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CHAPTER 1 :- INTRODUCTION

The topic of our project is Role of Economic Development in the light of Diminishing Natural resources. Our project topic encapsulates all essential ingredients of Sustainable Development which is necessary to initiate a economic model in the light of ongoing climate change crisis we are facing .The main objective of this project is to layout a specific charter inculcating some basic ideas for the formulation and initiation of economic models which are not only affable to environment but economically viable. The project also brings out the brightest examples of climate change pioneers who has strive hard to set up windows of opportunity in the form of their economic models which are environment friendly and energy efficient. Although sustainable development is a wide concept incorporating various other factors like social, equitable, environmental, economic etc but in this project we confine our discussion to economic area of sustainable development

1.1Threat of Imminent Environmental Catastrophe 1.1.1 World Overview According to Environmentalists1 change is a fundamental characteristic of the environment. From the ice age of the past to the industrial age of the present, the climate of the earth has been changing. Changes due to natural factors are acceptable but those due to increased human activities leading to greater acceleration, is a cause of grave concern. The earths climate is changing - its atmosphere is warming at an unprecedented pace rising by 0.60 C in the last decade2. By 2050 scientists predict that the earth will be warmer by 1.50 C to 4.50 C3. Nine of the hottest years recorded in more than a century have occurred since 1988. 4 These are alarming trends. The earths climate is a complex interaction between the sun, oceans, land, air and the biosphere. Global warming imbalances these linkages creating havoc in the environment. In 1988, the United Nations set up the IPCC Inter Governmental Panel on Climate Change.5 This was the first of its kind scientific body of international experts to

1 2

http://assets.wwfindia.org/downloads/sustainable_goods_and_services_in_the_21st_century.pdf ^ "About IPCC Mandate and Membership of the IPCC". Intergovernmental Panel on Climate Change. 2007 3 www.ipcc.ch/publications_and.../publications_and_data.htm 4 IPCC Special Report on Emissions Scenarios, Chapter 4: An Overview of Scenarios / 4.2. SRES Scenario Taxonomy / Table 4- 2: Overview of SRES scenario quantifications. 5 http://en.wikipedia.org/wiki/Intergovernmental_Panel_on_Climate_Change

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investigate the issue of climate change. Mr. Rajendra Pachauri, Chairman of the IPCC cited that the increased Greenhouse Gases effect was the root cause of the problem. One hectare of tropical forest is estimated to store four hundred forty five tonnes of carbon in its biomass and soil. When a forest is cut in the name of development, much of the stored carbon is released into the atmosphere as CO2. As the green cover diminishes fewer plants are left to remove CO2 from the atmosphere through photosynthesis, thus disrupting the ecobalance. The release of GHGs due to excessive burning of fossil fuels disrupts this optimal balance. I tried to speculate and find reasons for the same. We only have ourselves to blame for this mess. Our lifestyles which reflect obnoxious consumption are causing these changes. Flashy cars, wasteful use of electricity, the greed to acquire more and more material resource is causing pressure on mother earth. Man exists as if there is no Tomorrow. Despite widespread concern over global warming, humans are adding carbon to the atmosphere even faster than in the 1990s. Latest research suggests that the Carbon Emissions have been growing at 3.5% per year since the year 2000, up sharply from 0.9% per year in the 1990s. We need to take urgent affirmative measures which are collective as we have only One Earth to Live On. If we do not act so, the earths fragile environment would evolve beyond us. The earth will go on without us. Eventually we will realize that if we destroy the ecosystem, we destroy ourselves. 1.1.1 The Indian Scenario: The challenge in a country like India is tremendous. Being a largely agriculture economy, India is particularly vulnerable to the impacts of the climate change. The Himalayan temperature is increasing at an alarming rate of 0.60 C annually.6 Rising sea levels in coastal region is damaging nursery area for the fisheries, causing erosion and flooding, coral bleaching, glacial lake outflow and altering the configuration of forest ecosystems. Scientists believe that the fluctuating weather conditions in a country suggest that it is reeling under climate chaos. For more than a decade now, India has been experiencing contrasting extreme weather conditions, heat waves to cyclones at one end and droughts to floods at the other. Orissa, an important eastern state of India, is classic example of chaotic climate change events. There have been instances of destruction of mangroves along the Southern Coastal
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A summary of the Fourth Assessment Report SPMs by GreenFacts

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region, a steep fall in agriculture and forest productivity, coral bleaching etc. which are being experienced in the Indian sub-continents. According to estimates, India as a contributor to climate change ranks amongst the top ten countries of the world with the highest Green House Gas emissions. It emits more than two hundred and fifty tonnes of carbon every year in the atmosphere, which has to be curbed by being friendly to the environment. Our huge populace is putting an unprecedented burden on the environment. Being a developing economy we have to be extra cautious. Remember, Pollution should never be the price of prosperity.

1.2 NATURAL RESOURCES OF INDIA A natural resource is anything people can use which comes from nature. People do not make natural resources, but gather them from the earth. Examples of natural resources are air, water, wood, crude oil, solar energy, wind energy, hydro-electric energy, coal, and minerals. Refined oil is not a natural resource, for example, because people make it. 1.2.1 TYPES OF NATURAL RESOURCES: There are two types of natural resources: Inexhaustible Natural Resource The inexhaustible natural resources are unlimited in nature, and they are not likely to be exhausted by human activities. Example are solar radiation, air, water, precipitation (rainfall, snow fall, etc.,) and atomic power. Exhaustible Natural Resource The exhaustible natural resources are limited in nature and are liable to be degraded in quantity and quality by human activities. Examples are forests, soil, wild animals, minerals, fossil fuels etc. 1.2.2 NATURAL RESOURCES IN INDIA India's total cultivable area is 1,269,219 km (56.78% of total land area), which is decreasing due to constant pressure from an ever-growing population and increased urbanization.7
7

"Energy Information Administration (EIA)". Statistical agency of the U.S. Department of Energy

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India has a total water surface area of 314,40 km and receives an average annual rainfall of 1,100 mm.8 Irrigation accounts for 92% of the water utilisation, and comprised 380 km in 1974, and is expected to rise to 1,050 km by 2025, with the balance accounted for by industrial and domestic consumers.9 India's inland water resources comprising rivers, canals, ponds and lakes and marine resources comprising the east and west coasts of the Indian ocean and other gulfs and bays provide employment to nearly 6 million people in the fisheries sector. In 2008, India had the world's third largest fishing industry.10 India's major mineral resources include Coal (third-largest reserves in the world), Iron ore, Manganese, Mica, Bauxite, Titanium ore, Chromite, Natural gas, Diamonds, Petroleum, Limestone and Thorium (world's largest along Kerala's shores).11 India's oil reserves, found in Bombay High off the coast of Maharashtra, Gujarat, Rajasthan and in eastern Assam meet 25% of the country's demand.12

DISTRIBUTION OF NATURAL RESOURCES OVER INDIA

8 9

Ibid Ibid 10 www.ias.ac.in/currsci/sep102005/794.pdf 11 Ibid 12 Ibid

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Source: http://www.mapsofindia.com/india-natural-resources.html Rising energy demand concomitant with economic growth has created a perpetual state of energy crunch in India. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Though India is rich in Thorium, but not in Uranium, which it might get access to in light of the nuclear deal with US. India is rich in
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certain energy resources which promise significant future potential - clean / renewable energy resources like solar, wind, biofuels13 (jatropha, sugarcane). On a per-capita basis, Indias energy consumption is low compared not only to industrialized countries but also to many developing countries (such as China) and to the global average. In terms of electricity use, per-capita consumption in India was only 480 kWh in 2005, just over one-quarter that of China and just over one-twentieth the OECD average. 14 Also, India has long suffered from an insufficient supply of electricity in relation to the demandin 2005, supply was estimated to be 6 to 8 percent below demand, and peak shortages were as high as 11 to 12 percent.

By 2005-06, Indias total installed capacity (including captive power) was 144 GW, generating about 700 Terawatt-hours (TWh), with thermal-based generation accounting for about 80 percent of total generation15. During the 10th Five Year Plan (2002-07), about 27 GW of new capacity was added and about 69 GW is planned for the 11th Plan (2007-12) (CEA, 2007b). Long-term scenarios indicate the demand by 2030 to be around 3,600 to 4,500 TWh and total
13 14

www.cea.nic.in Ibid 15 https://www.ntpc.co.in/

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installed capacity (including captive power) to meet this demand has to be about 800 to 1,000 GW, depending on GDP growth16

1.2.3 THREAT TO NATURAL RESOURCES OF INDIA Misuse of natural resources refers to excessive use, destructive use or achieving imbalance between resources either individually or in combination. Misuse of resources can also be direct or indirect. Direct misuse refers to such situations where the resource is directly destroyed or overused. But, many times, some resources are indirectly put to misuse. Lack of knowledge of resource and its significance leads to its misuse. Lack of knowledge about natural resource may be even with educated people or uneducated people. TABLE 1 :

16

Southgate, D. D. and J. F. Disinger, Eds. (1987). Sustainable resource development in the Third World. Boulder, Westview Press p.234.

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Natural Resource Types of misuse/ecological problems Excessive mining I Ecological Loss of forest area (if mines are in forest) Resources Displacement of population and their profession Loss of agricultural lands (if resource is in cultivated land) Dumping of ore or spent ore on surface leading to soil / water pollution Risks and health hazards to employees / population Directly contributing pollution to water / soil /air in petroleum exploration and processing industry Excessive, unscientific and uneconomic ground water exploitation II ecological Resources Hydro Exploration of underground water without any regard to its rate of rechange Displacement of human settlement during establishment of hydro-projects Loss of agricultural / forest area in standing water (in dam construction) Unscientific use / overuse of irrigation water leading to loss of fertility, increased pollution of land / water Loss of biodiversity III Atmospheric Resources Deforestation on one side and polluting the atmosphere by CO2 loading on other side have led to increased CO2 levels in atmosphere Ozone coverage is slowly degenerating due to release of chlorine generating gases to atmosphere Excessive pressure of population of land has led to intensive cultivation of land, without allowing the soil to have its natural organic process of Edaphic recuperating biological potentiality Addition of chemicals on continuous basis (as fertilizers and pesticides) has destroyed ecological balance in soil Indiscriminate irrigation has led to salinity / availability of soil rendering them unfit for cultivation Continuous deforestation for commercial and fuel purposes V Forest resources Encroachment of forest area for agriculture,mining, industrial purposes Loss of forest area for irrigation dams Loss of biodiversity due to encouragement /discouragement of specific species of plants Unnatural crosses between species VI Crop resources Transgenic breeding leading to modification of original characters of plants to destroy natural plant types interfering in natural regeneration process Tissue culture aided cloning VII resources Aquatic Excessive fishing around the coast Loss of biodiversity in aquatic population Premature fishing for commercial purpose Destruction of herbivorous fishes by carnivorous fishes Destructive use of atmospheric oxygen to burn carbon sources to produce CO and CO2 which in turn change the composition of air

IV resources

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Source : Parikh, K. S. (2001). Enjoy it by giving it up: toward sustainable development patterns. Bombay, India, Indira Gandhi Institute of Development Research. Different Types of Misuse of Natural Resources 1.2.4 Reasons for misuse of Natural resources a) Commercial interests like trading in products out of natural resources. b) Ignorance on necessity to preserve natural resources. c) Deliberate negligence on destruction of natural resource. d) Entertainment / recreational / aesthetic interest. e) Extreme population pressure. f) Self interest of human beings over the interest to retain natural resources. g) International trade and commitments. h) Misuse of legislation. i) Loop holes of provisions of law. j) Protracted legal process. k) Food interest l) Luxuries required for man. m) Increased industrial requirement. n) Improvement of standard of living, GDP, per capita income and purchasing power. o) Expectations of instantaneous returns.

1.3 SUSTAINABLE DEVELOPMENT

1.3.1 GENERAL IDEA:

Around three and a half decades ago, a group of academics known as the Club of Rome17 put forth the "limits to growth" theory,18 predicting disaster for humankind unless natural resource
17

30-Year Update of Limits to Growth finds global society in Overshoot, Foresees social, economic, and environmental decline (The Club of Rome) 18 Ibid

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depleting economic and technological progress were abandoned. Such pessimistic calls were, indeed, extremist in nature. However, the global recognition of the linkage between environment and development took as late as 1980, when the International Union for the Conservation of Nature (IUCN) published the World Conservation Strategy and used the term "sustainable development. The concept came into general usage following publication of the 1987 report of the Brundtland Commission formally, the World Commission on Environment and Development (WCED). Set up by the United Nations General Assembly, the Brundtland Commission coined what was to become the most often-quoted definition of sustainable development as development that "meets the needs of the present generation without compromising the ability of future generations to meet their own needs. This definition, despite being lauded as the first formal attempt to delineate sustainable development, has met with a lot of resistance and cognitive dissonance. However, there is the misconception that sustainable development is all about environment and ecology. There cannot be anything more disastrous than conceiving of such a reductionist scope to this notion. Rather than focusing solely on environmental issues, sustainable development policies broadly encompass three general policy areas: economic, environmental and social. In support of this, several United Nations texts, most recently the 2005 World Summit Outcome Document, refer to the "interdependent and mutually reinforcing pillars" of sustainable development as economic development, social development, and environmental protection.19

Among many subsequent definitions, the sustainable development Venn diagram in the following figure shows one of the widely-accepted explanations proposed by Munasinghe (1992) at the 1992 Earth Summit in Rio de Janeiro.

DIAGRAM :

19

www.un.org/jsummit/html/basic_info/basicinfo.html

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Source:http://www.google.co.in/images? um=1&hl=en&safe=active&tbs=isch:1&sa=1&q=Munasinghe+diagram&aq=f&aqi=&aql=&o q=&gs_rfai=

Sustainable development, eventually, led to the recognition that the life supports systems that are crucial to human development, are given by nature, and can be finite, diminishing, yet replenishable at times. In the context of non-replenishability, there is an utmost need to look for alternative sources, so that the exploitation of such resources is diminished. It also gave recognition to the fact that a given stock, composition and productivity of societys capital natural, man-made, and human can contribute towards meeting basic human needs in a sustained manner over time, but only up to a maximum limit

1.3.2 SUSTAINABLE DEVELOPMENT V/S ECONOMIC GROWTH:


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Sustainable development has sometimes been treated as a notion emerging from the communistic thought processes, and sometimes as a tool used by the antagonistic ecological activists. Both of these are the widespread misconceptions about the notion. Rather, the notion is much more objective than being treated to be inclined towards a particular tradition. The concrete challenges of sustainable development are at least as heterogeneous and complex as the diversity of human societies and natural ecosystems around the world. Unfortunately, both the socialistic thought processes and ecological antagonism have used the notion as a powerful tool to talk against economic growth, and this has even deterred many market-oriented thinkers to adopt and uptake this notion. It needs to be kept in mind that sustainable development is not opposed to economic growth or development; rather it talks of sustaining the process of growth and development over generations. The most powerful statement in favour of reconciliation of growth and ecological sustainability is the Environmental Kuznets Curve (EKC).20 EKC presents a hypothetical relationship between various indicators of environmental degradation and income per capita. In the early stages of economic growth, degradation and pollution increase, but beyond a threshold level of income per capita the trend reverses, so that at high-income levels economic growth leads to environmental improvement. This implies that the environmental impact indicator is an inverted U-shaped function of income per capita, as presented in Fig. below. EKC is named after Simon Kuznets21 (1955), who hypothesized that income inequality initially rises with GDP per capita and then falls as economic development proceeds, beyond a threshold level.

20

Duchin, F. and G.-M. Lange (1994). The future of the environment: ecological economics and technological change. New York, Oxford University Press, p.188. 21 Ibid

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Source:http://www.google.co.in/images? um=1&hl=en&safe=active&tbs=isch:1&btnG=Search&aq=f&aqi=&oq=&gs_rfai=&q =Environmental%20Kuznets%E2%80%99%20Curve%20(EKC).

CHAPTER 2 :- ROLE OF POLICY MAKERS


2.1 NATIONAL ACTION PLAN ON CLIMATE CHANGE

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2.1.1 BLUEPRINT OF THE PLAN

On June 30, 2008, Prime Minister Manmohan Singh released Indias first National Action Plan on Climate Change (NAPCC)22 outlining existing and future policies and programs addressing climate mitigation and adaptation. The plan identifies eight core national missions running through 2017 and directs ministries to submit detailed implementation plans to the Prime Ministers Council on Climate Change by December2008.Emphasizing the overriding priority of maintaining high economic growth rates to raise living standards, the plan identifies measures that promote our development objectives while also yielding co-benefits for addressing climate change effectively. It says these national measures would be more successful with assistance from developed countries, and pledges that Indias per capita greenhouse gas emissions will at no point exceed that of developed countries even as we pursue our development objectives. 2.1.2 National Missions23 National Solar Mission: The NAPCC aims to promote the development and use of solar energy for power generation and other uses with the ultimate objective of making solar competitive with fossil-based energy options. The plan includes: Specific goals for increasing use of solar thermal technologies in urban areas, industry, and commercial establishments; A goal of increasing production of photovoltaics to 1000 MW/year; and A goal of deploying at least 1000 MW of solar thermal power generation. Other objectives include the establishment of a solar research centre, increased international collaboration on technology development, strengthening of domestic manufacturing capacity, and increased government funding and international support. National Mission for Enhanced Energy Efficiency: Current initiatives are expected to yield savings of 10,000 MW by 2012. Building on the Energy Conservation Act 2001: The plan recommends:
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"Sci-Tech / Energy & Environment : Govt working on climate blueprint to be submitted to UNFCCC". The Hindu. 25 January 2010. 23 www.energymanagertraining.com/NAPCC/main.htm -

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Mandating specific energy consumption decreases in large energy-consuming industries, with a system for companies to trade energy-savings certificates; Energy incentives, including reduced taxes on energy-efficient appliances; and Financing for public-private partnerships to reduce energy consumption through demand-side management programs in the municipal, buildings and agriculturalsectors. National Mission on Sustainable Habitat: To promote energy efficiency as a core component of urban planning, the plan calls for: Extending the existing Energy Conservation Building Code; A greater emphasis on urban waste management and recycling, including power production from waste; Strengthening the enforcement of automotive fuel economy standards and using pricing measures to encourage the purchase of efficient vehicles; and Incentives for the use of public transportation. National Water Mission: With water scarcity projected to worsen as a result of climate change, the plan sets a goal of a 20% improvement in water use efficiency through pricing and other measures. National Mission for Sustaining the Himalayan Ecosystem: The plan aims to conserve biodiversity, forest cover, and other ecological values in the Himalayan region, where glaciers that are a major source of Indias water supply are projected to recede as a result of global warming. National Mission for a Green India: Goals include the afforestation of 6 million hectares of degraded forest lands and expanding forest cover from 23% to 33% of Indias territory. National Mission for Sustainable Agriculture: The plan aims to support climate adaptation in agriculture through the development of climate-resilient crops, expansion of weather insurance mechanisms, and agricultural practices. National Mission on Strategic Knowledge for Climate Change: To gain a better understanding of climate science, impacts and challenges, the plan envisions a new Climate
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Science Research Fund, improved climate modeling, and increased international collaboration. It also encourage private sector initiatives to develop adaptation and mitigation technologies through venture capital funds. 2.1.3 Other Programs24 The NAPCC also describes other ongoing initiatives, including:
Power Generation: The government is mandating the retirement of inefficient

coal-fired power plants and supporting the research and development of IGCC and supercritical technologies.
Renewable Energy: Under the Electricity Act 2003 and the National Tariff Policy

2006, the central and the state electricity regulatory commissions must purchase a certain percentage of grid-based power from renewable sources.
Energy Efficiency: Under the Energy Conservation Act 2001, large energy consuming

industries are required to undertake energy audits and an energy labeling program for appliances has been introduced. 2.1.4 Implementation Ministries with lead responsibility for each of the missions are directed to develop objectives, implementation strategies, timelines, and monitoring and evaluation criteria, to be submitted to the Prime Ministers Council on Climate Change. The Council will also be responsible for periodically reviewing and reporting on each missions progress.To be able to quantify progress, appropriate indicators and methodologies will be developed to assess both avoided emissions and adaptation benefits.

2.1.5 CRITICISM The NAPCC received a mixed response. Some find in it Indias answer to the growing pressure on developing countries to accept binding emission norms. But a criticism is that it lacks urgency.25
24 25

Ibid www.deccanchronicle.com/node/73258/print

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According to the Worldwide Fund for Nature (WWF),26 the action plan is fairly comprehensive. But the South Asia Network on Dams, Rivers and People has said the NAPCC lacks urgency and the equity perspective. The organisation has criticised the Water Mission, saying attempts to push for more big dams, irrigation projects, hydro-power projects, and interlinking of rivers will prove to be futile. Sunita Narain, Director of Centre for Science and Environment, in an editorial in Down to Earth (a science and environment fortnightly) mentioned that the plan asserts that India can grow differently because it is in an early stage of development. In other words, it can leapfrog to a low carbon economy using high-end and emerging technologies and by being different. Also, it prioritizes national action by setting out eight missions ranging from solar to climate research which will be detailed and then monitored by the PM's council for climate change. But, the plan is weak on how India sees the rest of the world in this extraordinary crisis. Climate change is a global challenge. We did not create it and, till date, we contribute little to global emissions. We are, in fact, climate victims. As per Sudhirendar Sharma, a water expert and Director of the Delhi-based Ecological Foundation, the plan report is a compilation of listless ideas that lack depth, vision, and urgency. Putting economic development ahead of emission reduction targets, the report makes a case for the right of emerging economies to pursue development and growth to alleviate poverty without having to worry about the volume of atmospheric emissions they generate in the process. Consequently, the report makes no commitment to cut the country's carbon emission and thereby leaves it liable to criticism by those who hold worries about global warming close to their chests. Rahul Goswami, an independent journalist and researcher based in Goa, in his article stated that instead of having a strongly articulated, clearly thought-through vision, the NAPCC has a basket of eight missions and no durable plan that will include the poorest and most vulnerable A policy that deals with a new set of circumstances and factors needs necessarily to think differently. Climate change is not population control, not poverty, not rural unemployment. It needs to learn differently from the experiences of contemporary Indians.

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a nature conservation organisation previously named World Wildlife Fund

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2.2 INDUSTRIAL ROLE This section deals with various mitigating factors undertaken by that not only will reduce GHG emissions but also save the recurring cost on Indian economy. These steps if implemented step by step in a clear and quick manner will enhance sustainability and cut down cost by a sharp margin. The United Nations Framework Convention on Climate Change (UNFCCC) 27 recognizes that industrialized countries, with much higher cumulative and per-capita emissions, should take the lead in combating climate change, and that economic and social development and poverty eradication are the first and overriding priorities of developing countries.

2.2.1 CLEAN COAL:

Status quo The Indian coal industry is the worlds third largest in terms of production and fourth largest in terms of reserves.28 Around 70% of the total production is used for electricity generation and the remaining by the steel, cement and other heavy industries.29 Coal is also used as fuel for domestic purposes. Coal-based generation appears likely to remain the linchpin of the Indian power sector at least for the next few decades, given the large domestic coal resources and the absence of any other significant domestic energy sources in the country. Coal power will, thus, help increase the availability of electricity, particularly in rural areas, which is an urgent development priority for the country. Given the enormous financial resources required to achieve this objective, the power sector has strong incentive to deploy cheaper, well-proven generation technologies. Raw coal production during 2008-09 is provisionally estimated at 493.20 million tonnes (MTs) as against 457.08 MTs during 2007-08, registering a growth rate of 7.90 per cent. 30 There was

27

The United Nations Framework Convention on Climate Change (UNFCCC or FCCC) is an international environmental treaty produced at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro from 3 to 14 June 1992. 28 www.ntpc.co.in/index.php?option=com 29 Ibid 30 Ibid

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no change in prices of coal in 2008-09. The import of coal has been increasing over the years. It is expected to be 60 MTs in 2008-09, compared to about 20 MTs till 2003-04. Bottleneck in Coal industry Despite having one of the largest reserves, the Indian coal industry does not hold a position in the league of global energy suppliers. This can be attributed to the soaring domestic demand. A study conducted by the Indian Planning Commission and the Coal Ministry revealed that Indias total coal consumption was expected to increase from 510 mts in 2007-08 to 550 mts by 2008-09. To meet this requirement, substantial public investment is needed. Even the private players would need to deploy advanced mechanisms to increase production levels. But despite its huge resource base, till date, India has not been able to minimize its coal deficit. Coal washeries are also under pressure. The onus of producing quality coal lies with this segment. It is required to sustain high quality levels within stringent environment regulations. Excessive government regulation continues to be a major concern for the Indian coal industry. The existing legislative framework restricts the private sector in the establishment of coal washeries and regulated mining for specific industries, such as power and fertilizer units.
Necessary guidelines to revamp the Coal industry31

The major challenge facing India is how to reconcile rapid growth in the coal-power sector with the increasing urgency to address climate concerns. Appropriate actions and policies that offer climate co-benefits in the present could lay a foundation for an eventual, broader carbon mitigation strategy in the future, and help transition the coal-power sector to a cleaner and more sustainable path. With this in mind, we suggest several immediate steps that can help reduce carbon emissions from the Indian coal-power sector in the short term while offering significant development benefits: Improve efficiency of all elements in the existing power system: generation, transmission and distribution, and end-use; Aggressively deploy higher-efficiency pulverized coal combustion technologies, such as supercritical and ultra-supercritical technologies;
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CIAB_Case_Studies_2006

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Create a program for systematically assessing emerging technologies that may become important for the medium- to long-term future of the coal power sector, and develop a strategic national plan for development, adaptation and deployment of suitable technologies; Establish and enforce emissions standards for sulfur oxides (SOx) and nitrogen oxide (NOx), and provide incentives for installing pollution-control technologies, such that carbon capture from Indian power plants is economically feasible in the future, should the country decide to exercise that option; and Invest in a focused effort on detailed geological assessment of on-shore and off-shore carbon storage sites in India. 2.2.2 Energy Efficiency: With Indias energy demand expected to more than double by 2030,32 there is a pressing need to develop innovative ways to conserve energy. As major energy consumers, local governments in India are key players in promoting and implementing energy conservation measures and technologies. Energy Service Company(ESCOs)33 In India, Energy Service Companies and local governments are teaming up to increase energy efficiency and save money. Enter Energy Service Companies (ESCOs), which provide energy efficiency-related services on a performance contracting basis, instead of the traditional fee for service model. Municipalities in several states across India are partnering with ESCOs to implement energy conservation measures. The trend for municipalities to use the ESCO model began within the last decade as a way to save both energy and money without the up-front costs of typical energy efficiency investments. Case Study of Energy Service Company(ESCOs)

In 2001, DSCLES, one of the first ESCOs in India, worked with the New Delhi Municipal Council on a high-efficiency electrical lighting pilot project that now saves 252,000 kWh per year. The project produces savings of INR 20 (50,000 $US) and 149 million tones of avoided CO2 emissions per year. DSCLES financed the initial investment of IRN 30 lakhs (75,000 $US), which means the projects payback period is approximately 18 months.

32 33

www.indiaenergyportal.org Ibid

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Asian Electronics replaced approximately 12,000 tube lights at Sachivalaya Complex for the government of Gujarat, Gandhinagar, which reduced the lighting load by 64% without sacrificing illumination levels.

The Gujarat Urban Development Company (GUDC) intends to implement energy efficiency programs in street lighting and water pumping systems in 150 municipalities across the state through performance contracts. In response, ESCOs from throughout India have submitted project proposals, which will be evaluated based on the ESCOs capabilities and the total energy savings. GUDC is requiring a minimum energy savings of 20% for both water pumping and street lighting projects.

In the state of Tamil Nadu, a municipal energy efficiency program partnering with ESCOs is underway in 29 cities.

the large and energy-intensive Lilavati Hospital in Mumbai hired Sudnya Industrial Services, an ESCO, to undertake an analysis. The results showed that the airconditioning system comprised 60 percent of the hospitals energy usage and that an upgrade was necessary. The entire investment of the hospital to do this upgrade was US$12,000, the annual savings are US$17,000, and the payback time was nine months.

ESCO projects follow either a guaranteed savings model and/or a shared savings model. In a guaranteed savings model, the customer provides financing and the ESCO guarantees the performance of a project. The ESCO is paid a fixed fee if the guaranteed savings is achieved through the upgrade. In the shared savings model, an ESCO provides financing through its own funds or a loan, and the client and ESCO share the energy savings based on a predetermined ratio. For municipalities, the shared savings model offers an avenue for energy efficiency projects without the upfront investment. In the end, the savings from these projects lead to a payback period of 18 to 24 months. The appeal of the shared savings model for government energy conservation projects is clear. ESCOs guarantee a percentage of savings, thus taking away the performance risk from the municipality. And since ESCOs provide project financing, municipalities avoid financial risk as well. Accreditation

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The Bureau of Energy Efficiency (BEE)34 in India initiated an accreditation to encourage the adoption of more energy efficiency projects through Energy Service Companies (ESCOs). The accreditation initiative aims to increase the credibility of the ESCO industry among potential clients such as government offices, building owners, and enterprises and among financial institutions who would consider providing capital to ESCOs. CRISIL (Credit Rating Information Services of India Limited) and ICRA (formerly Investment Information and Credit Rating Agency of India Limited) carried out this accreditation process. CRISIL and ICRA are two of the premier agencies in India that present independent credit ratings, capital market information, and industry analysis. A total of thirty-five ESCOs were given ratings between Very High and Poor based on criteria involving the ESCOs success in implementing energy efficiency projects, the ability of its technical manpower, and its financial strength to invest in such projects. Twenty-five ESCOs received ratings of Good and above, while ten ESCOs received ratings of Below Average and below. This accreditation is valid for two years, after which a fresh accreditation from CRISIL or ICRA will be required once again. Overall, this accreditation process will be beneficial for the entire ESCO industry. First, it will provide potential clients with a fairly credible selection tool which will provide them information about an ESCOs technical and financial capability. Second, it will give ESCOs the incentive to improve so that they could attain higher ratings on the next accreditation round. Finally, this ESCO accreditation also serves as a guide for financial institutions when making decisions regarding the creditworthiness of an ESCO. In fact, WRI has been able to use this ESCO accreditation in its current work with financial institutions in India to increase investment into the ESCO industry and overall energy efficiency space.

Accelerating Clean Energy market India is experiencing strong economic growth, which has significant implications for greenhouse gas emissions, energy security, and equitable access to energy. The Government of India is keenly aware of these challenges and is trying to move toward a stable and sustainable mix of energy sources. By 2030, India hopes to generate 25 percent of its electric power
34

The Bureau of Energy Efficiency is an agency of the Government of India, under the Ministry of Power created in March 2002 under the provisions of the nation's 2001 Energy Conservation Act.

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capacity through renewable energy, but the current business and policy environment is not attracting the private sector investment needed to transform the energy mix on the scale required. In 2007, only about 1.9% percent of the US$14.2 billion private equity investments in Indian-based companies was in the clean energy sector.35 To address these challenges in Indias energy sector, the Accelerating Clean Energy Markets in India initiative will achieve the following goals:

Leverage at least US$125 million in committed investment to renewable energy and energy-efficiency services.

Encourage investment in at least twenty small and medium enterprises (SMEs) by leveraging the financial power of our investor networks and the collective skill of enterprise development networks.

Collaborate to pilot one or more new financing mechanisms with the potential to achieve significant scale to create renewable and efficient energy solutions for underserved rural and urban markets.

Local Investment Capacity Building WRI36 will accelerate the growth of clean energy markets in India through its comprehensive Local Investment Capacity Building strategy. Our strategy for local investment capacity building has three components: 1. Engage our India-based Investor Network and Steering Committee in order to leverage investment in renewable energy technologies and services in India. 2. Work with local partners to build a steady stream of investor-ready clean energy enterprises. 3. Provide analytic support on priority areas for financing innovation to create an environment conducive to increasing private sector investment in clean energy markets.

With an investment of US$10 billion dollars in energy efficiency improvements, Indias economy would benefit from its potentially vast annual energy savings of 183.5 billion kilowatt hours.
35 36

www.wpic.pitt.edu/research/dementia.../IndoUS/IndoUS.htm The World Resources Institute (WRI) is an environmental think tank founded in 1982 based in Washington, D.C. in the United States.

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2.2.3 Renewable energy

Status And Issues In India

Like in other developing countries, there is a wide gap between demand and supply in India. There is also considerable environmental and resource degradation because of a higher dependence on fossil fuels. This dependence on fossil fuels, which are imported, exacerbates its foreign exchange debt burden. These factors, along with the country's large endowment of renewable suggest (renewable resources, that the

development of RE energy) will go a long way in meeting the challenge of providing clean power in India. When considering RE power options, both gridconnected power and distributed power generation are important areas, especially for India,which has a high population living in rural areas.

Wind power

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India is the fifth largest producer of wind power in the world after Germany, the US, Denmark, and the UK, with a wind power generation achievement of 1507 MW, of which 1444 MW has come through commercial projects (MNES 2002).37 The wind speeds in India are in the low wind regime with average wind speeds between 17 and 24 km/h. However, with a wind power potential of about 45000 MW, there is significant room for advancement. Wind has the highest potential in the country and is expected to contribute 60% of the above-mentioned target of power generation from renewables. State-of-the-art wind power technologies, too, are now indigenous, with wind electric generators up to 1250 kW being developed and manufactured in the country. The C-WET (Centre of Wind Energy Technology) in Chennai is a specialized institution in this field. Research and development, standardization, testing and certification, along with resource assessment, are undertaken by C-WET. India has established a good manufacturing base with about 12 manufacturers of wind turbines and allied equipment. A new concept of mega wind farms owned by the private sector is being tested in India to increase the penetration of wind power, and invite greater participation from the private sector. The advantage of such an approach will be reduced capital cost. Mega wind farms can also negotiate a better power purchase agreement with the utilities.

Biomass power India has a huge biomass potential owing to the large quantities of agricultural, forestry, and agro-industrial residue produced. The present capacity of biomass-based power generation totals 358 MW (including cogeneration and biomass gasifiers) Bagasse-based cogeneration involves the use of bagasse _ the residue left after sugar cane is crushed to extract the juice _ as a boiler fuel by sugar mills to cogenerate (both steam and electric power) for mill operations. While some sugar mills become self-sufficient by using bagasse, a few also produce surplus electricity to sell to the grid throughout the year. This is made possible by burning the bagasse more efficiently during the harvest season and using fossil fuels/alternative biomass during the off-season. Cogeneration provides an additional source of income for the mill and a source of green, renewable power to the utility. In the area of small-scale biomass gasification, significant developments in technology have made India a world leader. A total of 42.8 MW biomass gasifier power capacity has so far been
37

On site renewable energy options from ICAX Ltd.

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installed in India, mainly for stand-alone applications38. Biomass gasifiers capable of producing power from a few kilowatts up to 500 kW have been successfully developed indigenously and are also now being exported to the developing countries of Asia and Latin America, and also Europe and USA. A large number of installations for providing power to small-scale industries and for the electrification of a village or group of villages have been undertaken. Such examples include the installation of a 100 kW capacity rice husk-based gasifier in a rice mill in Andhra Pradesh, and a 5 100 kW biomass gasifier on Gosaba Island in the Sunderbans area of West Bengal, which is being successfully run on a commercial basis to provide electricity to the inhabitants of the island through a local grid. India has instituted a National Programme on Biomass Power/Cogeneration to establish the techno-commercial potential of power generation from biomass materials.

Solar power India has one of the largest SPV (solar photovoltaic) markets, driven by government programmes of subsidies, tax, and financial incentives that began in the 1980s. Loans and financing schemes have supported private sector sales, while subsidies have been provided for the installation of solar home systems. Significant progress has been made in the deployment of small-capacity stand-alone PV systems in the country. Under the PV programme of the MNES,39 over 610000 systems aggregating to over 20 MW have been installed (MNES 2002). This includes solar lanterns, home lighting systems, streetlighting systems, water pumping systems, and an aggregate capacity of about 1.2 MW of stand-alone power plants.40 A new niche application of PV stand-alone power plants is in the unelectrified areas. It is estimated that for the 18000 unelectrifiable villages in India located in far-flung areas inaccessible to the grid, stand-alone SPV systems will be instrumental in providing a limited amount of electricity. The MNES is designing a programme to undertake this task. Grid-interactive PV systems for tail-end applications (voltage boosting) in remote sections of the grid, and peak load shaving are also focus areas.

38 39

"The Power and the Glory." The Economist 21 June 2008: Ibid 40 Ibid

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An integrated solar combined cycle power project is planned at Mathania in the state of Rajasthan. This plant of total capacity 140 MW has a solar thermal component of 35 MW, based on the parabolic trough collector technology.41

Waste-to-energy The National Programme on Energy Recovery from Urban and Industrial Wastes in India aims at promoting efficient and proven technologies for the treatment, processing, and disposal of wastes, not only as a means of improving the waste management practices in the country, but also for augmenting power generation. A wide range of waste material can be used to recover. Municipal solid waste comprises mainly domestic refuse, with some commercial waste. A technology for processing municipal waste to get fuel briquettes, that will be burnt in burning moving grate boilers, is being experimented upon. The total installed waste-to-energy generation capacity was 17.08 MW.

Small hydro The potential for small hydro (up to 25 MW) is estimated to be 15000 MW, mainly in the hilly areas of the sub Himalayas and the north-eastern regions of India. There are over 420 small hydro projects aggregating 1423 MW in India.42 These projects are spread throughout the country in hilly regions as well as on canal drops. The small hydro is also seen as a potential source along with PV for providing decentralized power in remote areas. The thrust of the MNES is to achieve development of the small hydro projects through private sector participation. Policy and financing issues India faces the challenge of mobilizing investments for renewable power generation. Challenge is in terms of encouraging private sector investment for large-scale grid-connected projects and also in mobilizing resources for rural areas for off-grid generations. The MNES guidelines to state utilities for buying power from renewables include a provision of higher purchase rates for renewable power, wheeling and banking power, and third-party
41 42

Ibid Ibid

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sale using the utility grid. Ten states have accepted the MNES guidelines with some variations in wheeling, banking, and third-party sale rules. A new legislation, the Electricity Bill 2001, supports renewables utilization, a new feature.43 Fiscal incentives are being offered to increase the viability of RE projects, the main incentive is 100% accelerated depreciation. This incentive is under review and a reduction to 60% is proposed from the year 2003/04. Other incentives include a tax holiday, lower customs duty, sales tax, and excise tax exemption for RE projects. The Indian Renewable Energy Development Agency44 is the main financing institution for renewable energy projects. It offers financing the renewable projects with lower interest rates, which vary with the technology, depending on it the commercial viability. Though interest rates are falling in India, they are not in the renewables sector for various reasons but mainly due to perceived high risk. The interest rates vary from 11% (for biomass cogeneration) to 14.5% (for wind). 2.2.4 Nuclear Energy Advantages of nuclear energy: 1. It's environmentally clean - no emissions of greenhouse gases CO2 or other nasty gases. CO2 - carbon dioxide is produced when we burn any fossil fuel; it is one of the main gases contributing to the greenhouse effect and leading to atmospheric warming. Polar caps and glaciers may melt and the sea level may rise drowning seacoasts and port cities. Coal and oil (petrol) have sulfur impurities and when they are burned sulfur dioxide goes up the stack it's responsible for acid rain.45 When any fossil fuel (coal, oil or natural gas) is burned, nitrogen oxides are also produced - they cause smog and city pollution. Nuclear fuel is pure (no sulfur), it is not in contact with the air(no nitrogen), and it produces no smoke or exhaust: everything is confined in the fuel element.

43

The Bill seeks to free generation from licensing and provides for open access option to captive power plants, allowing them to sell surplus power directly to bulk consumers
44

The Indian Renewable Energy Development Agency Ltd. (IREDA) was established in 1987 as a Public Sector Non-Banking Company under the Ministry of Non-Conventional Energy Sources (MNES) with the objective of providing loans for new and renewable sources of energy (NRSE) 45 Acid rain is rain or any other form of precipitation that is unusually acidic, i.e. elevated levels of hydrogen ions (low pH).

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2. Nuclear energy is cheap. Even when oil and gas prices are low, nuclear electric energy is competitive with fossil fuel. In 1973, 1987 and 2000 we had oil crises with the price doubling and more in a few days or a few weeks. Gasoline and fuel oil (and eventually electricity) had to follow the price rise. 3. Nuclear energy prices are stable. A country (or an electric company) can buy years of supply of uranium when the price is low; it doesn't take up much space and can be easily stored until needed. Most countries (or utilities) don't have space to store more than 3 or 6 months supply of fossil fuels. 4. Uranium is plentiful - there's enough to last most of a century if we use just the U-235 (0.7%). When we develop Fast Neutron Reactors, we will convert the U-238 (99.3%) to plutonium which is also a nuclear fuel; that means the uranium will last 50 times longer or more. Natural gas and oil reserves are estimated in decades; there's lots of coal, but it's nasty (see 1 above). 5.Nuclear energy is safe. All human activities are risky, especially those involving large amounts of energy: transportation, construction, mining and oil well exploitation, etc. In the half century of the Nuclear Age, about one or two deaths per year have been attributable to nuclear energy. This includesThree Mile Island (TMI - 1979) and Chernobyl (1986).46 At TMI, no dead, no injured, no one much irradiated off the site of the power station - probably more people were killed in traffic accidents while trying to flee in mistaken terror.

CASE STUDY: NUCLEAR ENERGY IN FRANCE

France derives over 75% of its electricity from nuclear energy. This is due to a long-standing policy based on energy security. France is the world's largest net exporter of electricity due to its very low cost of generation, and gains over EUR 3 billion per year from this. France has
46

A nuclear accident that occurred on 27 April 1986 at the Chernobyl Nuclear Power Plant in Ukraine

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been very active in developing nuclear technology. Reactors and fuel products and services are a major export. It is building its first Generation III reactor and planning a second.47 France now claims a substantial level of energy independence and almost the lowest cost electricity in Europe. It also has an extremely low level of CO2 emissions per capita from electricity generation, since over 90% of its electricity is nuclear or hydro. Nuclear energy, with the fuel cost being a relatively small part of the overall cost, made good sense in minimizing imports and achieving greater energy security. THE ROAD AHEAD: INDO US NUCLEAR BILL There is an urgent need in India for capital to build its infrastructure and manufacturing base. And there is only one source to get it i.e. US & Europe. USA and Europe at this moment are content with sending capital to China to supply them with consumer goods. The former very cleverly had avoided exporting manufacturing technology to supply high priced, high technology capital goods to China. This component together with auto-parts, pharmaceuticals and computer hardware could herald India into big leagues in ten years and beyond. Commercial Aircraft manufacture, ship building, factories to make giant power plants, steel making plants, mining & drilling hardware, petroleum & petrochemical plant building facilities could be ultimately shared with India. The latter within ten years will have a workforce sufficiently skilled to undertake all the foregoing. It will be beneficial to US. Labor costs in India, will always stay a third of US, and European costs. That will make India an ideal candidate for this technology transfer. Opportunity of the KPO (Knowledge Process Off-shoring)48 is knocking at Indias door. Indian graduates of Science and Engineering will play a major role in this expansion. In about 5 years KPO Off-shoring will grow immensely. India stands to benefit most from it. Thanks to the edge, Indian science & technology graduates have established. 2.2.5 Mass Transportation When some people take the bus rather than drive in individual cars, we all benefit from cleaner air. You may hear people complain about the exhaust that buses produce. But from the
47 48

Key World Energy Statistics 2007. International Energy Agency. 2007. High added value processes chain where the achievement of objectives is highly dependent on the skills, domain knowledge and experience of the people carrying out the activity.

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perspective of the community as a whole, the real issue is the per-mile difference in emissions between bus travel and car travel. A bus does produce more exhaust than a car, but it also transports more people. In net terms, bus travel reduces air pollution. When some people take the bus rather than drive in individual cars, we all benefit from a reduced demand for parking. Of course theres money to be saved for every parking space that employers dont have to build or maintain, but there are also important environmental benefits to not building parking, too. By not building parking, we reduce the rate at which land surrounding the urban area is gobbled up, and we refrain from putting additional stress on local waterways with more storm runoff. When some people take the bus rather than drive in individual cars, we all benefit from reduced congestion on city and campus streets. According to Census figures from the year 2000, the average travel time to work for residents of Champaign-Urbana was 14.6 minutes. That relatively short commute is one of the factors that makes our community such a pleasant place to live, and mass transit helps to make it possible. Local planners project that over the next two decades traffic congestion will increase to twelve times present levels, given current patterns of new development, which heavily favor travel by car. In other words, unless mass transit plays a larger role in the way our community grows, drivers in Champaign-Urbana will spend more and more time sitting in their cars in the years to come, using more gas, creating more exhaust.

Beyond the inconvenience increased traffic congestion means for drivers, it also creates an environment that is hostile to other means of transportation. As streets become more crowded with cars, they become more dangerous for people who walk or bike, in effect creating pressure for them to drive, too. 2.3.1 KYOTO PROTOCOL Historical perspective

The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), aimed at fighting global warming. The UNFCCC
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is an international environmental treaty with the goal of achieving "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.The Protocol was initially adopted on 11 December 1997 in Kyoto, Japan and entered into force on 16 February 2005. As of November 2009, 187 states have signed and ratified the protocol.

Significance : Under the Protocol, 37 industrialized countries (called "Annex I countries") commit themselves to a reduction of four greenhouse gases (GHG) (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and two groups of gases (hydrofluorocarbons and perfluorocarbons) produced by them, and all member countries give general commitments. Annex I countries agreed to reduce their collective greenhouse gas emissions by 5.2% from the 1990 level. Emission limits do not include emissions by international aviation and shipping, but are in addition to the industrial gases, chlorofluorocarbons, or CFCs, which are dealt with under the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. The Protocol allows for several "flexible mechanisms", such as emissions trading, the clean development mechanism (CDM) and joint implementation to allow Annex I countries to meet their GHG emission limitations by purchasing GHG emission reductions credits from elsewhere, through financial exchanges, projects that reduce emissions in non-Annex I countries, from other Annex I countries, or from annex I countries with excess allowances.

CHAPTER 3:- NEED OF THE HOUR

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3.1 BASIC LEVEL49 Usually when we think of going green we assume its for people with heavy pockets it will involve monetary sacrifices and taking a lot of trouble, going out of the way in terms of both effort and money. This is just a widespread misconception, because on the contrary, cutting corners by green measures will save you a lot of money. Here some steps will be highlighted to save money and planet. Switching to CFLs or LEDs Environmentalists have been exhorting this paradigm shift over a couple of years. The urgency is to discard incandescent bulbs50 .Consider this: the life span of LED bulb51 is around 45,000 to 60,000 hours. On the other hand incandescent bulb is for 1,500 hours and 10,000 hours respectively. In terms of luminescence or the amount of light each of these produce, to get the equivalent 60W of light from an incandescent bulb, we only have to consume around 14W for a CFL52 and 6W for a LED. The initial presumption is that the investment of environment friendly options would be high. But considering the lifespan and the low power consumption of both CFL And LED ,the cost would be recovered in no time. In fact imagine, the money saved over the entire life span of and LED bulb_60,000 hours. By some estimates, over its life span ,itll save you close to Rs 16,000 in cost of bulbs(40 incandescent) as well as electricity cost. But a figure which we can relate to more is how much the switch from incandescent bulbs will save you in simple energy costs for year-Rs 788 for two bulbs. Driving Tips It is a commonly accepted fact that driving between 45 to 55 kmph increases fuel efficiency. At this optimal speed we are expected to drive without jerky acceleration and speed braking. The thumb rule is not to be an aggressive driver and it will save you 15% of your fuel cost. The basic principle is that if the car is to be stopped for more than 30 seconds than the engine should be stopped. The initial surge of fuel burn at ignition gets countered if the wait time is above 30 seconds.A Japanese study shows that for a distance of 3,700 kms when idling norms are strictly followed it saves 6%.For an average Indian car with a mileage of 15kmpl this
49

http://indiatoday.intoday.in/site/Issue?issueId=136 Ibid 51 Ibid 52 Ibid


50

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distance would cost around Rs. 1200 a fuel.So we could potentially save Rs. 740 evry 3,700 kilometres.Consider this :if you travel 30 km a day ,just preventing your car from idling can save us 6% of Rs. (30*365*50/15=2190) a year. Switch to solar heating One of the biggest guzzlers of electricity in any household is the big old water heater.In some parts of the country water is heated for nearly half a year. This water is not just used for bathing but for other applications-washing hands, cooking etc. A typical storage water heater that can raise the temperature of 25 litres by 35 degrees Celsius has a rating of 2000w and takes about 33 minutes to do it.So a reasonable estimate would be that wee need an average of 2 cycles to heat about 100 litres of water,i.e one hour of usage a day.This means around 6okwh.Comes out to be Rs.240 per month just on heating water.By way of instant heaters the amount is almost the same. At a flow of 3 literes per minutes most instant heaters raise the temperature by 21 degrees. So heating around 100 litres of water takes about half an hour of runtime. However instant heaters have a higher rating than storage water heaters-4500W.This means that 15 hours a month * 4500W=67.5 kWh.At the cost of Rs. 4 per unit that comes out to be Rs.270. Buy Star Rated Products Energy star rating was first introduced by the Us Department of Energy in 1992. The program ensures strict testing procedures in order to identify and promote energy efficient products. This reduces green house gases as well as saves money for the end users. Specific to India, B.E.E (Bureau of Energy Efficient, Govt of India) has come out with a standard. Originally designed for air conditioning equipment, the objective of this labelling system if efficient use of energy and its conservation. BEE star label is now mandatory for frost free refrigerators, room Acs, tabular fluorescent lamps and distribution transformers. We saw the BEE star label on a couple of heaters too. The rating system is quite consumer friendly. The number of stars can vary from 1-5. High stars indicate higher energy efficiency and more energy bill saving for customers. On a demo chart for refrigerators we noticed that a five star rated product consumed about half the electricity as non-rated refrigerator which translated into a saving of Rs. 1750 per year.

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Use Natural Resources Many homes as well as offices are increasingly being designed to be naturally lit, cooled and heated . you too can structure your activities in such a way that use natural light more often. For instance if you want to read a book there is no other source of light better than diffused sunlight. On the ventilation front cross ventilation along with ceiling fans can do wonders. They are cheap too, costing less than 30 paise to room. Put up light reflecting films on windows to keep indoor cooler. Clean air filters in acs this improves ventilation and air flow too. This method should allow you to keep your cooling costs down by atleast 10 percent which would be typically about Rs. 400 a year if your AC bill is Rs. 4000 a year. Banish The Vampires Any electronic appliance when its on standby or even switched of draws some amount of power as long as its plunged into a socket. This is known as vampire power. While many of us know that such a thing occurs, we often underestimate the magnitude of how much this drain could be. Some estimates suggest that up to 22% of all appliance consumption occurs from standby power drain. Adapters that usually dont come with a power button are the most hefty vampires. To avoid this it is recommended that you get power strips and flips just one switch for a set of connected appliances to turn them off. Or better yet pull out the plug . The minimum reduction in bills is estimated to be around 10 percent. So if you spend about Rs. 1000 on your electricity bill per month you should save Rs 100. Adjust The Settings Turn your water heater thermostat down 2 degrees in winter and up several degrees in the summer. Set your A/C thermostat to 23-25 degrees Celsius. It provides enough comfort and the AC operates for lesser time. Check if your refrigerator is unnecessarily cooling more than you need. Use appropriate load settings for your washing machine. Go Lcd Some people believe that the lower power consumption of an LCD is overrated and that continuing with a CRT is the way to go. This is absolutely false. Lets just compare the power consumptions. A typical 19-inch CRTs power rating is set at around 100 W, and a similar-

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sized LCD, around 30 W. so what type of savings are we talking of here? Say you run a monitor for seven hours a day for a year. A CRT will then consume around 255 kilowatt-hours of power, and the LCD will pull around 76. Assuming that 1 unit (1 kilowatt-hour) of power is priced around Rs. 4, the difference in bills between the CRT and the LCD over a year is around Rs. 700. Multiply that by three years (the common warranty with most monitors), thats over Rs. 2,100 saved. If you use your screen for more than seven hours, that would mean an ever bigger saving. Now the cost to replace a CRT is also very affordable, since at the lower screen sizes LCDs are dirt cheap. Also remember, LCDs run at much lower temperatures. If you use an air-conditioner in your computer room, the benefits of using an LCD might show up from further savings in this region as well. And of course lets not forget the glare reduction. By now you wouldve realized that your little piggy bank of savings has become quite substantial. 3.2 GREEN ENTREPRENUERS: Protecting the earth is not just everybody's business today but is also getting to be big business. Given that the world is still trying to crack how to green the planet at prices that don't burn a hole in the pocket, there is an immense opportunity for young Indian companies in this space. Be it generating power from biomass or fuelling automobiles with biofuels, there is money to be made the clean way as many young entrepreneurs are discovering. With India announcing its biofuels policy late last year, many are engaged in cultivation of plants like jatropha across barren stretches of land, while others are developing water heaters that run on solar power. While the going has not been good as the urgency has not yet built up in India, green warriors are preparing for the big battle ahead. And making neat profits while doing so.
CASE STUDY 1: Electricity run vehicles Company: YoBykes

What they do: Produce Battery-driven Scooters


Turn over: Rs 50 crore

YoByke, a battery-operated, gearless, zero-emission scooter is making your commute both cheap and green. "It is environment-friendly and the best alternative available for mobility without pollution," says Shailesh Bhandari, managing director, Electrotherm India, manufacturer of YoBykes. Set up in 2006 as a brainchild of company Chairman Mukesh Bhandari, the response in the very first year was promising with 30,000 bikes sold through its 300 dealers and showrooms. Today, the factory in Kutch churns out 50,000 units every
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year. Priced between Rs 25,000 and Rs 40,000, the bike matches most conventional twowheelers in the market and can run 75 km on a full charge. Over the last three years, the research department has developed four models of varying capacity- Smart, Speed, Election and Explore-with a high-powered 100 cc scooter ready for a June launch. Says Shailesh: "In an age when it is imperative to reduce greenhouse gases, the authorities should take measures to encourage such products." Case Study 2: Their Place In The Sun
Company: Nuetech Solar Systems What they do: Produce Solar Water Heaters

Turn over: Rs 25 crore

In 1992, when Kumar and his associates decided to set up Nuetech Solar Systems in Bangalore to manufacture solar water heaters.Today their belief in the clean technology sector has paid off, as any venture that saves energy is in a "sweet spot". After installing over 15 lakh litres worth of solar water heaters and having saved 75,000 units (kWh) of electricity, the company has come a long way. Nuetech claims that a household saves approximately 40 to 60 per cent of its electricity bill after switching over to a solar water heater. Unlike traditional solar water heaters, Nuetech's water heaters use evacuated solar technology. From manufacturing four heaters a day, the company's new manufacturing facility has a capacity of 1,500 units per month. State government incentives have helped. Says Kumar: "Today, the state mandates all new buildings to install a solar water heater. This has given a boost." Case Study 3 : Money From Nothing
Company: Ramky Enviro Engineers Limited What they do: Waste Management Turn over: Rs 353 crore

Turning waste to wealth is brisk business. That is what an environmental engineer Alla Ayodhya Rami Reddy has discovered in promoting Ramky Enviro Engineers Limited that has emerged as one of India's leading integrated environmental and waste management infrastructure provider. "For us, it is both a business opportunity and a social responsibility to protect the environment while making profits," says the group's CEO Dinesh K. Khare. With these watchwords, Ramky is operating 11 hazardous waste management facilities, 14
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hospital waste management facilities and 10 municipal solid waste management facilities across India. The company has also signed MoUs with state governments to set up 19 municipal integrated recycling facilities. Moreover, Ramky has joined hands with ITC in its initiative to recycle solid waste by providing households in Andhra Pradesh with bags to collect recyclable waste and then send it for reprocessing. The collection teams pay households Rs 4 per kg for paper and Rs 2 per kg for plastics and metals and employ 50 persons, usually ragpickers, for every 50,000 households. Now, the group is examining the prospects of converting urban waste into power, though at Rs 12 crore a MW, almost three times the cost of energy generated from conventional sources, it seems to be an expensive project. The company is also exploring the potential of waste management in Saudi Arabia and Oman. Case Study 4 : Airs To The Future
Company: Sumaya HMXSystems What they do: Provide Low-cost Conditioning Solutions Turn over: Rs 10 crore

Bangalore-based A. Vaidyanathan, founder of a new-age cooling company, Sumaya HMX Systems, always believed that there was a market for efficient and low-cost cooling in India. So in 1998, he set up Sumaya, offering a cooling method that claims to significantly lower costs. Unlike normal air-conditioning, Sumaya's ambiators work on the principle of cooling ambient air in two stages. This innovative new comfort-conditioning system uses up to 60 per cent less power than traditional models and works without the use of chlorofluorocarbons which emit greenhouse gases into the atmosphere.With the developed countries having committed to reducing their carbon footprint, the green and efficient cooling technology is finding acceptance in large corporates like NIIT, Wipro and Honeywell. While a conventional air-conditioning unit used for a small office will emit 62 kg of carbon dioxide a year, units produced by Sumaya could cut emission levels by up to a third. Though Vaidyanathan is on the right track, he is yet to achieve the economies of scale that would put his company in the big league. Case Study 5: Fields Of Gold
Company: Nandan Biomatrix What they do: Produce Biofuels 38 | P a g e

Turn over: Rs 70 crore

Starting out as a company trying to market medicinal herbs in 1996, Nandan Biomatrix today wants to nurture all things green. While its neutraceuticals division focuses on highvalue medicinal plants for commercial cultivation and bulk extraction, the relatively new division on green fuels is looking to straddle the entire value chain of biofuels. The company currently has 40,000 hectares under jatropha cultivation and is targeting about 90,000 hectares by the end of this year through active contract farming.The company is looking at a multi-pronged strategy for this. And in order to make it a cash-neutral business for the farmer, C.S. Jadhav, marketing director at Nandan Biomatrix, says: "Our franchisee will provide all the help the farmer needs to grow this new crop. And on maturity, we will buy back the crop from the farmers." However, India currently faces a crisis in terms of collecting adequate feedstock as not many farmers are growing non-edible oil yielding plants. Till such time more plant oil comes on stream, the bio-diesel business may not be able to look forward to a very green harvest. Case Study 6: Living On Credits
Company: Greenko

What they do: Produce Renewable Energy


Turn over: Rs 21 crore

It's hard to imagine anyone making money out of agricultural waste, but that's precisely what Mahesh Koli and his partner Anil Chalamalasetty are doing. Founded in 2006, Greenko collects agricultural waste from food processing companies and sugar mills and converts it into clean power, which essentially means that power generated from biomass does not burn fossil fuels and thereby does not emit carbon dioxide into the atmosphere. In a short span of three years of its operation, the company is one of the largest players in the renewable energy market in India, with six small biomass plants and several other small hydro projects spread across the country. The biomass plants take the agricultural waste and burn it to create steam, and the power generated from that is put into the grid.Greenko is currently putting 42 MW from its biomass plants into the national power grid and 60 MW from small hydro plants. Another 200 MW capacity is underway. The company claims that it is selling power to the state electricity boards for Rs 3.50 per unit, whereas the going rate is Rs 8.50 a unit. Not only does the company earn money by selling power
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but it also earns carbon credits after having reduced 30,000 tonnes of carbon, which it can sell in the international markets. So it's a win-win situation. Case Study 7: Catalysing Conversions
Company: Regenastar

What they do: Manufacturing Conversion Kits for Generators and Engines Turn over: N.A. In Oxford while studying for an MBA, Shashank Verma and Sagun Saxena worked on a project on biofuels and were excited by its prospects. When they returned to India, the duo started a company to promote sustainable biofuel production but there were not many takers. Instead of changing the whole energy cycle, they decided to set up Regenastar, a company that offers technological assistance to help generator sets and engines using diesel to function on biofuels.Regenastar's kit is like a CNG kit that can sit on top of an existing diesel engine or genset. Once fitted with that equipment, the genset or engine can run on biofuel, produced from any plant oil. An added advantage is that even used cooking oil can be used to power these kits. Essentially, this technology would enable a farmer to run his tractor on oil produced through his farm products. All that is required on the farmer's part is an investment of Rs 45,000 to Rs 90,000. Currently, the company is in talks with several companies that are big guzzlers of diesel to run pilots on their large generators.

3.3 CLEAN DEVELOPMENT MECHANISM 3.3.1 ORIGIN OF CLEAN DEVELOPMENT MECHANISM & CONCEPT OF CARBON CREDIT The primary purpose of the Protocol was to make developed countries pay for their ways with emissions while at the same time monetarily rewarding countries with good
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behaviour in this regard. Since developing countries can start with clean technologies, they will be rewarded by those stuck with dirty ones. This system poises to become a big machine for partially transferring wealth from wealthy, industrialised countries to poor, undeveloped countries. A CER or carbon Credit is defined as the unit related to reduction of 1 tonne of CO2 emission from the baseline of the project activity.53 Let us say that India decided to invest in a new power station, and has decided on a particular technology at the cost of X crore. An entity from an industrialised country (which could even be a company) offers to provide India with slightly better technology, which costs more (say Y crore), but will result in lower emissions. The industrialised country will only pay the incremental cost of the project viz. Y minus X. In return, the investing country will get certified emission reductions (CERs), or credits, which it can use to meet its Kyoto commitments. This is a very good deal indeed but for the investing country. Not only do they sell developing countries their technology, but they also meet their Kyoto commitments without lifting a finger to reduce their domestic emissions. Countries like the US can continue to pollute at home, so long as it makes the reductions elsewhere

3.3.2 CDM PROJECT TYPES Carbon Credits are sold to entities in Annex-I countries, like power utilities, who have emission reduction targets to achieve & find it cheaper to buy offsetting certificate rather than do a clean-up in their backyard. Type of projects, which are being applied for CDM and which can be of valuable potential, are: Energy efficiency projects Increasing building efficiency (Concept of Green Building/LEED Rating), eg. Technopolis Building Kolkata Increasing commercial/industrial energy efficiency (Renovation & Modernization of old power plants) Fuel switching from more carbon intensive fuels to less carbon intensive fuels; and
53

"Kyoto Protocol". Unfccc.int. 2008-05-14

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Also includes re-powering, upgrading instrumentation, controls, and/or equipment Transport Improvements in vehicle fuel efficiency by the introduction of new technologies Changes in vehicles and/or fuel type, for example, switch to electric cars or fuel cell vehicles (CNG/Bio fuels) Switch of transport mode, e.g. changing to less carbon intensive means of transport like trains (Metro in Delhi); and Reducing the frequency of the transport activity Methane recovery Animal waste methane recovery & utilization Installing an anaerobic digester & utilizing methane to produce energy Coal mine methane recovery Collection & utilization of fugitive methane from coal mining; Capture of biogas Landfill methane recovery and utilization Capture & utilization of fugitive gas from gas pipelines; Methane collection and utilization from sewage/industrial waste treatment facilities Industrial process changes Any industrial process change resulting in the reduction of any category greenhouse gas emissions Cogeneration

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Use of waste heat from electric generation, such as exhaust from gas turbines, for industrial purposes or heating (e.g. Distillery-Molasses/ bagasse) Agricultural sector Energy efficiency improvements or switching to less carbon intensive energy sources for water pumps (irrigation) Methane reductions in rice cultivation Reducing animal waste or using produced animal waste for energy generation (see also under methane recovery) and Any other changes in an agricultural practices resulting in reduction of any category of greenhouse gas emissions

Source: http://www.newint.org/features/2006/07/01/391-facts-1.gif 3.3.3 INDIAN SCENARIO- FAVOURING POINTS a) India - high potential of carbon credits

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b) India can capture 10% of Global CDM market c) Annual revenue estimated range from US$10 million to 330 million d) Wide spectrum of projects with different sizes e) Vast technical human resource f) Strong industrial base g) Dynamic, transparent & speedy processing by Indian DNA (NCDMA) for host country approval h) MoU Signed between MoP and GTZ (Oct 2006)- Indo German Energy program (IGEN) Baseline CO2 Emissions from Power Sector already in place- first CDM country Improvement in EE CDM in Power Sector

CHAPTER 4 :- CONCLUSION
Forty years after the first Earth Day, the world is in greater peril than ever. While climate change is the greatest challenge of our time, it also presents the greatest opportunity an
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unprecedented opportunity to build a healthy, prosperous, clean energy economy now and for the future. Earth Day 2010 can be a turning point to advance climate policy, energy efficiency, renewable energy and green jobs. Earth Day Network is galvanizing millions who make personal commitments to sustainability. Earth Day 2010 is a pivotal opportunity for individuals, corporations and governments to join together and create a global green economy. Join the more than one billion people in 190 countries that are taking action for Earth Day. This is a time to remember the environmental challenges facing us. And opportunity to live better lives, help the planet, and build a strong economy. One need not choose to have either a healthy environment or a strong economy - one can have both. While many say that steps to solve environmental challenges are too costly, solving these problems Presents a great opportunity for businesses to thrive by providing cleaner energy, greener buildings, efficient transportation, and less wasteful ways of living. The fate of the environment is our own fate. Earth Day is the, most widely celebrated international event and provides a chance to remember what an amazing planet we live on. The only planet in our solar system teeming with incredible biodiversity. Learning about earth, which includes oceans, protecting the biodiversity, atmosphere etc., is what Earth Day is all about. People all over the world celebrate and make efforts to protect plants, animals and clean up the Earth we live in. On 22nd April 1970, Earth Day marked the beginning of the modern environmental movement and hence forth it is celebrated on this day every year. Countries celebrate Earth Day in different ways, by cleaning the city, releasing stamps, arranging various kinds of competitions among children, educating the masses about earth resources and its sustainable use through leaflets etc,. 2 The Ministry of Earth Sciences has proposed to celebrate the event by organizing activities on the theme - Save Earth (covering land, ocean and atmosphere).Various other topics such as - Green house effect, Ozone hole, its causes and effects, Global warming, Sustainable use of natural resources, Impact of Climate change on Indian monsoon, Deforestation and afforestation its significance, Ocean resources ( Living & non living resources ), Energy resources (conventional & non-conventional energy resources), Desalination, Tsunami Early Warning System, Ocean Technology, Marine instruments, Polar Science and Earthquake studies have also been proposed for the days celebration. Sustainable development in India now encompasses a variety of development schemes in social, cleantech (clean energy, clean water and sustainable agriculture) and human resources segments, having caught the attention of both Central and State governments and also public
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and private sectors. Social sector, cleantech investments into green energy and fuel alternatives and development schemes for backward and below the poverty line (BPL) families are being touted as some of the more heavily invested segments in India in 2009, despite the economic slowdown. In fact, India is expected to begin the greening of its national income accounting, making depletion in natural resources wealth a key component in its measurement of gross domestic product (GDP). Indias sustained work towards reducing Greenhouse Gases (GHG) will ensure that the countrys per capita emission of GHG will continue to be low until 2030-31, and it is estimated that the per capita emission in 2031 will be lower than per capita global emission of GHG in 2005, according to a new study. Even in 2031, Indias per capita GHG emissions would stay under four tonnes of CO2, which is lower than the global per capita emission of 4.22 tonnes of CO2 in 2005. India has been ranked ninth in the tree planting roll of honour in a campaign to plant a billion trees, which was launched by the United Nations Environment Programme (UNEP) in November 2006. The country has registered 96 million trees. The government has formulated the National Policy on Biofuels and given its approval

for setting up the National Bio-fuel Coordination Committee and Bio-Fuel Steering Committee. Under the policy, it targets increasing the blending of biofuels with petrol and diesel to 20 per cent by 2017. The Indian Renewable Energy Development Agency (IREDA) will be investing around

US$ 3.39 billion for the development of renewable energy (RE) sector projects during the 11th Five Year Plan. As per Planning Commission estimates, RE projects worth US$ 15.97 billion, (expected to generate 15,000 MW power) are likely to come up in the Plan. The government is considering a regulation to make use of renewable energy

mandatory for special economic zones (SEZ) to save on traditional fuel like coal and diesel. India is likely to spend over US$ 20.4 billion on setting up of power plants based on

renewable energy sources by the end of 2011-12.

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The government has allowed 100 per cent FDI (foreign direct investment) in the

renewable energy sector and a conducive policy has been put in place to attract foreign companies. hubs. In the Union Budget 2010-11, the government announced the setting up of the National The government is proposing to convert special economic zones (SEZs) into green

Clean Energy Fund (NCEF) for funding research and innovative projects in clean technologies. To build the corpus of the NCEF, clean energy cess on coal produced in India at a nominal rate of Rs.50 per tonne will be levied. This cess will also apply on imported coal. 11. Moreover, the plan outlay for the Ministry of New and Renewable Energy has been

increased by 61 per cent, from US$ 136.83 million in 2009-10 to US$ 220.70 million in 2010-

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1. Angell, D. J. R., J. D. Corner, et al., Eds. Sustaining earth: response to the

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3. Brown, L. R., C. Flavin, et al Saving the planet: how to shape an environmentally

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