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Road Ahead - On Us

FACT-SHEET Energy, emission data of selected countries

Energy intensity  of PPP income (1)

CO2 emission to  energy consumption (2)

CO2 emission to  PPP income (3)

2005

2007

2005

2007

2005

2007

Australia

0.20

0.19

3.09

3.19

0.61

0.59

Brazil

0.15

0.15

1.57

1.47

0.24

0.22

China

0.22

0.20

2.95

3.08

0.65

0.61

Denmark

0.12

0.11

2.42

2.57

0.29

0.29

Germany

0.16

0.14

2.36

2.41

0.37

0.34

India

0.16

0.15

2.14

2.23

0.34

0.33

Japan

0.15

0.14

2.29

2.41

0.35

0.33

Korea

0.22

0.21

2.1

2.2

0.47

0.46

Mexico

0.18

0.16

2.21

2.38

0.4

0.37

Netherlands

0.17

0.15

2.24

2.27

0.38

0.34

Norway

0.18

0.14

1.15

1.37

0.21

0.19

Russia

0.47

0.42

2.39

2.36

1.12

0.99

South Africa

0.28

0.26

2.59

2.57

0.71

0.67

Sweden

0.19

0.17

0.98

0.92

0.19

0.15

United States

0.21

0.2

2.49

2.47

0.53

0.5

 
Notes: (1) tonne of energy to US$ 2,000 PPP income; (2) tonne of CO2 per tonne of energy; (3) kg of CO2 per US$ 2,000 ppp income                                                                                                     Source: International Energy Agency

Carbon Trading Market

Jairam Ramesh, the environment and forests minister of the Indian Government has said that the Indian government has approved the sale of Certified Emission Reduction certificates of more than 1,400 projects that could attract around Rs.28000,00,00,000/- (Rs.Twenty Eight Thousand Crore Only) as part of the clean development mechanism into the country by 2012.

The National CDM Authority functioning in India has accorded the Host Country Approval to 1,455 projects. These projects need to get registered at the CDM executive board.  These projects have seen an investment of more than $33.7 billion(Rs 1.6 lakh crore).

The developers will earn over 600 million CERs by 2012. The estimated earning at a conservative price of $10 per CER, will work out to a little over $6 billion.

The minister further said to Business Standard that, "This is the potential foreign direct investment that India stands to earn from carbon credits. In fact, 10 per cent of India's annual greenhouse gas emissions can be neutralised because of this.  India may be the second-largest country in terms of the number of CDM projects (after China) but is the best in terms of implementing them."


For those who do not know what CDM is... here is the explanation.

The Clean Development Mechanism (CDM) is an arrangement with some countries (called as Annex 1 countries) under the Kyoto Protocol who have committed themselves for investing in developing countries to offset or compensate their emissions.  In other words if a Industry feels that it is expensive to adopt to carbon reduction method in its country it can invest in another country using its technology and reducing the emission in that another country. It may even be a join venture and its own industry in that other country.

The CDM allows net global greenhouse gas emissions to be reduced at a much lower global cost by financing emissions reduction projects in developing countries where costs are lower than in industrialized countries.

The CDM is supervised by the CDM Executive Board (CDM EB) and is under the guidance of the Conference of the Parties (COP/MOP) of the United Nations Framework Convention on Climate Change (UNFCCC).

There are two methods one can earn carbon credits. A tone of carbon equals One Carbon credit. Carbon trading is calculating one’s carbon footprints and to offset it purchasing of carbon neutral certificates.  The money then will so got will be invested in environmental friendly projects.  If you like to know how much is your carbon footprints Calculate here in Carbon Advice Group link.



 Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of GHGs.

Carbon Offset Credits, are clean forms of energy production like wind, solar, hydro and biofuels. And Carbon Reduction Credits are storage efforts comprising of  collection and storage of carbon from the atmosphere through biosequestration (reforestation, forestation), ocean and soil collection.

Project-financing activity which is now at a stagnant pace after Copenhagen summit meetings, will zoom to a very big market when public will enter in a huge way to save the world by buying carbon offsets. There is huge market in carbon trading and the business will pick up and buyers will enter into deals more pronouncingly  after 2012.

Asia is the leading supplier of Carbon Emission Reduction certificates in the global carbon market. I holds approximately 77 per cent of the share. Over 3,714 projects are developed under CDM all over Asia.

The project developed by CDM mostly comprises of  future-installed power projects, which will have a capacity of around 58 Gw in hydro, wind, biomass, geothermal, biogas, landfill gas, solar, tidal, energy efficiency-based own generation, and coal bed/coal mine methane sectors.

India has generated around 30 million carbon credits, and another 140 million or so are in pipeline. About 225 Indian projects in the fields of biomass, cogeneration, hydropower, and wind power with a potential of 225 million Carbon Emission Reduction certificates have been registered.  

We may see a rise in Carbon offsets from solid waste projects too.  At present, the Indian solid waste management market is witnessing tremendous growth. Currently it is valued at around $155.56 million (Rs 728 crore) and is expected to grow at a rate of around 20 to 25 per cent in the next three to five years.

To be in touch with the booming Carbon Trade business and to know about the latest happenings in this industry join Carbon Advice Group.


Trading of Carbon Credits


Carbon dioxides concentration in the Earth's atmosphere has been rising alarmingly.  It is produced by combustion of fuels.  This is one of the most important greenhouse gas.
Carbon dioxide now has taken a new turn.  It is  helping  people, countries, consultants, traders, corporations to earn billions of rupees.  The profits earned by this product was not there some ten years before.
Carbon credits are traded internationally according to their emission  norms. Countries emitting less carbon are given incentives.   Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price.
While Europe is going to be the biggest buyers of carbon credits India and China are rising to be the biggest sellers.
Global carbon credit trading last year was around $5 billion,  India's contribution was around $1 billion. India emits less carbon as has carbon credits for sale. It can sell to countries which face deficit.
So how much does India has, to sell?
India has some 30 million carbon credits for selling.  It is likely to rise it to 140 million through disposal units, plantation companies, chemical plants and municipal corporations and make money.
Carbon, is traded on India's Multi Commodity Exchange since last fortnight. MCX is the first exchange in Asia  trading carbon credits.

What actually is carbon credit?

Ten years before carbon emission became a issue and they decided to reduce the emission of harmful gases causing global warming.  Every country have been burning fossil fuels and emitting carbon, or other gases  resulting  in rise of temperature across the globe. These countries then came together and signed an agreement named the Kyoto Protocol. 
Under this Kyoto Protocol countries have voluntarily decided to bring down their emission levels to that of 1990th year.  Countries have been emitting more carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane, nitrous oxide and even water vapour). 
Many companies and factories in developed countries which comprise of mostly European had said that they will bring down the level in the period from 2008 to 2012. 
Companies in the developed nations has two ways to reduce emissions. It can either reduce the GHG (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases.  The other way is it can tie up with developing countries by helping them to set up new technology that is eco-friendly. The developing country or its companies thus earn credits. 
India, China and some other Asian countries are developing countries who profit from this. 
For earning credits you have to link yourself to United Nations Framework Convention on Climate Change and know the 'standard' level of carbon emission allowed to their line of activity.  For example any company, factories or farm owner in India emitting less carbon as compared to  standard fixed by UNFCCC they get credited with carbon credits.
And interestingly these credits are bought over by the companies of developed countries -- mostly Europeans only-- because the United States has not signed the Kyoto Protocol! 
Still worse is many companies are not aware and did not apply to get credit even though they had new technologies. There were companies which  used their management consultancies and reduced GHG emission.  These management consultancies then searched for buyers to sell carbon credits.
But there was no public platform and a price to sell their carbon credits. The price they got was about Euro 15 or maybe less per tonne of carbon. One tonne of carbon credit today fetches around Euro 22. Carbon credit is traded on the European Climate Exchange. If you can emit one tonne less of carbon then you get Euro 22. This is your profit. 
Under UNFCCC the polluters cannot buy 100 per cent of the carbon credits they are required to reduce. Out of 100 per cent they have to induce 75 per cent locally by various means in their own country. They can buy only 25 per cent of carbon credits from developing countries. 
Having read this mechanisms you too can profit from carbon trading.  To know the working of this and profit from carbon trading join Carbon Advice Group.

World And Economy

United Nations Secretary General Ban Ki-moon says that there are one billion hungry people on the globe.
And as if he is very much concerned about this. I have watched him close and found that he is least perturbed in any way when people suffer due to the governments inactions or actions.
This is actually a shocking and shameful revelation. The recession in economy also has led to a dramatic rise in hunger across the world.
Ban has warned that the food crisis that is showing its head is a wake-up call for everyone since tomorrow by 2050 the planet's population will touch 9.1 billion people, it is over two billion more than today.
"This day, more than 17,000 children will die of hunger. One every five seconds! The world has more than enough food. Yet, today, more than one billion people are hungry," he said.
According to the Global Hunger Index 2009 the countries that have scored between 20 and 30 points are in an alarming condition. The index ranked countries on a 100-point scale, with zero being the best having no hunger and 100 being the worst score.
Combining three leading indicators into one index the index measures global hunger by ranking countries. The three indicators are prevalence of child malnutrition, rates of child mortality, and the proportion of people who are calorie deficient.
Some interesting statistics is listed below from which we could see how pathetic the Indian Government is functioning.
Let us take some Asian countries hit by hunger and malnutrition, starting with India, and also the world's most hunger-ridden nations. . .
According to the 2009 Global Hunger Index, India ranks 65th out of 88 countries, with a hunger rate of 23.9.
India, which was largely unaffected by the severe recession, however appears to have made little progress in tackling hunger and malnutrition issue.
The situation remains 'alarming' in the country on this front, according to the Global Hunger Index 2009.
Countries like Uganda (38th); Mauritania (40th); Zimbabwe (58th) and many others possess a better record compared to India on this front. It is pity that when even war-torn nations could manage to combat the scourge of hunger, India which boasts of being the second fastest growing economy in the world languishes far behind. Millions in the country starve for want of food. Farmers commit suicide. Though the government is very well aware of all these they do not want to solve this problem. What is necessary is the local politician should take initiative in solving the problem.
Almost 21 per cent of the Indian population was undernourished (between 2003 and 2005), 43.5 per cent Indian children under the age of five were underweight (between 2002 and 2007) and the under five-year-age infant mortality rate in 2007 was 7.2 per cent.
Syrian Arab Republic in West Asia is considered as one of the least hungry nations on the planet. It has a hunger rate of 5.2 per cent,
The Syrian main occupation are oil and agriculture. It is a country which is neither rich nor poor.
The country though not is a industrialized country it is performing well in the industry sectors. Tourism fetches good income. Although the nation suffers from low investment, corruption, inefficiency and conflicts, it has managed to combat hunger very well.
In the 2nd spot is the Caribbean island of Trinidad and Tobago with a hunger rate of 5.4; followed by Paraguay(5.6) and Suriname (5.6), both jointly in the third position.
China which least bothers about human sufferings is doing well in fighting poverty and especially hunger. In 2008, it stood at the 15th spot with a hunger rate of 7.1 points. In 2009, it has jumped up to the 5th position with a hunger rate of 5.7, even though it has a huge population.
It shares the 5th spot with Colombia which also has a hunger rate of 5.7.
China's economy is among fastest growing in the world. It is fourth most visited countries in the world with 62 million inbound international visitors in 2008.
It is a member of the WTO and is the world's third largest trading power behind the US and Germany. It is among the world's favourite destination for foreign direct investment.
Venezuela's hunger rate is 6.1 points, the same as Georgia, and it ranks 8th in the world in the list of least hungry nations.
Venezuela makes most of its money from petroleum. So much so that it's per capita income is $13,500. The country also has rich mineral resources, as also gold and diamond mines.
The country has some of the world's largest natural gas reserves.
Although almost 30 per cent of the nation's population is estimated to live on as less as $2 per day, Venezuela has largely won the battle against hunger.
Sri Lanka, Rank 35
Sri Lanka, with a hunger rate of 13.7, ranks 35th, way ahead of India and Pakistan.
Sri Lanka has an agrarian economy and is heavily dependent on tourism too. Its most widely known export is tea.
The nation also has a booming export sector, with textiles exports being one of the mainstays of the economy. Fishing, petroleum, industry too add to the nation's economy.
Nepal ranks 55th in the list of hungry nations, but still performs much better than India or Pakistan. Even then Nepal's hunger rate is quite high at 19.8.
Pakistan, Rank 58
Pakistan ranks 58, with a hunger rate of 21 points.
Pakistan's economic growth rate is much lower than India's, but the Asian nation seems to have done better than its neighbour at curbing hunger.
The Pakistani economy is mainly agrarian in nature, although the services sector has been rising rapidly in the last few years.
The country is also getting a lot of foreign investment in its telecommunications, manufacturing, real estate and power sectors.
Bangladesh, Rank 67
Bangladesh is one of the poorest and most corrupt nations in the world. It is also one of the hungriest with a hunger rate of 24.7.
With most of its working population consisting of farmers, Bangladesh is primarily an agrarian society. However, agriculture is not a very productive occupation for the nation, as millions in the country go hungry everyday.
Rice and tea are the nation's major exports, but the country's major portion of exports earnings are generated from its booming textiles and garment industry.
Comoros, Rank 73
Amongst the world's poorest and hungriest nations is Comoros, with a hunger rate of 26.9 points, the country ranks 73rd in the world.
Lack of economic growth and extreme poverty have been plaguing Comoros for long. The nation has a fairly okay agricultural sector, with fishing, forestry, etc helping the economy.
The country also suffers from lack of basic infrastructure, low literacy, lack of good educational institutes, high unemployment, etc.
One of the main reason we can attribute for the declining of food stock and cultivation is global warming and climate change.
Every government has an umpteen task before them especially India who has to send its officials through nook and corners of India and invest in viable environment friendly projects and create employment.
Agriculture occupation which is dwindling in India because of lack of rainfall should get boost by linking rivers and building canals.
Lastly, we can rightly conclude that India will never step in itself to remove the problems that it is facing.
The same thing will apply to other countries also. Since every government are power mongers and are unwilling to improve the welfare of their people. Politicians are only interested to loot whatever they can before they are thrown out of power.
In these situations, it is only we who have a tremendous responsibility to step in and come forward to encourage investments in environment friendly projects.
We call upon you to join our Carbon Advice Group and partner with us to bring about sea change in the functioning and policies of the government all over the world.

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