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Subject: Climate Change

1. Global Warming and Issues
2. All about Pollution

  • Thwaites glacier at mercy of sea warmth increase

    thwaites

    The new research suggests that even low amounts of melting can potentially push Thwaites glacier further along the path toward eventual disappearance.

    Thwaites Glacier

    • Called the Thwaites Glacier, it is 120 km wide at its broadest, fast-moving, and melting fast over the years.
    • Because of its size (1.9 lakh square km), it contains enough water to raise the world sea level by more than half a meter.
    • Studies have found the amount of ice flowing out of it has nearly doubled over the past 30 years.
    • Thwaites’s melting already contributes 4% to global sea-level rise each year. It is estimated that it would collapse into the sea in 200-900 years.
    • Thwaites is important for Antarctica as it slows the ice behind it from freely flowing into the ocean. Because of the risk it faces — and poses — Thwaites is often called the Doomsday Glacier.

    How is Thwaites glacier melting?

    thwaites

    • Thwaites Glacier is melting due to a combination of warming ocean currents and a weakening of the ice shelf that acts as a barrier between the glacier and the ocean.
    • The cause of the melting is thought to be the influx of relatively warm bottom water drawn in from the wider ocean.
    • In the 1990s it was losing just over 10 billion tonnes of ice a year. Today, it’s more like 80 billion tonnes.

    Why is this glacier so important?

    • Huge size: Flowing off the west of the Antarctic continent, Thwaites is almost as big as Great Britain.   It is one of the largest and most important glaciers in Antarctica, as it acts as a gateway to a vast area of the continent.
    • Melting faster: It’s a majestic sight, with its buoyant front, or “ice shelf”, pushing far out to sea and kicking off huge icebergs. But satellite monitoring indicates this glacier is melting at an accelerating rate.
    • Seal level rise: Thwaites’ ice loss contributes approximately 4% to the annual rise in global sea-levels, with the potential to add 65cm in total should the whole glacier collapse.  Its melting could also destabilize the entire West Antarctic Ice Sheet, leading to a further rise in sea levels.

     

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  • How do ruminants contribute to Methane Pollution?

    methane

    Bill Gates has invested in a climate technology start-up that aims to curtail the methane emissions of cow burps.

    What is the news?

    • The startup Rumin8 is developing a variety of dietary supplements to feed to cows in a bid to reduce the amount of methane they emit into the atmosphere.
    • The supplement includes red seaweed, which is believed to drastically cut methane output in cows.

    What is Methane?

    • Methane is a greenhouse gas, which is also a component of natural gas.
    • There are various sources of methane including human and natural sources.
    • The anthropogenic sources are responsible for 60 per cent of global methane emissions.
    • It includes landfills, oil and natural gas systems, agricultural activities, coal mining, wastewater treatment, and certain industrial processes.
    • The oil and gas sectors are among the largest contributors to human sources of methane.
    • These emissions come primarily from the burning of fossil fuels, decomposition in landfills and the agriculture sector.

    How do cows and other animals produce methane?

    • Ruminant animals such as cows, sheep, goats, and buffaloes release this methane mainly through burping.
    • They have a special type of digestive system that allows them to break down and digest food that non-ruminant species would be unable to digest.
    • Stomachs of ruminant animals have four compartments, one of which, the rumen, helps them to store partially digested food and let it ferment.
    • This partially digested and fermented food is regurgitated by the animals who chew through it again and finish the digestive process.
    • However, as grass and other vegetation ferments in the rumen, it generates methane, a potent greenhouse gas.

    How much do these ruminants contribute to emissions?

    • Given the very large numbers of cattle and sheep on farms in dairy-producing countries, these emissions add up to a significant volume.
    • It is estimated that the ruminant digestive system is responsible for 27 per cent of all methane emissions from human activity.

    Why is methane such a big problem?

    • Methane is one of the main drivers of climate change, responsible for 30 per cent of the warming since preindustrial times, second only to carbon dioxide.
    • Over a 20-year period, methane is 80 times more potent at warming than carbon dioxide, according to a report by the UNEP.
    • It’s also the primary contributor to the formation of ground-level ozone, a colourless and highly irritating gas that forms just above the Earth’s surface.
    • According to a 2022 report, exposure to ground-level ozone could be contributing to 1 million premature deaths every year.
    • Several studies have shown that in recent years, the amount of methane in the atmosphere has dramatically shot up.

    Mitigating methane emissions

    • Scientists have been working on to make these animals more sustainable and less gassy.
    • A 2021 study, published in the journal PLUS ONE, found that adding seaweed to cow feed can reduce methane formation in their guts by more than 80 per cent.
    • Apart from this, researchers are also trying to find gene-modifying techniques to curtail methane emissions in these animals.
    • Last year, scientists in New Zealand announced they had started the world’s first genetic programme to address the challenge of climate change by breeding sheep that emit lower amounts of methane.

    Global collaboration against methane pollution

    Ans. Global Methane Initiative (GMI)

    • GMI is a voluntary Government and an informal international partnership having members from 45 countries including the United States and Canada.
    • India last year co-chaired along with Canada the GMI leadership meet held virtually.
    • The forum has been created to achieve global reduction in anthropogenic methane emission through partnership among developed and developing countries having economies in transition.
    • The forum was created in 2004 and India is one of the members since its inception and has taken up Vice-Chairmanship for the first time in the Steering Leadership along with USA.

    Back2Basics: CO2 Equivalents

    • Each greenhouse gas (GHG) has a different global warming potential (GWP) and persists for a different length of time in the atmosphere.
    • The three main greenhouse gases (along with water vapour) and their 100-year global warming potential (GWP) compared to carbon dioxide are:

    1 x – carbon dioxide (CO2)

    25 x – methane (CH4) – I.e. Releasing 1 kg of CH4into the atmosphere is about equivalent to releasing 25 kg of CO2

    298 x – nitrous oxide (N2O)

    • Water vapour is not considered to be a cause of man-made global warming because it does not persist in the atmosphere for more than a few days.
    • There are other greenhouse gases which have far greater global warming potential (GWP) but are much less prevalent. These are sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).
    • There are a wide variety of uses for SF6, HFCs, and PFCs but they have been most commonly used as refrigerants and for fire suppression.
    • Many of these compounds also have a depleting effect on ozone in the upper atmosphere.

     

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  • Munroe Thuruthu: Kerala’s Sinking Island

    munroe

    A study conducted by the National Centre for Earth Science Studies (NCESS) has revealed anthropogenic interventions as the main reason for the sinking of Munroe Thuruthu Kerala’s, Kerala’s Sinking Island.

    Note: This Island has nothing to do with Thomas Monroe, the erstwhile Governor of Madras Presidency (1820-27).

    Munroe Thuruthu

    • Munroe Thuruthu is an inland island group located at the confluence of Ashtamudi Lake and the Kallada River, in Kollam district of Kerala.
    • The place is named in honour of Resident Colonel John Munro of the former Princely State of Travancore.
    • It is a group of eight small islets comprising a total area of about 13.4 km2.
    • This island is also known as “Sinking Island of Kerala”.

    How was this island inhabited?

    • In 1795 the British established their supremacy in South India and the princely state of Travancore came under their governance.
    • From 1800 onwards, a Resident was appointed by East India Company as administrative head of Travancore.
    • The first Resident was Colonel Colin Macaulay, followed by Colonel John Munro.
    • During his tenure Munro oversaw the land reclamation efforts in the delta where Kallada River joins Ashtamudi Lake and the reclaimed island was named after him as Munroe Island.

    Why in news?

    • The islanders are facing steady land subsidence, tidal flooding and lower agricultural productivity, all of which have triggered a mass exodus from the region.
    • According to the study, almost 39% of the land area of the Munroe Thuruthu has been lost with Peringalam and Cheriyakadavu islands recording a land depletion of around 12% and 47% respectively.
    • The study finds that anthropogenic activities have considerably affected the isostatic conditions and land neutrality of Munroe Thuruthu.

     

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  • What is Liquefied Natural Gas (LNG), and how it impacts the climate?

    lng

    The EU is weaning itself off piped Russian gas by rapidly expanding imports of liquefied natural gas (LNG) from US.

    What is Liquefied Natural Gas or LNG?

    • LNG is natural gas reduced to a liquid state (liquefaction) through intense cooling to around -161 degrees Celsius (-259 Fahrenheit).
    • It is constituted almost wholly of methane — a potent greenhouse gas and can be transported around the world by ship.
    • This liquid gas is 600 times smaller than the original volume and is half the weight of water.
    • After arriving at its destination, the cargo is regasified in a floating terminal and redistributed through pipelines.

    Economic feasibility of LNG

    • High cost of liquefaction: despite LNG’s export potential, the high cost of liquefaction and producing LNG has limited its market.
    • Losses: Between 10-25% of the energy of the gas is being lost during the liquefaction process.
    • Costly transport: The cooling, liquefying and transport processes, as well as the post-transport regasification procedures, also require a lot of energy.

    What’s the climate impact of LNG?

    • Emission: With LNG creating almost 10 times more emissions than piped gas by one estimate, its rapid expansion will likely compromise climate targets.
    • Risks of methane leakages: Methane loss across the supply chain risks also contributes to LNG’s high emissions.
    • Huge carbon equivalence: Meanwhile, LNG emits 14 times as much carbon as solar power when producing the equivalent amount of energy, and 50 times as much carbon as wind power.

     

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  • Ozone Hole filling up now

    ozone

    The ozone ‘hole’, once considered to be the gravest danger to planetary life, is now expected to be completely repaired by 2066, a scientific assessment has suggested.

    What is Ozone and Ozone Layer?

    ozone

    • An ozone molecule consists of three oxygen atoms instead of the usual two (the oxygen we breathe, O2, makes up 21% of the atmosphere).
    • It only exists in the atmosphere in trace quantities (less than 0.001%), but its effects are very important.
    • Ozone molecules are created by the interaction of ultra-violet (UV) radiation from the Sun with O2 molecules.
    • Because UV radiation is more intense at higher altitudes where the air is thinner, it is in the stratosphere where most of the ozone is produced, giving rise to what is called the ‘ozone layer’.
    • The ozone layer, containing over 90% of all atmospheric ozone, extends between about 10 and 40km altitude, peaking at about 25km in Stratosphere.

    Why need Ozone Layer?

    • The ozone layer is very important for life on Earth because it has the property of absorbing the most damaging form of UV radiation, UV-B radiation which has a wavelength of between 280 and 315 nanometres.
    • As UV radiation is absorbed by ozone in the stratosphere, it heats up the surrounding air to produce the stratospheric temperature inversion.

    What is Ozone Hole?

    • Each year for the past few decades during the Southern Hemisphere spring, chemical reactions involving chlorine and bromine cause ozone in the southern polar region to be destroyed rapidly and severely.
    • The Dobson Unit (DU) is the unit of measure for total ozone.
    • The chemicals involved ozone depletion are chlorofluorocarbons (CFCs for short), halons, and carbon tetrachloride.
    • They are used for a wide range of applications, including refrigeration, air conditioning, foam packaging, and making aerosol spray cans.
    • The ozone-depleted region is known as the “ozone hole”.

    Tropical Ozone Hole

    • According to the study, the ozone hole is located at altitudes of 10-25 km over the tropics.
    • This hole is about seven times larger than Antarctica, the study suggested.
    • It also appears across all seasons, unlike that of Antarctica, which is visible only in the spring.
    • The hole has become significant since the 1980s. But it was not discovered until this study.

    What caused an ozone hole in the tropics?

    • Studies suggested another mechanism of ozone depletion: Cosmic rays.
    • Chlorofluorocarbon’s (CFC) role in depleting the ozone layer is well-documented.
    • The tropical stratosphere recorded a low temperature of 190-200 Kelvin (K).
    • This can explain why the tropical ozone hole is constantly formed over the seasons.

    Try this PYQ

    Q.Consider the following statements:

    Chlorofluorocarbons, known as ozone-depleting substances are used:

    1. In the production of plastic foams
    2. In the production of tubeless tyres
    3. In cleaning certain electronic components
    4. As pressurizing agents in aerosol cans

    Which of the statements given above is/are correct?

    (a) 1, 2 and 3 only

    (b) 4 only

    (c) 1, 3 and 4 only

    (d) 1, 2, 3 and 4

     

    [wpdiscuz-feedback id=”4vi3n055n3″ question=”Please leave a feedback on this” opened=”1″]Post your answers here:[/wpdiscuz-feedback]

     

     

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  • What are Black Carbon Aerosols?

    black carbon

    Black carbon aerosols have indirectly affected the mass gain of the Tibetan Plateau glaciers by changing long-range water vapour transport from the South Asian monsoon region, a study has found.

    What are Black Carbon Aerosols?

    • Black Carbon (BC) aerosol, often called soot, is the dominant form of light absorbing particulate matter in the atmosphere.
    • They are emitted by incomplete combustion processes, both human (e.g., diesel engines) and natural (e.g., wildfire).
    • Its ability to absorb visible and infrared radiation means BC can heat the atmosphere and darken surfaces, specifically snow and ice.
    • These effects have important consequences on earth’s climate and climate change.
    • BC may also have adverse impacts on human health. Unlike long-lived greenhouse gases such as carbon dioxide, BC is removed from the atmosphere in 1-2 weeks, so its impacts tend to be more regional rather than global.

    Deposition over Himalayas

    • The South Asia region adjacent to the Tibetan Plateau has among the highest levels of black carbon emission in the world.
    • Many studies have emphasised black carbon aerosols from South Asia can be transported across the Himalayas to the inland region of the Tibetan Plateau.

    Impact on glaciers melting

    • Black carbon deposition in snow reduces the albedo of surfaces — a measure of how much of Sun’s radiations are reflected.
    • This accelerates the melting of glaciers and snow cover, thus changing the hydrological process and water resources in the region.
    • They heat up the middle and upper atmosphere, thus increasing the North-South temperature gradient.
    • As a result, precipitation in the central and the southern Tibetan Plateau decreases during the monsoon, especially in the southern Tibetan Plateau.
    • The decrease in precipitation further leads to a decrease of mass gain of glaciers.
    • From 2007 to 2016, the reduced mass gain by precipitation decrease accounted for 11% of the average glacier mass loss on the Tibetan Plateau and 22.1% in the Himalayas.

     

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  • What is a ‘Bomb Cyclone’?

    bomb

    Bomb cyclone continued to unleash havoc as the death toll due to weather-related incidents in the United States mounted to 34 and has left millions without power.

    What is Bomb Cyclone?

    • A bomb cyclone is a large, intense mid-latitude storm that has low pressure at its center, weather fronts and an array of associated weather, from blizzards to severe thunderstorms to heavy precipitation.
    • It becomes a bomb when its central pressure decreases very quickly—by at least 24 millibars in 24 hours.
    • When a cyclone “bombs,” or undergoes bombogenesis, this tells us that it has access to the optimal ingredients for strengthening, such as high amounts of heat, moisture and rising air.

    Why is it called a bomb?

    • Most cyclones don’t intensify rapidly in this way.
    • Bomb cyclones put forecasters on high alert, because they can produce significant harmful impacts.

    Its etymology

    • The word “bombogenesis” is a combination of cyclogenesis, which describes the formation of a cyclone or storm, and bomb, which is, well, pretty self-explanatory.
    • This can happen when a cold air mass collides with a warm air mass, such as air over warm ocean waters.
    • The formation of this rapidly strengthening weather system is a process called bombogenesis, which creates what is known as a bomb cyclone.

    How does it occur?

    • Over the warmer ocean, heat and moisture are abundant.
    • But as cool continental air moves overhead and creates a large difference in temperature, the lower atmosphere becomes unstable and buoyant.
    • Air rises, cools and condenses, forming clouds and precipitation.

    Where does it occur the most?

    • The US coast is one of the regions where bombogenesis is most common.
    • That’s because storms in the mid-latitudes – a temperate zone north of the tropics that includes the entire continental US – draw their energy from large temperature contrasts.
    • Along the US East Coast during winter, there’s a naturally potent thermal contrast between the cool land and the warm Gulf Stream current.

     

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  • What is Greenwashing?

    greenwashing

    Reserve Bank Deputy Governor called for a taxonomy on green finance to avoid the risk of “greenwashing”.

    What is ‘Greenwashing’? 

    • Greenwashing refers to misleading the general public into believing that companies, sovereigns or civic administrators are doing more for the environment than they actually are.
    • This may involve making a product or policy seem more environmentally friendly or less damaging than it is in reality.
    • The term was coined by environmentalist Jay Westerveld in 1986.
    • The phenomenon came into practice as consumers and regulators increasingly sought to explore planet-friendly, recyclable and sustainable ‘green’ products.
    • By 2015, 66% of consumers were willing to shell out more for a product that was environmentally sustainable.

    How is it done? 

    • There is the indiscriminate use of the terms ‘net-zero’, ‘net-zero aligned’, ‘eco-friendly’, ‘green’ and ‘ecological’.
    • Since there is no compliance mechanism, such practices are rampant.

    Why does greenwashing happen? 

    • Greenwashing is done primarily for a company to either present itself as an ‘environment-friendly’ entity or for profit maximisation.
    • It is achieved by introducing a product, catering to the inherent demand for environment-friendly products.
    • In certain instances, it is done using the larger idea as a premise to cut down on certain operational logistics and providing consumer essentials.

    What does it have to do with the financial sector? 

    • Ethical investing: Sustainable investing has become increasingly popular among millennials and impact investors concerned with ‘ethical investing’.
    • Role of ESG credentials: Financial services providers expect increased scrutiny of a company’s Environmental, Social and Governance (ESG) credentials from regulators, shareholders, customers as well as other stakeholders.
    • Transition funding: Financial institutions are expected to fund the transition towards renewable energy and discourage investments in further harnessing of conventional energy sources as coal, oil and gas.

    Policy moves in India

    • If the financial sector is to respond effectively to the demand for products that endeavour to introduce positive changes into the economy, it is imperative that ‘greenwashing’ is averted.
    • In May this year, market regulator Securities and Exchange Board of India (SEBI) constituted an advisory committee to look into all ESG-related matters.

    Key recommendations

    • The expert committee recommends that financial institutions immediately discontinue all lending, underwriting and investments in companies wanting to strengthen or expand their coal-related infrastructure.
    • As for oil and gas, it recommends the discontinuation of all investments that would involve exploration of new oil and gas fields, expansion of existing reserves and further production.
    • Instead, companies should facilitate increased investment in renewable energy and institutions that are aligned to facilitate net zero emissions by 2050.

    Way forward

    • Companies must work towards reducing emissions across their entire value chain and not limit the endeavor to only one part of the chain.
    • They must not invest, through any means, in harnessing fossil fuels or engage in deforestation and other environmentally destructive activities.
    • In addition to this, companies cannot compensate for this investment by means of cheap credits, that “often lack integrity”.
    • Further, all state and non-state actors must ensure a ‘just transition’ such that livelihoods are not affected.
    • The committee also recommends a transition from voluntary disclosures (pertaining to net emissions) to regulatory norms.

     

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  • Mapping: Great Lakes

    lake

    Scientists are building a sensor network to detect the trends in the water chemistry of Lake Huron, one of the five Great Lakes of North America.

    What is the Acidification of water bodies?

    • Acidification of oceans or freshwater bodies takes place when excess carbon dioxide in the atmosphere gets rapidly absorbed into them.
    • Scientists initially believed this might be a good thing, as it leaves less carbon dioxide in the atmosphere.
    • But in the past decade or so, it has been established that absorption of carbon dioxide leads to a lowering of the pH, which makes the water bodies more acidic.

    What are Great Lakes?

    • The Great Lakes are a series of large interconnected freshwater lakes in the mid-east region of North America that connect to the Atlantic Ocean via the Saint Lawrence River.
    • There are five lakes, which are Superior, Michigan, Huron, Erie, and Ontario and are in general on or near the Canada–US border.
    • Hydrologically, lakes Michigan and Huron are a single body joined at the Straits of Mackinac.
    • By itself, Lake Huron is the world’s third largest freshwater lake, after Lake Superior and Lake Victoria.
    • The Great Lakes Waterway enables modern travel and shipping by water among the lakes.

    Why are they significant?

    • The Great Lakes contain a fifth of the world’s total freshwater, and is a crucial source of irrigation and transportation.
    • They also serve as the habitat for more than 3,500 species of plants and animals.

    Acidification of Great Lakes

    • Scientists are developing a system that would be capable of measuring the carbon dioxide and pH levels of the Great Lakes over several years.
    • It is known that the increase in atmospheric carbon dioxide has caused the world’s oceans to turn more acidic.
    • Recently, it has been observed that by 2100, even the Great Lakes — Superior, Michigan, Huron, Erie, and Ontario — might approach acidity at around the same rate as the oceans.
    • Researchers hope the data from the Lake Huron project would add to scientific information on the subject.

    Consequences of acidification

    • The Great Lakes are believed to have been born some 20,000 years ago, when the Earth started to warm and water from melting glaciers filled the basins on its surface.
    • However, this rich ecosphere is under threat as the five lakes would witness a pH decline of 0.29-0.49 pH units — meaning they would become more acidic — by 2100.
    • This may lead to a decrease in native biodiversity, create physiological challenges for organisms, and permanently alter the structure of the ecosystem, scientists say.
    • It would also severely impact the hundreds of wooden shipwrecks that are believed to be resting at the bottom of these lakes.

     

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  • What are Carbon Markets and how do they operate? 

    carbon

    The Parliament passed the Energy Conservation (Amendment) Bill, 2022. It amends the Energy Conservation Act, 2001, to empower the Government to establish carbon markets in India and specify a carbon credit trading scheme.

    A quick recap

    • In order to keep global warming within 2°C, ideally no more than 1.5°C, global greenhouse gas (GHG) emissions need to be reduced by 25 to 50% over this decade.
    • Nearly 170 countries have submitted their nationally determined contributions (NDCs) so far as part of the 2015 Paris Agreement, which they have agreed to update every five years.
    • NDCs are climate commitments by countries setting targets to achieve net-zero emissions.
    • India, for instance, is working on a long-term roadmap to achieve its target of net zero emissions by 2070.

    What are Carbon Markets?

    • In order to meet NDCs, one mitigation strategy is becoming popular with several countries— carbon markets.
    • Article 6 of the Paris Agreement provides for the use of international carbon markets by countries to fulfil their NDCs.
    • Carbon markets are essentially a tool for putting a price on carbon emissions— they establish trading systems where carbon credits or allowances can be bought and sold.
    • A carbon credit is a kind of tradable permit that, per United Nations standards, equals one tonne of carbon dioxide removed, reduced, or sequestered from the atmosphere.
    • Carbon allowances or caps, meanwhile, are determined by countries or governments according to their emission reduction targets.

    Popularity of the carbon markets

    • A UN Development Program release this year noted that interest in carbon markets is growing globally.
    • Almost 83% of NDCs submitted by countries mention their intent to make use of international market mechanisms to reduce greenhouse gas emissions.

    What are the types of carbon markets?

    There are broadly two types of carbon markets that exist today— compliance markets and voluntary markets.

    (A) Voluntary Markets

    • They are those in which emitters— corporations, private individuals, and others— buy carbon credits to offset the emission of one tonne of CO 2 or equivalent greenhouse gases.
    • Such carbon credits are created by activities which reduce CO 2 from the air, such as afforestation. In a voluntary market, a corporation looking to compensate for its unavoidable GHG emissions purchases carbon credits from an entity engaged in projects that reduce, remove, capture, or avoid emissions.
    • For Instance, in the aviation sector, airlines may purchase carbon credits to offset the carbon footprints of the flights they operate.
    • In voluntary markets, credits are verified by private firms as per popular standards.
    • There are also traders and online registries where climate projects are listed and certified credits can be bought.

    (B) Compliance Market

    • Compliance markets— set up by policies at the national, regional, and/or international level— are officially regulated.
    • Today, compliance markets mostly operate under a principle called ‘cap-and-trade”, most popular in the European Union (EU).

    Successful example of Carbon Market: EU’s emissions trading system (ETS)

    • Under the EU’s ETS launched in 2005, member countries set a cap or limit for emissions in different sectors, such as power, oil, manufacturing, agriculture, and waste management.
    • This cap is determined as per the climate targets of countries and is lowered successively to reduce emissions.
    • Entities in this sector are issued annual allowances or permits by governments equal to the emissions they can generate.
    • If companies produce emissions beyond the capped amount, they have to purchase additional permit, either through official auctions or from companies.
    • This makes up the ‘trade’ part of cap-and-trade.

    How is carbon price determined?

    • The market price of carbon gets determined by market forces when purchasers and sellers trade in emissions allowances.
    • Notably, companies can also save up excess permits to use later.
    • Through this kind of carbon trading, companies can decide if it is more cost-efficient to employ clean energy technologies or to purchase additional allowances.
    • These markets may promote the reduction of energy use and encourage the shift to cleaner fuels.

    Other such examples

    • China launched the world’s largest ETS in 2021, estimated to cover around one-seventh of the global carbon emissions from the burning of fossil fuels.
    • Markets also operate or are under development in North America, Australia, Japan, South Korea, Switzerland, and New Zealand.

    Significance of Carbon Market

    • The World Bank estimates that trading in carbon credits could reduce the cost of implementing NDCs by more than half — by as much as $250 billion by 2030.
    • Last year, the value of global markets for tradable carbon allowances or permits grew by 164% to a record 760 billion euros ($851 billion).
    • The EU’s ETS contributed the most to this increase, accounting for 90% of the global value at 683 billion euros.
    • As for voluntary carbon markets, their current global value is comparatively smaller at $2 billion.

    What is the progress at UN?

    • The UN international carbon market envisioned in Article 6 of the Paris Agreement is yet to kick off as multilateral discussions are still underway about how the inter-country carbon market will function.
    • Under the proposed market, countries would be able to offset their emissions by buying credits generated by greenhouse gas-reducing projects in other countries.
    • In the past, developing countries, particularly India, China and Brazil, gained significantly from a similar carbon market under the Clean Development Mechanism (CDM) of the Kyoto Protocol, 1997.
    • India registered 1,703 projects under the CDM which is the second highest in the world.
    • But with the 2015 Paris Agreement, the global scenario changed as even developing countries had to set emission reduction targets.

    India’s efforts

    The new Bill empowers the Centre to specify a carbon credits trading scheme.

    • Issuance of credit certificates: Under the Bill, the central government or an authorised agency will issue carbon credit certificates to companies or even individuals registered and compliant with the scheme.
    • Tradable carbon credits: These carbon credit certificates will be tradeable in nature. Other persons would be able to buy carbon credit certificates on a voluntary basis.

    Existing mechanisms

    • Notably, two types of tradeable certificates are already issued in India-
    1. Renewable Energy Certificates (RECs) and
    2. Energy Savings Certificates (ESCs)
    • These are issued when companies use renewable energy or save energy, which are also activities which reduce carbon emissions.

    Lacunas of the bill

    • No clear mechanism: The Bill does not provide clarity on the mechanism to be used for the trading of carbon credit certificates— whether it will be like the cap-and-trade schemes or use another method— and who will regulate such trading.
    • Confusion over nodal agency: The right ministry to bring in a scheme of this nature, pointing out that while carbon market schemes in other jurisdictions like the US, UK are framed by their environment ministries, the Indian Bill was tabled by the power ministry instead of the MoEFCC.
    • Ambiguity over existing certificates: The Bill does not specify whether certificates under already existing schemes would also be interchangeable with carbon credit certificates and tradeable for reducing carbon emissions.
    • Overlapping: The question, thus, is whether all these certificates could be exchanged with each other. There are concerns about whether overlapping schemes may dilute the overall impact of carbon trading.

    Challenges to carbon markets

    • Double counting: of greenhouse gas reductions
    • Quality and authenticity: These parameters of climate projects that generate credits to poor market transparency
    • Greenwashing: Companies may buy credits, simply offsetting carbon footprints instead of reducing their overall emissions or investing in clean technologies.
    • Inefficiency: The IMF points out that including high emission-generating sectors under trading schemes to offset their emissions by buying allowances may immensely increase emissions on net.

    Way forward

    • Alignment with NDCs: The UNDP emphasizes that for carbon markets to be successful, emission reductions and removals must be real and aligned with the country’s NDCs.
    • Transparent financing: It says that there must be “transparency in the institutional and financial infrastructure for carbon market transactions”.

     

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