Mains – 14th Nov 23

Green Credit Programme

Why in News?

The Government of India’s Ministry of Environment, Forest, and Climate Change has recently issued the preliminary implementation regulations for the ‘Green Credit Programme (GCP)’ for the year 2023.

This program was initially introduced in the 2023-24 Union Budget, aiming to harness a competitive market-oriented strategy, encourage voluntary environmental initiatives from diverse stakeholders and promoting a sustainable lifestyle known as ‘LiFE’ (Lifestyle for Environment)

 

About

• As per the scheme, individuals, industries, farmers producer organisations (FPOs), urban local bodies, gram panchayats and private sectors, among a host of other entities, will be able to earn green credit for undertaking environment friendly actions.
• The Green Credit Programme serves as a supplementary system to the national Carbon Market. While the domestic carbon market primarily concentrates on decreasing CO2 emissions, the Green Credit System seeks to fulfil various environmental responsibilities, motivating corporations, individuals, and local authorities to adopt sustainable practices.
• These green credits will be exchangeable, allowing those who earn them to offer them for sale on a forthcoming domestic market platform.
• The Indian Council of Forestry Research and Education (ICFRE) shall be the administrator of the programme which will develop guidelines, processes and procedures for implementation of the programme.

 

Key Sectors identified for the programme

Under the scheme, there are certain sectors that government has identified to qualify as Green Credits. These are –

• Tree Plantation – based Green Credit
• Water – based Green Credit
• Sustainable Agriculture – based Green Credit
• Waste Management – based Green Credit
• Air Pollution Reduction – based Green Credit
• Mangrove Conservation and Restoration – based Green Credit
• Eco mark – based Green Credit
• Sustainable building and infrastructure – based Green Credit

 

Potential benefits

• The Green Credit Programme will also motivate private sector businesses, companies, and other organizations to fulfil their current responsibilities under various legal frameworks. This can be achieved by engaging in activities that align with the generation or acquisition of green credits.
• These guidelines combine methods for quantifying and endorsing ecosystem services, making them particularly beneficial for organic farmers and Farmer Producer Organizations (FPOs).
• It’s a pioneering tool that aims to assess and incentivize multiple ecosystem services, enabling green initiatives to attain maximum benefits beyond carbon alone.

Concerns

• Experts worry that Greenwashing could result from the market-based process of green credits.
  • The term “greenwashing” describes the practise of making inflated or deceptive claims about environmental sustainability or accomplishments in order to promote a positive image while failing to provide substantive environmental advantages.
• There is a concern that businesses or other organisations may participate in tokenistic or flimsy actions to earn green credits without making real attempts to alleviate environmental problems.
• Concerns exist over the efficiency of these systems in achieving immediate carbon reductions as well as the allocation of funds to monitoring and fraud prevention instead of more revolutionary government-led initiatives.

 

About Carbon Markets

They are essentially a tool for putting a price on carbon emissions i.e. establish trading systems where carbon credits or allowances can be bought and sold.

They are broadly of two types namely Voluntary and Compliance Market.

• Voluntary Markets- Emitters buy carbon credits to offset emission of one ton of CO2 or equivalent greenhouse gases. Such carbon credits are created by activities which reduce CO2 from the air, such as afforestation.
• Compliance Markets- They are set up by policies at national, regional, or international level and are officially regulated. They mostly operate under ‘cap-and-trade” principle.

 

Related Development

Recently, Parliament passed Energy Conservation (Amendment) Act 2022 to establish carbon markets in India and specify a carbon trading scheme.

 

Amendments to Energy Conservation Act 2001

Energy Conservation Act, 2001 provides a framework for regulating energy consumption and promoting energy efficiency and energy conservation.

Amendment in 2010

The Act was first amended in 2010 to expand its scope and bring the following subjects under its ambit

• Energy conservation norms for buildings; enhanced energy efficiency norms for appliances and equipment.
• A framework for the trade of energy savings among energy-intensive Designated Consumers (DCs).
• Increased penalties for offences committed under the Act, including violation of norms for efficiency and consumption standards.
• Provided room for appeals to be heard by the Appellate Tribunal for Electricity (APTEL).

Amendment in 2022

• While 2001 act deals with saving energy, 2022 amendment deals with saving the environment and tackling climate change, thus broadening scope and objective of principal Act.

 

Key Features of 2022 Amendment Act

• Carbon credit trading: It empowers central government to specify a carbon credit trading scheme.
  • Carbon credit implies a tradable permit to produce a specified amount of carbon dioxide or other greenhouse emissions.
  • Central government or any authorized agency may issue carbon credit certificates to entities registered and compliant with scheme.
• Obligation to use non-fossil sources of energy: The 2001 Act empowered the central government to specify energy consumption standards.
  • The amendment adds that government may require designated consumers to meet a minimum share of energy consumption from non-fossil sources like green hydrogen, green ammonia, etc.
  • Failure to meet obligation will be punishable with a penalty of up to Rs 10 lakh.
• Energy Conservation code for buildings: The 2001 Act empowered central government to specify Energy Conservation Code for buildings.
  • The amendment amends this to provide an ‘Energy Conservation and Sustainable Building Code’.
  • This new code will provide norms for energy efficiency and conservation, use of renewable energy, and other requirements for green buildings.
  • Under 2022 amendment, new Code will also apply to the office and residential buildings meeting above criteria. It also empowers state governments to lower the load thresholds.
• Standards for vehicles and vessels: Under 2001 Act, energy consumption standards may be specified for equipment and appliances which consume, generate, transmit, or supply energy.
  • The amendment expands the scope to include vehicles (as defined under the Motor Vehicles Act, 1988), and vessels (includes ships and boats).
• Regulatory powers of SERCs: The 2001 Act empowers State Electricity Regulatory Commissions (SERCs) to adjudge penalties under the Act.
  • The 2022 amendment adds that SERCs may also make regulations for discharging their functions.
• State Energy Conservation Fund: The amendment requires State Governments to constitute energy conservation funds for promotion of energy efficiency and conservation measures. This fund shall receive contribution by both Union and State govt.
• Composition of governing council of BEE: The 2022 amendment increases and diversifies number of members and secretaries in governing council of BEE

 

Concerns with the amendment

• Concept of Carbon Trading: The principles of carbon markets were established in the 1997 Kyoto Protocol, but to date there have been few, if any, measurable reductions in greenhouse gas (GHG) emissions that can be attributed to these measures.
  • The two most important carbon markets so far – the EU Emissions Trading System (EU-ETS) and the UN’s carbon offsetting scheme, Clean Development Mechanism (CDM) – are failures, yet, new carbon markets based on these schemes are being planned in both developed and developing nations.
• Challenges in meeting obligations: There may not be a widespread generation of power from some of these sources that the consumer can access. For instance, share of biomass in India’s total installed electricity generation capacity was 2.5%, as of August 2022.
  • Technologies like green hydrogen and green ammonia are still at a nascent stage. Currently, it may not be feasible to produce energy from them affordably. Energy is a key input to industrial activity, and such an obligation may adversely impact competitiveness of industry.
• Some experts raised concerns that the amendment has a centralized structure, despite the fact that each state has its own dynamics of energy production and consumption. 2022 amendment proposes only five representatives of the States in governing council of BEE. It means that a majority of the States would not be able to register their opinion in BEE.
• Experts have also raised concerns about issues related to overlap between the existing policies – Energy Saving Certificates, Renewable Energy Saving Certificates and the new policy – carbon credit certificates trading.

Perform, Achieve and Trade – PAT · It is a market-based mechanism to further accelerate as well as incentivize energy efficiency in the large energy-intensive industries. · The Energy Savings Certificates (ESCerts) were introduced in India in 2011 under the PAT by the Bureau of Energy Efficiency (BEE) under the National Mission of Energy Efficiency. · NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008. · PAT covered about 13 energy-intensive sectors: Thermal power plants (TPP), cement, aluminium, iron and steel, pulp and paper, fertiliser, chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textile and commercial buildings (hotels and airports). · A report released by Centre for Science and Environment in 2021 stated  that the PAT scheme is not effective due to non-transparency, neglected deadlines etc.   Energy Savings Certificates – ESCerts · This market- based mechanism is facilitated through the trading of Energy Savings Certificates (ESCerts) which are issued to those plants who have overachieved their targets. · The underachievers are entitled to purchase ESCerts through two power exchanges – Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL). · Industries that take part in this scheme are referred to as designated shoppers (DC).   Renewable Energy Certificates · Renewable Energy Certificates (RECs) is a market-based instrument to promote renewable sources of energy and development of the market in electricity. · There are two categories of RECs – Solar and Non-Solar. · One REC is created when one megawatt hour of electricity is generated from an eligible renewable energy source. · Under Renewable Purchase Obligation (RPO) bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of RECs. They can buy RECs from renewable energy producers. · In India, RECs are traded on two power exchanges — Indian Energy Exchange (IEX) and Power Exchange of India (PXIL). · The price of RECs is determined by market demand, and contained between the ‘floor price’ (minimum price) and ‘forbearance price’ (maximum price) specified by the Central Electricity Regulatory Commission (CERC).   Renewable Purchase Obligation · The RPO is a mechanism by which the obligated entities (mainly power distribution utilities or discoms) are obliged to purchase a certain percentage of electricity from renewable energy sources, as a percentage of the total consumption of electricity.

 

 

Rashtriya Gokul Mission

Why in News?

After nearly a decade of the Rashtriya Gokul Mission, it has been observed that rather than enhancing the overall quality of indigenous breeds as originally intended, the program has predominantly favoured the promotion of a single indigenous variety, the Gir cow, throughout the country.

Rashtriya Gokul Mission (RGM) · About o RGM is being implemented for development and conservation of indigenous bovine breeds since December 2014. o It is implemented under the National Programme for Bovine Breeding and Dairy Development (NPBBD). o It is being implemented by the Department of Animal Husbandry & Dairying. · Objectives o To enhance productivity of bovines and increasing milk production in a sustainable manner using advance technologies. o To propagate use of high genetic merit bulls for breeding purposes. o To enhance Artificial insemination coverage through strengthening breeding network and delivery of Artificial insemination services at farmers doorstep. o To promote indigenous cattle & buffalo rearing and conservation in a scientific and holistic manner. · Significance o The scheme is important in enhancing milk production and productivity of bovines to meet growing demand of milk. o It will also make dairying more remunerative to the rural farmers of the country. o The mission will result in enhanced productivity and benefit of the programme, percolating to all cattle and buffaloes of India especially with small and marginal farmers. o This programme will also benefit women in particular since over 70% of the work involved in livestock farming is undertaken by women.

 

 

What is the Issue with Rashtriya Gokul Mission?

Prominence of Gir Cow in Rashtriya Gokul Mission:

• India’s Rashtriya Gokul Mission, established in 2014,initially designed to research and develop high-quality semen for various indigenous bovine varieties, the mission has primarily focused on Gir cows and not much on other breeds.
• This preference for Gir cows stems from their milk production and adaptability to different regions.

Impact on Livestock Numbers:

• The 2019 livestock census showed a 70% increase in purebred Gir cows since 2013. In contrast, other indigenous breeds like Sahiwal and Hariana have not experienced similar growth, with some even witnessing a decline in numbers.
• This trend raises concerns about the loss of diversity in indigenous cattle breeds in India.

What are the Issues with Indigenous Gir Cow Breed?

Inconsistent Performance of Graded Gir Cows:

• Contrary to the growing obsession with Gir cows, research reveals that graded Gir cows (a crossbreed between Gir and other nondescript varieties) do not consistently outperform indigenous breeds in many states.
• For example, in Haryana, there is no evidence of increased milk production in graded Gir cows.
• East Rajasthan has reported lower milk production in graded Gir cows compared to indigenous varieties, leading to farmer complaints about shorter lactation periods and reduced daily milk yields.
• However, in west Rajasthan, graded Gir cows perform better due to favourable climatic conditions.

Factors Beyond Adaptation to Microclimates:

• The performance of graded Gir cows is influenced by factors beyond their adaptability to microclimatic conditions. For instance, Gir cows thrive in herds, and their milk production decreases when raised in isolation.
• Without adequate resources and support, these cows can become a liability for farmers. This was evident in a previous case in Vidarbha.

What Solutions Can be Adopted ?

Emphasis on Genetically Superior Indigenous Cows:

• Experts suggest a shift from the current focus on a few high-yielding bovine varieties to identifying and breeding genetically superior cows from among indigenous breeds.
• Maharashtra’s animal husbandry department conducted a successful experiment in 2012-14 by delivering semen from genetically superior indigenous breeds to farms, showcasing the potential of this approach.

Long-Term Prospects of Indigenous Bovine Varieties:

• India boasts a diverse cow population, each adapted to specific regions. Continuous crossbreeding could lead to the extinction of region-specific traits in graded varieties.
• For instance, crossbreeding Badri cows from Himachal Pradesh and Uttarakhand with Gir cows may increase milk production but could alter their physiology, which need to be avoided.