CARBON CREDIT Of JUTE CARBON CREDIT Of JUTE CARBON CREDIT Of JUTE

6TH MAY, IJIRA, KOLKATA

Dr. S. K. ChakrabartiDr. S. K. ChakrabartiDr. S. K. Chakrabarti

Indian Jute Industries’ Research Association

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Burning of fossil fuel is the major source of Industrial Green House gases ( GHG)- e.g. CO2, CH4, N2O, Sulphur hexafluoride, hydro–fluoro carbons, per-fluorocarbons

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fossil fuels produces CO2

(Combustion)

C + O2 CO2

CO2: The Most Significant Greenhouse Pollutant

CO2: The Most Significant Greenhouse Pollutant

Green House Gases % Contribution

Carbon Dioxide ( CO2) 99.438

Methane ( CH4) 0.471Nitrous Oxide ( N2O) 0.084

Misc. Gases( CFCs etc.) 0.007

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Increase in Population & GHGs Increase in Population & GHGs EmissionEmission

Significant changes in key climate variables

Temperature

Precipitation of toxic gases

Snow cover

Sea level

Patterns in atmospheric & oceanic circulation

Extreme weather and climatic events

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Sector wise GHGs EmissionSector wise GHGs Emission

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Global COGlobal CO22 EmissionEmission

280 PPM of CO2Pre industry era Pre industry era

380 PPM CO2

Currently

1.40-5.8 0C at 2100

(expected)

Emission of CO2 Atm. Temp.

Human induced climate change

192 countries agreed to cut

emission by 2020

Rio Summit 1992

March,1994

Kyoto Protocol1997

Copenhagen summit

2009

UNFCCC came into effect

Adopted the concepts of Carbon Emission Trading

Emission Reduction TargetJoint Implementation

CDM project

Formation of UNFCCC

Montreal Protocol1987

IPCC was established

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United Nations Framework Convention on United Nations Framework Convention on Climate Change (UNFCCC)Climate Change (UNFCCC)

A global legal instrument (International agreement) to protect the climate system and stabilize GHG emissionsAdopted in 1992, entered into force in 1994

– Developed countries: with obligations to take measures to mitigate the effects of climate change e.g. UK, USA, Australia, Germany

Rio

Ear

th S

umm

it

1992

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KYOTO PROTOCOL, 1997KYOTO PROTOCOL, 1997

The Most Significant Constrictive Framework Against Global Warming

The Most Significant Constrictive Framework The Most Significant Constrictive Framework Against Global WarmingAgainst Global Warming

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Kyoto Protocol Kyoto Protocol –– key pointskey points

International Emission Trading

Set GHG emission reduction target for selected countries

Carbon Emissions – ‘Outsourced’ to Developing Countries either by financial exchange or projects that reduce emissions

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1997

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Limitations of CO2 emissions in Developed countries

4 options for companies

1/ Pay expensive fines.

2/ Carry out carbon reduction through

Process development

3/ Buy emissions credits on the

CO2 market (ETS)

4/ Carbon reduction through technology transfers in CDM or JI project.

What Developed countries can doWhat Developed countries can do

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1. CC traded in the International market at current price through five International Exchanges

2. Carbon Credit has been listed in Indian MCX 3. Countries like USA, Germany, Japan and China are likely to be the

biggest buyers of Carbon Credit

CER Trading

JIJI

Emission Emission TradingTrading

Clean Clean DevelopmentDevelopmentMechanismMechanism

(CDM)(CDM)

Joint Implementation

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CDM Project ValidationCDM Project Validation

CDM Project Proponent CDM Project Proponent

$$$

ApprovalFeasibility

Registration

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orpo

rate

A

ssis

tanc

eCarbon Credit Carbon Credit –– Technology Technology

Validators & FinancersValidators & Financers

World BankIDFC

IDBIICICI

FinancersFinancers

ValidatorsValidators

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Advantage of India in Carbon Advantage of India in Carbon CreditCredit

Out of 391 sanctioned CDM projects Out of 391 sanctioned CDM projects UNFCCC registered 114 from India the UNFCCC registered 114 from India the Highest from any country. Highest from any country.

India through CDM projects can create 500 India through CDM projects can create 500 Million CERs per Year.Million CERs per Year.

Estimated benefit out of Carbon Credit is Estimated benefit out of Carbon Credit is $100$100--300 Billion by 2012 300 Billion by 2012

Last one year, number of industries received carbon credit Last one year, number of industries received carbon credit nod by Ministry of Environment and Forests , Govt. of nod by Ministry of Environment and Forests , Govt. of India.India.

Torrent Power, ESSAR Power, Reliance Industries, Apollo Torrent Power, ESSAR Power, Reliance Industries, Apollo Tyres , ONGCTyres , ONGC’’s Hazira refinery, Indian Farmers Hazira refinery, Indian Farmer’’s s Fertilizer CoFertilizer Co--operative Ltd. ( IFFCO) etc. operative Ltd. ( IFFCO) etc.

Delhi Metro Rail CorporationDelhi Metro Rail Corporation

Arvind Mills, JCT Mills, Velatal Spinning MillsArvind Mills, JCT Mills, Velatal Spinning Mills

15 Sugar Mills 15 Sugar Mills

JCT sets up Rice husk based captive power plant (6-8 MW )JCT sets up Rice husk based captive power plant (6-8 MW )

‘Humidification Towers’ of Jaya Shree Textiles under CDM ‘Humidification Towers’ of Jaya Shree Textiles under CDM

Arvind mills submitted two CDM projects to UNFCCC on agro-based steam generation (80,000 CER/ Year)Arvind mills submitted two CDM projects to UNFCCC on agro-based steam generation (80,000 CER/ Year)

Velatal spinning mills Pvt. Ltd. implemented 8.75 MW capacitywind energy based power plant (CER 67184)Velatal spinning mills Pvt. Ltd. implemented 8.75 MW capacitywind energy based power plant (CER 67184)

Carbon Credit in Textile Sector

Delhi Metro Rail CorporationDelhi Metro Rail Corporation

First rail project in the world to earn carbon First rail project in the world to earn carbon credit because of using regenerative breaking credit because of using regenerative breaking system in its trains system in its trains –– reduces 30 % electricity reduces 30 % electricity consumption.consumption.Generates 400,000 CER in the last 10 years Generates 400,000 CER in the last 10 years ––registered to UNFCCC.registered to UNFCCC.CER revenue earned initially Rs.1.2 Crores/yearCER revenue earned initially Rs.1.2 Crores/year

15 CER x 0.8 M Hectare = 12 M CER 15 CER x 0.8 M Hectare = 12 M CER 12 M CER x 15 Euro = 180 M Euro

12 M CER x 15 Euro = 180 M Euro

Credits

15 Tones of Carbon Dioxide per Hectare 15 Tones of Carbon Dioxide per Hectare

vegetative growth

In India Jute Plant is cultivated in 0.8 million hectareIn India Jute Plant is cultivated in 0.8 million hectare

Cultivation

Negative 40,000 CER for CH4emissionNegative 40,000 CER for CH4emission Negative incentivefor CH4 generationNegative incentivefor CH4 generation

1.6 M Tones of Jute/yr. in India1.6 M Tones of Jute/yr. in India

Jute production

2.573 g of Methane/Kg of extracted fibre 2.573 g of Methane/Kg of extracted fibre

Retting of Jute

Methane emission in Jute retting = ( 0.0034 TG / year) Global methane release = ( 500 TG/year)

Methane emission in Jute retting = ( 0.0034 TG / year) Global methane release = ( 500 TG/year)

Jute crops incorporate 3 Million tones of dry leaves per Jute crops incorporate 3 Million tones of dry leaves per year to the soil during defoliation stage prior to retting year to the soil during defoliation stage prior to retting

Through such Green maturing process soil is enriched Through such Green maturing process soil is enriched by an equivalent amount of 90,000 Tons of Nitrogen, by an equivalent amount of 90,000 Tons of Nitrogen, 30,000 Tons of Phosphorous and 80,000 Tons of 30,000 Tons of Phosphorous and 80,000 Tons of Potassium Potassium

Savings of the said Fertilizer cost may be considered as Savings of the said Fertilizer cost may be considered as CER revenue to Jute CultivationCER revenue to Jute Cultivation

Indian Industries adopting CDM Projects are having Indian Industries adopting CDM Projects are having good potential to earn out of Carbon Creditsgood potential to earn out of Carbon Credits

There is , however , lack of awareness and initiatives There is , however , lack of awareness and initiatives among SMEs including Jute sector to implement CDM among SMEs including Jute sector to implement CDM Projects and exploring the benefits of Carbon creditsProjects and exploring the benefits of Carbon credits

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Potential areas of Carbon Potential areas of Carbon Credit in Jute IndustryCredit in Jute Industry

Use of NonUse of Non--conventional Energy , adoption of conventional Energy , adoption of energy efficient Technology energy efficient Technology

Use of Carbon Neutral products/ agroUse of Carbon Neutral products/ agro--based based products in steam generation and Power products in steam generation and Power generationgeneration

Replacement of Fossil Fuel in Jute Processing Replacement of Fossil Fuel in Jute Processing by oils of Vegetable originby oils of Vegetable origin

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Howrah Jute Mill invested Rs. 38 Lakhs to buy a Jute caddis fired Boiler, replaced Fossil fuel in steam generation

Registered the project with UNFCCC and gained 4,112 CER Units in the first issuance

Kamarhaty Jute Mill set up Rice husk based 5 MW captive power plant

Registered for carbon credit

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