The Andhra Pradesh Pollution Control Board in association with The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) organized a Seminar on ‘Carbon Credit & Carbon Auditing’ on 19th October 2011 at Federation House, Red Hills, Hyderabad. Mr V.S. Rju, President, FAPCCI was inaugurated the seminar.
Mr. V.S. Raju explained about a study by the World Health Organization (WHO, 2009) estimated the effect of climate change on human health. Climate change was estimated to have been responsible for 3% of diarrhea, 3% of malaria, and 3.8% of dengue fever deaths worldwide. Total attributable mortality was about 0.2% of deaths, of these, 85% were child deaths. The industrialized countries are the major contributors to these emissions compared to the developing countries. India, being one of the developing countries has ratified the Kyoto Protocol and is emerging as one of the leading carbon traders under the Clean Development Mechanism of Kyoto Protocol.
Mr. Raju also said that “Carbon Credit is a permit that allows a holder to emit 1 ton of carbon-dioxide which can be traded in the international market at their current market prices”. It is a certificate showing that company has paid to have a certain amount of Carbon-dioxide removed from the environment. Carbon credits are a part of international emission trading norms. They incentivize companies or countries that emit less carbon. The total annual emissions are capped and the market allocates a monetary value to any shortfall through trading. Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price. Thus the devil carbon-dioxide, the most important greenhouse gas produced by combustion of fuels is now turning into a product that helps people, countries, consultants, traders, corporations and even farmers earn billions of rupees. This was an unimaginable trading opportunity not more than a decade ago.
Mr. Rajkumar Agrawal, Chairman, Environment Committee, FAPCCI said that the Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing industrialized countries with a greenhouse gas reduction commitment to invest in emission reducing projects in developing countries as an alternative to what is generally considered more costly emission reductions in their own countries. The developed country would be given credits (Carbon Credits) for meeting its emission reduction targets, while the developing country would receive the capital and clean technology to implement the project. Carbon credits are certificates issued to countries that reduce their emission of GHG (greenhouse gases) which causes global warming. Carbon credits are measured in units of certified emission reductions (CERs). Each CER is equivalent to one tonne of carbon dioxide reduction. A company has two ways to reduce emissions. One, it can reduce the GHG (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases. Or it can tie up with developing nations and help them set up new technology that is eco-friendly, thereby helping developing country or its companies 'earn' credits.
India, China and some other Asian countries have the advantage because they are developing countries. Any company, factory or farm owner in India can get linked to United Nations Framework Convention on Climate Change and know the 'standard' level of carbon emission allowed for its outfit or activity. The extent to which the company is emitting less carbon (as per standard fixed by UNFCCC) it gets credited in a developing country. This is called carbon credit. These credits are bought over by the companies of developed countries -- mostly Europeans -- because the United States has not signed the Kyoto Protocol. India and China are likely to emerge as the biggest sellers and Europe is going to be the biggest buyers of carbon credits. In 2008-09 global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. India is one of the countries that have 'credits' for emitting less carbon. India and China have surplus credit to offer to countries that have a deficit Mr. Rajkumar Agarwal said.
Mr Seetaram Varma said to the participants that the Sustainability simply defined means improving the quality of human life while living within the carrying of supporting ECO-SYSTEM. The carbon audit will provide your business with a complete diagnosis of its current position and enable the development of accurate energy efficiency initiatives that result in reductions in cost & emission. Studies have shown that Companies use more energy than they need, resulting in unnecessary cost & damage to environment. The carbon credit life cycle assessment analyzes the mass and energy flows in all the steps of a life cycle, Quantifies impacts to human health and to the environment and aims to help decision-makers understand the size and sources of environmental impacts along the life cycle.
Mr. Devendra Surana, Senior Vice President, FAPCCI, Mr. Sitaram Varma, Member, Environment Committee, FAPCCI, Mr. Santosh Kumar Kulkarni, Manager, M/s. Ernst & Young, Mr. Mohan Reddy, Director, M/s. Zenith Carbon, Mr. Subramanyam, Director, M/s. Siri Exergy, Mr. Harsha Yadav, Director, M/s. Efficient Carbon and Mr. A.S. Kumar, Deputy Secretary General, FAPCCI have addressed to the gathering.