CDM India Emission
The key issues in gaining potential CDM market.
As an output of available data of GHG emission potential in India it is very clear that India has enough potential to achieve the emission reduction till 2012 and also in post Kyoto agreement.(post Kyoto agreement will be from 2012 to 2015) (Shukla et al. 2003).
To achieve these targets India still have to fight with some realities and barriers. There can be a proper environemt build to realize this CDM potential. If the transaction costs can be lowered or optimized it may attract more invester and CERs buyers. Thus we can describe main three barriers as following. (Raghuraman 2002)
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elevated prospects by the host country.
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Low transaction costs.
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Considerable GHG emission reduction.
The table bellow elaborates the sector wise issues in detail.
To ensure the huge potential of Indian CDM progress there has to be some
Table 4.12. CDM potential of different interventions in various sectors in India
|
Sector |
GHG emissions (million tonnes/year) |
Possible options for GHG reductions |
CDM potential |
Issues that need to be addressed |
|
Industrial energy efficiency
|
150.674 |
-Focus on improving energy efficiency through a mix of measures (i.e., sector-specific technological options, cross-cutting technologies, fuel switch options, and recycling and use of secondary materials) for seven energy-intensive industry sectors, namely, cement, pulp and paper, fertilizer, iron and steel, textiles, aluminium, and refineries -Energy efficiency improvement for small-scale industry sectors through technology upgrading, information dissemination, and easy availability of credits |
15 million tonnes CO2e/annum |
-Lack of awareness and information infrastructure -Shortage of capital to fund energy conservation projects -Lack of R&D efforts to achieve energy efficiency Lack of access to state-of-the-art technologies Market distortions -Absence of proper institutional set-up for small-scale industries -Transaction cost for small-scale CDM projects Issue of bundling of small-scale projects and the problem of developing baselines |
|
Power
|
343.991
|
-Coal washing: reduce ash content from 40% to 30% -Fuel switch: imported LNG in current coastal coal plants -Move towards critical and super-critical boilers Integrated gasification combined cycle (IGCC) technology
|
24 million tonnes CO2e/annum
|
-High cost of technology Poor financial health of state electricity boards -Technological barriers
|
|
Sector
|
GHG emissions (million tonnes/year) |
Possible options for GHG reductions |
CDM potential |
Issues that need to be addressed |
|
Transport |
80.286 |
-Mass rapid transport system -Fuel switch: CNG for cars and buses -Design induced energy-efficiency improvement Inter fuel substitution -Use of bio-diesel Use of alternate power packs (2-stroke in place of 4-stroke, hybrid, fuel cells, etc.) |
6.5 million tonnes CO2e/annum |
-Difficulties in calculation of baseline, as transport emissions are usually very dispersed and difficult to monitor Absence of standardized guidelines and procedures for baseline calculation -Technological barriers |
|
Renewable energy |
N/A |
-Wind Solar Biofuels Bagasse cogeneration Mini hydro -Biomass gasification |
90 million tonnes CO2e / annum |
-Technological barriers -Investment barriers -Lack of R&D efforts to promote renewable energy --Lack of awareness and information infrastructure -Limited servicing and repair infrastructure - High transaction costs for biomass-energy projects (due to their small and dispersed nature - Lack of market infrastructure for biomass-energy projects to set up financing mechanisms, distribution companies, and maintenance support |
|
Sector |
GHG emissions (million tonnes/year) |
Possible options for GHG reductions |
CDM potential |
Issues that need to be addressed |
|
Agriculture and livestock |
344.485 |
-Standardization of fuelefficient irrigation pumpsets and retrofitting existing pump-sets for higher energy efficiency -Better water management -More efficient application of synthetic fertilizers and enhanced organic fertilizer use Improved animal feeds and digesters |
35 million tonnes CO2e / annum |
Establishment of a baseline for CDM for agricultural and livestock activities Rationalization of power tariffs for the agriculture sector |
|
Municipal solid waste |
12.222 |
-Technological options to minimize municipal solid waste and reduce emissions of GHGs through the following: -Reduction of methane escaping into the atmosphere -Displacement of fossil fuels from power generation either by methane or by MSW itself -Displacement of chemical fertilizers by the organic fertilizers produced during treatment of MSW |
1.2 million tonnes CO2e/annum |
-Lack of financial resources with municipalities Poor enforcement of regulations - Lack of awareness of the local bodies, stakeholders, and citizens |
|
Land use, land-use change, and forestry (LULUCF) |
14.292 |
-Re-vegetation (afforestation and reforestation) of wasteland areas Promotion of commercial forestry options - Carbon sink conservation -Fossil fuel substitution (using biomass as fossil fuel replacement) |
947 million tonnes CO2e in 12 years, or 78.175 million tonnes CO2e/annum |
-Complexities in baseline measurement Permanence of carbon sequestration -Lack of institutional capacity and enforcement of appropriate legislation for afforestation and reforestation programmes -Low private investment in the forestry sector |
Source : http://www.iges.or.jp/en/news/topic/0512cdm.html Country Guide For CDM India at IGES website 2005)
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