Indian CDM: subsidizing and legitimizing corporate pollution

DR.HADIDA YASMIN NESPON, Siliguri (WB) This is today's scenario This is what we are doing We are going to loose many more like these This will happen frequently We are going to face this Himalayan glaciers in the Bhutan-Himalaya range

This once we had retreating

Himalayan glaciers in the Bhutan-Himalaya range are retreating and leaving glacial lakes in their stead. Satellite image from the Earth Imaging Instrument ASTER (Advanced Spaceborne Thermal Emission and Reflection Radiometer). © NASA/GSFC/METI/ERSDAC/JAROS, J. Kargel and U.S./Japan ASTER Science Team. ttp://visibleearth.nasa.gov/

This is what we have now Snow and ice on Mount Kilimanjaro in 1993, and in 2002. The ice cap on the summit of Mount Kilimanjaro has dwindled down by 82% over the past century. Mangroves act as natural buffers against tropical cyclones and also as filtration systems for estuarine and fresh water.They also serve as nurseries for many marine invertebrate species and fish. Predicted climate change scenario- destruction of 75% of mangroves in the Sundarbans.

The delta of the Ganges River covered with the mangrove forests of the Sundarbans. Kyoto Protocol

The UN Conference of Parties held in Kyoto in 1997 adopted the Kyoto Protocol as the first step towards addressing climate change.

General commitments are: . They must prepare and regularly update national change mitigation and adaptation programmes, . Must promote development, application and transfer of climate-friendly technologies and practices . Make preparations to adapt to climate change, participate in climate change mitigation programmes, & promote education, training & public awareness relating to climate change.

. the Kyoto Protocol broke new ground by defining three innovative ‘flexibility mechanisms’ . · Joint Implementation (JI) · Clean Development Mechanism (CDM) and · EmissionsTrading (ET) OBJECTIVES OF a CDM PROJECT

(according to UNFCCC)

 Social well being: alleviation of poverty by generating additional employment, removal of social disparities and contribution to provision of basic amenities to people leading to improvement in quality of life of people.

 Economic well being: additional investment consistent with the needs of the people.

 Environmental well being: bio-diversity friendliness; impact on human health; reduction of levels of pollution in general

 Technological well being: to transfer of environmentally safe and sound technologies ARE THESE OBJECTIVES EVER

BEEN MET !!!!!!!!!!!!!! NO,

MOSTLY NOT CDM PICTURE- WORLD SCENARIO (As on 28th October, 2009)

. 4673 CDM projects from the entire WORLD . 1834 projects have been REGISTERED with UNFCCC . . A surprisingly large number of CDM Projects are going on worldwide, and more than hundreds of new projects are being added to the list each month. No. of CDM Projects- WORLD SCENARIO

4673

Coal bed/Mine methane Biomass

Energy 1841 Efficiency Fossil fuel 1181 5000 HFC 4500 357 157 4000 Hydro 529 3500 Landfill gas 3000 786 43 2500 277 Reforestation 1264 2000 22 Wind 1500 110 1000 707 Methane 500 661 Total 0 67 Brazil China India Mexico World (Total)

Landfill projects- 1264 Wind- 786 Energy efficiency- 707 Biomass- 661 WORLD SCENARIO

8000000 7463271 2012 Kt CO2 2020 Kt CO2 kCER issued

7000000

6000000

5000000 4328163

4000000

2785819 3000000

2000000 1539262 1064970

1000000 429641 401654 145858 246039 333069 175722 153234 71688 34592 63228 5843 104949 44386 0 Brazil China India Mexico South Korea World (Total)

Taken together, all these 4673 projects - reduce 2785819 and 7463271 thousand tons of CO2 by the end of 2012 and 2020 (provided UNFCC registers them all).

Among the registered projects 333069 kCERs has been ISSUED from the entire world. WORLD SCENARIO 3000000 2012 Kt CO2 2785819 kCER issued

2500000

2000000

1539262

1500000

1000000

429641 500000 333069 175722 153234 104949 71688 63228 44386 34592 5843 0 Brazil China India Mexico South Korea World (Total)

China earn maximum CERs by the end of 2012, reducing 1539262 thousand tons of CO2 from 1841 projects, 44.75 % of all claimed reduction from the entire world .

India stands second with a total of 1181 projects, and claims to reduce 1064970 kCO2 at the end of the year 2020. 2000 1834

1800

1600

1400

1200

1000

800 636 566 600 456

400 203 164 144 200 92 118 20 33 7 0 Brazil China India Mexico South Korea World (Total)

No. of Registered projects No. of Projects issued kCER INDIA BY 22ND CENTURY, INDIA WILL BE LASHED BY UP TO 30 PER CENT MORE MONSOON RAINS. THE SOUTHERN COASTLINE WILL BE EXTREMELY VULNERABLE TO EXTREME SEA-LEVEL CHANGES.

CHANGE IN CARBON STOCKS IN SOIL OF INDIA DUE TO CLIMATE CHANGE

The harvest of rain-fed crops will see a decline and temperatures will go up by about four degrees Celsius. Will affect CROPS and PRODUCTIVITY

Species-specific implications of extreme temperatures and loss of biodiversity CDM projects – status wise

No. of CDM projects - INDIA 1188

Total projects

Issued CERs 203

Registered 456

Request Registration 33

At validation 699

0 200 400 600 800 1000 1200 2012 k CERs from CDM projects- INDIA

Total projects 429641

Issued CERs 71688

Registered 233329

Request Registration 13572

At validation 182740

0 50000 100000 150000 200000 250000 300000 350000 400000 450000 2012 kCERs in INDIA sector wise

Transport, 881 Afforestation, Biomass 44 Solar, 466 Wind, 57938 energy, Reforestation, 61696 PFCs379 and SF6, 1616 Cement, 14386 N2O, 6829 Methane avoidance, 8840 Landfill gas, 6490 Energy Hydro, 49503 Efficiency , 93260

HFCs, 78288 Fugitive , 805 Fossil fuel switch, 44802 No. of CDM projects in INDIA Sector wise

Afforestation 1, 0.08% Wind 320, 26.94% Biomass energy 297, 25.00% Transport 7, 0.59% Solar 5, 0.42% Cement Reforestation 15, 1.26% 7, 0.59% HFCs 8, 0.67% Energy N2O Efficiency 6, 0.51% 293, 24.66% Methane avoidance Hydro 42, 3.54% 130, 10.94% Fossil fuel switch 31, 2.61% Landfill gas HFCs Fugitive 21, 1.77% 8, 0.67% 4, 0.34% State wise CDM projects from INDIA

Bihar, 6 Orissa, 47 Maharashtra , 193 Goa, 4 Assam, 6 Delhi, 7 UP, 82 Jharkhand, 12 Haryana, 19 MP, 37 Chhattisgarh, 65

Punjab, 37 Rajasthan, 64

HP, 42 J & K, 4 Kerala, 15 Uttarakhand, 20 AP, 1 Meghalaya, 1

WB, 42 Gujarat, 138 Andhra, 88

Tamil Nadu, 177 Sikkim, 3 Karnataka, 169 Sector wise kCERs issued from INDIA

Methane Wind, 6217, Biomass, 5674, avoidance, 526, Cement, 8.68% 7.92% 0.73% 1203, 1.68% Energy Sector, Hydro, 1552, 9537, 13.31% 2.17%

Fossil Fuel, 1190, 1.66%

HFC, 45757, 63.86% State wise kCERs issued from INDIA

Chattisgarh, 989, 1.39% WB/ 764 AP/ 3340 Delhi/ 3 1.07% 4.69% Bihar, 137, 0.19% 0.00% UP/ 480 Goa/ 43 0.67% 0.06% TN/ 6527 9.16%

Gujarat, 30426, 42.68% Rajasthan, 16430, 23.05%

Punjab, 983, 1.38%

HP/ 220 Orissa, 280, 0.39% 0.31% Maharastra, 1564, 2.19% MP/ 74 Karnataka, 9029, 0.10% 12.67% COPORATE PRESENCE IN DIFFERENT CDM SECTORS IN INDIA

. Clean Development Mechanism has come as a boon for Indian Companies, literally ‘making money from thin air’.

. All big names in the corporate kingdom have jumped into the fray,

Reliance, Tatas, Birlas, Ambujas, ITC — disproving earlier apprehensions that market uncertainty and complex procedural nature of CDM would put off big companies

. Corporate presence in the Indian CDM becomes more PERVASIVE and VISIBLE each day , both in terms of MARKET SHARE and NUMBER of projects. kCERs issued by different Owners of CDM projects

M/s Matrix , 131, 0.18% PSU 1.5% MHPL, 294, 0.41% small private sectors, 10685, Chemplast 14.90% Malwa Power , 128, 0.18% Clarion, 172, Sanmar, GFL, 23768, 0.24% 1073, 1.50% 33.15% TASMA, 3677, 5.13% RSCL, 254, 0.35% NSL, 393, 0.55% K.M.Power (P) Limited, 133, 0.19% Usha Martin, 137, 0.19% Matrix power, 131, 0.18% MSPL, 268, 0.37% NFIL, 5606, 7.82% Jindal, 6848, Ashok Leyland, 236, 0.33% 9.55% Orient cement’s , 308, 0.43% Aban Power, 434, 0.61% Aditya Birla, 254, 0.35%

Usha Martin, 137, 0.19% SRF, 15309, Sun-n Sand hotel, 93, 0.13% 21.36% TATA motors, 195, 0.27% RSCL, 254, 0.35% Shree cement, 450, 0.63%

More than 98% of CERs issued are from the corporate sector. Highest contributors are the HFC companies, GFL (33.15%), SRF Ltd. (21.36%), NFIL (7.82%) and Chemplast (1.5%). This accounts 63.86% (45757 kCERs) of the total kCERs issued from India. HFC-CDM Projects

2 big CDM projects by 1) SRF, Rajasthan and 2) GFL, Gujrat—both blue chip companies)

Together collar more than 90 percent of Indian CDM Market, going by recorded sales and number of issued CER. Be’coz both projects are HFC-incineration projects, with little or no methodological problems, and with tremendous CER generation potential. Energy Efficiency projects

Second highest contributor of issued CERs from the country, comprising 18.5 % of total kCER issued.

. Two big waste gas heat projects entitled, 1)“Generation of Electricity through combustion of waste gases from Blast furnace and Corex units at JPL unit 1 at Torangallu in Karnataka” and 2)“Use of waste gas use for electricity generation at JSW Energy Limited”, together contributed 6848 kCERs to the kCER issued . There are many others contributing CERs in this sector. Few among them are ITC (2.9%), Shri Bajrang Power and Ispat Ltd. (2.7%), TATA (1.7%), CESC Ltd. (1.7%) Aditya Birla (1.6), Reliance (1.4%) WIND- Fastest growing sector

. The total kCERs issued from wind sector is 6217 kCERs (8.68%) till 28th Oct 2009. . Enercon - maximum number - 18 in number. This company has issued 349 kCERs from its two registered projects. . Tamil Nadu Spinning Mills Association (TASMA) alone from its one project entitled, “Bundled Wind power project in Tamilnadu, India co-ordinated by the TamilNadu Spinning Mills Association (TASMA)”, has issued 3677 kCERs, contributing 5.13% to the total CER issued from this sector. . TATA from its one project entitled’ “Bundled wind power projects in Satara & Supa (Maharashtra in India) managed by TATA Motors Ltd”, has issued 195 kCERs . . Ashok Leyland from its wind project entitled, “56.25 MW bundled wind energy project in Tirunelveli and Coimbatore districts in Tamilnadu” has issued 185 kCERs . . What is surprising !!!!! small-scale projects in RE/EE sector are being set up by large Corporates. . A typical example Paper and pulp operation of ITC in Bhadrachalam in Andhra Pradesh, six separate CDM projects are coming up inside the same factory! . Bundled hydro and wind projects—and biomass—are also industry favorites because of relatively less risky registration procedure. . Public Sector Unit contributed only 1.5% to the total kCER issued from INDIA. 3698

No. of Projects kCER issued

544 299 198 24 208 284 199 156 173 153 2 17 0 3 1 7 5 5 5 2 4 9 4 4 0 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 NOW WHAT IS HAPPENING is that

. Non of the COUNTRIES IN THE WORLD CUTTING DOWN THEIR EMISSION, as according to them they cant lower down their INDUSTRIAL PRODUCTIVITY IN ORDER TO MAINTAIN THE ECONOMIC GROWTH/ GDP . SO THE OVERALL EMISSION IS INCREASING DAY BY DAY . IN THE OTHERSIDE CDM PROJECTS ARE BEING CARRIED OUT in order to MITIGATE/OFFSET- though emission is lower than the baseline scenario- still there is emission So, IN ONEWAY EMISSION IS EVENTUALLY INCREASING World CO2 emission from the consumption and flaring of fossil fuel (million metric tones of CO2)

Rest of the world, China, 6017 9987

Iran, 471 USA, 5902 South Korea, 514 UK, 585 Russia, 1704 Canada, 614 Germany, 857 Japan, 1246 India, 1293

Source- Energy Emission Administration (2006) World emission- 27480 million metric tones of CO2 Developing energy efficient India-slogan for Indian government. (11th Five Year Plan, Planning Commisison, Govt.of India, Dec 2006). . Total demand for coal is projected to increase from 432 million tonnes in 2005-06 to 670 million in 2011-12. . The need for the power sector itself would increase by 180 million tonne taking the total to about 500 million tonnes in 2011-12. . Coal India is aiming to increase production by an unprecedented 60% during the 11th Plan period inclusive of the recently approved emergency production plan (11th FiveYear Plan, Planning Commisison). . For targeted growth of 9 in the 11th plan, public investment will be 11.2 % of GDP and 23.9 % GDP for private investment.

. This GDP growth of 9% is not possible without a commensurate increase in supply of energy, electricity, coal, oil and gas and other fuels. To meet the projected energy demand Govt. of India encourages private sector growth. . The private sector accounts for 76% of the total investment in the economy . 11th plan the government aims at creating an environment in which entrepreneurship can flourish at all levels, not just at the top.

. To encourage private investment, the government states that policy induced constraints and excessive transaction costs need to be removed.

Thus, our Govt. is creating a very smooth and docile environment for the corporate sector to flourish. . As per Kyoto Protocol the developing countries does not require to reduce their greenhouse gas emissions. . IPCC suggests industrialized countries alone cannot achieve this reduction. Even if their emissions were reduced to zero in the near future, the current trends of growing emissions from developing countries alone could force the atmospheric concentration to exceed stabilization levels of 550 ppm. Trend in CO2/capita emissions 1990-2008 of selected countries

(unit: tonne CO2/capita consumption)

19.3 1990 Annex-I Countries 20 18.5 Non- Annex-I Countries 18.3 20 2008 1990 18 17 16 16.1 15.7 18 2008 16 14.8 16 14 11.9 14 12 10 12 10.8 10 9.1 9.2 8.5 10 7.9 8 8 6.9 5.7 5.9 6 6 4.2 3.7 3.6 4 4 2.2 2.2 1.4 1.5 1.8 2 2 0.8 0.9

0 0 USA EU-15 Japan Australia Canada Russia Ukraine

Figures are based on preliminary estimates by the Netherlands Environmental Assessment Agency (PBL)

Fast economic development, per capita emissions of China quickly approaches levels that are common within the industrialized countries of the Annex I group under the Kyoto Protocol . Even if stabilization of greenhouse gases is achieved, global warming will still continue for several decades and sea levels will continue to rise for several centuries.

EVERYONE OF US HAS TO B GREEN

WE CANNOT TRAP THE GREEN HOUSE GAS IN A RESTRICTED AREA, EFFECT WILL ON THE ENTIRE BIOSPHERE, WHOEVER IS CONTRIBUTING , THE EFFECT WILL B ON THE ENTIRE ECOSYSTEM The participation of all countries, including the developing countries such as India, is essential for a successful worldwide effort to arrest the growth of greenhouse gas emissions. CASE STUDIES- by NESPON WHAT CDM BROUGHT US IN INDIA

Mighty plants, roaring furnaces, black & brown white smoke from rows of tall & thick chimneys- IT ALL SEEMED SO INEXORABLE!! Smoke from chimneys blackens the nearby villagers home and whatever little crop is growing Effluents from plants drains into water the villagers use- POLLUTING it beyond REDEMPTION Everyone from CHILDRENS to ADULTS Suffering (MSPL wind energy plant, Karnataka, Satara & Supa wind energy plants, Maharastra)

. WIND MILLS were an unmixed CURSE!!!! “These are monsters- makes noise- people cannot sleep, children becoming Deaf”, said a woman We got nothing in return- NO MONEY, NO JOBS, NOTHING, we only lost our own LAND. We cannot even go to hills any longer to collect fuel wood or to graze our cattle. COMPANY SAYS IT IS THEIR FOREST NOW TATA refractories, the Bhusan Steel & the Hindalco Smelter in Orissa

Loss of Agricutural Land, crops being mercilessly destroyed Pollution- Air is chockfull of flyash & other toxic particles Loss of Biodiversity Soil full of fluoride, victims of fluorosis at Jamkhani (Many more case studies- MAUSUM- 2nd issue by NESPON ) . CDM objectives remained mentioned in the PDD only, NEVER NEVER IMPLIMENTED

(Who will check whether the project proponents are following their PDD in a right way. ITS NOT POSSIBLE AT ALL

Meanwhile, the Indian government is approving – in bunches- the so- called CDM projects, one worse than other, and seemingly making a great case for putting up all its forests for sale through and “improved REDD (Reduction of Emission through Deforestation and Degradation) CONCLUSION . PLANTATION ARE NOT FORESTS, PLANTATION CANNOT REPLACE A NATURAL FOREST . MARKET BASED MECHANISM IS NO SOLUTION . THE FUTURE OF PLANET AND HUMANITY CANNOT BE TRADEBALE. . EMISSION REDUCTION SHOULD BE MANDATORY IN THE WORLD SCENARIO. THANKS