The Chemical Industry and Climate Change. A Snapshot from India

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1 The Chemical Industry and Climate Change A Snapshot from India B.H. Rahill Lead Environmental Specialist South Asia Environment June 14, 2006

2 Presentation Outline The Indian Situation (Part of) LBNL Benchmarking Study The Potential for Co-Benefits

3 Strong Economic Performance Figure 1.1: A Decade of India s Economic Growth in Perspective Growth Trend (Percent) Average Growth , (Percent) India South Asia Benchmark Year Benchmark India South Asia Source: World Bank (2006d) Note: Benchmark countries: Average annual growth rates are computed for those countries that had similar level of per capita income to India in South Asia countries include Bangladesh, Pakistan, Nepal, Sri Lanka, and Bhutan

4 Economic Data India Data Profile Economy GNI, Atlas method (current US$) billion billion billion GNI per capita, Atlas method (current US$) GDP (current US$) billion billion billion GDP growth (annual %) Inflation, GDP deflator (annual %) Agriculture, value added (% of GDP) Industry, value added (% of GDP) Services, etc., value added (% of GDP) Exports of goods and services (% of GDP) Imports of goods and services (% of GDP)

5 Major Sources of Pollution Table 1.1: Major Polluting Industries S. No Industry Key Environmental Aspects 1 Aluminum Disposal of red mud, bauxite tailings and other hazardous waste, dust emissions and high energy consumption 2 Caustic Water pollution due to disposal of brine mud, mercury and chlorine; Chlorine emissions 3 Cement Fugitive dust emissions from material handling and air emissions from stack; energy consumption 4 Copper Sulphur dioxide and dust emissions; Water pollution from electrolytic bath and other processes; disposal of slag from smelter 5 Distillery Water pollution due to highly organic effluent from Spent wash; soil contamination 6 Dyes & Dyes Intermediates Water pollution due to toxic azo-dyes, highly organic colored and phenolic substances; 7 Fertilizer Water pollution due to heavy metal, ammonia and fluoride bearing effluent, ammonia emission, fluoride bearing dust and hazardous material. 8 Iron & Steel Water pollution from cyanide, fluoride and heavy metal bearing effluent, dust emission from sintering, pelletiziation, pig iron plants; slag and dust disposal

6 Major Sources of Pollution - continued 9 Leather Water pollution, particularly from hexavalent chromium and salt in discharge 10 Pesticide Air pollution due to particulate and volatile organic compounds; effluent containing pesticides residues 11 Petrochem Water pollution due to phenol and benzene containing effluent; Fugitive emissions of toxic and carcinogenic and VOCs; hazardous material disposal 12 Pharma Water pollution due to organic residues bearing effluent; VOC and particulate emissions; hazardous waste containing process sludge and spent catalyst 13 Pulp & Paper Water pollution from high organic and inorganic substance and chlorinated compounds in black liquor; highly malodorous emissions of reduced sulfur compounds and VOCs 14 Refinery Water pollution from effluent containing organic and inorganic material, oil and solvent; air emission of particulate matters, sulfur dioxide, BTX, VOCs 15 Sugar Water pollution due to high BOD and COD effluent and spillage of molasses; air pollution due to combustions of bagasse, coal etc 16 Thermal Power Plants Air emission from combustion, coal handling, water pollution due to discharge of boiler blow down, overflow from ash pond; land contamination due fly ash disposal practices 17 Zinc Air pollution due to fugitive zinc dust, water pollution containing residues, disposal of solid and hazardous waste. Source: CPCB List of Red Category Polluting Industries

7 Table B.2. India: Contribution to GHG emissions by sector Sector Percent Energy production & transformation 35 Agriculture 28 Industry, including 20 Industrial combustion 12 Other industrial processes 8 Transport 8 Residential sector 5 Land Use, Land use change and Forestry 2 Others (including waste) 1 Source: NATCOM, MoEF, 2004 * *India's Initial National Communication (NATCOM) to the UNFCCC was implemented and executed by the Ministry of Environment and Forests, Government of India, funded by the Global Environment Facility under its enabling activities program through the United Nations Development Program, New Delhi. The data has been drawn from a variety of official GOI sources as well as industry association and stakeholder reports. 1

8 The Energy Sector Figure 1.2: Forced Hydro, Nuclear, and Gas Scenario (Fuel mix year wise) MTOE Year Crude Oil Natural Gas Coal Hydro Nuclear Source: Planning Commission (2005a)

9 Where are the opportunities for mitigation of emissions? Figure 1.3. Contributing Factors to Energy-Related CO 2 Reductions (Alternative Policy Scenario) Source: IEA 2004

10 Assessing the India Situation Assessment of Energy Use and Energy Savings Potential in Selected Industrial Sectors in India (Lawrence Berkeley National Laboratory August 2005) Study intended as a benchmarking exercise for energy efficiency project being prepared

11 Sectors Covered in LBNL Study Cement Refining Fertilizer Textile Chlor-Alkali

12 Sectors Covered

13 Cement Efficiency Gains

14 Cement More Gains

15

16 Refining Significant Growth

17 Refining Energy Intensity

18 Refining - Benchmarking

19 Fertilizer Production

20 Fertilizer - Intensity

21 Fertilizer -

22 Fertilizer - Comparison

23 Chlor-Alkali - Technologies

24 Choice of Technology Matters

25 Big Picture Priorities for India 1 The priority near-to-medium term opportunities are seen in: T&D loss reduction Coal power generation R&M Large hydro power Industry EE and fuel switch Important longer term opportunities, which need to be paid attention today, are; Renewable energy Sustainable transport Natural gas sector development 1. From Bank paper G+5 Financial Framework for Cleaner Energy and Low Carbon Development

26 Chemical and Climate Energy efficiency opportunities abound in the Indian chemical industry Most sectors have world class and worst class performers Energy policy generally not a big problem as energy priced competitively for commercial/industrial users Different types of co-benefits associated with energy aspects of chemical sector Energy-production related emissions reduction (local and at point of production) electricity and energy efficiency Energy-consumption related emissions reduction thermal efficiency and choice of technology Technology-based (mercury vs. membrane technology) can impact type of fuel used and fuel mix

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