Climate Change: Policies and Business Opportunities in India

Transcription

1 Climate Change: Policies and Business Opportunities in India Nitu Goel and Suresh Babu and TERI, Delhi, India Presented at the 3rd Australia-New Zealand Climate Change and Business Conference: August 30 and 31, 2007 Brisbane, Australia

2 INDIA SOME FACTS Population:1.13 billion* Area: 3.28MM Sq. Km** No. of Villages: 600 K Rural Pop: 700 million Nationwide: 44% households do not use electricity Average GDP growth of 6.5% in last decade (Projected: 8%; 10% planned for industry) Next Decade: 15% poverty reduction, doubling of per capita annual income (currently at $3000 (2000$PPP)) and creation of 100 million new jobs * ~ 35% earn < $1/day ** ~19% Forest cover

3 India s Challenges Industrial development and poverty eradication Human development and enhancement of infrastructure (all forms of transportation, T&D of electricity, and water supply) Budget limitations As a growing economy, energy demand will grow for several decades before leveling-off Galloping demand for transportation fuels Need for affordable clean energy technologies The World Summit on Sustainable Development made clear the need for increased access to affordable, reliable and cleaner energy particularly for evolving economies

4 Vulnerability to Climate Change Economic activities in India depend on climate sensitive factors such as rain, soil moisture, etc., Agriculture provides livelihood to nearly 70% of Indian population (~40% of national income) Long-coast line makes the country vulnerable to sea level rise Weak infrastructure, evolving technical capacity, and lack of access to information compounds vulnerability Climate change will impact different parts of the country differently due to varied climatic conditions across its vast geography, requiring different response measures

5 Potential for RE Electricity in India (MWe) SOURCE POTENTIAL HARNESSED Wind Power 45, Small Hydro 15, Biomass Power/ 19, Cogeneration Waste-to-Energy 2, Solar Thermal Power Solar PV Power 20 MW/Sq.Km. ~3

6 Energy Initiatives over the last 26 years 1981-Commission for Additional Sources of Energy 1982-Department of Non-Conventional Energy Sources (DNES) upgraded to Ministry (MNES) in Dedicated Financial Institution, Indian RE Development Agency (IREDA) 2003-Electricity act 2005-National electricity policy 2006-Integrated energy policy India is the only country with a ministry for RE

7 National Electricity Policy Electricity accessible to all by Fully meet demand by Increase per capita energy consumption to 1000 kwh/year by Minimum lifeline consumption of 1 kwh/household/day by 2012

8 Energy Updates: Intensity of Energy Supply & CO 2 Emissions 2003 (IEA Key World Energy Statistics, 2005) (PPP=Purchasing power parity, TPES= Total Primary Energy Supply) China India Australia Canada United States World Energy Intensity(TPES/2000$PPP) Emissions intensity (kgco2/2000$ppp) India s energy use and emissions are low

9 A key target in India s sustainable growth (Key Energy Indicators IEA 2005; Planning Commission, India) Selected Energy Indicators for 2003 Country TPES Per Capita (KgOE) China Brazil Denmark India UK US Japan World INDIA Per capita energy use in India is low and it should increase in an environmentally responsible manner

10 GHG Emissions: Facts (NATCOM India, 2004) 12% 22% 6% 3% 5% 52% CO2 emission (2003): India 1050 (million tonnes), World (24983), China (3760) USA (5729) CO2 emissions/capita (2003): India 0.99 (tonnes), World (3.99), China (2.90), USA (19.68) Source: (IEA, Statistics, CO2 emissions from Fuel Combustion , 2005) Energy and transformation industries Transport Commercial Industry Residential Others Share of CO2 emissions from Large Point Sources (LPS) of energy and transformation industries (1995) Fossil power (94): 47% Steel (11): 6 (%) Cement (85): 9% (Source: Garg and Shukla, 2004)

11 India s response to Climate Change Aug 02 - Govt. of India endorsed the Kyoto Protocol Oct-Nov 02 - Hosted the 8 th Conf. of the Parties Dec 03 - Set-up the National CDM Authority Jan 05 - Conducted National Strategy Study for CDM Mar 05 - Registered First CDM project from India Oct 05 - Received first CER** for a CDM project Jun 07 - Formed the PM s Council on Climate Change Globally: #2 in biogas & wood stoves, #4 in PV, and ** - Certified Emission Reductions #5 in wind power

12 CDM in India: An update ( as of 18 th July,2007) NCA approved more than 600 projects Total registered global projects :738 Registered projects in India: 257 (~35%) 26 million CERs issued to Indian projects, out of a total of about 62 million Business has a large role to play in CDM market development in India; est. imm. potential of 250 million carbon credits equivalent to USD 1.5 bn

13 Distribution of registered CDM projects in India 40% 30% 20% 10% 0% 34% 29% 26% 7% 2% 1% Renewable Biomass Renewable Energy Efficiency Industry Fuel Switch Landfill gas Percentage Sectors

14 Technological needs & Sectoral CDM Opportunities Power Generation Accelerated Renovation and Modernization of Old Plants Clean coal technologies Ultra supercritical boilers IGCC based on indigenous coal IGCC based on imported coal Efficient Gas (High efficiency GT based CC) Renewables (Wind, Small Hydro, PV, Biomass) Iron and Steel Production Efficiency improvement in existing plants (retrofit) Introduction of Best Available Technology Cement Production Modernization of existing 4 and 5 stage to 6 stage systems (retrofit) Waste heat recovery based cogeneration Increased share of blended cement Reduction of process CO2 emissions during clinker production

15 Asia Pacific Partnership Announced on 28 July 2005, the Partnership is an international agreement for Clean Development and Climate Signatory countries US, Australia, Japan, South Korea, China, and India Cooperation on development and transfer of technology which enables reduction of GHG emissions Allows countries to set their goals for reducing emissions individually, with no mandatory enforcement mechanism Develop, deploy and transfer existing and emerging clean technologies with private sector involvement

16 India s proposals at the G-8 Summit Place energy efficient and sustainable technologies in limited public domain Replace traditional technology transfer with innovative reciprocity and collaborative R&D for local adaptation New multilateral windows to provide additional funding for the above against the security of robust long term carbon markets low labor costs, ingenious cost-cutting, reliance on outsourcing, novel use of technology, and making the most of capital investment lead to success

17 Role of business in mitigation efforts Utilize Public Private Partnership models Provide technologies to rural areas Implement innovative financially viable delivery mechanisms e.g. rural electrification Support and participate in R&TD Ensure upfront payment for carbon credits Establish sectoral and industry-specific emissions baselines to promote energy efficiency measures Promotion of small-scale community based projects: Financial models to bring economies of scales. India has forward looking policies that balance development and environmental objectives

18 Summary of Potential CC Related Business Opportunities 1. Infrastructure development 2. Industrial energy efficiency 3. Distributed (poly) generation (emphasis on cooling) 4. Deep sea natural gas exploration (inc gas hydrates) 5. IGCC with carbon capture and sequestration 6. Coal bed methane 7. Mining (inc. coal preparation) 8. Boutique crops 9. Biofuels (inc biomass gasification) 10. Enriched air/oxyfuel combustion 11. Other..

19 Recommendations by the Commerce and Industry Minister, Mr. Kamal Nath, 16 th Meeting of the India- Australia Joint Business, January 2007 The mining sector should be of great interest. particularly in India s traditionally backward states Chhatisgarh, Jharkhand and Orissa. introduce state-of-the-art clean coal and mining technologies (up to $ 75 billion by 2015) Australian food processing companies can play a major role in developing boutique crops in India such as canola, Chinese vegetables, grapes, organic wheat and berries

20 Role of TERI.. focus on energy, environment, & sustainability Dr. R.K. Pachauri, DG, TERI and Chairman, IPCC has brought global awareness to CC issues R&TD and commercial deployment of biomass gasification for thermal and power applications in India, South and SE Asia, and Africa R&TD in biotechnology and microbiology and commercialization of biofuels and environmental restoration Multitude of industrial, commercial, and residential EE projects Field implementation of a variety of cross-cut sustainable and environmentally responsible clean (and illumination) technologies Active with a broad range of national and international E&E resource security, policy, and regulatory support studies

21 Be the change that you want to see in the world. Thank You.