Carbon Credit At Risk of Getting Discredited

'Carbon credit' has so far been touted as a practical scheme of fighting global warming. Simply stated, it is intended to reward 'carbon credits' to those who bring down greenhouse emissions by adopting appropriate measures. Those who exceed greenhouse emissions would have to buy 'carbon credits' for offsetting.
The whole business of fighting global warming this way appeared too simplistic to me. My apprehension that the rich nations would be exploiting the poor nations by their unrestricted greenhouse emissions with the help of carbon credits bought from the poor nations was sounded in my post 'Carbon Credit As Sops Saps Poor Nations'. It said:
"... GHG emissions, unfortunately, do not affect selectively but pervade everywhere. So the rich as well as the poor will suffer unimaginable losses in the long-term and we will be leaving the planet in much less habitable condition for the future generations.What a ghastly scenario!" After reading a news report in The Times of India titled 'British firms use India prop to pollute', I feel reassured that I was not wrong in harbouring such apprehension. It quotes Mary Taylor - a green activist saying
"It is really perverse. It allows western companies to continue polluting while handing over large amounts of money to a company in India, which itself produces large amounts of green house gases."
Companies earning millions of dollars by encashing carbon credits and investing the profits in projects that contribute to global warming should not be allowed to put an air of 'holier than thou' in the corporate world while for the poor masses, it would be be out of frying pan into fire.
Is it not?

Kudos For India's War Against Global Warming

India's current rapid economic growth is drawing increasing attention from far and near with projections released by reputed agencies that it would dislodge Japan from its third rank by 2032 and USA from its second rank by 2050.
A more deserving achievement by India, however, I feel, is its highest reduction in green house gas (GHG) emissions (which have been responsible for global warming) among the developing nations Brazil, Mexico, China and Chile. As per Kyoto protocol, these nations including India, though not bound to reduce emissions, have been encouraged to adopt measures and at the same time earn 'carbon credits' which are tradable globally so that those who cannot achieve reduction in emissions could buy such 'carbon credits' for offsetting. As per a report, India tops such a list with 155 projects registered out of a total of 492 followed by Brazil 88, Mexico 77, China 37 and Chile 14 projects. Some more projects are awaiting registration. It has been estimated that it may finally bring 350 million 'carbon credits' which on a conservative basis would generate a whopping $3.5 billion by 2012.
It has been like killing two birds in one shot. In my post

Ah, Plant Trees And Get Tax Concessions!

You may be thinking that it must be a joke. I, too, accepted the news appearing in Economic Times with a pinch of salt. It says the government or more precisely the ministry of Environment and Forests is contemplating to offer tax concessions as incentive for afforestation. Before you start imagining that your personal tax liability will be somewhat reduced if only you planted trees as per the scheme, let me reluctantly pour cold water on your hope clarifying that the whole scheme of things is for the industry.
Be that as it may, I see a ray of hope of such afforestation scheme bearing fruit as no other palliatives worked better than tax concessions for the industry. The appalling deforestation has been largely the result of rapid industrialisation. Industries polluting air, water and land have been held responsible for the impending catastrophe arising out of global warming. Though belatedly, nations have agreed to abide by Kyoto protocol which offers incentives by way of carbon credits for reducing mainly carbon dioxide gas emissions, many are yet to take initiatives as they find that the benefits accrue only on long term even as spending on emission control measures has to be made initially.
I think this new scheme of giving tax concessions when implemented will get good response because of the indication given by the officials that the compensation could be in the form of land tax concession or providing relief from land ceiling. The ministry, as reported by Economic Times, is proceeding on the premise that the country's forest and tree will cover one third of the geophysical area by 2012.
The irony in the scheme has not been lost. Since industry has been the culprit that has played havoc with nature, it is now being made to undo the colossal damage to the environment. It is a classic example of the saying 'sow the wind and reap the whirlwind'.
Is it not?

Global Warming Raises Finger At The Cattle

The poor cow - now is at the receiving end. For ages, man has enjoyed pouring scorn on donkey so much so that the English language makes liberal use of such expressions like 'He is an absolute donkey' or 'The bridge won't be ready for donkey's years.But I was startled to read about a UN report saying the dumb cattle is responsible for global warming. I always thought that among animals, cow serves the man best. Its milk is nutritious for the child and the old alike. Its meat is relished by those who include such animal protein in their food. Its hide is an excellent raw material for leather shoes, bags and belts. Even its excrement has lot of uses - as a manure and fuel of the poor. The blow given by a report of otherwise independent and non-partisan United Nations is too devastating.
The Times of India reported "The increasing world population,a new UN report warns, would lead to further increase in the number of livestock as demand for meat and milk increases and that would mean emission of more greenhouse gases. Not only that. Cattle are also a major contributor to land degradation and pollution of water, the report says. The livestock business, the report says, is among the most damaging sectors to the earth's increasingly scarce water resources, contributing among other things to water pollution from animal waste s, antibiotics and hormones, chemicals from tanneries, fertilisers, and the pesticides used to spray feed crops.
Global warming is a stark reality which is threatening to cause unimaginable damage and loss to the entire population if drastic measures are not taken. That is why nations are jointly trying to fight the menace by Kyoto protocol and carbon emission reduction mechanisms. If cattle indeed are the culprit, we cannot think of a similar carbon trading to reduce their contribution to global warming.
One of the possible ways to reduce their greenhouse emission is to go for their zero-growth population. The good news is that non-vegetarians are gradually turning vegetarians all over the world. Then the meat demand may not rise proportionately with the increase of human population. Substitutes for dung used as manure and fuels may be eventually found. But I cannot think of a world where milk would become a rare commodity. Even as the we are reminded of the apocalyptic end caused by global warming, the very thought of living in a world of perpetual milk famine is equally distressful for me.

Carbon Credits As Sops Sap Poor Nations

The good earth cannot take any more. With reckless deforestation and wanton industrialisation necessitating rapid transportation of men and materials by automobiles causing carbon dioxide emissions ceaselessly, the die has been cast. Global warming is a stark reality now which cannot be wished away any longer. The changing and unpredictable weather all over the world has been serving as a constant reminder of nature's wrath against human excesses.
Now the death-knell has been sounded by the former Chief economist of World Bank, Mr Nicolas Stern, as appeared in Econmic Times, who has warned that 'the impact of global warming on world economy can be as apocalyptic as that of the Great Depression of the 1930s'. He minced no words to depict the horrifying scenario by saying "in the absence of significant cut in greenhouse gas emissions (GHG), the world economy will shrink by 20% in the decades to come. The rising temperature leading to floods may also displace about 200 million people globally."
The irony has not been lost in the report by raising his finger against industrialised countries as the worst offenders of carbon dioxide emissions. Contrary to the popular belief due to misinformation campaign, India and China have been absolved of customary charges of causing global warming. There is already a system of rewarding and punishing parties depending upon their share of reducing or increasing carbon dioxide emissions. I think carbon trading as prevalent now is not a fool-proof control to reduce carbon dioxide emissions. It is just a way of giving sops to the nations which are able to earn carbon credits by reducing GHG emissions so that the cash-rich nations can continue to do the damage by paying penalty in being the credits.
Already as per a survey 'Voice of the People,2006'conducted by Gallup International and TNS, FDIs are perceived by the majority to help the rich only rather than the masses. In the name of economic development, new mega projects are coming up mostly in developing countries. The damage to the environment and the misery of millions who are routinely displaced as a fallout of these projects will more than offset the so- called benefits of employment generation and raising standards of living. GHG emissions, unfortunately, do not affect selectively but pervade everywhere. So the rich as well as the poor will suffer unimaginable losses in the long-term and we will be leaving the planet in much less habitable condition for the future generations.
What a ghastly scenario! What do you say?

Chasing Carbon Credits - The New Passion Of India Inc.

For long, the industries have been grappling with the menace of air pollution caused by carbon dioxide emissions and the public outcry against the resulting global warming. The reward and punishment system to control the situation by introduction of trading in 'carbon credits' seems to be catching up. In the earlier post titled - 'India's Creditable Feat Of Earning Carbon Credits', I had touched upon its growing acceptance in corporate world and India's initial success in earning carbon credits. India is already the third largest to amass carbon credits reportedly equivalent to $1 billion - next only to China and Brazil.
The concept of modifying industry processes and waste control efficiently while earning carbon credits to be reflected in the company balance sheet has become the latest passion of Indian companies. Not surprisingly, one of the navratna public sector undertakings ONGC, according to a report in Economic Times, is about to launch 14 projects for carbon emission reduction and earn carbon credits as well. SAIL is also drawing up such novel projects. I think, the PSUs are best equipped to take the lead as these measures, on the face of it, do not appear to give any handsome return in the short run. Again, these companies have the financial strengths on the one hand, and suffer from the bureaucratic red tape as well as orthodoxy regarding investments on the other. If they can get over these hiccups, I think the companies will be killing two birds in one shot.
Changing times demand changing names. I remember, PSUs at the height of controlled economy had a nondescript post of a Public Relations Officer (PRO) whose main job was to issue passes for the visitors. Now ONGC has a senior position with an exotic designation in the corporate world - 'GM, alternate energy & carbon credits'. This alone speaks about the importance the company is attaching to carbon emission reduction (CER). I wish other PSUs follow suit and create departments for alternative energy & carbon credits or something similar with the sole responsibility of earning carbon credits.