG-NREGS), National Rural Livelihood Mission (NRLM), Integrated Watershed Development Programme (IWDP), National Rural Drinking Water Programme (NRDWP), Nirmal Bharat Abhiyan (NBA), and Indira Awaas Yojna


(IAY). The relevance of these green interventions in terms of green growth strategies is summarized in Table 1.

The report comprises of four chapters—introduction; greening rural development; potential for greening; and recommendations. Figure 1 depicts the framework of the report. Metrics are designed for green potential and evaluation for the six schemes. Arguments are then supported with case studies that feature the activities under various schemes that have resulted in significant green impacts.

The uniqueness of the report is the concept of green index that can help in evaluating the schemes on its potential and effectiveness of delivering green result. The green potential refers to broad green outcomes—enhancing the productivity/quality of the local natural resource base or ecosystem base, increasing the sustainability of the local natural resource base or ecosystem, reducing the negative impact of local developmental activities, and enhancing resilience to climate change impacts. The effectiveness relates to semi-quantitative assessment of its coverage and durability/quality. The recommendations on what the schemes need to do differently to achieve incremental green results are suggested at ministerial and scheme level.

Table 1 Green potential of rural development schemes

Name of schemes Relevance for green growth strategies

Mahatma Gandhi National Rural Employment Guarantee Programme

Reducing soil erosion, improving soil fertility, increasing biodiversity, augmenta-tion of surface and ground water resources for irrigation, and household use and increasing carbon sequestration

National Rural Livelihood Mission Greening non-timber forest produce-based livelihoods, agriculture-based liveli-hoods, and non-farm based livelihoods

Integrated Watershed Develop-ment Programme

Improving soil health, water security, biomass and biodiversity conservation, and green livelihoods

National Rural Drinking Water Programme

Rainwater harvesting, renovating traditional water harvesting systems, ground-water recharge and management, ground water quality and renewable energy for pumping domestic water supplies

Nirmal Bharat Abhiyan Safe disposal of excreta, effective solid and liquid waste management, and ecological sanitation

Indira Awaas Yojna Reduction in the amount of manufactured building materials, intelligent construc-tion processes for conservation of resources and reduction in the development footprint, and resource conservation during inhabitation

Source: UNDP (2012)


book review

India’s environment poses a formidable challenge; this report shows a way forward through its recommendation to incorporate green strategies in the rural schemes. The green index tool for evaluation of schemes also adds to the credibility of the report. Analysing and assigning green attributes to rural development schemes paves a way for similar type of analytical approach to schemes of other ministries. The report mentions about green features of the schemes, but has gaps that need to be resolved before it gets implemented. For instance Panchayati Raj at the implementation level needs to be reoriented for successful outcomes. Institutional capabilities need to be assessed in relation to the implementation of existing schemes, and new capacity that would need to be created either through enhancement of existing skills and capacity or through the development of new institutions. A tool that would probably help in meeting this objective includes the institutional analysis and development (IAD) framework1 that was developed by Elinor Ostrom and her colleagues.

1 IAD was developed by the Workshop in Political Theory and Policy Analysis at Indiana University, Bloomington.

Figure 1: Framework of report

Source: Compiled by author

Assesses potential of selected rural development schemes to deliver green

outcomes: MGNREGS, NRLM, IWDP, IAY, NRDWP, NBA

Green outcomes

Improved resource

conservation

Improved resource

efficiency

Reduced negative

environmental

impacts

Strengthened

climate resilience

of communities

Contribution to

climate change

mitigation

•Green Guidelines

•Support Organizations

•Innovations portal

•Green Innovation Fund

•Green Cell

•Annual Green Report

•Scheme wise specific

green actions

•Steps fo

implementation

Inclusive Growth

Environmental

Sustainability

Climate resilience

of production

systems,

livelihoods and

habitats

Effective public

expenditure

Recommendations

Ministerial level

Schemes level

Objectives


Hence, the process of implementation of rural development schemes need to be elaborated and specific input in the guidelines of different schemes need to be suggested. It would have been better within the scheme if there could be a scope of incentivizing those who adopt input that delivers green results in comparison to others who follow the normal course of action.

The report recommends some actions for realising sustainable economic development that could only be pursued with protection of natural capital. The concerted action by resource users and resource managers (individuals, communities, enterprises, and governments) would enable the economy to move away from sub-optimalities, increase efficiency, and would also contribute to growth while protecting the environment.

Bibliography

UNDP. (2012). Greening Rural Development in India (Volume 1). New Delhi: United Nations Development Programme.

Ritu Singh is a Research Associate, Green Growth and Development Division, TERI



Environmental-economic accounting

Green Glossary

Environmental-economic accounts provide the conceptual framework for integrated statistics on the environment and its relationship with the economy, including the impacts of the economy on the environment and the contribution of the environment to the economy. A coherent set of indicators and descriptive statistics can be derived from the accounts that inform a wide range of policies, including, but not limited to, green economy/green growth, natural resource management and sustainable development. The System of Environmental-Economic Accounting (SEEA) contains the internationally agreed standard concepts, definitions, classifications, accounting rules, and tables for producing internationally comparable statistics on the environment and its relationship with the economy. Source: Based on DESA (2013)

Exhibit 1: Physical flows of natural inputs, products and residuals

Source: Based on SEEA (2012)

Natural inputs

(including mineral resources,

timber resources, aquatic

resources and water resources)

Residuals

(such as air emissions and

return flows of water)

Products

(Goods & services

produced and

consumed in the

economy)

Industries

Households

GovernmentEnvironment

Economy


Wealth

Wealth is the social value of an economy’s stock of capital assets, comprising (i) reproducible capital (commonly known as ‘manufactured capital’: roads, ports, cables, buildings, machinery, equipment, and so forth); (ii) human capital (population size and composition, education, and health); and (iii) natural capital (ecosystems, land, subsoil resources, and so on). To understand the changes in the circumstances of an economy, wealth per capita should be used, since it tracks intergenerational well-being averaged across the generations. So ‘economic growth’ should mean growth in wealth per capita, not growth in per capita GDP; and ‘inclusive economic growth’ should mean “inclusive growth in wealth”. Source: Based on MOSPI (2013)

Exhibit 2: Wealth and stocks in an economy

Source: Based on MOSPI (2013)

Reproducible

Capital

Human

Capital

Wealth

Natural

Capital

PORTS ROADS

BUILDINGS

PO

PU

LATI

ON

SIZE

MA

CH

INE

RY

EDUCATION

HEALTH LAND

ECOSYSTE

M

Bibliography

DESA. (2013). Environment-Economic Accounting. Retrieved April 17, 2013, from UN Deparment of Social and Economic Affairs: http://unstats.un.org/unsd/envaccounting/

MOSPI. (2013). Green National Accounts in India: A Framework. New Delhi: Ministry of Statistical Planning and Implementation, Government of India.

SEEA. (2012). System of Environmental-Economic Accounting (SEEA) Central Framework White Cover Version. European Commission; Food and Agriculture Organization; International Monetary Fund; Organisation for Economic Co-operation and Development; United Nations; and World Bank.


Green updates

Cambodia Launches National Council on Green Growth (19 March, 2013)Cambodia officially inaugurated the ‘National Council on Green Growth’, aiming at developing a sustainable economic society with natural resource and environment sustainability. Speaking at the ceremony held in the capital's Peace Palace, Prime Minister Hun Sen said that the inauguration reflected the government's commitment towards a society with green growth.More: http://gggi.org/cambodia-adopts-green-growth-model/

Prime Minister Releases Green National Accounts in India a Framework—Report of the Expert Group (5 April, 2013)The Prime Minister Dr Manmohan Singh unveiled ’Green National Accounts in India a Framework—Report of the Expert Group‘ at an international workshop organized by the Ministry of Statistics and Programme Implementation (MOSPI). The report has been prepared by an expert group set up by MOSPI under the renowned economist and Professor at University of Cambridge Sir Partha Dasgupta. More: http://pib.nic.in/newsite/erelease.aspx?relid=94488

Obama Budget Proposes Major Clean Energy Investments (11 April, 2013)President Obama reaffirmed his continuing support for clean energy in his 2014 fiscal year budget, proposing in some cases major boosts in smart grid-related spending. Solar and wind power, biofuels, and energy efficiency incentive programmes are among the big beneficiaries in the proposed budget. In the next fiscal year which starts on 1 October, 2013 the proposed budget would increase clean technology investment by 40 per cent over today's numbers—one of the biggest increases in a budget otherwise populated with lots of spending cuts. More: http://www.smartgridnews.com/artman/publish/Business_Policy_Regulation/Obama-proposes-major-clean-energy-investments-in-next-year-s-budget-5676.html


Fourth Clean Energy Ministerial (17– 18 April, 2013 New Delhi, India)The fourth Clean Energy Ministerial (CEM4) will bring together ministers from more than 20 participating countries under the theme of ’Technology and Business Innovation’. Topics that will be discussed include: progress by the 13 clean energy initiatives of CEM; enhancing cooperation between CEM governments; and the development of public-private partnerships to support clean energy development. CEM4 will also hold an Innovation Showcase Pavilion that will be open to the public to highlight 40 groundbreaking clean technologies from 16–18 April, 2013.More: http://www.cleanenergyministerial.org/events/cem4/index.html


invitation For contributions For volume 1, issue 4

Green Growth and Development Quarterly aims to facilitate knowledge and learning processes which will help in enhancing the capacity on emerging ‘green’ policy concepts. It is a step towards a forward looking knowledge process for new opportunities linked with growth and sustainable development. The quarterly showcases new research and innovative practices through engaging with stakeholders from government, business & industry, and research & academia. We invite contribution for the fourth issue of the quarterly under following sections:

Type of contribution Description Length (approx.) Illustration

ArticlesCovers analysis through original research, reviews and commentaries on topics of policy relevance

2000-2500 words As required

Green AnalysisFeatures qualitative analysis or fact sheet for policy issues around environment sustainability 800-1000 words

One supporting exhibit

Green ShowcaseFeatures research, good practices and initiatives

600-800 words Preferably 1

Green from the Grassroots

Features insights from initiatives that involve interaction with communities and people 600-800 words

Preferably 2 photos

Other specifications

Schedule

For consideration in Volume 1 (Issue 4), submissions are required with illustrations latest by 10 June 2013, to [email protected]


Language & Style

The language should be factual, experiential, crisp and clear. Authors are prompted to avoid academic, bureaucratic or politicized terminology. Your text will be style edited by a professional editor. However you are kindly asked to consider the following style guide: P Use British English spelling.P Use Oxford style (http://www.askoxford.com/dictionaries/compact_

oed/?view=uk). P Use only metric units.P In the text put numbers in numerals.P When using acronyms for the first time, spell them out and put the abbreviation in

parentheses.

Illustrations

Include any credits and permissions to print that may apply to illustrations. Illustrations should have the following format: P Photographs should be high resolution (jpeg format).P Graphs and figures should be submitted separately with excel sheet.

References

Please provide complete references and citation in APA style. It should be listed in alphabetical order at the end of the article.

Notes

Notes

interview


Green Growth and Development Quarterly

Green Growth and Development Quarterly aims to understand the many facets of inclusive and green growth. It is a step towards a forward looking knowledge process for new opportunities linked with growth and sustainable development. Volume I (Issue 3) of the quarterly showcases new research and innovative practices through engaging with stakeholders from government, business & industry, and research & academia.

For more details, please contact:

Dr. Ritu SinghGreen Growth and Development DivisionThe Energy and Resources InstituteDarbari Seth Block, India Habitat Centre, Lodhi Road, New Delhi – 110 003, IndiaEmail: [email protected]


Printed on Recycled Paper

Documents

Green Growth and Development Quarterlybookstore.teri.res.in/docs/journals/Green Growth... · in conversation with dr tcA Anant, Prof Sir Partha dasgupta, and dr Pronab Sen on measuring