CII PRESENTATION ON CLIMATE CHANGE

BUILDING A LOW CARBON

INDIAN ECONOMY
 PRESENTATION STRUCTURE

• Impacts of Climate Change on India and Global Economy

• India: Official Position So Far
• India: Current Scenario
• India: Leading by Example
• The New Economy of India: Opportunities for Climate Change
• India: Strategies to Combat Climate Change
– Energy Efficiency
– Renewable Energy Technologies
– Cleaner Conventional Energy Technologies
– Strengthen free and open Markets
– Green Buildings
– Transportation
– Civil Aviation
– Adaptation
– Afforestation
– Research and Development
• The Way Forward
Climate Change No Longer a Topic of Scientific Debate:
It’s a Real Concern World Faces Today
Climate Change is for Real

.
Our Planet
has got
Fever: Earth’s
surface temperature
continuously
increasing
over past few decades
Climate Change is for Real…Conti..

Concentration of
Green House Gases have
increased
Phenomenally
in recent past
Climate Change: Global Impacts

Source: Development Alternatives

Climate Change: Impacts on India

• Indian 7500-km long densely populated and low-lying

coastline would be worst hit due to rise in sea level
– 20% of coastal population may need to migrate
• 25% of country’s population would be exposed to
increased cyclone
• 70% plants may not be able to adapt to new conditions
• More than 20,000 villages may be deserted
• Adverse impact on agricultural yield
Climate Change: Risks on Business

• Supply-chain risk: vulnerability of inputs such as energy and

agricultural products
• Product & Technology risk: various technologies will be at risk
due to carbon constraints
• Litigation risk: threat of lawsuits for units emitting GHG gases
• Reputation risk: Several business practices may hamper
reputation
• Physical risk: Direct impact: droughts, flood, rising sea level
• Competitive risk: Additional cost due to regulation
• Regulatory risk: Frequent change (tightening of) regulatory
provisions
India: Official Position So Far
• India can not afford to compromise on developmental goals
– India and other developing countries need to work consistently to meet
millenium developmental goals
• Climate change dialogue should not impede nations to grow

• India and similar other developing countries require urgent and

profound attention on adaptation strategies
– Rapid Economic Development is the best Adaptation Strategy
• Climate change mitigation efforts can succeed only on the basis of
‘Common but Differentiated Principles
• India is committed to promote voluntary measures undertaken
such as energy efficiency, renewable energy and cleaner
conventional energy technologies.
India: Current Scenario
• India is a responsible nation and is committed to
growth with environmental responsibility.
• India has delivered a GDP growth rate of 8% with
only 3.7% growth in its total primary energy
consumption.
• India has achieved energy-GDP de-coupling at
much earlier stage of its development cycle.
– GDP growth rate has been higher than projected even
though power capacity addition has been lower (only
50% ) than planned
– Industrial growth and profitability has been high even
though oil prices have sky-rocketed
India: Current Scenario…cont.

According to survey conducted by

Global Market Institute
-a Seattle-based group-
Indians are most concerned
for climate change

Indians are Responsible too

India: Current Scenario…conti.
Energy Intensity in India shows a downward trend
Energy intensity of GDP (kgoe/$ 2000 PPP)
T P E S ( k g o e ) /G D P ( $ 2 0 0 0 P P P )

0.31

0.29

0.27

0.25

0.23

0.21

0.19

0.17

0.15
1980

1999
1971

1975

1985

1990

1995

2000

2001

2002

2003
Source: Planning Commission
Breaking the Mould
• While GOI is formulating a negotiating strategy at UNFCC forum:
– Indian Industry is poised to take a proactive role towards
developing global leadership in climate change initiatives.
• As with 9% + growth rate
– Capital assets will double every seven years
• Opportunity to Leapfrog and Lead by Example
• Several examples indicate that Indian Inc. is already doing it.
• ITC Corporation initiatives
• LED Lamps by Cosmos Inc.
• Industry investment in renewable energy
• CII – Sohrabji Godrej Green Business Centre
• CII – ITC Centre of Excellence for Sustainable Development
• Cement Industry
India: Leading by Example
Challenges Response

Massive Educated  India now a world leader in IT, ITES,

Unemployment Biotechnology, Research services
 75% of the world’s CMM Level 5 software
centers are in India
 over 185 Fortune 500 companies use Indian
software services India has a
 Indian IT sector employs over a million history of
people Converting
 Lack of Technology  Indian companies made several global Challenges
acquisitions: access to cutting-edge into
technology one of the objectives Opportunities
 Tata Steel acquired Corus
 Suzlon acquired RE Power, Hansen
 Hindalco acquired Novelis
Poor  One of the fastest growing telecom market
telecommunication in the world
infrastructure, Low  Indian telecom network seventh largest in
teledensity the world (2001)
 Call rates one of the cheapest in the world
 Plethora of world-class services and service
providers
India: Leading by Example..conti
Challenges Response

 Food Security  Green Revolution

 Scarcity of food,  White Revolution
milk and other  Yellow Revolution
agricultural
products  Blue Revolution
 Energy: Expensive  Massive Energy Efficiency Programme
and Short in Supply  Implementation of Energy Efficiency Conservation
 Severe Electricity Building Code (ECBC)
Shortage  Successful Energy Labeling and Certification
 High Petroleum Programme
Prices  Many companies in energy intensive sectors adopted
best practices in energy efficiency. Now they are Climate
among the best in the world. Change
 Depleting Energy  India now one of the world leaders in renewable to be
Resources energy
another
 Approximately 10,000 MW renewable based installed
capacity already in place example
 Dedicated financing institutions and R&D institutions
on renewables (e.g. IREDA, C-WET)
 An Indian company - Suzlon Energy Limited - is now
world’s 4th largest wind energy company
 Exclusive Renewable Energy SEZ being set-up in India
 India emerging as a export hub in wind, solar, biomass
equipment
Climate Change Country gearing towards low carbon path of
development
The New Economy of India: Opportunities for Climate
Change Initiatives
• Technologies and practices affecting long-lived
systems are difficult to penetrate once assets have
been constructed. E.g.
– Power plants and industrial facilities lasts for 50 years or more
– Buildings, once built, can stand for many decades
– A car or truck has a life span of 15-20 years
• India is a new economy. The country is likely to add
massive industrial/capital assets in the future.
– Developed countries have to first retire old assets, before they can
build new assets based on cleaner technologies
– India can straight away opt for efficient clean technologies

Environmentally Conscious Investment

decisions can allow the country
to leapfrog into an era of carbon efficient
advanced technologies
India: Difference Between Total Energy Demand and Sub-sector
wise Energy Demand in Reference Scenario and Alternate
Scenario
I nd i a: Re fe r e nce Sce na r i o a nd A l t e r na t e En e r g y Sce na r i o

14 0 0
Primary Energ y
12 0 0 Demand in
Reference
10 0 0 Scenario in
2 0 3 0 (M t o e)
800

600
Primary Energ y
400
Demand in
200 Alt ernate
Scenario in
0 2 0 3 0 (M t o e)

Source: International Energy Agency

India: Strategies to Combat Climate
Change
1) Moderate Energy Demand by Increasing Energy Efficiency
a) Improve Vehicle Fuel Efficiency
– Set Fuel Economy Standards for Vehicles:
• Formulate and implement fuel economy standards for HMVs, LMVs at the maximum rate possible by applying
economics and available technology.
• Update/increase the standards on a regular basis.
• Corporate Average Fuel Economy (CAFÉ) standards in US show that the strategy could be useful.
– Additional fuel efficiency improvements possible by reducing vehicle weight, horsepower or non-critical amenities,or by
developing step-out technologies
– New Initiatives in India:
• Delhi- 1st city to switch to CNG public transport
• Separate lanes for buses being introduced
• Metro Rail for public Transport initiated
• The 1 Lakh ($2500) People’s Car by Tata Motors with best norms in industry
• Electric Vehicles developed by REVA Motors
• Electric Two-wheelers by Hero Honda
– Way Forward:
• H2 Spiked CNG
• Fuel cell/Hybrid cars
1. Moderate Energy Demand by Increasing Energy Efficiency…
conti…
b. Implement Building Energy Codes
– Bureau of Energy Efficiency already formulated and announced Energy Conservation Building Code (ECBC)
• Adopting ECBC does not automatically guarantee energy savings
• Code enforcement and compliance also essential.
– The Direction in India is Right: Energy audits for 9 Govt. buildings completed including famous Rashtrapati
Bhawan and Prime Minister’s office. Likely to become a norm for all Government buildings.
Initiatives in India
– Green Buildings in India: Much More than Energy Efficiency
• Efficient Use of Water
• Energy Efficient & Eco Friendly Equipment
• Use of Renewable Energy
• Building automation
• Use of Recycled/Recyclable Materials
• Indoor environment quality
How India can Leap Forward
– Develop codes for
• Data Centres
• Special Economy Zones (SEZs)
• Malls/ Shopping Centres
– Join international efforts to develop zero energy buildings
1. Moderate Energy Demand by Increasing Energy Efficiency…
conti…
c. Enlarge the Scope of Appliance and Equipment Standards
– Bureau of Energy Efficiency has launched an Energy Labeling and
Certification Programme covering following equipment:
• Refrigerators with or without low temperature compartment
• Room air conditioner (unitary)
• Stationary storage type electric water heaters
• Electric motors up to 100 KW
• Agricultural pump sets including horizontal centrifugal pumps, mono set pumps and submersible
pump set up to 15 KW
• Electric light sources, control gears and luminaries including tubular fluorescent lamps, inductive type
ballasts, electronic ballasts, luminaries and compact fluorescent lamps
• Distribution Transformers
• Industrial fans and blowers up to 100 KW
• Air compressors up to 100 KW

– Energy efficiency standards should also apply to other increasingly

common products, including those based on expanded digital technologies.
– Standards should be updated on a regular basis.
Moderate Energy Demand by Increasing Energy Efficiency
d. Increase Industrial Sector Energy Efficiency
– Energy Conservation Act has provided regulatory impetus to energy efficiency
activities in industries. Following sectors identified as designated consumers
of energy efficiency activities:
• Aluminum
• Automobile
• Cement Energy Audit mandatory
• Ceramics for these sectors. Encouraged
• Chemicals for other sectors
• Chlor Alkali
• Fertiliser
National Energy Conservation
• Glass Awards given to best performers
• Integrated Steel Plant
• Petrochemicals
• Pulp & Paper
• Refinery
• Sugar
• Textile

What Next

– List of designated consumers should be constantly updated. New sectors to be added

– Promising areas for energy savings such as waste-heat recovery, separation processes and combined heat and power
should be promoted across all manufacturing units
– Bureau of Energy Efficiency should conduct and promote research, development, demonstration, and deployment of
industrial energy efficiency technologies.
Energy Efficiency Targets for Eleventh Five-year
Plan (2007-2012)
Name of the scheme Targeted saved capacity

1 Bachat Lamp Yojana (BLY) 4000 MW

2 Standards & Labelling programme 3000 MW

3 Energy savings in existing buildings 200 MW

4 Energy conservation building code (ECBC) 500 MW

implementation

5 Agricultural DSM (Ag DSM) & Municipal 2000 MW

DSM (Mu DSM)

6 Small & Medium Enterprises scheme 500 MW

Source: Bureau of Energy Efficiency

2. Accelerate Deployment of Renewable Energy
Technologies
• India already frontrunner in exploitation of renewable energy
– Over 9,500 MW of renewable based capacity has already been installed
• Fourth largest country in terms of wind energy capacity
• Numerous fiscal and financial incentives given to the promotion and exploitation of renewable energy
• The only country to have dedicated Ministry of New and Renewable Energy
• Strong manufacturing and R&D orientation
• Dedicated financial institution for renewable energy

• Private Initiatives in Renewable Energy

• An Indian company - Suzlon Energy Limited - is now world’s 4th biggest wind energy company
• Exclusive Renewable Energy SEZ being set-up in India
• Majority of renewable energy capacity in India has been installed by private sector
• Companies like Signet, Moser Baer setting-up solar manufacturing units to add to existing capacity of
Tata BP, Selco Solar, CEL etc.
• Several Biomass Gasifier Manufacturing companies flourishing
• Areva setting-up Biomass R&D Centre in India
Summary of Renewable Energy Targets for Eleventh Five-
year Plan (2007-2012)

Box 5: Summary of Renewable Energy Targets for Eleventh Five-year Plan (2007-2012)

Grid-interactive Renewable Power: A physical target of 14,000 MW is set for the Eleventh
Plan for grid-interactive renewable power through wind, small hydro, bio-power and solar
power.

Renewable Energy for Rural Applications: Distributed/Off-grid Renewable Power through

wind, small hydro, bio-power and solar power. A target of 1000 MW of renewable based
distributed capacity for Eleventh Plan.

Incentives provided for grid connected power from renewable sources would be linked to
generation and not to power capacities created. Thus power regulators will be asked to
create alternative incentive structures such as mandated feed-in laws or differential tariffs
for grid interactive power.

National Bio-fuel policy will be finalized that provides incentives and leads to a competitive
industry.

IREDA to be restructured by broad basing its equity structure for increasing availability of
finance for new and renewable energy and its role to be enhanced.
Renewable Energy: Steps to be taken
• Significant potential available for further exploitation
– Continue promotion of renewable energy sources under a stable regulatory environment
– Provide critical infrastructure (transmission links, evacuation facilities, approach roads)
for remote renewable energy sites
– Ensure land availability for renewable projects in potential areas. Emphasize on multiple
uses of land
– Establish Hybrid Systems (wind-solar, wind-diesel, biomass-diesel etc.) as firm sources
of power
– The electricity grid needs to be strengthened in order to provide increased flexibility in
the generation mix
– Proper resource assessment should be done for various RETs
– Industry, service providers and research institutions should undertake collaborative
projects for bringing about improvements in technology, particularly with regard to cost
reduction, efficiency enhancements and capacity utilization

•Formulate and announce a suitable Renewable Energy Policy

3. Switch Towards Cleaner Conventional Energy Technologies

• Accelerate Deployment of proven clean conventional energy

technologies
– Ultra super-critical boiler
– Nuclear Energy
– Coal Bed Methane

• Undertake collaborative R&D on technologies that can be

soon commercialized and formulate a strategy for their
quicker deployment
• R&D on Integrated Gas Combined Cycle (IGCC)
• R&D on In-Situ Coal Gasification

• Engage in R&D on Collaborative Public-Private Partnership

basis that can provide long-term solutions
4. Strengthen and rely upon free and open market, wherever
possible, to produce efficient solutions
• India needs a well-instituted market mechanism, where
energy prices are based on the interaction of demand and
supply.
• Subsidies have distorted the market and have perpetuated
inefficient use of energy commodities
• Establish an organised Domestic Carbon Market in India
• Discuss possibility of Dynamic ‘Cap and Trade’ to be
implemented in India
• Carbon tax to increase relative price of carbon
5. Green Buildings

• Green building brings together a vast array of practices

and techniques to reduce the impacts of buildings on the
environment
CII-GBC Building
• Indian private sector led by CII has already achieved
Energy savings of 1,20,000 units
leadership in Green Buildings. per year
40 % less water consumption
– Already approximately 30 rated buildings existing Continuous CO2 monitoring
– 100 more buildings have registered for certification 80 per cent recycled
material used
– 7 of existing green buildings are Platinum rated Discharges zero water
100% Day lighting
15 % Power-Solar PV
• A strategy should be worked out to increase the
penetration of Green Buildings in India

• Green Overhaul of Existing Buildings also to be looked at

6. Transportation
Transport sector second largest consumer of energy after industry

Key Strategies for Climate Change Mitigation in Transportation sector

– Improve technology (scooters, cars, advanced technologies e.g. battery

operated vehicles, fuel cell)

– Manage growth in vehicle use (with “carrots” and “sticks”)

– Enhance/improve travel alternatives to serve diversity of needs and desires

• High quality, affordable mass transit system critical (e.g. Delhi Metro)

– Organize and emphasize on Freight transportation by waterways

– Coordinate government strategies and activities (transport and land use,

infrastructure investments, industrial policy and transport, etc)

7. Civil Aviation
• Aviation contributed about 2 per cent of global fossil fuel carbon dioxide
emissions (2005)
– the impact of aviation on global warming is increasing rapidly
– According to Stern Review "aviation emissions could account for... 5 per cent of the total
warming effect (of all global CO2 emissions) in 2050,"
– expansion of air transport in India is among the fastest in the world

• Set emission targets for airlines operating in India:

– The Advisory Council for Aerospace Research in Europe has set target to emit 50 per cent
less CO2 for European aircraft
– NASA has set similar targets in US airlines

• Explore possibility of carbon credits for Indian civil aviation sector

– In Europe, civil aviation has been included in ETS

• Invest in fuel-efficient aircraft and related equipment

• Formulate policies to encourage shift from aviation to high-speed rail.
• Use advanced aircraft scheduling techniques and develop efficient air traffic routes
8. Adaptation...

• 2% of CDM proceeds to be used to help developing

countries with their adaptation efforts (Article 12,
Paragraph 8, Kyoto Protocol)
• In India, common adaptation activities would include
• Afforestation
• Irrigation
• Coastal management
• Effective disaster management
• Breeding new plant species and crops which are more tolerant to
changed climate
• Changes to building and infrastructure design standards to protect
against more extreme weather events
• Improving water use efficiency, planning for alternative water sources
9. Afforestation/Reforestation
• Afforestation is both an adaptation strategy and a mitigation strategy

• Planting trees on formerly forested land can enhance biodiversity

• Suitable tool for carbon sequestration

• India already has a strong afforestation programme

• Regulatory framework exist under Forest Conservation Act of

1980
• Further impetus to afforestation activities should be given at the
state level
• Indian Government planning to undertake world’s largest
afforestation programme in recent times, called Green India.
• Plan for greening six million hectares of degraded
forestland Completely a voluntary initiative
 R&D
• Enhance science and engineering capabilities and create long-term
opportunities for research and development relevant from climate change
stand point
• Collaborative R&D on promising projects/concept should be undertaken on
public-private partnership mode
– For example, Indian R&D stakeholders are part of Global R&D consortia such
as
– ITER
– IPHE
– CSLF
– Futuregen
– IPR should be shared appropriately among various countries
• R&D on advanced industrial technologies, alternative energy technologies
would be of prime importance
• A dedicated fund required to finance climate-friendly technologies
The Way Forward
Government
•Collection/collation of targeted
information
•Develop understanding of climate
change impacts on India and
response options
•Focus on Adaptation
•Supporting and Leveraging private
actions
•Create Climate-friendly
technologies fund
•Policy and regulation
Industry
•Adoption of Best Practices
•Focus on Small-Scale Industries
•Leverage Climate-friendly
technologies fund
•Partner R&D efforts to develop
low/no carbon technologies
•Measure carbon footprint, and
develop reporting systems
Civil Society
•Promote awareness about impacts of
climate change
•Campaign to effect behavioral change
•Work with Government and other role
players as partners in sustainable
development
THANK YOU