A

Report on
Global Warming & Carbon Credit

Submitted on Jan 20, 2011 for the Partial fulfilment of Coursework in

Executive MBA (2010 – 2013).

Subject: Business Communication.

Group: G-3
Group Members:

Dr. S. B Patil
Anand Deshpande
Samidha Ghatge
Sachin Hambar
Anand Deshpande
Aniruddha Borkar

(First Year Ex-MBA 2010 – 2013)

Contents
1 Global Warming.............................................................................................................................4
1.1 Introduction...........................................................................................................................4
1.2 The Science of Global Warming.............................................................................................6
1.3 GREENHOUSE Effect..............................................................................................................8
1.4 Global Warming Causes.........................................................................................................9
1.4.1 Artificial Causes (Caused by Human Activity).................................................................9
1.4.2 Natural Causes.............................................................................................................14
1.5 Effects of Global Warming...................................................................................................15
1.5.1 Global Warming Effects on Climate and Global Sea Level............................................16
1.5.2 Global Warming Effects on Physical Environment.......................................................18
1.5.3 Global Warming Effects on Terrestrial Ecosystems & Habitats....................................19
1.5.4 Global Warming Effects on Marine Ecosystems & Habitats.........................................20
1.5.5 Global Warming Effects on Biodiversity & Animals......................................................20
1.5.6 Global Warming Effects on Various Seasonal Processes of Plants & Animals..............21
1.5.7 Global Warming Effects on Humans............................................................................21
1.6 Recent Global Warming Disasters........................................................................................22
1.7 India's strategy to fight global warming...............................................................................23
1.8 Preventative Measures........................................................................................................25
1.8.1 National Level..............................................................................................................25
1.8.2 Household Measures...................................................................................................28
2 Carbon Credits.............................................................................................................................30
2.1 Introduction.........................................................................................................................30
2.2 Background..........................................................................................................................30
2.3 Kyoto Protocol.....................................................................................................................31
2.3.1 The Kyoto mechanisms................................................................................................33
2.3.2 Emission markets.........................................................................................................34
2.3.3 Monitoring emission targets........................................................................................35
2.3.4 Adaptation...................................................................................................................35
2.3.5 Indian scenario.............................................................................................................35
2.3.6 Projects In India...........................................................................................................36
2.4 Copenhagen climate conference.........................................................................................38
2.4.1 Key points of the Copenhagen Accord.........................................................................38
2.4.2 Countries......................................................................................................................39
2.4.3 Need of New Global Agreement..................................................................................39
2.4.4 Impact of Copenhagen deal.........................................................................................39
2.5 Cancún Summit, COP 16: A Brief Overview..........................................................................40
2.5.1 Expectations.................................................................................................................40
2.5.2 Outcomes – the deal reached......................................................................................40
2.5.3 International reaction and comments.........................................................................42
2.5.4 Looking forward...........................................................................................................42
2.6 Conclusion...........................................................................................................................43
1 Global Warming

1.1 Introduction
There is a growing concern about global warming and the impact it will have on people and
the ecosystems on which they depend. Temperatures have already risen 1.4°F since the
start of the 20th century—with much of this warming occurring in just the last 30 years—and
temperatures will likely rise at least another 2°F, and possibly more than 11°F, over the next
100 years. This warming will cause significant changes in sea level, ecosystems, and ice
cover, among other impacts. In the Arctic, where temperatures have increased almost twice
as much as the global average, the landscape and ecosystems are already changing rapidly.
Most scientists agree that the warming in recent decades has been caused primarily by
human activities that have increased the amount of greenhouse gases in the atmosphere.
Greenhouse gases, such as carbon dioxide, have increased significantly since the Industrial
Revolution, mostly from the burning of fossil fuels for energy, industrial processes, and
transportation. Carbon dioxide levels are at their highest in at least 650,000 years and
continue to rise. There is no doubt that climate will continue to change throughout the 21st
century and beyond, but there are still important questions regarding how large and how
fast these changes will be, and what effects they will have in different regions. In some parts
of the world, global warming could bring positive effects such as longer growing seasons and
milder winters. Unfortunately, it is likely to bring harmful effects to a much higher
percentage of the world’s people. For example, people in coastal communities will likely
experience increased flooding due to rising sea levels.
The scientific understanding of climate change is now sufficiently clear to begin taking steps
to prepare for climate change and to slow it. Human actions over the next few decades will
have a major influence on the magnitude and rate of future warming. Large, disruptive
changes are much more likely if greenhouse gases are allowed to continue building up in the
atmosphere at their present rate. However, reducing greenhouse gas emissions will require
strong national and international commitments, technological innovation, and human
willpower.
The instrumental temperature record shows the fluctuations of the temperature of the
atmosphere and the oceans as measured by temperature sensors. As is seen in the figure,
The X axis represents the time, and the Y axis represents temperature anomaly in degree
Celsius. 'Anomaly' roughly means departure from a baseline. In this figure, the 1961–1990
global average temperature is used as the baseline value. The annual global temperature
determined is subtracted from this base value and the result obtained is plotted on the
graph corresponding to the year on X axis.

Following are the Top Ten Carbon Dioxide Emitters Countries

Annual CO2 emissions
Percentage of global
Rank Country (in thousands of metric
total
tons)
 World 29,321,302 100%
1  China 6,538,367.00 22.30%
2  United States 5,830,381.00 19.91%
-  European Union (27) 4,177,817.86 14.04%
3  India 1,612,362.00 5.50%
4  Russia 1,537,357.00 5.24%
5  Japan 1,254,543.00 4.28%
6  Germany 787,936.00 2.69%
7  Canada 557,340.00 1.90%
8  United Kingdom 539,617.00 1.84%
9  South Korea 503,321.00 1.72%
10  Iran 495,987.00 1.69%

1.2 The Science of Global

Warming
The earth is naturally warmed by rays
(or radiation) from the suns which
passes through the earth’s atmosphere
and are reflected back out to space
again. The atmosphere's made up of
layers of gases, some of which are called 'greenhouse gases'. They're mostly natural and
make up a kind of thermal blanket over the earth. This lets some of the rays back out of the
atmosphere, keeping the earth at the right temperature for animals, plants and humans to
survive (60°F/16°C).

Sunlight brings energy into the climate AMPLIFIED GREENHOUSE EFFECT:

system; most of it is absorbed by the
oceans and land.
 
THE GREENHOUSE EFFECT:
Heat (infrared energy) radiates
Higher concentrations of CO2 and
other "greenhouse" gases trap more
infrared energy in the atmosphere
than occurs naturally. The additional
 outward from the warmed surface of heat further warms the atmosphere
the Earth. and Earth’s surface.
Some of the infrared energy
is  
 
absorbed by greenhouse gases in the
 
atmosphere, which re-emit the energy 
in all directions.
Some of the infrared energy further
warms the Earth.
Some of the infrared energy is emitted
into space.

In order to understand the mechanics of global warming, let’s see how the Earth is
“powered” by the Sun (through solar radiation), how the energy (radiation) between these
two entities is continuously recycled, and how this cycle maintains the equilibrium
temperature of the Earth.
Here is how this process works:
 The Earth receives its original supply of radiation from the Sun.
 The Earth then reflects 30% of this solar radiation back into space in its original form.
The reflection of light back into space - largely by clouds, ice sheets etc.
 The Earth absorbs the remaining 70% of this solar energy and then re-radiates it
back into space in the infrared radiation form.
So in order to maintain thermal equilibrium, the amount of radiation reflected and re-
radiated from the Earth must be equal to the amount of the original radiation received from
the Sun.

1.3 GREENHOUSE Effect

The Earth’s atmosphere is a unique environment which consists of a number of naturally
occurring gases.
The content of the atmosphere is roughly as follows: (17)
• Nitrogen (around 78% of the total)
• Oxygen (around 20% of the total)
• Water vapour (substantial amount)
• Carbon dioxide (small amount)
• Trace gases (hydrogen, argon, helium and other gases)
Gases such as Water vapour, Carbon Dioxide, Methane, Nitrous oxide, chlorofluorocarbons
and Ozone are often called green house gases because during the day the earth soaks up
heat, and these gases act like a greenhouse trapping in the heat. Some of the heat is
radiated back out into space, and if weren’t for these gases things would freeze over during
the night. The issue of course is the increase in greenhouse gases, which is trapping in more
heat, and causing a rise in global temperature.

1.4 Global Warming Causes

1.4.1 Artificial Causes (Caused by Human Activity)

The main immediate global warming cause is the increased concentration of greenhouse
gases in the atmosphere. The greenhouse gases are the by-products of many human
activities. Once emitted, some of these greenhouse gases end up in the atmosphere, where
they trap a certain amount of originally solar energy (which would have otherwise escaped
to space), and thus radiate this energy back to the Earth raising the planet’s average
temperature.
 Fossil Fuels
The first fundamental global warming cause is an absolute dependence of the modern
human society on the burning of fossil fuels, which is the most important source of
greenhouse gas emissions. The focal point of this cause is the generation of energy for use
both in industry and commercial/private sector.
Fossil fuel combustion is especially heavily used as a source of energy for industry. In fact,
industry literally cannot exist without fossil fuels. Carbon dioxide (CO2) is the main
greenhouse gas emitted as a by-product of fossil fuel combustion. This gas is the most
important immediate global warming cause.
Some amounts of carbon dioxide are removed from the atmosphere by the carbon sinks,
such as tropical rainforests and oceans, as part of the process of carbon exchange between
the atmosphere and the Earth (“carbon cycle”). This carbon exchange has been taking place
for thousands of years. It is an implicit guarantor of the Earth’s climate stability since the
amount of carbon on the planet is more or less constant.
Carbon is indeed “the chemical basis of all known life”. The carbon content of past living
organisms has been stored in the form of fossil fuels – oil, gas and coal, which we use in
virtually every aspect of our lives.
But the problem is that, the amounts of these fuels burned to provide society with energy
represent the carbon captured by photosynthesis over millions of years. So, by burning
them…we have returned carbon dioxide to the atmosphere thousands of times faster than
the rate at which it was removed by the early tropical forests. In other words, we now
release very large amounts of carbon dioxide at a very high rate, and the nature is unable to
remove it in good time.
This leads to the accumulation of extra carbon in the atmosphere and, consequently, to
global warming.
We have some other industry-related activities (usually called industrial processes) which
are also significant sources of greenhouse gases such as fluorocarbons, carbon dioxide as
well as small amounts of methane (CH4) and nitrous oxide (N2O).
The products whose manufacturing causes the emission of these gases include cement,
minerals, chemicals, metals.
Many activities related to industrial processes use large amounts of energy and thus
produce significant amounts of greenhouse gas emissions through fossil fuel combustion.
But industrial processes also produce greenhouse emissions not related to fossil fuel
combustion but rather related to the use of specific methods and materials for the
manufacture of the products mentioned above.
So the first global warming cause is related to activities which are performed to generate
energy for industry and commercial & private sector needs.

 Land Usage
The second fundamental global warming cause is related to the way we use our land, i.e.
land use.
Among other applications, most common land use activities include:
 Modern agricultural practices employed to breed animals, grow cereals, fruits &
vegetables and other foods, all for human consumption. The two important greenhouse
gases emitted by agricultural practices are methane (CH4) and nitrous oxide (N20).
 Clearance of land for timber sales or for the expansion of human settlements / cattle
ranches. Alongside a cocktail of pollution released as part of this process, the main
greenhouse gas emitted is carbon dioxide (CO2).
A very important element of this area is tropical deforestation, especially by way of
forest fires, which alongside other pollutants causes the release of carbon dioxide.
 A significant component related to, but different from, land use is waste management.
The main greenhouse gas emitted as a result of waste management activities is
methane, with some small amounts of nitrous oxide.

Land Use Changes

Urban environments create
islands of heat from industry,
buildings, automobiles, and the
absorption of solar energy by
dark-coloured surfaces.

Greenhouse gases warm the planet:

 Carbon dioxide (CO2) has both natural and human sources, but CO2 levels are increasing
primarily because of the use of fossil fuels, with deforestation and other land use
changes also making a contribution. Increases in carbon dioxide are the single largest
climate forcing contributing to global warming.
 Methane (CH 4) has both human and natural sources, and levels have risen significantly
since pre-industrial times due to human activities such as raising livestock, growing rice,
filling landfills, and using natural gas (which releases methane when it is extracted and
transported).
 Nitrous oxide (N2O) concentrations have risen primarily because of agricultural activities
and land use changes.
 Ozone (O3) forms naturally in the upper atmosphere, where it creates a protective
shield that intercepts damaging ultraviolet radiation from the Sun. However, ozone
produced near the Earth’s surface via reactions involving carbon monoxide,
hydrocarbons, nitrogen oxide, and other pollutants is harmful to both animals and plants
and has a warming effect. The concentration of O3 in the lower atmosphere is increasing
as a result of human activities.
 Halocarbons, including chlorofluorocarbons (CFCs), are chemicals that have been used
for a variety of applications, such as refrigerants and fire retardants.
In addition to being potent greenhouse gases, CFCs also damage the ozone layer. The
production of most CFCs is now banned, so their concentrations are starting to decline.
Other human activities can also force temperature changes:
 Most aerosols (airborne particles and droplets), such as sulphate (SO4), cool the planet
by reflecting sunlight back to space. Some aerosols also cool the Earth indirectly by
increasing the amount of sunlight reflected by clouds. Human activities, such as
industrial processes, produce many different kinds of aerosols. The total cooling that
these aerosols produce is one of the greatest remaining uncertainties in understanding
present and future climate change.
 Black carbon particles or “soot,” produced when fossil fuels or vegetation are burned,
generally have a warming effect because they absorb incoming solar radiation. Black
carbon particles settling on snow or ice are a particularly potent warmer.
 Deforestation and other changes in land use modify the amount of sunlight reflected
back to space from the Earth’s surface. Changes in land use can lead to positive and
negative climate forcing locally, but the net global effect is a slight cooling.
 Contributions of Atmospheric Gases and
Solar Radiation to Warming
Scientists have estimated the contribution
to warming made by a range of gases, dust
and solar radiation. They have a high level
of certainty that greenhouse gases
contribute the most to warming, with
increases in CO2 as the greatest
contributor with about 1.4 watts/meter2
and methane, nitrous oxide, and
halocarbons making smaller contributions.
Scientists have a lower level of certainty
about the contributions of reductions in
stratospheric ozone and increases in
tropospheric aerosols, which cool the Earth
by 0.3 watts/meter2 and 0.9 watts/meter2
respectively. Solar radiation may also
contribute to warming but scientists have a
very low certainty about the level of this
contribution.

1.4.2 Natural Causes

 Solar Variations
The Sun is the source of energy for the Earth’s climate system. Although the Sun’s
energy output appears constant from an everyday point of view, small changes over an
extended period of time can lead to climate changes. Some scientists suspect that a
portion of the warming in the first half of the 20th century was due to an increase in the
output of solar energy.
Learning how the Sun changed before modern instruments were available is not easy,
but it appears that changes in the output of solar energy have been small over the last
million years, and probably even longer.
 Orbital Variations
 Slow changes in the Earth’s orbit lead to small but climatically important changes in the
strength of the seasons over tens of thousands of years. Climate feedbacks amplify
these small changes, thereby producing ice ages.
o Eccentricity
Earth’s orbit oscillates very slightly between nearly circular and more elongated
every 100,000 years. This cycle is evident in the glacial/interglacial cycles of
roughly the same period.
o Tilt
The Earth spins around an axis that is tilted from perpendicular to the plane in
which the Earth orbits the Sun. This tilt causes the seasons. At the height of the
Northern Hemisphere winter the North Pole is tilted away from the Sun, while in
the summer it is tilted toward the Sun. The angle of the tilt varies between 22°
and 24.5° on a cycle of 41,000 years. When the tilt angle is high, the Polar
Regions receive less solar radiation than normal in winter and more in summer.
o Wobble
There is a slow wobble in the Earth’s spin axis, which causes the peak of winter
to occur at different points along the Earth’s elliptical orbital path. This variation
in the seasons occurs on an approximately 23,000-year cycle.
 Volcanic eruptions
Volcanic eruptions emit many gases. One of the most important of these is sulphur
dioxide (SO2), which, once in the atmosphere, forms sulphate aerosol (SO4). Large
volcanic eruptions can cool the Earth slightly for several years, until the sulphate
particles settle out of the atmosphere.

1.5 Effects of Global Warming

The general retreat of mountain glaciers during the past century is one example of evidence
that the climate is changing.
1928 1979 2003
South Cascade Glacier, South Cascade Glacier, South Cascade Glacier,
Washington Washington Washington

Climate change will affect ecosystems and human systems—such as agricultural,

transportation, and health infrastructure—in ways we are only beginning to understand.
There will be positive and negative impacts of climate change, even within a single region.
For example, warmer temperatures may bring longer growing seasons in some regions,
benefiting those farmers who can adapt to the new conditions but potentially harming
native plant and animal species. In general, the larger and faster the changes in climate are,
the more difficult it will be for human and natural systems to adapt.

1.5.1 Global Warming Effects on Climate and Global Sea Level

According to IPCC’s 2007 predictions, the global climate and sea level are likely to undergo
the following changes:
Changes to Climate Patterns
 The greatest increase in the temperature is projected to occur over the polar region
of Northern Hemisphere due to:
o melting of sea ice, and
o Associated reduction in surface albedo (a fraction of light that is reflected by a

body or surface. It is commonly used in astronomy to describe the reflective

properties of planets, satellites, and asteroids)

 Northern Hemisphere will warm faster than Southern Hemisphere

 Greater warming over lands than over the oceans
 Changes in global precipitation patterns:
 o Increased precipitation in polar and sub polar regions
o Decreased precipitation in middle latitudes
 While precipitation near the Equator is projected to increase, the
rainfall in subtropics is projected to decrease
o Droughts and floods in many areas
 Decreased summer precipitation and greater rates of evaporation in
North America, Europe and Africa will be a cause of decreased soil
moisture and droughts in many regions
 Changes in the hydrological cycle (greater rates of evaporation and
precipitation) may lead to intense precipitation and flooding in many
regions
 Oceans are likely to continue to warm for several centuries due to greenhouse
concentrations which have already taken place
 Decrease in the global circulation of the oceans that helps carry warm water from
the subtropics towards the coastal regions of Europe, and thus helps moderate the
climate of this continent; such a disturbance could cause “dampening of surface
warming”, rather than actual cooling, in the north of the Atlantic Ocean.

Extreme Weather Events

There is a certain level of agreement in the scientific community that many
extreme weather events that we are now witnessing on a more regular basis
are consequences of increasing global temperatures.
There are many extreme weather events that may be attributed to global
warming:
• Floods
• Droughts
• Heat waves
• Extreme winter cold and snow fall
• Tornadoes
• Extreme storms
• Tropical cyclones / hurricanes / typhoons
 Currently, scientists are still debating whether an increase in intensity of
tropical cyclones, which have an enormous destructive potential, is a result of
rising ocean temperatures.
There seems to be a lot of evidence to support the statement that global
warming is a major cause at work here. Extreme weather events in general
are projected to increase as a result of global warming.
Changes to Global Sea Level
 Further increase in global sea level is expected due to the melting of ice cover
including Greenland and Antarctica:
o Complete melting of Greenland ice sheet would be caused by only an
additional 2 ° C and would cause global sea level to rise by 5 – 6 meters.
This event would submerge a substantial number of islands and lowland regions.

Global Warming Effects: Greenland Ice Cracking

Among other regions, these would include:

 US Gulf Coast and Eastern Seaboard (including the lower third of Florida)
 Much of the Netherlands and Belgium
 Heavily populated tropical areas like Bangladesh
 World’s major cities – Tokyo, New York, Mumbai, Shanghai, Dhaka
 If the complete loss of the West Antarctic ice sheet were to occur, this would lead to
a 10.5 m rise in the global sea level.
This event might take several centuries to occur but it is possible that the rate of loss
might be a lot faster.
1.5.2 Global Warming Effects on Physical Environment
The global warming effects have a potential to be so disastrous that many terrestrial and
marine ecosystems and habitats around the planet may, at best, be severely damaged, and
at worst, disappear altogether.
Coastal ecosystems such as wetlands, salt marshes and mangrove swamps, are the most
vulnerable ones. Rising sea levels as well as warming-induced catastrophes which may strike
coastal areas, will naturally affect millions of human settlements inhabiting them as well.
UN Environmental Programme (UNEP) 2002 report suggests that 40% of the world’s total
population live in coastal areas less than 60 km from the shore. These populations and
their environmental support systems are without doubt the most vulnerable groups at risk
of climate change consequences. There is a real fear among some small island inhabitants
that their lands may totally disappear under water because of rising sea levels caused by
global warming.
As an example, the government of the Maldives - an archipelago of almost 1,200 coral
islands located in the Indian Ocean with most islands lying just 1.5 meters above the sea
level - is considering a purchase of land elsewhere in the world for a complete relocation
of this nation, because of the fear that these islands will be totally flooded by rising sea
levels.
Apart from coastal areas, virtually every type of other ecosystems will be affected in some
way or another.

1.5.3 Global Warming Effects on Terrestrial Ecosystems & Habitats

Global Warming Effects on Forests
Forests are sensitive ecosystems which are seriously affected by global warming. Warmer
climate encourages the growth of pests which destroy forests in unprecedented numbers. A
good example of that is a pine beetle infestation of forests in British Columbia, Canada,
which would have killed 50% of the pines by 2008. Forest ecosystems also face the risk of
wildfires due to the warmer climate. There is a double relationship between global warming
and forest wildfires. Originally, wildfires may be caused by global warming. But since forests
are huge carbon storages, wildfires become an actual cause of global warming in their own
turn, because carbon dioxide which is released during the fires contributes to the
greenhouse effect. Tropical rainforests are also part of a so-called carbon cycle positive
feedback. Global warming certainly puts forests in an unenviable position.
For example, Amazon is the biggest remaining tropical rainforest on the planet.
The IPCC projects that:
By mid-century, increases in temperature and associated decreases in soil water are
projected to lead to gradual replacement of tropical forest by savanna in eastern Amazonia.

Global Warming Effects on Mountains

Mountains cover roughly 25% of the Earth’s surface and provide habitat for plants, animals
and people inhabiting these areas. Apart from an increased number and intensity of forest
fires and reduced diversity of wildlife, another significant effect that climate change will
force upon the mountainous ecosystems is the melting of their snow cover and retreat and
disappearance of glaciers.

1.5.4 Global Warming Effects on Marine Ecosystems & Habitats

Ocean Acidification
Oceans are the world’s biggest carbon sinks and have absorbed about half of all
anthropogenic carbon dioxide since around 1800. But this important environmental service
comes at a big price: the oceans have become significantly more acidic as a result of this
process. Ocean acidification has been implicated for damaging some of the most beautiful
creatures on the planet – coral reefs, as well as other shell-forming organisms.

1.5.5 Global Warming Effects on Biodiversity & Animals

Indeed, rising global temperatures put famously rich biodiversity of tropical rainforests
and other ecosystems at an extremely high risk of disappearance.
In its most recent assessment, the IPCC re-iterates that:
20-30% of species assessed so far are likely to be at increased risk of extinction if increases
in global average warming exceed 1.5-2.5°C (relative to 1980-1999), and
As global average temperature increase exceeds about 3.5°C, model projections suggest
significant extinctions (40-70% of species assessed) around the globe.
Global warming does not only make vegetation “gasp for air” but also leads to animal
habitat loss.
Example: Polar bears have become “poster children” for the melting of Arctic ice due to
climate change. Melting ice reduces the ability of polar bears to find enough food as they
prefer to use ice as a platform to hunt for prey.
It is not only the habitat loss and spread of diseases that may cause animal extinction. It is
also the availability of food and water for animals that will likely be made scarcer as a
result of global warming. The list of animals at risk of climate change will, of course, be
longer and longer as the planet gets hotter and hotter.

1.5.6 Global Warming Effects on Various Seasonal Processes of Plants &

Animals
Many seasonal processes are also affected by global warming.
We are starting to witness:
 Earlier leaf production by trees
 Earlier greening of vegetation
 Changed timing of egg-laying and hatching
 Changes in migration patterns of birds, fish and other animals
 Reductions and re-distributions in populations of algae and plankton; this threatens
the existence of fish and other animals that rely on algae and plankton for food

1.5.7 Global Warming Effects on Humans

As virtually all types of plants, animals and environmental ecosystems will be affected by
warmer climate in some way or another, so will the human society in all its complexity be
affected by often unpredictable, wide-ranging and far-reaching global warming
consequences.
By far the most important areas from the point of view of human well-being affected will
be:
 Water supplies
Water makes up 70% of the human body’s chemical composition. It is therefore a resource
without which we cannot exist. This precious resource is now under serious threat from
global warming. By the middle of the 21st century, water availability is projected to
[temporarily] increase in higher latitudes and in certain wet tropical regions [due to
melting of mountain glaciers], and decrease in drier parts of the tropics and subtropics,
especially during the summer period. Ironically, the dry regions of the world will get even
drier and will suffer severe droughts, especially southern Africa, Middle East, western
North America and Western Australia. The water quality will also be negatively affected by
heavy precipitation events which may contaminate drinking water supplies. Energy
generation will also affected by water scarcity. Reduced water supplies will have a negative
impact on the power plants depending on water for their functioning, for example, dams,
nuclear plants etc.
 Food supplies
Agricultural productivity for food supplies is, in general, projected to decrease as the
temperatures rise. Agricultural food production will be further affected by extreme
weather events such as droughts and floods. The warming of oceans will have a negative
impact on commercial fisheries.
 Human health
Human health is also under unprecedented stress from global warming. We have already
seen an example of the damage caused by a heat-wave that hit Europe in 2003 - 35,000
deaths. Extreme events such as floods and tropical cyclones will be another major cause
of human deaths. Among other things, a number of infectious diseases is certainly
expected to rise. It’s a well known fact that disease-carrying insects breed well in wet hot
conditions, hence, the result. That will be especially true for tropical countries. Many
millions will suffer from malnutrition because of shortages in food supply. This will lead to
weakened immune systems and general health deterioration.

1.6 Recent Global Warming Disasters

 Flooding in Southern Queensland
Significant flooding occurred in many areas of Queensland during late December 2010
and early January 2011, with three quarters of the state declared a disaster zone.
 Brazil floods: More than 500 dead
More than 500 people are now known to have died in floods in south-eastern Brazil, the
country's worst natural disaster for several decades. Heavy rain has led to massive
mudslides hitting several towns, resulting in thousands being made homeless.

1.7 India's strategy to fight global warming

The developed world and the emerging economies are trying to bridge their differences on
how to curb greenhouse gas emissions that cause global warming. The United States wants
developing countries like India and China to agree to control the emissions being produced
by their rapidly galloping economies by setting specific targets. India argues that this would
hurt its economic growth and wants the industrialised world to curb its pollution as well as
fund new technologies in the developing world by underlining that it has one of lowest
emissions per capita in the world. India has made it clear that it cannot accept legally
binding limits on carbon emissions. Although around 80 per cent of world growth in carbon
emissions is coming from fast growing economies like India and China, India has argued that
even if India's economy continues to grow at current levels for the next decade or two, its
per capita emissions would still be below those of the developed countries. One of the
major stumbling blocks in global negotiations on climate change has been the reluctance of
the developed world to make adequate transfers of finance and enabling technology to the
developing world.
The US, under the present Administration, has also made a commitment to cut its
greenhouse gas emissions by 80 per cent by 2050 compared with 1990. Japan's new Prime
Minister, Yukio Hatoyama, also stated that his country will reduce emissions by 25 per cent
by 2020. As a consequence the emerging economies are now under increasing pressure to
demonstrate their commitments to tackle climate change even as they continue with their
efforts to reduce poverty.
It now seems, however, that India is gradually changing its position also exemplified by
Ramesh's remarks at the recently held high-level climate change summit at the UN
headquarters in New York. He suggested that India "cannot hide behind any excuses and we
[Indians] have to be aggressively taking on voluntary mitigation outcomes."
While accepting binding targets internationally still remains out of question, India is now
underlining that it is important for it to take on national commitments so as to enhance its
global credibility. This change of heart is a result of two inter-related factors. One is the
evolving Chinese response on climate change. China has declared that it is pursuing its
national climate change programme that includes mandatory targets for reducing energy
intensity and discharge of major pollutants as well as increasing forest coverage and share
of renewable energy during the time period of 2005-2010. India was caught unawares by
the specific measures that China announced at the UN General Assembly recently and is
now planning to follow suit. Toward this end, India plans to conduct regular dialogue with
China to exchange views on their respective action plans on climate change.
The other factor driving India's new approach to climate change negotiations is a sense
among Indian strategic elite that a rising India should engage the world on its own terms
and with a degree of confidence that befits its stature as a rising power in the international
system.
In tune with this assessment, India agreed at the Major Economies Forum meeting in Italy
that all countries would work to reduce emissions in order to not let global temperatures
rise more than 2 degrees above pre-industrialisation level. India has committed itself to a
mandatory fuel efficiency cap to begin in 2011, a change in its energy matrix whereby
renewable sources will account for 20 per cent of India's power usage by 2020 as well as
announced an ambitious solar energy plan.
India does not want to be seen as a spoiler in the climate change negotiations and would
like to bolster its image as a responsible global actor ready to offer constructive help in
mitigating global problems rather than being a persistent nay-sayer. Developing countries
want to be supported financially and through technology sharing with the rich industrialized
world. That commitment has not been forthcoming so far. Without any financial and
technological assistance, states like India will not be willing to open their efforts at
greenhouse emissions reductions to international verification. Climate change talks not only
involve competing economic interests but also raise matters of broad principle for the
West's relationship with developing nations.
India has shown itself ready to lead coalitions of developing nations in the past; vetoing
those global agreements they see as discriminatory. The issue of the West's 'historical
responsibility' for atmospheric pollution is being case in similar terms and Indian agreement
will be hard to secure.
Yet the fact that India has started to gradually change its approach towards one of the
biggest challenges facing the international community portends well for the future.

1.8 Preventative Measures

1.8.1 National Level
On June 30, 2008, Prime Minister Manmohan Singh released India’s first National Action
Plan on Climate Change (NAPCC) 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 Minister’s Council on Climate Change by December 2008.
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 India’s per capita greenhouse gas emissions “will at no point exceed that of developed
countries even as we pursue our development objectives.”
National Missions
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 center,
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:
 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
agricultural sectors.
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 India’s 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 India’s 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
Science Research Fund, improved climate modeling, and increased international
collaboration.  It also encourages private sector initiatives to develop adaptation and
mitigation technologies through venture capital funds.
Other Programs
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.
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 Minister’s Council on Climate Change. The Council will also be
responsible for periodically reviewing and reporting on each mission’s progress. To be able
to quantify progress, appropriate indicators and methodologies will be developed to assess
both avoided emissions and adaptation benefits.

1.8.2 Household Measures

You can help to reduce the demand for fossil fuels, which in turn reduces global warming, by
using energy more wisely. Here are 10 simple actions you can take to help reduce global
warming.
1. Reduce, Reuse, Recycle
Do your part to reduce waste by choosing reusable products instead of disposables. Buying
products with minimal packaging (including the economy size when that makes sense for
you) will help to reduce waste. And whenever you can, recycle paper, plastic, newspaper,
glass and aluminum cans. If there isn't a recycling program at your workplace, school, or in
your community, ask about starting one. By recycling half of your household waste, you can
save 2,400 pounds of carbon dioxide annually.
2. Use Less Heat and Air Conditioning
Adding insulation to your walls and attic, and installing weather stripping or caulking around
doors and windows can lower your heating costs more than 25 percent, by reducing the
amount of energy you need to heat and cool your home.
3. Change a Light Bulb
Wherever practical, replace regular light bulbs with compact fluorescent light (CFL) bulbs.
Replacing just one 60-watt incandescent light bulb with a CFL will save you $30 over the life
of the bulb. CFLs also last 10 times longer than incandescent bulbs, use two-thirds less
energy, and give off 70 percent less heat.
4. Drive Less and Drive Smart
Less driving means fewer emissions. Besides saving gasoline, walking and biking are great
forms of exercise. Explore your community mass transit system, and check out options for
carpooling to work or school.
5. Buy Energy-Efficient Products
When it's time to buy a new car, choose one that offers good gas mileage. Home appliances
now come in a range of energy-efficient models, and compact florescent bulbs are designed
to provide more natural-looking light while using far less energy than standard light bulbs.
Avoid products that come with excess packaging, especially molded plastic and other
packaging that can't be recycled. If you reduce your household garbage by 10 percent, you
can save 1,200 pounds of carbon dioxide annually.
6. Use Less Hot Water
Set your water heater at 120 degrees to save energy, and wrap it in an insulating blanket if it
is more than 5 years old. Buy low-flow showerheads to save hot water and about 350
pounds of carbon dioxide yearly. Wash your clothes in warm or cold water to reduce your
use of hot water and the energy required to produce it.
7. Use the "Off" Switch
Save electricity and reduce global warming by turning off lights when you leave a room, and
using only as much as light as you need. And remember to turn off your television, video
player, stereo and computer when you're not using them.
8. Plant a Tree
If you have the means to plant a tree, start digging. During photosynthesis, trees and other
plants absorb carbon dioxide and give off oxygen. They are an integral part of the natural
atmospheric exchange cycle here on Earth. A single tree will absorb approximately one ton
of carbon dioxide during its lifetime.
2 Carbon Credits

2.1 Introduction
A carbon credit is a generic term for any tradable certificate or permit representing the right
to emit one tonne of carbon or carbon dioxide equivalent (CO2).
Carbon credits and carbon markets are a component of national and international attempts
to mitigate the growth in concentrations of greenhouse gases (GHGs). One carbon credit is
equal to one ton of carbon dioxide, or in some markets, carbon dioxide equivalent gases.
Carbon trading is an application of an emissions trading approach. Greenhouse gas
emissions are capped and then markets are used to allocate the emissions among the group
of regulated sources. The goal is to allow market mechanisms to drive industrial and
commercial processes in the direction of low emissions or less carbon intensive approaches
than those used when there is no cost to emitting carbon dioxide and other GHGs into the
atmosphere. Since GHG mitigation projects generate credits, this approach can be used to
finance carbon reduction schemes between trading partners and around the world.

2.2 Background
Burning of fossil fuels is a major source of industrial greenhouse gas emissions, especially for
power, cement, steel, textile, fertilizer and many other industries which rely on fossil fuels
(coal, electricity derived from coal, natural gas and oil). The major greenhouse gases emitted
by these industries are carbon dioxide, methane, nitrous oxide, hydro fluorocarbons (HFCs),
etc., all of which increase the atmosphere's ability to trap infrared energy and thus affect
the climate.
The concept of carbon credits came into existence as a result of increasing awareness of the
need for controlling emissions. The IPCC (Intergovernmental Panel on Climate Change) has
observed that:
“Policies that provide a real or implicit price of carbon could create incentives for producers
and consumers to significantly invest in low-GHG products, technologies and processes.
Such policies could include economic instruments, government funding and regulation”
While noting that a tradable permit system is one of the policy instruments that has been
shown to be environmentally effective in the industrial sector, as long as there are
reasonable levels of predictability over the initial allocation mechanism and long-term price.
The mechanism was formalized in the Kyoto Protocol, an international agreement between
more than 170 countries, and the market mechanisms were agreed through the subsequent
Marrakesh Accords.

2.3 Kyoto Protocol

The Kyoto Protocol is an international agreement linked to the United Nations Framework
Convention on Climate Change. The major feature of the Kyoto Protocol is that it sets
binding targets for 37 industrialized countries and the European community for reducing
greenhouse gas (GHG) emissions .These amount to an average of five per cent against 1990
levels over the five-year period 2008-2012.
Recognizing that developed countries are principally responsible for the current high levels
of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity,
the Protocol places a heavier burden on developed nations under the principle of “common
but differentiated responsibilities.”
The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into
force on 16 February 2005. The detailed rules for the implementation of the Protocol were
adopted at COP 7 in Marrakesh in 2001, and are called the “Marrakesh Accords.”

GHGs covered by the KP

 Carbon Dioxide CO2:                           GWP: 1
 Methane CH4:                                      GWP: 21
 Nitrous Oxide N2O:                            GWP: 310
 Hydroflurocarbons HFCs:                   GWP: > 10,000
 Perfluorocarbons PFCs:                      GWP: > 10,000
 Sulphur hexafluoride SF6:                  GWP: > 20,000
(GWP: metric tons of CO2e per metric ton of GHG)
 → ODS (CFCs, HCFCs) are not covered by the KP
The UNFCCC divides countries into two main groups: A total of 41 industrialized countries
are currently listed in the Convention’s Annex-I, including the relatively wealthy
industrialized countries that were members of the Organization for Economic Co-operation
and Development (OECD) in 1992, plus countries with economies in transition (EITs),
including the Russian Federation, the Baltic States, and several Central and Eastern
European States. The OECD members of Annex-I (not the EITs) are also listed in the
Convention’s Annex-II. There are currently 24 such Annex-II Parties. All other countries not
listed in the Convention’s Annexes, mostly the developing countries, are known as non-
Annex-I countries. They currently number 145. Annex I countries such as United States of
America, United Kingdom, Japan, New Zealand, Canada, Australia, Austria, Spain, France,
Germany etc. agree to reduce their emissions (particularly carbon dioxide) to target levels
below their 1990 emissions levels. If they cannot do so, they must buy emission credits from
developing countries or invest in conservation. Countries like United States of America,
United Kingdom, Japan, Newzealand, Canada, Australia, Austria, Spain etc are also included
in Annex-II. Developing countries (non-Annex I) such as India, Srilanka, Afghanistan, China,
Brazil, Iran, Kenya, Kuwait, Malaysia, Pakistan, Phillippines, Saudi Arabia, Sigapore, South
Africa, UAE etc have no immediate restrictions under the UNFCCC. This serves three
purposes:
 Avoids restrictions on growth because pollution is strongly linked to industrial
growth, and developing economies can potentially grow very fast.
 It means that they cannot sell emissions credits to industrialized nations to permit
those nations to over-pollute.
 They get money and technologies from the developed countries in Annex II.
2.3.1 The Kyoto mechanisms
Under the Treaty, countries must meet their targets primarily through national measures.
However, the Kyoto Protocol offers them an additional means of meeting their targets by
way of three market-based mechanisms.
The Kyoto mechanisms are:
 Emissions trading – known as “the carbon market"
Parties with commitments under the Kyoto Protocol have accepted targets for
limiting or reducing emissions. These targets are expressed as levels of allowed
emissions, or “assigned amounts,” over the 2008-2012 commitment periods. The
allowed emissions are divided into “assigned amount units” (AAUs).
Emissions trading allow countries that have emission units to spare - emissions
permitted them but not "used" - to sell this excess capacity to countries that are over
their targets.
Thus, a new commodity was created in the form of emission reductions or removals.
Since carbon dioxide is the principal greenhouse gas, people speak simply of trading
in carbon. Carbon is now tracked and traded like any other commodity. This is
known as the "carbon market."
 Clean development mechanism (CDM)
The Clean Development Mechanism (CDM), allows a country with an emission-
reduction or emission-limitation commitment under the Kyoto Protocol to
implement an emission-reduction project in developing countries. Such projects can
earn saleable certified emission reduction (CER) credits, each equivalent to one
tonne of CO2, which can be counted towards meeting Kyoto targets.
The mechanism is seen by many as a trailblazer. It is the first global, environmental
investment and credit scheme of its kind, providing standardized emissions offset
instrument, CERs.
A CDM project activity might involve, for example, a rural electrification project using
solar panels or the installation of more energy-efficient boilers.
The mechanism stimulates sustainable development and emission reductions, while
giving industrialized countries some flexibility in how they meet their emission
reduction or limitation targets.
 Joint implementation (JI)
 The mechanism known as “joint implementation,” allows a country with an emission
reduction or limitation commitment under the Kyoto Protocol to earn emission
reduction units (ERUs) from an emission-reduction or emission removal project in
another country, each equivalent to one tonne of CO2, which can be counted
towards meeting its Kyoto target.
Joint implementation offers Parties a flexible and cost-efficient means of fulfilling a
part of their Kyoto commitments, while the host Party benefits from foreign
investment and technology transfer.
The mechanisms help stimulate green investment and help Parties meet their emission
targets in a cost-effective way.

2.3.2 Emission markets

For trading purposes, one allowance or CER is considered equivalent to one metric ton of
CO2 emissions. These allowances can be sold privately or in the international market at the
prevailing market price. These trade and settle internationally and hence allow allowances
to be transferred between countries. Each international transfer is validated by the UNFCCC.
Each transfer of ownership within the European Union is additionally validated by the
European Commission.
Climate exchanges have been established to provide a spot market in allowances, as well as
futures and options market to help discover a market price and maintain liquidity. Carbon
prices are normally quoted in Euros per tonne of carbon dioxide or its equivalent (CO 2).
Other greenhouse gasses can also be traded, but are quoted as standard multiples of carbon
dioxide with respect to their global warming potential. These features reduce the quota's
financial impact on business, while ensuring that the quotas are met at a national and
international level.
Currently there are six exchanges trading in carbon allowances: the Chicago Climate
Exchange, European Climate Exchange, Nord Pool, PowerNext, Commodity Exchange
Bratislava and the European Energy Exchange. Recently, NordPool listed a contract to trade
offsets generated by a CDM carbon project called Certified Emission Reductions (CERs).
Many companies now engage in emissions abatement, offsetting, and sequestration
programs to generate credits that can be sold on one of the exchanges. At least one private
electronic market has been established in 2008: CantorCO2e. Carbon credits at Commodity
Exchange Bratislava are traded at special platform - Carbon place.
Managing emissions is one of the fastest-growing segments in financial services in the City
of London with a market estimated to be worth about €30 billion in 2007. Louis Redshaw,
head of environmental markets at Barclays Capital predicts that "Carbon will be the world's
biggest commodity market, and it could become the world's biggest market overall."

2.3.3 Monitoring emission targets

Under the Protocol, countries’ actual emissions have to be monitored and precise records
have to be kept of the trades carried out.
Registry systems track and record transactions by Parties under the mechanisms. The UN
Climate Change Secretariat, based in Bonn, Germany, keeps an international transaction log
to verify that transactions are consistent with the rules of the Protocol.
Reporting is done by Parties by way of submitting annual emission inventories and national
reports under the Protocol at regular intervals.
A compliance system ensures that Parties are meeting their commitments and helps them
to meet their commitments if they have problems doing so.

2.3.4 Adaptation
The Kyoto Protocol, like the Convention, is also designed to assist countries in adapting to
the adverse effects of climate change. It facilitates the development and deployment of
techniques that can help increase resilience to the impacts of climate change.

2.3.5 Indian scenario

India comes under the third category of signatories to UNFCCC. India signed and ratified the
Protocol in August, 2002 and has emerged as a world leader in reduction of greenhouse
gases by adopting Clean Development Mechanisms (CDMs) in the past few years. According
to Report on National Action Plan for operationalising Clean Development Mechanism
(CDM) by Planning Commission, Govt. of India, the total CO2-equivalent emissions in 1990
were 10, 01, 352 Gg (Gigagrams), which was approximately 3% of global emissions. If India
can capture a 10% share of the global CDM market, annual CER revenues to the country
could range from US$ 10 million to 300 million (assuming that CDM is used to meet 10-50%
of the global demand for GHG emission reduction of roughly 1 billion tonnes CO2, and prices
range from US$ 3.5-5.5 per tonne of CO2). As the deadline for meeting the Kyoto Protocol
targets draws nearer, prices can be expected to rise, as countries/companies save carbon
credits to meet strict targets in the future. India is well ahead in establishing a full-fledged
system in operationalising CDM, through the Designated National Authority (DNA).
Other than Industries and transportation, the major sources of GHG’s emission in India are
as follows:
 Paddy fields
 Enteric fermentation from cattle and buffaloes
 Municipal Solid Waste
Of the above three sources the emissions from the paddy fields can be reduced through
special irrigation strategy and appropriate choice of cultivars; whereas enteric fermentation
emission can also be reduced through proper feed management.
In recent days the third source of emission i.e. Municipal Solid Waste Dumping Grounds are
emerging as a potential CDM activity despite being provided least attention till date.

2.3.6 Projects In India

India has bagged the world's largest carbon credit project that will help replace 400 million
incandescent light bulbs with energy saving CFL bulbs at dirt-cheap prices in a year while
preventing 40 million tonnes of carbon from entering the atmosphere annually. The project,
which will allow the government, investors, Electricity Distribution Companies (DISCOMs)
and CFL manufacturers to sell CFLs at Rs 15 each, instead of the Rs 100 they currently cost
on average, has been approved by the UN under the global carbon credit scheme called
Clean Development Mechanism. The mammoth size of the project can be gauged from the
fact that the world's second largest CDM project earns only about 1.5 million credits a year
in comparison.
The scheme -- called Bachat Lamp Yojna -- works like this. The Electricity Distribution
Companies (DISCOMs) in a state decides to implement the scheme. It picks up a financial
investor, which lends the upfront finance to buy the CFL bulbs at market price to replace the
bulbs in the discom's area. The discom then distributes the bulb to its consumers at Rs 15
apiece and collects the regular bulbs, which it then destroys.
For every ten bulbs that consumers use for a year, a tonne of carbon is prevented from
escaping into the atmosphere as CFL bulbs use substantially less power than incandescent
ones. For every tonne of carbon saved, the Bureau of Energy Efficiency, acting as the anchor,
gets a carbon certificate from the UN, which it then hands over to the investor.
The investor sells the carbon credit in the international market where buyers -- such as
manufacturers and power producers in Europe -- buy the certificates to meet the
greenhouse gas emission reduction targets the countries have set for them. At present, each
certificate sells at around 10-12 Euros in the international spot market. BEE estimates that
investors will be able to recover the rest of the Rs 85 per bulb by 5-6 years and by the 7th
year, earn some on the top. BEE has in its scheme ensured that the CFL bulbs are of a
standard that they last that long.
Several states and cities have been ready to take advantage of the scheme the moment it
becomes operational. Kerala is one such state. It has already found investors and tied up
with manufacturers to distribute roughly 1.5 crore bulbs in the state. In anticipation of the
project clearance, it has begun distribution of the energy saving bulbs to consumers. States
like Uttarakhand and Punjab and cities like Hyderabad are also ready to roll out the scheme
within a month.
2.4 Copenhagen climate conference

The Copenhagen climate conference COP15 resulted in a document called the

Copenhagen Accord. It was hammered out by a small group of countries - including the
world's two biggest greenhouse gas polluters, China and the US. The conference as a
whole did not adopt the accord, but voted to "take note" of it.

The Copenhagen Accord, for the first time, unites the US, China and other major
developing countries in an effort to curb global greenhouse gas emissions. The Kyoto
Protocol did not achieve this - it imposed no obligations on developing countries to
restrain the growth of their emissions, and the US never acceded to it. The accord also
says developed countries will aim to mobilize $100bn per year by 2020, to address the
needs of developing countries.

On the other hand, the summit did not result in a legally binding deal or any
commitment to reach one in future. The accord calls on countries to state what they will
do to curb greenhouse gas emissions, but these will not be legally binding commitments.
Furthermore, there is no global target for emissions reductions by 2050 and the accord
is vague as to how its goals - such as the $100bn of funds annually for developing
countries - will be achieved.

2.4.1 Key points of the Copenhagen Accord

• A commitment "to reduce global emissions so as to hold the increase in global
temperature below 2C" and to achieve "the peaking of global and national emissions
as soon as possible"
• Developed countries must make commitments to reduce greenhouse gas emissions,
and developing countries must report their plans to curb greenhouse gas emissions
to the UN by 31 January 2010
• New and additional resources "approaching $30bn" will be channeled to poorer
nations over the period 2010-12, with an annual sum of $100bn envisaged by 2020
• A Copenhagen Green Climate Fund will be established under the UN convention on
climate change, to direct some of this money to climate-related projects in
developing countries
• Projects to reduce greenhouse gas emissions in developing countries will be subject
to international monitoring if they are internationally funded
• Programs to provide developing countries with financial incentives to preserve forests
- REDD and REDD-plus - will be established immediately
• Implementation of the accord will be reviewed in 2015 and an assessment will be
made of whether the goal of keeping global temperature rise within 2C needs to be
strengthened to 1.5C
2.4.2 Countries
The essential points of the deal were brokered by US President Barack Obama with
representatives of China, India, Brazil and South Africa. Mr. Obama also consulted with
the leaders of France, Germany and the UK. Most countries at the conference gave it
their support, but some countries were resolutely opposed, including Venezuela, Bolivia,
Ecuador and Cuba.

2.4.3 Need of New Global Agreement

The Copenhagen talks sat within the framework of the UN Framework Convention on
Climate Change (UNFCCC), established at the Rio de Janeiro Earth Summit in 1992.

In 1997, the UNFCCC spawned the Kyoto Protocol. But neither of these agreements can
curb the growth in greenhouse gas emissions sufficiently to avoid the climate impacts
projected by the IPCC. In particular, the Kyoto Protocol's targets for reducing emissions
apply only to a small set of countries and expire in 2012.

Negotiations therefore began on new treaty that was bigger, bolder, wider-ranging and
more sophisticated than the Kyoto agreement, and the plan was that these would
conclude in Copenhagen.

2.4.4 Impact of Copenhagen deal

The global average temperature has already risen by about 0.7C since pre-industrial
times.

In some parts of the world this is already having impacts - and a Copenhagen deal could
not stop those impacts, although it could provide funding to help deal with some of the
consequences.

Greenhouse gases such as CO2 stay in the atmosphere for decades; and concentrations
are already high enough that further warming is almost inevitable.

Many analysts suggest an average rise of 1.5C since pre-industrial times is guaranteed.
2.5 Cancún Summit, COP 16: A Brief Overview
The Cancún Climate Change Summit, COP 16, took place in Cancún, Mexico from 29
November to 10 December 2010. The negotiators faced many challenges picking up from
the widely-criticised Copenhagen summit.
2.5.1 Expectations
Copenhagen, COP 15 (7 December to 18 December 2009), was under considerable pressure
from the international community to deliver a legally binding document to cut greenhouse
gas emissions. The end result, however, was the non-binding Copenhagen Accord, a two-
page agreement which states that future temperature rises should be limited to 2°C, but
included no emission targets. This deal was far from any global agreement on replacing the
Kyoto Protocol (due to expire in 2012) and was largely seen as a failure of global
cooperation.
Before the Cancún talks even began, any high expectations fell after several key people,
including UN Secretary Ban Ki-Moon and UNFCCC Executive Secretary Christiana Figueres,
expressed little hope for reaching any new binding deal at Cancún, and urged to reach a
modest agreement instead.2
The major challenge facing Cancún was to transform the Copenhagen Accord into a working
plan of action. Many hoped that Cancún would be seen as a turning point in climate change
negotiations.
2.5.2 Outcomes – the deal reached
The Cancún talks resulted in the Cancún Agreement, which received a lot of praise from
delegates compared with the Copenhagen Accord. However, the international reaction to
the talks was mixed; many politicians hailed it as a milestone in global climate negotiations,
while many scientists and green campaign groups reported that it lacked substance.
The following is a brief summary of the major deals reached:
 Greenhouse Gas (GHG) emission cuts – Pledges4 made by individual countries to cut
GHG emissions by 2020 in the Copenhagen Accord were formally introduced into UN
documentation. The extent of pledged cuts varied from country to country.
Developing countries also agreed to start researching how they could start to cut
emissions, but made no pledges. It should be noted that scientists believe that the
 current pledges will still lead to at least a 3°C temperature rise 5,6, far above the
accepted “safe-warming” level of 1.5–2°C.
 Kyoto Protocol – Its fate, including whether there would be a second phase, was
deferred until Durban, COP 17 (28 November – 9 December 2011).
 Green Climate Fund – The creation of a global fund to help tackle climate change
was approved; it will support programmes, policies and other activities in developing
countries. It will be run largely by developing countries, under the eye of the UN. No
amount of funding was officially agreed upon, although many ministers from
developed countries repeated their promise of raising US $100 billion by 2020.
Developed countries also took note of the fast-start finance agreed upon at
Copenhagen last year to raise US $30 billion by 2012.
 REDD (Reducing Emissions from Deforestation and Degradation) – Formal backing
was given to stop and reverse destruction of forests, given that deforestation
currently produces 15% of the world’s carbon emissions. Rich countries will pay
poorer countries not to destroy forests. Details surrounding the REDD scheme are
still limited, especially regarding whether or not developed countries can use it to
offset their emissions. No scheme would start until 2013 at the earliest.
 Carbon technology – The idea of setting up a mechanism to allow sharing of low
carbon technology between developed and developing countries was agreed upon.
A technology executive committee (TEC) and a climate technology centre (CTC) are
due to be established.
 Inspections – Countries have agreed to allow for verification of their emission cuts.
The monitoring, reporting and verification will depend on the size of a country’s
economy. However, who will be responsible for and carry out the inspections is yet
to be decided.
 New market mechanisms – Existing market mechanisms under the Kyoto Protocol
are International Emissions Trading (IET), Clean Development Mechanism (CDM) and
Joint Implementation (JI), which allow emissions to be traded or offset. The
establishment of new, larger-scale market mechanisms were deferred until Durban.
However, this will also include discussions surrounding current proposals with
regards to CDM (e.g. whether to include carbon capture and storage (CCS) and
 nuclear-based activities) as well as non-market based mechanisms such as carbon
taxes.
The question that remains to be answered is whether Cancún has provided enough building
blocks to pave the way to a new global treaty at Durban.
2.5.3 International reaction and comments
The general consensus was that Cancún was a success compared with Copenhagen and was
a sign of international cooperation. UK Climate Change Minister Chris Huhne said that he
believed “a global deal on climate change was now back on track” 8. On the other hand, the
Global Wind Energy Council commented that Cancún was only counted a success because of
the extremely low expectations going into the talks. 
“Cancún may have saved the [UN] process but it did not yet save the climate," said Wendel
Trio, Greenpeace International Climate Policy Director 9. Friends of the Earth shared a similar
view, commenting that “the outcome is a weak and ineffective agreement, but at least it
gives us a small and fragile lifeline.”
2.5.4 Looking forward
Cancún put the global climate change negotiations back on track after the disappointing
outcome at Copenhagen. However, the toughest decisions remain to be addressed in
Durban or beyond.
Durban will need to close the gap between the emission cuts to date and the much deeper
cuts analysts say are required to meet the minimum “safe-warming” level of 2°C. Other
issues that need to be addressed following on from Cancun include funding for the green
climate fund; where, when and who will organise the TEC/CTC; who will carry out
inspections; and what form the REDD scheme will take. Perhaps the toughest challenge will
be resolving the fate of the Kyoto Protocol, which must be decided upon at Durban, as the
Protocol expires in 2012. As it stands, Russia and Japan have announced that they would not
sign a second phase unless both the US and China were also legally bound. It will be
interesting to see where the US and China stand later this year.
It remains to be seen whether COP 17 in Durban can produce a real action plan. Many
analysts are stressing that whether a new global deal can be reached in Durban will depend
on the decisions of individual nations during 2011.
2.6 Conclusion
There is a great opportunity awaiting India in carbon trading which is estimated to go up to
$100 billion by 2010. In the new regime, the country could emerge as one of the largest
beneficiaries accounting for 25 per cent of the total world carbon trade, says a recent World
Bank report. The countries like US, Germany, Japan and China are likely to be the biggest
buyers of carbon credits which are beneficial for India to a great extent.
The Indian market is extremely receptive to Clean Development Mechanism (CDM). Having
cornered more than half of the global total in tradable certified emission reduction (CERs),
India’s dominance in carbon trading under the clean development mechanism (CDM) of the
UN Convention on Climate Change (UNFCCC) is beginning to influence business dynamics in
the country. India Inc pocketed Rs 1,500 crores in the year 2005 just by selling carbon
credits to developed-country clients. Various projects would create up to 306 million
tradable CERs. Analysts claim if more companies absorb clean technologies, total CERs with
India could touch 500 million. Of the 391 projects sanctioned, the UNFCCC has registered
114 from India, the highest for any country. India’s average annual CERs stand at 12.6% or
11.5 million. Hence, MSW dumping grounds can be a huge prospect for CDM projects in
India. These types of projects would not only be beneficial for the Government bodies and
stakeholders but also for general public.