The spread of clean energy technology has assumed great importance in the context of global warming and the emission of greenhouse gases. Although India’s carbon emissions of approximately one-tonne-per-capita are only one-fourth the world average, the overall emissions from India are likely to increase dramatically in the coming years due to a growing population and an expanding economy. According to the 2007 World Energy Outlook report, India accounted for 4 per cent of the world's overall carbon emissions in 2005. However, this share is expected to double to 8 per cent by 2030. As a developing country that plans to dramatically expand its manufacturing scope, India’s use of energy will only increase. In view of the global movement towards reducing the use of fossil fuels, India must focus on renewable energy and green practices to power its future development.

The Kyoto Protocol has been the defining international environmental treaty for some time now, linked to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC). It aims at combating global warming with the goal of achieving ‘stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.’ It was initiated first on December 11, 1997, in Kyoto, Japan and came to force on February 16, 2005. Up until November 2009, 187 countries have signed and ratified the protocol.

Ensuring a cleaner environment and greater access to clean, reliable and cost-effective sources of
energy will require not only innovative thinking but also innovative action. In fact, the governments of various nations need to support this need by compelling their indigenous manufacturing units to adopt clean energy systems and techniques. The easiest way to begin this is by reducing energy consumption.

These concerns gave rise to the term ‘green manufacturing’. This concept aims at achieving manufacturing sustainability while emitting less waste and pollution. It can be achieved by modifying the design and product processes. Many manufacturing units follow a three lifecycle approach to product design. In this approach, the first consideration is to design a product for reuse—designing a product which can be used in later generations of products. The second approach involves developing products so that they can easily be taken apart for repair, ie, one part from the product can be replaced or repaired when the product is not functional rather than replacing the whole product. The third approach guides the use of various parts of an obsolete or
abandoned product in different products. It provides product efficiency as well.

Problems and achievements
Opting for certified emissionnorms is a costly activity. It raises a dilemma in the minds of industry owners who are looking for ways to mitigate the cost of environmental compliance and even prevent new standards, if necessary. Industry experts feel that they can soften the regulatory blow by being proactive in developing products with minimal environmental impact. Manufacturers need to conduct periodic research and testing of their products. Companies like GE, DuPont and Toyota are known for their work in green technology. These companies can also help the government to develop policies. They can push for more regulations and stricter standards.

Nissan Motor Company launched the Nissan Green Program 2010 to reduce CO2 emissions to meet upcoming US and European emission standards. For that, they are developing alternate power technologies. Danfoss, a Denmarkbased manufacturer of valves and fluid handling components for HVAC and industrial applications, has also set their own environmental standards. In India companies like Suzlon, Tata BP solar, Moserbaer PV technologies, BALCO are playing leading roles in
green manufacturing.

George Paul, Executive Vice President, HCL Infosystems Ltd, says, “Green manufacturing is the concept under which companies align their manufacturing activities so that they achieve minimum
waste generation and optimum use of resources, hence developing products with a minimal environmental impact. For example, in our manufacturing units, we use daylight (which enters through specially designed roof-panels) instead of artificial light, hence saving energy.” He adds, “At our factory, we are switching off uninterruptible power supply (UPS )at night and holidays, we have programmed conveyor lines to stop when not required, and we have replaced incandescent bulbs with CFL. The resultant saving is 8,634 units a month.”



Regulators will press manufacturers to source alternate methods of production and will require proper training to deal with the current situation. Manufacturing managers will also need to study the market potential of green products. Alternate forms of energy Asian countries are proactive in this regard. An example of this is the recent memorandum of understanding (MoU) signed between the Indian and Scotish governments to boost renewable energy. Clean energy investments are estimated to reach $115 billion by the end of 2009. In the Asia Pacific region, China is contributing
the maximum in terms of energy efficiency. Since 2007, India has exhibited a 12 per cent hike insustainable energy investment and aims to have 5 per cent of energy manufactured from renewable energy by 2010.

Continued innovation will be essential, and though much of this new technology may come from innovators outside India, there are already many home-grown industries that are leading the charge. For example, in the biofuel space, Indian Railways is sponsoring a programme to use the oil from the Jatropha tree to make biodiesel. Through this programme, the railways could cut their total diesel fuel consumption by nearly a fifth and add 44,000 jobs.



It is clear that there are many promising ideas and technologies available. But to fully take advantage of a green future, India will need to ensure that the rights of inventors and innovators are respected. Intellectual property will be the catalyst for clean technology innovation and deployment in India. Green innovations will drive job creation and economic development and improve the quality of life in both the rural and urban areas. The wide variety of clean energy technologies available leaves manufacturers spoilt for choice. Support from developed countries will need to go toward lowering barriers to manufacturing and construction, rather than weakening intellectual property protections.

As countries engage in negotiations to combat the effects of global climate change, it is clear that any effective solution will require the commitment of all nations, developed and developing. But moving away from fossil fuels will take time, perhaps decades. Nations are now looking to clean
and renewable energy to fill a greater share of their energy demands and to fill those needs they will need access to technology.

Overall, advancements and deployment of clean technologies in India—ranging from biofuels and hydro to wind and nuclear—could create nearly 10 million jobs in India by 2025. By working together with industry and its trading partners, the Indian government will be able to achieve many of its climate and economic goals. All of these potential positive benefits
create a unique opportunity for India to assume a leadership role in the UNFCC on Climate Change.That leadership must promote clean technology innovation while tearing down trade barriers and safeguarding the the rights
of innovators.

The goal of effectively providing clean, reliable energy in India is definitely achievable. As a competitive marketplace develops, companies will need to set up manufacturing facilities and distribution points and develop a sales and maintenance network throughout the subcontinent. This has the potential to create millions of new jobs, provide billions in tax revenues and create new manufacturing capacity and infrastructure in India.

Clean Development Mechanism (CDM)

The Kyoto Protocol urges countries to limit or reduce their greenhouse gas emissions by encouraging private and public players to contribute to emission reduction efforts. Negotiators of this protocol target emission trading, the clean development mechanism and joint implementation.

CDM has been operational since 2006. It acts as an implementing agent for emission reduction projects in developing countries. Such projects can earn saleable certified emission reduction (CER)credits. Each CER is equivalent to one tonne of CO2, which is counted towards meeting Kyoto targets. It has already registered more than 1,000 projects and expects to produce CERs amounting to more than 2.7 billion tonne of CO2 in the first commitment period of the Kyoto Protocol, 2008-12.

On carbon credits trading Platforms across the world, a total of more than $126 billion inallowances was traded in 2008, nearly double what was traded in 2007. Approximately $92 billion was traded on the EU market, about $7 billion was for UN projects, $183 million was on the New SouthWales exchange, $309 million on the Chicago Climate Exchange, and another $246 million on the new Regional Greenhouse Gas Initiative (RGGI) exchange.



According to the World Bank, 2007 saw the emergence of voluntary programmes such as  secondary markets. Secondary CDM allowance trading was significantly high in comparison to sales of primary CDM credits because of the CDM procedural delays.

The economic downturn forced companies around the globe to sell off credits for quick cash. Companies focused more on improving their bottom line than on holding credits for long-term returns. The monthly average for new project approvals was down by 15 per cent between November 2008 and January 2009. Asia is the leading supplier of CERs in the global carbon market, holding approximately 77 per cent of the total. Mayank Batra, Research Analyst, Environment and Building Technologies, South Asia & Middle East, Frost & Sullivan, says, “Over 3,714 projects have been developed under the CDM all over Asia under various sectors. Most of these are the future installed power projects, which will have a capacity of around 58 GW in hydro, wind, biomass, geothermal,biogas, landfill gas, solar energy, tidal, energy efficiency-based own generation, and coal bed or coal mine methane sectors.”

India’s Carbon Credits Market
India has the second-highest volumes of carbon credit transactions in the world. The country has generated around 30 million carbon credits, and approximately 140 million are in the pipeline. About 850 green projects with a huge investment of $14.45 billion are also in the pipeline. According to the Prime Minister’s Council, the revenue from 200 projects will reach around $2.16 billion by 2012. Energyefficiency projects from industries contribute to a major portion of the registered green projects. Around 225 Indian projects in the fields of biomass, cogeneration, hydropower, and wind power with a potential of 225 million CERs have been registered.

India has around 1.1 billion people who are cut off from the electricity grid. This offers a huge opportunity for the deployment of clean energy through solar energy, wind energy or biomass such as crop waste. In terms of rural development and the use of renewable energy, there is an abundance of opportunities for Indian developers, especially as the counterparts of the Annex-1 countries are ready to provide capital for development. This would help institutions in these countries achieve their reduction targets. Carbon offsets from solid waste projects will see an increase. At present the Indian solid waste management market is witnessing tremendous growth. It is currently valued at around $155.56 million and is expected to grow at a rate of around 20-25 per cent in the next three to five years. With the increase in public-private partnerships, participants are likely to become more proactive in terms of registration of projects, and the share of solid waste management in CERs will increase. Improvements in industrial processes—setting up water and wastewater treatment plants, switching to more efficient fuel sources, and use of renewable energy captive plants—are generating considerable revenue for industries through carbon credits in India. Only 5.3 per cent of the captive plants in the industrial sector are based on biomass, wind, hydel, industrial waste, biogas and rejects from coal washery. There is a huge potential for earning carbon credits in this area. However, Indian carbon offsets are very sensitive to price fluctuations. With China and Vietnam offering CERs at lower, more stable prices, the danger of India getting outpriced intensifies.

The number of Indian carbon offset project proposals submitted every day to India’s national authority, CDM India, has reduced by approximately 30 per cent. The National CDM Authority (NCDMA) in India has accorded Host Country Approval to 1,455 projects. If all these projects are registered at the CDM executive board, it will earn developers a total of 573 million CERs by 2012. These projects have seen an investment of more than $33.7 billion. However, project financing activity declined in the recent past as people looked to Copenhagen to determine future developments and buyers were unwilling to enter into deals with a post-2012 delivery date.