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Environmental Appraisal

of Projects
Session Outline
• Environmental Appraisal – concept
• Environmental Feasibility (Clearance)
– Legal requirements
– Environmental Impact Analysis (EIA)
• Key concepts
• Process
• Developing an EIA report
• Assessing quality of EIA report
• Beyond Environmental Feasibility (Clearance)
– Meeting higher standards (green rating, ISO 14000,
LEED certification)
– Eco-preneurship
– Carbon financing
Environmental Appraisal of Projects

• Feasibility Approach
– Whether the proposed project will meet the minimum
environmental standards (legal) of the country?
• Going beyond minimum standard
– Whether it can go beyond minimum standards and
achieve environmental certification such as ISO 14,000
(general) and LEED certification (building/
– Whether the project/company can demonstrate
leadership in the field of environmental protection/
augmentation by making it part of its core business?
(ecological entrepreneurship).
Approach to Environmental Feasibility
• Reactive approach (majority)
– EIA carried out with sole purpose of getting
environmental clearance.
• Proactive approach (small minority)
– EIA as a tool to improve planning process
– EIA as an opportunity to internalize externalities and
gain long term benefits:
• Improved cost-effectiveness
• Earn carbon credits
• Recovery of resources from waste streams
• Better and safer work environment
• Less occupational hazards
• Better image as responsible citizen of the country
Environmental Feasibility:
Legal Requirements and Procedures
EIA Notifications
EIA Process
Legal Requirements
• 27th Jan 1994 Notification of MoEF, GoI under the Environmental
(Protection) Act 1986 – making environmental clearance
mandatory for expansion/ modernisation of any activity or setting
up new projects listed under Schedule 1(29 industries)
• 12 minor Amendments between 1994 to 2006
• 14th Sept. 2006 Notification in supersession of earlier notification
of 1994.
• 2007 – Notifications to constitute various state level Environment
Impact Assessment authorities.
EIA Notification (1994)
• 29 industries will need environmental clearance from MoF,
• For expansion or new ventures with investment > Rs. 50
• MoEF to act as Impact Assessment Agency (IAA)
– can appoint an expert committee if needed
– May organise public hearing if needed
• Assessment within 90 daysof receiving documents or public
• Validity of clearance for 5 years
• Site clearance in case of a few industries like mining etc.
needed before project preparation
Amendments to 1994 Notification

• Between 1994 to 2006 – 12 Amendments

• 10th April 1999 – Process of environmental public
hearing by SPCB introduced; Public hearing
committee to ensure fair representation in
• 4th Aug. 2003 – Location sensitivity: projects
located in critically polluted areas; within 15 kms.
Of ecologically sensitive areas like sanctuaries,
bio-reserves etc. need clearance from MoEF.
• 7th July 2004 – environmental clearance made
mandatory for construction and industrial estates.
EIA Notification (2006)
• Partial Decentralization
– Category A – clearance by MoEF
– Category B – clearance by State regulatory authority
• B 1- will require EIA
• B2 – will not require
– Above categories based on size, capacity, area rather
than investment level
– Formation of Environmental Impact Assessment
Agency and Environmental Expert Committee at
Central and State levels
• Introduction of Scoping process
– TOR to be determined by Expert Appraisal Committees
• Based on information provided by proponent
• May visit site if needed
• Within 60 days of application
• To be displayed on MoEF/ SPCB’s website
• Public consultation
– Necessary for Category A, B1 except for 6 activities
– SPCB to conduct public hearings for which procedure outlined
– To ascertain view of local people
– To gather written responses of interested parties like experts, NGOs etc.
– MoEF to display summary of EIA on website; full draft in public reference place
– Video-graphy of proceedings by SPCB
• Appraisal
– Of EIA to be done by Expert Committee at state or Central levels
– Within 60 days, with recommendation to regulatory authority
• Decision making
– Regulatory authority to give decision within 45 days i.e 105 days of receipt of final EIA/
– Failing which, - default clearance
• Post-clearance monitoring
– Bi-annual compliance reports to regulating authority
– Latest report to be displayed on website of regulating authority
EIA – Concepts/ stages
• Screening: determines whether the proposed project requires an EIA
and if so, at what level of assessment?
• Scoping: identifies the key issues and impacts that should be further
investigated; defines the boundaries and time limit of study
• Impact analysis: identifies and predicts likely environmental and
social impacts and evaluates their significance
• Mitigation: recommends the actions to reduce and avoid the potential
adverse environmental consequences of the project
• Reporting: presents the result of EIA in the form of a report to the
decision making body and other interested parties
• Review: examines the adequacy and effectiveness of the EIA report
and provides information necessary for decision-making.
EIA report
Non-technical executive summary
1) Introduction
2) Project description
3) Description of environment
4) Anticipated Environmental Impacts and mitigation measures
5) Analysis of alternatives (technology & site)
6) Environmental Monitoring programme
7) Additional studies (public consultation, risk assessment, Social
Impact assessment, R &R action plans)
8) Project benefits
9) Environmental cost-benefit analysis
10)Environmental Management Plan
11)Summary and Conclusions
12)Disclosure of Consultants engaged
Beyond Environmental
Meeting higher standards
Carbon financing
Meeting Higher Standards

– ISO 14000 certification:

• Provides environment management standards to help
organisations minimize their negative impact on the
• Environment Management System (EMS) mandatory
• Certification carried out by third party
• Focuses on process as in case of ISO 9000
– No of ISO 14000 certified companies in India
• 275 in 2000 (Pegllan, October 2007) t
• 2016 in 2006 (ISO, 2006)
– Economic benefits from ISO 14000
• Arvind Mills (denim unit at Khatrej) in 1998
• ISO led to several innovations
• Solid wastes down from from 6% to 2.5%
• Savings per year of Rs. 6.0 m
• Cost of EMS less than Rs. 3.5 m
Source: Pastakia (forthcoming) in M.
Schafer, Making Ecoprenerus
Meeting Higher Standards
– Green rating project of CSE
• Supported by UNDP and MoEF
• Rates environmental friendliness of industrial units in a given
sector on five green leaf scale
• Aims at encouraging better environment management practices
• “Reputational incentive” to induce voluntary disclosure; those
who don’t join rated the worst
• Evaluation by Panel of Technical Experts
• Pulp and paper(1999), automobile (2001),chlor-alkali (2002),
paper second round (2004) cement sectors rated so far
• Improvements in pulp and paper sector recorded (water
consumption /ton declined, ISO 14000 companies increased)

Source: Down to Earth, past issues

Meeting Higher Standards
• Global Reporting Initiative (GRI) with UNEP a partner
• Critique of Green Rating Project
– Extremely time intensive
– Relies on network of volunteers for data collection
– Comparison across sectors difficult since different criteria used
– Qualitative evaluation
– Investors need rapid and quantitative indicators, comparable across sectors
• GRI Framework can be a starting point for starting such a rating system
• Currently only 13 of 2600 sustainability reports on GRI from Indian companies

• Indian Green Building Council Certification

– “Green buildings use less energy, water and natural resources, create less
waste and is healthier compared to standard buildings”
Higher Standards - Building
– As on date / Construction
– 259 registered, 29 certified
– 7th Green Building congress (International Conference & Exhibition) coming
up in Sept. 2009 at Hyderabad
– LEED training programme calendar on website (
Higher Standards - Building / Construction

• LEED (Leadership in Energy and Environment Design):

green building rating system of the US Green Bldg. Council.
– Six domains: sustainable site; water efficiency; energy and
atmosphere; material and resources; indoor environment quality and
innovation in operations
– Application on-line
– 3 months data followed by 12 months of operation needed
– Old buildings and new both can be certified
– Guidelines provided on website of IGBC and USGBC
– Ratings –
• 26-32 Certification
• 33-38 Silver
• 39-51 Gold
• 52-69 Platinum
WIPRO’s Corporate office, Bangalore
-Developing new LED
lamps with 1/4th power
-Powered by solar panels
on roof
-14% reduction in average
power consumption
-Recycled water in
restrooms and to water -Waste-paper used as scribbling
plants pads
-Waste-food converted to -Eco-eye: dedicated team to
vermicompost develop ideas
Source: PC Quest ( October 2008)
Delta Green Factory, Rudrapur (16,650 sq m)
-.Uses eco-friendly materials like -Linear panel polymer insulation
fly-ash, gypsum, brick cova in saves energy for forced cooling
-AC uses R407 eco-friendly gas
-Low Volatile oxide compounds
(VOC) paints to lower toxic -0.97 power factor instead of 0.85
emissions saves 15% electric energy
-Natural light harvesting
-Turbo ventilation – 215 turbo fans
on roof to lower temp. by 2-3 deg.
-Solar panels
-Storm water harvesting system
-Sewage treatment plant with
anaerobic bacteria
Source: PC Quest ( October 2008)
Patni Green Knowledge Center
-BPO center at Noida – 5 acres land – 175 crore investment
-Has applied for LEED platinum certification
-75% area gets sunlight : reduced electric consumption
-Zero discharge – 100% recycling of sewage
-CO2 to monitor air quality: fresh air pumped to maintain it

-Solar water heating

-Drip irrigation in gardens
-Lighting system based on
motion detection
-Use of low VOC paints

Source: PC Quest ( October 2008)

Carbon Financing
• Problem of Global Warming and Climate Change
• Global community's response: Kyoto Protocol (16th
Feb 2005 in force; 166 countries including India)
• Carbon Trading – opportunity for commercial
entities in developing countries to earn carbon
credits (CERs and VERs)
• Case of brick-kiln manufacturers supported by
Development Alternatives
Source: Based on material provided by Developmental Alternatives,
New Delhi
Global warming and CC

Kyoto Protocol covers six greenhouse gases

(GHGs) that are:
• carbon dioxide (CO2),(GWP-1)
• methane (CH4) (GWP-21)
• nitrous oxide (N2O) (GWP-310)
• hydrofluorocarbons (HFCs) (GWP-1000s)
• perfluorocarbons (PFCs), (GWP-1000s) and
• sulphur hexafluoride (SF6) (GWP-239000).

Source: Developmental Alternatives

Global warming and CC
Earth System moves to a new state;
modern civilisation collapses
eedbacks push climate change higher; IPCC Projections
brupt changes much more likely; 2100 AD

Global Temperature
massive impacts to humans
Loss of Greenland ice sheet

Large biodiversity loss;
coral reefs disappear 2

“Committed” Climate Change

1 1
N.H. Temperature


-0.5 Source:
1000 1200 1400 1600 1800 2000
Why Carbon Trading?
Why Carbon Trading?

•Key feature of the Kyoto Protocol:

– Provide flexibility as to the location of emission reductions
– Impact of CO2 emissions and/or reductions insensitive to
– Cost and opportunities to reduce CO2 vary between
companies, sectors, and countries
Market instruments enable meeting GHG targets cost-
– Taking advantage of differences in marginal abatement costs
across different emission sources

Source: Developmental Alternatives

Development Alternatives

What is CDM?

Emissions to
Total GHG Emissions

be reduced Country

Total GHG Emissions

No emission

on C
of C redit
O2 e
ded Source: Developmental Alternatives
Carbon Trading
 39 Developed Countries and Economies in
• Agreed to “differentiated” and binding emission limitations
• Reduction of greenhouse gases by 5.2 % below 1990 levels in
the commitment period 2008-2012

 A new financial asset – Certified Emission Reduction

(1 CER = 1 tonne of CO2eq)
 Priced in US Dollars or Euros or Yen
 Current prices – between 12 to 16 US $
 UNFCC – clearing house for Carbon trading
Source: Developmental Alternatives