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Bisleri will share its findings with the central government to facilitate discussions and develop a framework, advancing the concept of water credits for the beverages industry. The proposal is aimed at making beverage makers more accountable towards water usage.
Mumbai: Packaged water maker Bisleri is looking to introduce water credits akin to carbon credits, aimed at making beverage makers more accountable for water usage.
The company has partnered TERI School of Advanced Studies to conduct a study that would set a benchmark for the beverage industry's commitment to water conservation.
The study assumes significance given that several large beverage makers have been criticized for extracting water from water stressed areas. Several companies now report initiatives to replenish water used during their manufacturing process.
Green credit for water conservation
Bisleri said it will share its findings with the central government to facilitate discussions and develop a framework, advancing the concept of water credits for the beverages industry.
“The water sector can generate green credits through water conservation, water harvesting, and water use efficiency, including treatment and reuse of wastewater," the company said. This will be similar to how companies buy credits to offset their emissions.
"This report is about proposing a model to the government—they can use and craft it. So, we are requesting the government to set up a platform as quickly as possible, similar to carbon credits, using this as a template," Angelo George, CEO, Bisleri International said in an interview.
Water savings need localized approaches
The study aimed to review national and international practices and policies in water trading, water credits and fiscal instruments and develop a methodological framework to estimate water footprint of a production unit. The study also tested and estimated the water footprint of two production units of Bisleri in two distinctly different terrains.
Unlike carbon emissions, water savings require a localized approach, factoring in variables such as rainfall and consumption at a watershed level, it said.
Problem of water scarcity
In India, 11 out 15 major river basins will be water-stressed by 2025, with per-capita annual water availability below 1,700 cubic meters, according to data from the Council on Energy, Environment and Water, a New Delhi-based think tank.
Bisleri’s move also comes after the government notified a Green Credit Program (GCP ) in October, 2023. The CPG is a market-based mechanism designed to incentivize voluntary environmental actions across diverse sectors, by various stakeholders like individuals, communities, private sector industries, and companies. In its initial phase, the CPG will focus on two key activities i.e. water conservation and afforestation. However, there is no official platform yet that permits trading of green credits in India.
Those in the beverage industry said that while the idea is novel, it could face challenges in implementation. “This is a responsible way for the industry to be more water-efficient, although several large companies are already replenishing water they use," said a senior executive in the beverages industry, speaking on condition of anonymity.
Additionally, ground water usage in India is already governed by various national and state-level rules that restrict the amount of water companies can draw for industrial and commercial use.
For instance, bottled water companies must obtain necessary No Objection Certificates (NOCs) for groundwater extraction and then undertake measures for groundwater replenishment. Packaged water units are also penalized for going above the minimum quantum of ground water withdrawal. Rates of ground water abstraction charges for packaged drinking water units vary in safe, semi-critical and critical assessment units, per rules laid out by the Central Ground Water Authority. However, companies also use other sources such as surface or municipal water—tariffs on which are different.
Others said the move is largely aligned to step up sustainable and environment-friendly practices followed by companies.
"If companies are able to follow efficient water use practices and earn credits their processes will be considered more environmentally friendly, because they are going to reduce their water footprint. Moreover, internationally, their product will have more acceptance, because you're contributing to environmental conservation. Third, is that it also reduces regulatory and reputational risk for organizations, said Nitin Bassi, senior programme lead for the sustainable water team at the Council on Energy, Environment and Water (CEEW).
However, Bassi warns that creating a baseline water footprint for the industry may have its challenges given the scale and scope of a given water unit. Smaller water units may be at a disadvantage when it comes to assessing their water footprint as their technology may not be at par with those deployed that large companies. "Additionally, while undertaking such projects, validating claims in the long-run becomes a challenge," he said.
Read MoreGuwahati, April 30: A two-day-long ‘Exposure Visit Programme’ for CBSE School Principals has successfully culminated here today at the University of Science and Technology Meghalaya (USTM) where 34 school principals from various renowned CBSE schools from across the country participated.
The visit has been organized by the Central Board of Secondary Education (CBSE) in collaboration with USTM from 29th to 30th April 2024. The program has been supported by the Department of Skill Education, CBSE under the Skill Education sector.
Addressing the school principals in an interactive session today, Mahbubul Hoque, Chancellor of USTM said that the role of a school principal is multifaceted and essential for creating an environment where students can thrive academically, socially, and emotionally. He welcomed all the participants and said that USTM is always open to extending all kinds of support to uplift school education.
In the inaugural session yesterday, Prof GD Sharma, Vice Chancellor of USTM welcomed all the school principals and said that the National Education Policy 2020 has emphasized on Skill Education to become integral to School and Higher Education. Accordingly, CBSE has envisioned promoting Skill Education from Class 6th onwards in all its affiliated schools. He said that an added benefit of such an exposure visit is that it gives the principals a chance to meet other like-minded school leaders, share stories, and gain a lot in the process.
Speaking on this occasion, Dr Jagadish Barman, Jt Secretary, CBSE Centre of Excellence Guwahati said, “This Exposure Visit is expected to leverage the synergies between schools and Higher Educational Institutions and create a positive platform for cohesive interaction in the future learning ecosystem.”
These Principals may, in turn, mentor the teachers of schools in their neighborhood thus, unfold unlimited opportunities for educator empowerment, he added.
In this context, Prof Amit Choudhury, Dean, School of Technology and Management at USTM said that this year CBSE has selected USTM for principals’ exposure visit apart from six other institutions including TERI School of Advanced Studies New Delhi, Indian Institute of Technology Gandhinagar, Asian Academy of Film Television Noida, Indian Institute of Technology Tirupati, Whistling Woods International Mumbai, and Indian Institute of Management–Raipur. The resource persons from USTM were: Dr E Karim, Dr Azmol H Barbhuiya, Dr Monalisa Bora Deka, Dr Alika Borgohain, Dr Baharul Islam, Dr K Aye, Dr S Gazi, Dr Nitu Borgohain, Dr Deboja Sharma, Dr Moutushi Das, Dr Mehjabin Rahman, Dr Papiya Dutta, Dr Palme Borthakur.
Dr Nirmaljit Singh Kalsi, Chairman, National Council for Vocational Education and Training took an online session on “Up-scaling of Skill Education in line with NEP 2020”. Several sessions took place on both days.
The participating schools in the program were Christ International School Bangalore, Mahavir Senior Model School Delhi, RS Jhunjhunwala International School Gujarat, Poddar International School Maharashtra, Manipal School, Brahmani Public School Odisha, DPS Ahomgaon Guwahati, Faculty HS School North Guwahati, Sharada Vidyaniketan Public School Mangalore, Kendriya Vidyalaya No.1 Kunjaban, KV NFR Maligaon, Ideal English Senior Secondary School Manipur, Livingstone Foundation International, PM Shri KV Khanapara, Holy Brook Sr. Sec. School, North East Public School Udalguri, Army Public School PRTC Bangalore, SBOA Public School Guwahati, The Priceton School, Sree Swami Vivekananda Higher Primary School, Kendriya Vidyalaya NEHU Shillong, Army Public School Shillong, SJ Patel Eng School Gujarat, Delhi World Public School Haryana, Jnana Ganga Central School, Dr. M Ramanna Shetty Memorial English Medium High School, Kendriya Vidyalaya ONGC Agartala, Kendriya Vidyalaya Assam University, Kendriya Vidyalaya Aizawl, Buhai School Sikkim and Kingcup Public School Itanagar.
Read MoreIPCA Centre for Waste Management and Research, TERI SAS, in collaboration with India Development Service (IDS), USA, organised an international conference on ‘Solid Waste Management for Good Health and Wellbeing’ on 1st March 2024. Several experts from medical services, NGOs, urban local bodies, and recyclers participated in the event. While delivering the keynote address, Deputy WHO Representative to India Ms Payden emphasised that “health sector alone cannot address the issues faced by communities associated with waste management sector, inter and intra-sectoral collaborations is the key and the involvement of people and communities stands important”.
Prof Arun Kansal, Vice Chancellor, TERI SAS, emphasised the need to synchronise the aims of waste management, pollution control, and a healthy, sustainable, and thriving community. Focusing on waste management for health in many ways leads to the definition of purpose for engineers. Health brings in a critical human element to waste management schemes, which is as crucial as trucks and infrastructure. Dr Prasad from the University of Colorado presented a case study mapping health care along solid waste supply chains. Dr Venkatesh from Karlstad University, Sweden, presented his extensive research on ragpickers in India.
Participants organised themselves to deliberate on community health and waste management, New imperatives for waste management policies and regulations, Fiscal measures, and stakeholder roles.
Mr Ashish Jain, Founder Director of IPCA, thanked participants and summarised the need for an integrated community-based approach through effective intersectoral coordination where waste management for health leads to the definition of purpose for Engineers in municipal bodies.
Read MoreDate | News Title | Source |
02-June-2024 | Bisleri proposes water credit ... | Mint (Online) |
30-April-2024 | Principals from CBSE schools a... | The Shillong Times (Online) |
02-March-2024 | International Conference on So... | Skilloutlook (Online) |
28-February-2024 | Rising medical costs is eating... | Deccan Herald (Online) |
29-January-2024 | Padma Shri for Kurseong man Dr... | The Statesman (Online) |
08-September-2023 | G20 & Climate Change & Action:... | Online |
16-July-2023 | Trans Yamuna area of Delhi has... | Jagran (Online) |
11-June-2023 | Surya Foundation dwara Rashtri... | Uttam Hindu; Page No. 05 |
07-June-2023 | Hurdles on the way. Why India ... | The Hindu Businessline (Online) |
23-April-2023 | Subsidence in an Indian town r... | The Japan Times (Online) |
Carbon pricing is the value ascribed to the external costs – usually social costs – of pollution emitted by an industry. The price on carbon emissions is applied either through a carbon tax or an emission trading system.
Representative Image Source: AP
In the 1920s, a British economist, Arthur Pigou, highlighted the social benefits of making industries pay for the costs of the pollution they caused. In time, this concept was taken up in different ways, which have led to the concept of ‘carbon pricing’.
According to the World Bank, carbon pricing is the value ascribed to the external costs of pollution emitted by an industry. External costs are those that do not affect the industry itself directly – most industries receive the full benefits of fossil fuel consumption, but only bear a trivial fraction of its climatic cost. Instead, public systems pay a socially tragic price – such as the costs of losing crops because of poisoned air/water and health care costs because of heat/cold waves or extreme weather events from global warming.
Carbon pricing is an economic tool used to push industries, households and governments to bring down emissions and invest in cleaner options. It helps in shifting the burden of damage caused by pollution onto those responsible for the pollution but does not dictate how or where emissions can be reduced. Instead, it puts an economic value to pollution and allows polluters to decide whether to reduce emissions or continue polluting but pay the price for it.
Carbon pricing/taxes/trade are under the control of a country’s government. The government decides what taxes to levy and polluters pay these taxes to the government. Ideally, these taxes should be used to either offset the extra burden of carbon taxation on low-income groups or on remedial projects to offset the effects of pollution.
Why a price on carbon?
Carbon is priced because carbon-based gases (of which carbon dioxide or CO2 is most prevalent) are the most abundant greenhouse gases (GHGs) in most emissions. Therefore, pricing carbon provides an incentive for households, firms, industries, and governments to reduce emissions cost-effectively.
According to the latest Intergovernmental Panel on Climate Change (IPCC) report (March 2022), the window of action for meeting the goals set by the Paris Convention (a reduction in GHG emissions such that global warming is restricted to 1.5–2 degrees C above pre-industrial times) is rapidly closing. The report, titled Impacts, Adaptation, and Vulnerability states that without immediate action, rising global temperatures and climate change with create conditions beyond human tolerance.
Currently, the price on carbon emissions is applied in two ways; one is through a carbon tax, and the other through a cap-and-trading or emission trading system (ETS).
What is carbon tax?
Carbon taxes are the prices that governments impose on polluters for each metric ton of CO2 emissions (mt CO2e) generated. These taxes are levied on coal, oil products, and natural gases, according to their carbon contents. The advantages of levying carbon taxes are many. By internalising the externality of pollution costs, the tax motivates industries to improve energy efficiencies, move towards low-carbon fuels and renewable energy sources. The concept of carbon taxation can also be applied to other GHGs and pollutants. In addition, carbon taxes are fairly easy to administer as add-ons to already existent fuel taxes and generate revenue for governments that can be routed towards funding other aspects of the sustainable development goals.
Carbon taxes are, however, are not problem-free. One of the main arguments against carbon taxes is that they make fossil fuels more expensive, which will disproportionately affect people of lower income groups. In addition, carbon taxes may discourage investment and economic growth as businesses may shift production into countries without carbon taxes. Another issue with carbon taxation can centre on how the revenues collected from the taxes are utilised – should they be used towards alleviating tax burdens on workers due to rising fuel prices or towards repairing environmental degradation? Finally, the administrative costs of monitoring and measuring emissions, and uncertainties in measuring the social costs of carbon pollution can make carbon taxation a difficult task.
Individuals and households bear the brunt of carbon taxes when the price of the tax – which is usually directly levied on an industry – trickles down to consumer prices.
What is carbon trading? What are carbon credits?
Carbon trading is a market-based approach to pricing carbon emissions by putting a cap on or limiting the total amount of carbon-based pollution that can be produced. In this system, a central authority, in most cases, governments, allocate or sell a limited number (set as a cap) of permits that allow a specified amount of emissions over a period of time. In this system, each polluter is allotted a specific quota or allowance of pollution that it can emit.
However, polluters are then allowed to trade these permits with each other. For example, if a polluter manages to reduce its carbon emissions to levels lower than its assigned permit values, it is allowed to sell the right to emit carbon to another polluter which may be producing more emissions than it has permits for.
A carbon credit is a generic term for a tradeable certificate or permit representing the right to emit a certain amount of CO2 (usually 1 metric ton) or an equivalent amount of different GHGs. It is, in a sense, the basic trading unit for carbon markets.
The carbon trading market was set up in 1997, after the Kyoto Protocol was signed. Under this protocol, all participating countries were to set and adhere to a limit on their carbon emissions over a series of commitment periods. However, the protocol also allowed countries to trade emissions permits with each other. Apart from these permits, other tradeable carbon commodities could also be used, including carbon removal units (from activities such as reforestation), emission reduction units, and certified emission reductions (from clean development mechanism projects).
The prices in cap-and-trade schemes, which use carbon credits, are market driven (meaning that their prices vary according to demand and supply), although the government controls how many units/credits are allotted to each industry/stakeholder, and so how many credits are available for sale on the whole.
Carbon is priced because carbon-based gases, primarily carbon dioxide, are the most abundant greenhouse gases in most emissions. Photo by marcinjozwiak/Pixabay.
Criticisms of the carbon pricing system
Currently, the Environmental Defense Fund states that the cap-and-trade system is the most “economically and environmentally” sound approach to limit emissions and mitigate global warming. This is because the cap sets a firm limit on pollution and trading encourages cutting emissions in the most cost-effective manner.
However, there are several arguments that have been put forward (apart from the issues on carbon taxation) to highlight that carbon pricing, including carbon trading is insufficient to mitigate climate change. These arguments point out that carbon pricing places more importance on increasing efficiency than on effectiveness and encourages optimisation of existing systems rather than on transforming them to reduce pollution. Furthermore, it has been pointed out that current issues with emissions are a fundamental systemic problem of society, and not just a market problem; therefore, they will require more than just a ‘price on pollution’ to overcome.
“First and foremost, one must remember that carbon pricing, especially carbon taxation, is a tool to make cutting carbon emissions more economical – it is not necessarily a tool to cut the total amount of carbon produced”, says Nandan Nawn, a professor at the Department of Policy and Management Studies, TERI School of Advanced Studies and a member of the Biodiversity Collaborative.
“If we take the example of pollution from cars, a tax may not incentivise the owner-users to reduce the use of fossil fuels. After all, in urban areas, owning and using many cars is more of a status symbol, just like owning land in the rural areas. There are just too many incentives – EMI (equated monthly installment) is the most important – that fits nicely with this ‘aspiration’. For most users, fossil fuel is an ‘essential commodity’ and the quantum of its use is independent of price changes. On the other hand, making the emission standards stricter has the potential to reduce the pollution emitted by a running engine per unit of time. But according to ‘Jevons Paradox’ or the ‘rebound effect’ (expounded by William Stanley Jevons at the House of Commons two and a half centuries ago), if the rise in car numbers increases at a rate higher than the rate at which emissions are reduced, total emission will increase. There are no easy solutions here, given the political economy of carbon in India,” Nawn explains.
In addition to these issues, unlike how the cap-and-trade program drove innovations to reduce sulfur dioxide emissions from power plants, the rise in technological innovations for reducing carbon emissions have not met with the same success. Although there is some evidence that innovations in low-carbon technologies are being driven by the European Union’s ETS (EU ETS) and China’s ETS, there are doubts that this will help in driving climate change mitigation at the desired rate.
What is the current rate at which carbon is priced?
According to The World Bank’s Global Carbon Pricing Dashboard as of April 2021, global carbon pricing initiatives range from less than $1 to as high as $137 per mt CO2e. There are currently 65 carbon pricing initiatives across 45 national jurisdictions. In 2021, these initiatives would cover 11.65 Gmt CO2e, which represents 21.5% of the global GHG emissions. However, less than 1% of the global emissions (5 out of 65 initiatives) are currently priced at close to or above the least estimated social cost of carbon, which, according to the IMF, is 75 USD per mt CO2e. A publication in 2021 in the journal Environmental Research Letters, places the social cost of carbon at a whopping >3000 USD per mt CO2e if climate-economy feedbacks and temperature variabilities are taken into account. As of November 2021, the average weighted price of carbon stood at 3.37 USD per mt CO2e.
How does carbon pricing work in India?
Currently, India does not have any explicit carbon pricing or cap-and-trade mechanisms; instead, it has an array of schemes that place an implicit price on carbon. The Perform, Achieve and Trade (PAT) scheme aims to reduce emissions from energy intensive industrial sectors by setting specific energy reduction targets. Industries that exceed the targets are awarded Energy Saving Certificates (ESCerts), each of which is equal to one metric tonne of oil. Those industries unable to meet the targets are required to buy ESCerts (from units that have exceeded their targets) through a centralised trading mechanisms hosted by the Indian Energy Exchange.
The Coal Cess is a tax on coal that was introduced in 2010, which aimed to use the collected revenue to finance clean-energy initiatives and research via the National Clean Energy Fund. However, the idea failed to achieve significant outcomes as a large part of the collected revenue remained unutilised. In 2017, the coal cess was abolished and replaced by the Goods and Services (GST) Compensation Cess; the proceeds of this tax are used to compensate states for revenue losses due to a shift to the new indirect tax regime.
Renewable Purchase Obligations (RPOs) and Renewable Energy Certificates (RECs) are aimed at encouraging India’s growing renewable energy sector. All electricity distribution agencies are required to source a specific minimum of their electricity requirements from renewable energy sources. For each state, the RPO is fixed and regulated by the respective State Electricity Regulatory Commission. The RECs are market-based instruments that aid in achieving RPOs through trading at power exchanges.
Internal Carbon Pricing is a tool used by the private sector in India to reduce emissions voluntarily, so that they can channel investments into cleaner and more energy-efficient technologies to meet corporate sustainability goals. Currently many major Indian private companies such as Mahindra and Mahindra, Tata, Infosys, and Wipro, use ICP to lower their carbon footprints.
Can I participate in carbon trading?
Households and individuals at this stage, cannot directly participate in carbon trading, as carbon emissions calculations at such small scales are not very accurate. Households may be part of a larger trading scheme, where the carbon emissions of an area – for example, an entire city – are calculated, and used as measures to note increases/decreases in carbon emission profiles. The main issue with the carbon credit system currently, especially for small businesses or individual land holders, is that agencies that provide credentials for and evaluate carbon credit generation, charge very high fees, which may not be offset by the income generated from selling the carbon credits themselves.
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