climate change: fast tracking business action - cbs...

C l i m a t e C h a n g e : f a s t t r a c k i n g b u s i n e s s a c t i o n

CORPORATE ACTION PLAN ON CLIMATE CHANGE


C o r p o r a t e A c t i o n P l a n o n C l i m a t e C h a n g e

Contents

Message from the Minister, MoEF ....................................................................................... 2

Message from Chairmen, TERI-BCSD India ....................................................................... 3

Foreword ............................................................................................................................. 4

Message from Task Force Leaders ......................................................................................... 5

The Path Ahead ................................................................................................................... 6

List of abbreviations ............................................................................................................. 7

National Solar Mission ......................................................................................................... 8

National Mission for Enhanced Energy Efficiency ................................................................ 9

National Mission on ‘Sustainable Habitat’ .......................................................................... 11

Promoting Energy Efficiency in the Residential and Commercial Sector ......................... 11

Management of Municipal Solid Waste .......................................................................... 12

Promotion of Urban Public Transport ............................................................................. 13

National Water Mission ...................................................................................................... 14

National Mission for Sustaining the Himalayan Ecosystem.................................................. 15

National Mission for a Green India .................................................................................... 17

National Mission for Sustainable Agriculture ...................................................................... 19

National Mission on Strategic Knowledge for Climate Change ........................................... 20

Acknowledgement ............................................................................................................. 21

Participating companies .................................................................................................. 21

Participating ministries/departments ............................................................................... 21

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I am delighted to learn of theTERI-BCSD initiative todevelop a corporate actionplan to address climatechange.India is deeply concernedabout climate change and weare very conscious of the localimpacts of climate change onour country. India’s positionon the issue of climate change

is clear, credible and consistent. We are ensuring thatour economic growth path is ecologically sustainable.We are investing in scientific research to study theimpact of climate change on our biodiversity, naturalresources, and the different sectors of our economy.Most importantly, we have a clear plan for addressingClimate Change through both adaptive and mitigativeactions, elucidated in our National Action Plan forClimate Change (NAPCC). The NAPCC envisages 8National Missions and 24 Critical Initiatives toaddress climate change in a holistic manner. This isthe robust guiding framework for India’s response toClimate Change.

I sincerely believe that there is a major role for thecorporate sector in implementing the NAPCC. Each ofthe Missions and Critical Initiatives will engage the

Message from the Minister, MoEF

corporate sector in a number of ways. First, it willinvolve identifying and capitalizing on new businessopportunities and new business models. Second, itwill require a renewed responsibility on part of thecorporate sector to ensure adherence to existingenvironment-related laws, standards and codes. Third,it will also involve following the best practicesincluding no-regret options for environment-friendlybusiness that others in India can emulate. One of suchprecedents is provided by India’s biggest powerutility, NTPC, that has the second lowest carbondioxide intensity in the world —i.e., emissions permegawatt of power generated. These are the type ofexamples we need to set.

The TERI-BCSD India Corporate White Paper onClimate Change marks a fine beginning in identifyingthe challenges and opportunities that the NAPCCpresents to the private sector. I congratulate TERI-BCSD on this endeavour. I am confident that this willallow the actions of the corporate sector to move in theright direction.

Mr Jairam RameshMinister of State (Independent Charge) for

Environment and Forests, Government of India



Message from Chairmen, TERI-BCSD India

Climate change will become increasingly central to thepolicy preoccupations of governments. In India, theNAPCC (the National Action Plan on Climate Change)with its eight missions provides a framework foraddressing climate change as a core development issue.To participate in the eight missions, the corporate sectorwill have to move beyond treating climate change as acorporate social responsibility issue and treat it as a keyenvironmental condition shaping corporate strategy.

TERI-BCSD India’s initiative with its membercompanies to generate awareness and build consensus onthe climate change agenda in India has helped companiesto take the initiative in defining the new opportunitiesprovided by NAPCC.

We appreciate the contribution of Mr ShyamSaran, Special Envoy of the Prime Minister onClimate Change, towards the success of this initiative.He has been a constant source of guidance throughout

the project starting from the launch of the initiative on29 September 2008 in Mumbai. Mr Saran also chairedour consultation with the nodal ministries, whichhelped us immensely in consolidating the governmentinputs.

We hope that the TERI-BCSD India CorporateWhite Paper on Climate Change will help uncover somekey aspects regarding the business role in implementingNAPCC. This white paper attempts to articulate a visionfor the corporate sector under each national mission andpresents the expectations of the corporate sector from thegovernment in terms of enabling policies and incentivesthat would help in achieving the roadmap for theindustry.

We present this popular version of the CorporateWhite Paper in a simplified and condensed format tostimulate forward thinking and ongoing dialoguebetween business and government.

Mr Nitin Desai Dr J J IraniChair Co-Chair

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Foreword

climate change impacts of direct concern to them, andalso put in place effective measures and policies bywhich adaptation to these impacts can be broughtabout. Additionally, since mitigation of GHGs(greenhouse gases) would be required across the globe,and would open up new market opportunities, this isalso an area that the corporate sector needs to addresseffectively. This document, which has been drawn upby corporate members of TERI-BCSD India,facilitated by TERI staff, is a remarkable effort to putthe stamp of corporate intentions and plans on India’sNAPCC. This corporate effort also spells out actionsthat the government may need to take to ensureeffectiveness of efforts by business. It, therefore, marksa remarkable initiative by business and industry toaddress national imperatives and priorities.

Dr R K PachauriPresident – TERI BCSD India

and Director-General, TERI

The Prime Minister of India released the country’sNAPCC (National Action Plan on Climate Change)on 30 June 2008. This plan essentially pursues theobjectives of sustainable development that wouldincreasingly guide India’s development policy in thefuture. The plan also responds effectively to the growingevidence of global climate change, particularly as broughtout in the Fourth Assessment Report of the IPCC(Intergovernmental Panel on Climate Change).However, the implementation of the NAPCC woulddepend on the ability of the Indian society, quite apartfrom governments at every level, to translate the aims andplans contained in this document into effective action atthe grass-roots level. The corporate sector has to be animportant part of any initiative to implement theNAPCC in all its dimensions.

TERI-BCSD India is a grouping of motivatedcorporate organizations, observing and supporting theaim of sustainable development for this country’seconomy. India is vulnerable to serious impacts ofclimate change, which would not leave corporateorganizations untouched. Hence, in the first place,corporate organizations have to effectively evaluate the

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Message from Task Force Leaders

The NAPCC (National Action Plan on ClimateChange), released by the Prime Minister’sAdvisory Council on Climate Change on 30 June

2008, serves as the first country-wide framework onclimate change with the approval and support of the GoI(Government of India). The eight missions in theNAPCC map out long-term and integrated strategies toachieve key national goals from the climate changeperspective. The NAPCC identifies measures thatpromote development objectives of the country whileproducing co-benefits that address climate changeeffectively.

The Corporate White Paper attempts to complementthe ministerial efforts in developing plans of action undereach national mission. Through this initiative, we haveidentified several paths forward for our industry toreduce its ecological footprint, manage its impact better,become more eco-efficient, and thereby play a significantrole in the implementation of the NAPCC.

We are proud of this Corporate White Paper, whichbrings out a vision for the corporate sector under eachnational mission and presents the expectations of thecorporate sector from the government in terms ofenabling policies and incentives that would help inachieving the roadmap for the industry.

We have used a consultative multi-case approach fordeveloping the Corporate White Paper. To facilitate

focused discussions, four Task Forces were constitutedwith the TERI-BCSD India member companies.Through successive consultations, including aninteractive session with HE Mr Ban Ki-moon, UnitedNations Secretary General, these Task Forces haveundertaken review of all the eight missions to determineopportunities and implications for their businesses.Representatives from all relevant sectors namely steel,chemicals, paper and pulp, metals and minerals, oil andgas, cement, power, pharmaceuticals, ICT, and finance,participated as part of the Task Forces in theconsultations held in Mumbai and New Delhi on29 September 2008 and 17 December 2008,respectively.

TERI-BCSD India also organized an Inter-MinistryMeeting on the NAPCC Corporate White Paper on8 January 2009 in New Delhi. This was the first time thateight select ministries came together to note the draftfindings of the initiative. The forum also facilitated adiscussion with senior government representatives andTERI-BCSD India member companies on the industry’srole in NAPCC.

We thank all colleagues and collaborators for the hardwork put into developing the Corporate White Paperpresented here as the Corporate Action Plan on ClimateChange.

Mr Sumit Banerjee Mr Prasad Chandran Mr Arun SethACC Ltd BASF India Ltd BT (India) Pvt. Ltd

Ms Naina Lal Kidwai Mr Sajjan Jindal Mr Homi KhusrokhanHSBC India JSW Steel TATA Chemicals Ltd

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The Path Ahead

Corporate Action Plan Subscribers

ACC Ltd P BASF India Ltd P Det Norske Veritas As P JSW Steel Ltd P Shell India Pvt LtdSuzlon Energy Ltd P Tata Chemicals Ltd

The member companies of TERI-BCSD Indiahave taken the initiative in defining the newopportunities provided by the NAPCC

(National Action Plan on Climate Change) released bythe Prime Minister on 30 June 2008.

In this regard, the members through their activeparticipation have brought out the White Paper onCorporate Action Plan on Climate Change. The focusis to successfully convert the white paper into activitiesand programmes which would herald India Inc.’scommitment to address climate change.

Join us!For more information, please contact: [email protected]

GMR Group - DelhiInternational Airport (P) Ltd

HSBC India Intel TechnologyIndia Pvt. Ltd

Oil and Natural GasCorporation Ltd

TERI-BCSD India is now embarking on a globaloutreach with the support of its member companies.The popular edition of the White Paper will beextensively distributed and tabled in several climatechange fora in India and overseas beginning with theWorld CEO Forum on 4 February 2009 in NewDelhi—right through to the COP 15 in Copenhagen,Denmark in December 2009.

We are delighted to acknowledge our immediate partners in this initiative who havereaffirmed their commitment to work with TERI-BCSD India on this global outreach.

Corporate Action Plan Champions

Special Acknowledgement

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List of abbreviations

BEE Bureau of Energy EfficiencyCDM Clean Development MechanismCNG Compressed natural gasCO2 Carbon dioxideDST Department of Science and Technology, Government of IndiaECBC Energy Conservation Building CodeEETs Energy-efficient technologiesGDP Gross domestic productICT Information and communication technologyIT Information technologyIPCC Intergovernmental Panel on Climate ChangeIPR Intellectual Property RightIRR Internal Rate of ReturnJFMC Joint forest management committeesJNNURM Jawaharlal Nehru National Urban Renewal MissionLED Light-emitting diodesMIS Management Information SystemMNRE Ministry of New and Renewable Energy, Government of IndiaMSME Micro, small, and medium enterprisesMT Metric tonnesMW MegawattNWP National Water PolicyPPP Public–private partnershipPV PhotovoltaicR&D Research and developmentSBB State Biodiversity BoardRPS Renewable Portfolio StandardSMEs Small and medium enterprisesTERI The Energy and Resources InstituteTOF Trees outside forestsVAT Value-added tax

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National Solar Mission

India faces unique challenges in developing adequateenergy supply to meet the country’s developmentalneeds, which also includes providing electricity to the

44% of its population without grid access.The mission endeavours to have a substantial

increase in solar energy in the total energy mix.This will promote development and use of solar

energy for power generation and other uses—that is,make solar competitive with fossil-based energyoptions, besides developing other alternatives toconventional sources of fuel.

ChallengesP High capital costsP Large-scale storage system to meet base load power

and improve dispatchabilityP Lack of supply and service networkP Lack of customized products

Government supportP A long-term policy for generation-based incentives

without cap on capacity of individual installations orin the aggregate along with long-term funds to beginthe execution of activities.

P PPP (public–private partnership) project approachfor solar thermal projects will accelerate the process toreach the goals.

P Policy/regulatory support in IPR (IntellectualProperty Rights) and technology transfers for solarthermal power technologies—this includes costbenchmarks and compulsory licensing.

P Tax benefits for projects developed and executed bysolar power project developers (third partydevelopers).

P Long-term R&D (research and development) fundsto improve R&D and testing of solar powertechnologies.• Private/public research organizations• Industry participation in Solar Energy Centre• Develop exclusive Solar Test Platform for

high-end technologies (similar to Almeria solarplatform).

P Integration of different schemes and introduction ofREC (Renewable Energy Certificates) tradablecertificate scheme for solar electricity.

"For every solar lantern implementation there ispotential carbon credit available but this requires

aggregation at the retail level in order to avail of thefacility. There is also a need to look at appropriatetechnology interventions, such as biomass based

energy, for the rural poor in such a manner that theend-beneficiary cost is affordable through

commercial manufacturing, government incentivesand bank finance."

Ms Naina Lal Kidwai, Group General Manager andCountry Head, HSBC India

P Special incentives for industrial steam generationtechnologies.

P Solar maps/data for beam radiations for potentialstates.

P Solar electricity specific portfolio standards in RPS topromote solar energy

P Capacity-building at all levels.

Way forwardP Challenge fund A PPP model to install 1000 MW

of PV (photovoltaic) capacity by 2012, encourageR&D, and reduce cost of new technologies for thesolar thermal sector in India. The World Bank’sTechnology Transfer Fund may be put to use wherethe corporate sector can play a role in adopting newtechnologies.

P Solar thermal based power plant of more than 50 MW,as the IRR (Internal Rate of Return) is attractive for thissize—thus developing new technologies, one of thecore components of this mission.

P R&D for components and systems such as LEDlighting, solar drying of food processing industry,and solar steam generation systems for industrialapplications

P Create demand for solar applications through rapidscaling up of capacity and determining the ways ofscaling up, thereby promoting opportunity forreducing cost and increasing efficiency.• The first phase of implementation promotes

solar thermal demonstration models; the governmentcan facilitate bidding to set up these models.

• The second phase involves scaling up thesemodels.

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National Mission for Enhanced Energy Efficiency

P Enhancing knowledge sharing amongst differentstakeholders such as manufacturers/technologysuppliers, financial institutions, intermediaries, andend-users.

Government supportMany of the large Indian companies have demonstratedtheir commitment towards reducing their energyconsumption by adopting energy-efficient technologiesand practices in their plants.However, it is felt that anenabling policy environment covering variousregulatory, financing, and market developmentmechanisms would greatly help in accelerating theadoption of energy efficiency measures in the industrialsector. The TERI-BCSD members have expressed theneed for developing/strengthening provisions under thefollowing heads.P Creating an ‘Energy Efficiency/Clean Technology

Fund’ and providing financial incentives foradoption of energy-efficient technologies.

P PPP (public–private partnership) for establishing‘Centres of Innovation’ to enhance R&D efforts inenergye.

P Creating conducive market conditions for energy-efficient products/appliances through EnergyLabelling and Public Procurement Programmes.

P Developing sector- /cluster-specific programmes andstrengthening the existing institutional structures inthe MSME sector for development, demonstration,and dissemination of cleaner technologies.

P Encouraging promotion of ESCOs.P Creating a National Platform for Knowledge Sharing

amongst key stakeholders.

The NMEEE (National Mission on EnhancedEnergy Efficiency) focuses on (i) developing amarket-based mechanism to enhance cost-

effectiveness of improvements in energy efficiency inenergy-intensive large industries through certification ofenergy savings that could be traded (PAT [perform,achieve, and trade] mechanism), (ii) accelerating the shiftto energy-efficient appliances, (iii) creating mechanismsto help finance demand side management programs, and(iv) providing fiscal incentives to promote energyefficiency.

The corporate sector is an integral part of this missionas the industrial sector is the largest consumer of energy,accounting for nearly 50% of the commercial energyconsumption in the country. Hence, concerted effortsare required by the corporate sector to adopt energy-efficient technologies and practices and thereby reducetheir overall energy intensity. Other co-benefits includereduction in fuel and material use, reduced localemissions, and improved product quality.

Mechanisms like PAT and ESCOs under NMEEEalso provide numerous opportunities to the privatesector to enhance their activities in the energyconservation field (for example, activities likeverification, monitoring, and validation). The EnergyConservation Act 2001 provides the legal mandate forthe implementation of the energy efficiency measuresthrough the institutional framework of the BEE (Bureauof Energy Efficiency).

ChallengesP Encouraging the corporate sector to invest in capital-

intensive energy-efficient technologies.P Strengthening the R&D infrastructure for

developing energy-efficient technologies andproducts.

P Developing/strengthening institutional supportframework for providing technical support inMSMEs (micro, small, and medium enterprises).

P Creating a demand for ESCO-related services.P Increasing market penetration of energy-efficient

products and appliances.P Addressing the variations within each industry sub-

sector while developing PAT mechanism.

"We should also look at the full life cycle carbonfootprint of a product rather than only post

manufacturing energy mitigation potential."

Mr Sumit Banerjee, Managing Director, ACC Ltd

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Way forwardThe corporate sector recognizes energy efficiencyimprovements as an important option for achieving cost-effective CO2 (carbon dioxide) abatement in the industrysector. Some of the actions that can be undertaken by thecorporate sector are given below.P Demonstrate the top management’s commitment

through internal communications and actions like(1) developing ‘Energy Management Policystatement’, (2) demarcating Energy Efficiency Fundsat the corporate level, (3) strengthening ‘EnergyManagement Cells’ at the plant level, and(4) encouraging participation in energy managementprogrammes at shop-floor level throughacknowledgement and incentivization.

P Accelerate efforts to identify and implement energy-efficient technologies and practices at individualplant level. These include (1) sector-specifictechnology options, (2) cross-cutting technologies,(3) fuel switch, and (4) recycling and increased use ofsecondary material.

P Enhance the use of ICT (information andcommunication technology) as a cross-cutting optionfor process optimization, monitoring andverification, and energy efficiency improvements.

P Proactively work with BEE and develop industry-specific ‘Energy Benchmarking Norms’ for variousindustry sectors/sub-sectors.

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National Mission on ‘Sustainable Habitat’

efficient appliances in new residential andcommercial buildings.

The corporate sector can contribute, and hasindicated support, to numerous initiatives undertakenin response to the priorities implicit in the NAPCC.This section identifies the potential areas that wouldbenefit with support from the corporate sectortowards sustainable habitats.

Challenges

P Knowledge gap at various levels (amongst builders,designers, architects, politicians, investors, andconsumers). The construction industry remainsunaware of the environmental impacts of itsoperations—and the economic, environmental, andhealth benefits of using green and efficient productsand appliances. There is lack of sustainable buildingsolutions as well. This needs knowledge promotionamong architects, system providers, and otherprofessionals.

P Enforcement and implementation of strategies toencourage adoption of energy-efficient buildings,products, and services are required. Lack ofprogrammes for monitoring and verification, policymandates, and incentives (both financial andsymbolic) need to be addressed to encourage greaterparticipation from the corporate sector.

P Lack of technological R&D activities for lowering thecosts acts as a barrier to widespread use of energy-efficient products and services. Investments to arriveat innovative low-cost technology options fordeveloping sustainable habitats are required.

Government support

P Providing a national platform to project individualefforts, and exhibit financial benefits of ‘green’buildings.

P Public awareness drives to encourage developers to gofor ‘green’ rating, particularly GRIHA.

P Sectoral benchmarking for the industry.P Bridge knowledge gap at various levels.P Incentives for builders to encourage developers to go

beyond the stipulated laws and bylaws.

Population and economic growth along withstructural shifts in the Indian economy haveexponentially increased the pressures on delivery

of basic services for all—for the government as well as theprivate sector. Civil society needs three basics: transport,energy efficiency in residential and commercial areas,and solid waste management. The government alonecannot deliver, and it is for the private sector to come upwith rapid solutions.

Promoting Energy Efficiency in theResidential and Commercial SectorIn an attempt to promote energy in the residential andcommercial sectors, the NAPCC (National Action Planon Climate Change) emphasizes on (i) the extensionof the ECBC (Energy Conservation Building Code),(ii) use of energy-efficient appliances, and (iii) creation ofmechanisms that would help finance demand-sidemanagement.

In a study conducted by TERI, it was found thatimplementation of energy efficiency measures wouldcontribute to 30% energy savings in new residentialbuildings, and 40% savings in new commercialbuildings. Further, in the case of existing buildings, theenergy-saving potential for residential buildings isestimated to be about 20% and that for commercialbuildings to be about 30%.

Despite these positive trends towards achievingsustainable habitats and energy efficiency, there arekey barriers to widespread commercialization andimplementation of passive design strategies, efficientlighting and space conditioning measures, use ofrenewable sources of energy, and use of energy-

"We should be really looking at all these newtechnologies in terms of how do we make both of our

own houses, the houses of our employees and thebuilding of corporate where we are living which are

far more sustainable to energy efficiency."

Mr Arun Seth, Chairman, BT (India) Pvt. Ltd

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Way forward

P Conduct training programmes, workshops, andconferences; develop websites; and constructdemonstration buildings towards bridging theknowledge gap.

P Encourage corporate/company policy to adopt‘green’ rating1 of buildings, that is, encourage energyefficiency in buildings.

P Provide recognition and awards to encourageenforcement and implementation of sustainablebuilding design and construction practices.

P Contribute to technology development and loweringthe costs of ‘green’ products by encouragingcompetitive markets.

P Provide investment in R&D needs for the residentialand commercial sectors.

P Financial institutions may work out innovativefinancing packages for energy-efficient buildings/retrofits.

P Private ESCOs (energy service companies) may play akey role in guaranteeing energy savings, or providingservices at a lower cost, by taking responsibility forenergy efficiency investments, and improvements inmaintenance and operation of facilities througharrangements like energy performance contracting.

P Encourage use of LEDs and ‘green’-labelledequipments at the workplace and residence ofemployees. Encourage retrofitting and use of solarpanels in all buildings.

Management of Municipal Solid WasteIn the absence of an efficient MSW (municipal solidwaste) management system, solid waste is dumpedindiscriminately into low-lying areas designated as solidwaste landfills with little or no treatment. There is nocontainment system in these disposal sites and this leadsto groundwater contamination. Also, the uncontrolledemission of methane, which was estimated at about7 MT (million tonnes) for the year 2007, is likely to goup to 39 MT for year 2047 if no efforts are undertakenfor systematic disposal of MSW. The unsanitaryconditions prevailing at these disposal sites pose a healthhazard to sanitary workers and ragpickers frequenting thesites.

The focus of NAPCC with respect to improvingMSW management in the country includes maximizingresource recovery and recycling and minimizing wastedisposal at already fast-filling landfills. It also emphasizesthe need to maximize recycling/reuse of sewage generatedin various cities, which is a source of pollution in most ofthe water bodies in the country.

Challenges

P Segregated collection of waste with the help ofinformal sector.

P Upgrading/improving recycling technologies.P Dovetailing plastic and metal waste recycling with

e-waste recycling programmes.P Maximizing reuse of treated sewage.P Customization of waste-to-energy processes to waste

quality in India.P Developing sanitary landfilling facilities.

Government support

P Enable conditions for the corporate sector toparticipate in waste management at the localadministrative level.

P Regulation of management of non-hazardous wastewith focus on its recycling/reuse is urgently needed.

P JNNURM (Jawaharlal Nehru National UrbanRenewal Mission) mechanism to identify a role forthe corporate sector in urban infrastructureimprovement.

P Need for triple bottomline reporting of performanceby the corporate sector—economic/social/environmental balance sheet.

P Institutionalize awards and incentives.

Way forward

P Working with municipal bodies for maximizingrecycling of waste and ensuring sound urban wastemanagement.

P Promote biochemical conversion of organic waste.P Help organize participation of the informal sector—

recycling and reuse of urban solid waste (includinge-waste) and waste water.

P Special focus on development of technology forproducing power from waste.

1 Accept GRIHA (which is the national rating system for buildings and incentivized by Ministry of New and Renewable Energy) andECBC as voluntary codes through company policy. Since GRIHA compliance also ensures compliance with national regulations andcodes (such as ECBC), which have been established by various government bodies.

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P Use IT—computerize MIS, data collection/evaluation, and report generation, development ofdecision-support system, loading/offloading distancelearning, and capacity-building modules.

Promotion of Urban Public TransportThe increasing transport demand in India raises concernsrelated to energy security and increasing CO2 emissions.These concerns need to be addressed in the current globalsituation where tackling issues related to climate changeis gaining importance worldwide. Tackling climatechange issues related to transport is a part of theSustainable Habitat mission of NAPCC. NAPCCemphasizes the need to reduce the transport sector’sdependence on fossil fuels. It suggests that better urbanplanning and modal shift to public transport arenecessary to facilitate the growth of medium and smallcities in an environmentally benign manner. The planspecifically lays emphasis on extensive public transportfacilities and non-motorized modes in urban areas inorder to discourage the use of personal vehicles. The plansuggests some technical, fiscal, and policy actions todirect transport growth towards the path ofsustainability. The corporate sector can undertakenumerous initiatives that can help reduce use of fossilfuels and CO2 emissions from the sector in line withNAPCC focus areas.

Challenges

P Lack of incentives for environment-friendly vehicletechnology and fuels.

P There is no integrated policy or programme thattargets inter-modal shift to sustainable modes.

P There are weak fuel efficiency standards for theauto sector; fuel quality roadmap and emissionnorms after 2010 are not laid down till now.

P Inadequate transport infrastructure.

Government support

P Incentives for manufacture and purchase ofenvironment-friendly vehicle technology.

P Roadmap for fuel quality and emission norms after2010.

P Fuel efficiency standards.P Encourage PPP to create sustainable transport

infrastructure.P Involve private sector in the provision of public

transport in cities.P Integrated policy/programme targeting inter-modal

shift by the corporate sector.P Encourage ICT-based solutions for traffic

management.

Way forward

P Improvement of existing vehicle technologies anddevelopment of new environment-friendly vehicletechnologies for future.

P Promotion of alternative fuels.P Improvement and augmentation of transport

infrastructure and provision of public transport inurban areas.

P ICT enabled infrastructure for traffic management.P Inter-modal shift for freight movement.

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National Water Mission

The National Water Mission focuses oni n t e g r a t e d

water resource management that will help to (i)conserve water, (ii) minimize wastage, and (iii)

ensure more equitable distribution both across andwithin the states. Taking into account the provisions ofthe National Water Policy (NWP 2002), it proposes todevelop a framework to optimize water use efficiency by20% through regulatory mechanisms with differentialentitlements and pricing.

ChallengesP Design incentive structure to promote water-neutral

and/or water-positive technologies, which wouldensure a multitude of co-benefits in the future.

P Focus on SMEs (small and medium enterprises), animportant sector in water usage.

P Recycle waste water to meet a considerable share ofurban water needs.

P Implement desalination technologies (such as low-temperature desalination) that allow use of oceanwater for use in coastal cities.

P Agricultural water use—optimize efficiency ofexisting irrigation systems and rehabilitation ofsystems that have been run down.

P Better management strategies on a river basin scale.• Revisiting the National Water Policy so as to

include this component in view of recent trendsin variability in rainfall and temperatureaffecting the flow in rivers attributed to climatechange.

• Enhanced water storage capacity, rainwaterharvesting, recharging of groundwater sources,and equitable and efficient governance.

P Assess and mitigate the regional impacts of climatechange on water resources.

Government supportP Fixing a National Definition on water-positive/

neutral concept.P Industry-wise benchmarking and target setting for

water conservation and efficiency (replicating BEEModel) where SMEs also need to be targeted.

P Setting targets (percentage) for waste water recyclingand reuse.

P Regulatory guidelines for target-based water usagein the coastal region; using cost-effective andenvironment-friendly desalination technologies; andaddressing regulation issues (central versus state).

P Implementing Groundwater Policy for the industriesensuring artificial recharge and rational withdrawalof groundwater.

P Rational Water Pricing that reflects scarcity,incorporates cost of environmental degradation, andencourages efficient use and conservation.

P Government mandated industrial water audits,rainwater harvesting, and artificial recharge, andincentivizing the industry for such measures—forexample, through Water Cess Act.

Way forwardP Improving water use efficiency and water conservation

by integrating water into Core Business Planning.P Reduce water footprints by adopting advanced

technology (improving efficiency and water rating),increasing industrial water productivity, andundertaking mandatory industrial water audits andconservation measures like rainwater harvesting andartificial recharge.

P Renewed business strategies with financial outlay forwater saving (Water Policy of industries)—withtimelines and voluntary targets to achieve theirspecific steps.

P Create a bank of technologies for sharing anddissemination of BAT (best available technologies) toother industries and users.

P PPP (public–private partnership) to supportadoption of water-efficient technologies amongcommunities.

P Support research and development.

"Various programmes which government hasenunciated will fall flat unless industry takes it uponthemselves to realize that it is business opportunity

they have to do and there are some constraints."

J J Irani, Director, Tata Group of Companies

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The Himalayas represent a great diversity inclimate, which is reflected in theirhydrological, ecological, and social

characteristics. With changes in climate, the delicatebalance of Himalayan diversity is getting disturbedand resulting in shifting of species habitats to higheraltitudes, severe fragmentation in their composition,habitat loss, and even extinction.

Societal pressures such as land-use changes, over-grazing, trampling, pollution, vegetationdestabilization, and soil loss are aggravating thevulnerability due to climate change.

Time-bound measures have the potential to reversethe degradation of ecosystems while meetingincreasing demands for their services. However, large-scale actions are required than those currently underway.

ChallengesThe sustainability of various development projects indifferent sectors is significantly vulnerable to climatechange impacts.P Hydropower projects Sustainability of hydel

projects being planned with high-valueinvestments is under threat due to ‘deglaciation’,changing snowfall pattern, and GLOFs (glaciallake outburst floods).

P Industries Herbal medicines, cosmetics, andindustries (breweries, cold drinks, and mineralwater) dependant entirely on water.

P Tourism Overall GDP (gross domestic product)of the states is affected with a fall in employment,income, and revenue loss for the individuals, theprivate sector (airlines, hotels, tour operators,transport services, and so on), and the state.

P Export Besides providing livelihood to localpeople, export of fruits, dry fruits, and ornamentalflowers boosts India’s foreign earnings, which willget affected.

Indirect impacts/ impacts on riparian states

P Reduced and erratic water supply in the riversaffects the agriculture of Indo-Gangetic plains,

subsequently impacting supply of raw material tothe industries (like sugar and textile), with anegative fallout on the tertiary sector (trade,transport, and so on) as well.

P Loss of livelihood of the local populace hits theentire economy of the area, causing a southwardslide in the trade, finance, and services (bank,telecom, and general goods producers).

P Increase in frequency of natural calamities willmake the insurance sector pay larger claims.

Government supportConsultations with the corporate sector highlightedthe lacking awareness among the corporatecommunity about the impacts of HimalayanEcosystem degradation. They presented theirwillingness to share the responsibility in protectingthe Himalayan Ecosystem, provided they areinformed about the possible consequences by sector.

Simultaneously, they seek certain policy initiativesfrom the government that will assist them in playingtheir role better in climate change adaptation andmitigation.P Incentives in the form of subsidies and tax

holidays, to encourage corporate establishmentsacross the Himalayan states to turn into GreenCentres.

P Policy to regularize transport sector in Himalayanstates, and promote ‘green’ vehicles, backed bysustained availability of green fuels (like CNG) in

National Mission for Sustaining the Himalayan Ecosystem

''Everyone appreciates the beauty of the Himalayasbut how many realize how fragile this wonderful

asset is? A widespread awareness of the fragility ofthe Himalayas eco system is something desperatelycalled for today and the risk that neglect on our part

could cause to the livelihood of hundreds whodepend on it.''

Mr Homi Khusrokhan, Ex-Managing DirectorTata Chemicals Ltd

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order to provide a better platform for corporaterole in eco-friendly transport.

P ‘Green’ tourism Incentives to hotels for adoptingeco-friendly habits like the following.• Installing solar lights/water heating, gas-based

heating systems, and so on• Reducing waste as well as its ‘green disposal’

P ‘Green’ ratings Detailed guidelines specific forHimalayan Ecosystem for best corporate practicesin different sectors.

P Outsource time-bound replanting of deforestedland.

P Incentives for establishment of ‘green’ industries(service-based) in the area that will also generateemployment for the local people.

P Incentives and regulation to promoteconservationof water.

Way forwardPPP (public–private partnership), backed by remedialgovernment policies, offers opportunities to redressthe ecosystem. Certain issues like the following needurgent attention.P Himalayan Ecosystem Conservation Fund to carry

out research work and develop eco-friendlytechnologies suited for the region—collectedthrough cess or donations from the corporatesector.

P Glacier Monitoring Programme providing basicdata for assessing and predicting the effect ofglacial melt on water resources.

P Creating Centres of Excellence for development ina sustainable manner.

P Regional dialogue for interventions at thecatchment level.

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National Mission for a Green India

(low productivity). The corporate sector cancollaborate with academic institutions andresearch organizations to facilitate newtechnologies and improve planting material.

P Integration of biodiversity concerns and challengesinto their long-term strategic growth plans, such asthrough the development of corporate- /company-level BPS (Biodiversity Policy Statements).

Government supportP Policy directive for a Tripartite Partnership

between forest department, local community(JFMCs, biodiversity management committees),and private sector.• An initial policy directive from the central

government, followed by resolutions andguidelines by individual state governments,to facilitate private sector participation inforestry activities.

P Tax benefits and incentives to the corporate sectorraising forest corridors and plantations as a carbonbank, and taking measures to reduce dependenceon raw material drawn from natural habitats.

P Facilitating tie-up and capacity-building betweenR&D institutions and the corporate sector, whichwould produce improved planting materials andtechnology for rehabilitation of degraded anddifficult sites.

P Reviewing felling and transit regulations for thecorporate sector initiating and upscaling farmer–industry tie-up.

Forest ecosystems are critical for environmentsustainability. In the context of climate change,forest ecosystems are unique as they can act as a

source or sink of CO2, the most abundant GHG gas.At the same time, forest ecosystems are also impactedor likely to be impacted by climate change throughchanges in species composition, structure,productivity, and biodiversity.

The Green India Mission has identified two broadareas of action: (i) increase forest cover and density,and (ii) conserve biodiversity.

Increasing forest cover and density

As mandated in the National Forest Policy (1988) andthe National Environmental Policy (2006), theultimate aim is to bring one-third of the geographicarea of the country under forest cover throughafforestation of wastelands and degraded forest areas.A key programme to facilitate this is the GreeningIndia Programme, under which 6 million hectares ofdegraded forest area, that is 1.83% of India’s landcover, would be afforested with the participation ofJFMCs (joint forest management committees).

Conserving biodiversity

The mission recognizes the need for effectiveconservation of biodiversity both within and outsidePAs (protected areas). In-situ and ex-situ conservation,documenting genetic diversity and traditionalknowledge through biodiversity registers, andeffective implementation of Wildlife (Conservation)Act and National Biodiversity Conservation Act, 2002have been identified as key provisions to conservebiodiversity.

ChallengesP No enabling laws or policies to facilitate private

sector participation in forestry activities, access todegraded forest land for raising commercialplantations, or conducting conservation activities.

P Lack of technologies in afforestation of degradedand problematic sites and poor planting material

"R&D is critical to the topic of climate change.Don't leave R&D only to the governmental sector.

Public-private partnerships in R&D are the needof the hour."

Mr Prasad Chandran, Chairman and ManagingDirector, BASF India Ltd

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P Incentives and regulation to promote conservationof water.

Way forwardP Corporate participation in afforestation activities

through multi-stakeholder partnership—commercialplantations in degraded forest areas and otherwastelands, developing forest corridors, and so on.

P Scale up farmer–industry tie-up to promote farmforestry.

P A long-term procurement plan identifying rawmaterial for industries (for example, pharma, herbal,wood-based industry, and so on) directly dependenton various bio-resources.

P A common platform between the corporate sector,governments, academicians, and NGOs todisseminate research findings and facilitateconservation.

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National Mission for Sustainable Agriculture

The importance of agriculture in India can berealized from the fact that the livelihood of themajority of the country’s population depends on

it. This sector contributes 21% to the country’s GDP,and rural areas are still home to about 72% of the India’spopulation.

However, the world of agriculture has changeddramatically over the past 30 years. Globalization, far-reaching technological and institutional innovations,and new roles for the state, private sector, and civilsocieties, define a new context for a changedagriculture scenario. New uses for traditional crops,for example, maize and sugarcane for biofuel, opennew opportunities and risks—as do a plethora ofnewly integrated regional markets. Recent record highagricultural commodity prices are the result of theincreased demands on the agriculture sector toproduce food, fodder, and fuel. Combating the effectsof climate change presents the private sector withmany new opportunities, not only by reducing thefallout of climate change, but also throughentrepreneurship.

Sustainable Agriculture, one of the missionsidentified by the NAPCC (National Action Plan onClimate Change), focuses on four areas crucial foragriculture to adapt to climate change namely dry landagriculture, risk management, access to information,and biotechnology.

ChallengesP R&D for dry land agriculture mainly focusing on

development of drought and pest-resistant cropvarieties including application of biotechnology.

P Development of innovative business models alongwith financial support to the farmers to be able toinvest and adopt technologies to overcomeclimate-related losses.

P Development and validation of weather derivative,which is a key requirement of the insuranceindustry to design weather-related insuranceproducts.

P To disseminate required knowledge, information,and skills to the farm communities, particularly toresource-poor farmers with small land holdings.

Government supportP Create a common platform of all stakeholders for

overall development for example, agricultureimplementing agencies, non-profit organizations,the private sector, and government departments.

P Policy support to agriculture extension servicesand promote PPP (public–private partnership) byproviding incentives for innovation.

P Special packages for private sector to work on dryland farming.

P Policy support to promote storage of agricultureproduce, packaging innovations, and post-harvestprocessing.

P Biotechnology parks should have clearly definedpolicies for technology enhancement and itsapplication.

Way forwardP Developing new business models (for example,

promote call centres and ITC e-choupal) to provideinformation on specific crops for strengtheningagriculture extension services and watersheddevelopment programmes.

P Support biotechnology research and developmentactivities for development of drought and salinityresistant crop varieties.

P Design and promote innovative insuranceproducts for farm communities.

P Design and promote business models for safe andlong-term storage, and post-harvest processing(includes transportation and packaging).

"Corporates should also consider productivity andprocessing issues of cereals. Running our Krishi

Vigyan Kendras in PPP mode may lead to efficientmanagement. Corporates could lend their engineers

for developing low cost farm implements."

Mr Sajjan Jindal, Vice Chairman & ManagingDirector, JSW Steel Ltd

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National Mission on Strategic Knowledge for Climate Change

Development and poverty eradication are the bestform of adaptation to the impacts of climatechange. The aim is to promote knowledge

sharing and enlist the global community to collaborate inresearch and development of technologies that counterclimate change.

The focus is on risk reduction, management, andpursuit of new business opportunities. To gain abetter understanding of climate science, impacts, andchallenges, this mission plan envisions improvedclimate modelling, and increased national andinternational collaboration.

Integrating data management, climate prediction,and early warning systems – and classification of suchdata for climate research, private sector as end-users –will synergize climate research with crop insuranceand others. This would be an innovative way ofprotecting millions of agriculturists, mitigating therisk of extremes through an extensive collection ofmeteorological data and their analysis.

Knowledge sharing and enlisting the globalcommunity to collaborate in R&D of technologieswill counter climate change. Development andpoverty eradication are the best forms of adaptation tothe effects of climate change.

ChallengesP Skilled manpower.P Complete archive of weather and climate data,

appropriate climate models, and supercomputingfacilities to support climate research.

P Awareness requirement—setting up climateinformation low platforms.

P Funds—high cost of scientific equipment forweather, soil, snow, water, and biodiversitymonitoring; and running complex climate modelson supercomputers.

P Lack of funding on adaptation and CDMtechnologies.

Government supportP Wider platform to provide tie-up between R&D

institutions and the corporate sector.P Legislative measures to integrate PPP (public–

private sector partnerships) on creating climatemodelling opportunities, data mining/warehousing, and so on.

Way forwardP Set up a climate centre with joint venture funds,

encourage research and sponsored PhD programme.P Establishment of weather and climate data and easy

access of data to climate researchers and end users ofclimate community.

P Best technology and technical capacities onhardware/software support on data and climatemodelling.

P A common platform to facilitate positive interactionbetween the private sector, research institutes, non-profit organizations, and the government.

P Set up a new Climate Science Research Fund.P Corporate initiatives on climate research—develop

adaptation and mitigation technologies throughVenture Capital funds.

"The energy security of any corporation lookingahead for the next 30-40 years is more likely to lie in

its acquisitions of command over carbon savingtechnology than sources of supply."

Mr Nitin Desai, Distinguished Fellow, TERI andCo-Chairman, TERI-BCSD India

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Acknowledgement

We extend our appreciation to all the TERI-BCSD India member companies whocontributed to this Corporate White Paper.

In this specific initiative, we also express our gratitudefor the dedicated efforts of 54 companies andorganizations who contributed their time, insight, andexperience. Additionally, we acknowledge the PrimeMinister’s Office for the guidance and support andthe nine Government of India nodal ministries, whoparticipated in the Inter-Ministry Meeting of theCorporate White Paper held on 8 January 2009 in

New Delhi, for substantial inputs on each nationalmission, which helped us consolidate the white paper.

The TERI-BCSD India Secretariat played animportant role in helping facilitate and coordinate thiswork over the last nine months with noteworthycontributions from six research divisions of TERInamely Biotechnology and Bioresources, ClimateChange, Energy Environment Policy, EnergyEnvironment Technology Development, Resourcesand Global Security, and Water Resources.

Participating ministries/departments

Prime Minister’s Office Ministry of Earth Sciences Ministry of PowerCentral Ground Water Board Ministry of Environment and Forests Ministry of Urban DevelopmentDepartment of Science and Technology Ministry of New and Renewable Energy Ministry of Water ResourcesDepartment of Road Transport & HighwaysMinistry of Shipping, Road Transport & Highways

Participating companies

ACC Ltd Forbes India ONGC LtdABN Amro Bank Hindustan Unilever Rajasthan State Mines and Minerals

LtdAll India Plastic Industries Association Hindustan Zinc Ltd Rallis India LtdAreva T and D Ltd HSBC Ltd Reliance Industries LtdBASF India Ltd Huntsman International India (Pvt.) Ltd RBS Home AppliancesBharat Petroleum Corporation Ltd IDBI Bank Ltd Senergy Global, Suzlon Group of

CompaniesBosch Ltd IDFC Ltd Shell IndiaBT India Ltd IFFCO Ltd Shree Cement LtdCairn India Indian Semi-Conductor Association Seshasayee Paper and Boards LtdCoca-Cola India Inc. Indian Wind Energy Association Tata BP Solar India LtdDCM Shriram Consolidated Ltd Intel Technology India Pvt. Ltd Tata Consultancy ServicesDelhi International Airport (P) Ltd Jaiprakash Associates Ltd (Cement Division) Tata Chemicals LtdGMR GroupDet Norske Veritas AS JSW Cement Ltd Tata Steel LtdDr Reddy’s Laboratories JSW Steel Ltd Tata Power Company LtdELCOMA Mahindra and Mahindra Ltd The Royal Norwegian EmbassyEureka Forbes Ltd NASSCOM Toyota Kirloskar Motor Pvt. LtdFertilizer Association of India Nokia India Pvt. Ltd Vodafone GroupFreeplay Energy India Pvt. Ltd NTPC Ltd Wipro Technologies

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February 2009

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