Audit on Climate Change and Prevention of Air

Audit on Climate Change and Prevention of Air Pollution By Shri R. P. Singh Principal Accountant General, Punjab Sh. Ashok Sinha , Sr. Dy Accountant General SAI, India. At Hangzhou, China 1

Overview Introduction Global Initiatives -International 2 Environmental Legislation Historic background Objectives of Convention, Definitions Kyoto Protocol Commitment of all Parties Auditing International Environmental Accords Applying Line of Reasoning SAI’s Role in ensuring the stated Objectives are achieved at National level National Initiatives 2

Introduction Earth’s environment is finite and fragile. Earth’s eco-system is under severe stress due to pollution of air and looming threats of global warming, ozone depletion, trans-boundary air pollution, de-forestation etc. Developmental activities have brought in a host of environmental problems. Degradation/denudation of forests for economic development through mega projects, mining etc. , and forest encroachments, forest fires have reduced natural carbon sink. 3

Introduction Problems are also arising out of lack of development, which is deforestation due to fuel wood extraction, and the fossil fuel burning for cooking resulting in emission of Green House Gases. The atmosphere in all the metropolitan cities is also heavily polluted due to vehicular emissions resulting in a number of health hazards to the human population. 4

Climate Change Greenhouse gases (GHGs) means those gaseous constituents of the atmosphere both natural and anthropogenic that absorb and re-emit infrared radiation. An increase in the levels of GHGs (Carbon dioxide, Methane, Nitrous oxide, Hydro fluorocarbons Per fluorocarbons and Sulphur hexafluoride) in atmosphere could lead to greater warming of earth’s surface which in turn can impact the world’s climate leading to phenomenon known as Climate Change. 5

The Greenhouse effect…. . 6

Sources emitting air pollutants The prime sources emitting air pollutants can be classified as i) Transportation Vehicles on Road, Railways, Aircrafts, Ships and Other combustion engines Air pollutants emitted from the engines are Carbon dioxide, Carbon monoxide, un-burnt hydrocarbons, oxides of hydrogen, oxides of sulphur and inorganic lead and particulate matter. ii) Industrial & Commercial processes Industrial units and power generating stations use combustion of coal, coke, and petroleum for generation of heat and power emitting greenhouse gases. 7

8

International Environmental Legislation Intergovernmental Panel on Climate Change (IPCC, 1988) United Nations Framework Convention on Climate Change (UNFCCC, 1992) Conference of Parties (COP, 1992) Kyoto Protocol (1997) 9

Historic Background IPCC was established in 1988 with an objective of evaluating the scientific evidence on global warming, assessing the environmental and agricultural impacts of climate change and formulating responses. In 1992, the first United Nations Conference on Environment and Development (UNCED) was held at Rio de Janeiro, Brazil popularly known as the Earth Summit resulted in Treaties on Biodiversity and Climate Change. 10

Historic Background The UNFCCC was adopted in 1992 and came into force in 1994 with the ultimate objective of stabilizing greenhouse gas (GHG) concentrations in the atmosphere. This Convention also led to establishment of a COP, the supreme implementing body of the convention. 11

Objectives of convention The UNFCCC objectives were to stabilize greenhouse gas concentration in the atmosphere at a level that would prevent dangerous anthropogenic interference with climate system, within a timeframe sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner. 12

Definitions Climate change means a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods. Climate system means the totality of atmosphere , hydrosphere, biosphere and geosphere and their interactions Reservoir means a component(s) of the climate system where a greenhouse gas is stored. 13

Definitions Sink means any process, activity or mechanism which removes a greenhouse gas, an aerosol or a precursor of a greenhouse gas from atmosphere. Source means any process or activity which releases a greenhouse gas, an aerosol or a precursor of a greenhouse gas into the atmosphere. Greenhouse gases means those gaseous constituents of the atmosphere both natural and anthropogenic that absorb and re-emit infrared radiation. 14

Kyoto Protocol In 1997, the third COP session held in Kyoto, Japan resulted in adoption of Kyoto Protocol to the UNFCCC. The protocol came into force in February 2005. The Protocol calls for legally binding commitments to reduce greenhouse gas emissions by 5. 2% below 1990 levels by the period 2008 -2012. The major distinction between the convention and the protocol, the convention encouraged the industrialized countries to stabilize GHG emissions, the protocol commits them to do so. 15

Greenhouse gases (GHGs) The Kyoto targets cover emissions of six direct greenhouse gases: Carbon dioxide(CO 2) Methane (CH 4) Nitrous oxide (N 2 O) Hydro fluorocarbons (HFCs) Per fluorocarbons (PFCs) and Sulphur hexafluoride (SF 6) Other indirect greenhouse gases are CO, SO 2, Nox, NMVOC 16

Common but Differentiated responsibilities The Parties should protect the climate system for benefit of present and future generations of mankind, on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities. Protocol places heavier burden on developed countries recognizing that developed countries are principally responsible for the current high GHG emissions in the atmosphere as result of 150 years of industrial activity. 17

Rules for the implementation of the Protocol In 2001, the detailed rules for the implementation of the Protocol were adopted at COP 7 in Marrakesh called “ “Marrakesh Accords”. Under the Treaty, countries must meet their targets primarily through national measures. The Protocol offers an additional means of meeting their targets by way of three market based mechanisms. 18

Three market based mechanisms The Kyoto mechanisms are Emission Trading(ET) known as carbon market The clean development mechanism (CDM) Joint implementation (JI) 19

Emissions Trading Parties with commitments under the Protocol( Annex B Parties) have accepted targets for limiting or reducing emissions The targets are expressed as levels of allowed emissions of assigned amounts over 2008 -2012 divided into assigned amount units (AAUs) 20

Other Trading Units in Carbon market The other units which may be transferred , one tonne of CO 2 in the form of Removal Unit (RMU) on the basis of land use, land use change and forestry(LULUFC) activities such as reforestation. An emission reduction unit (ERU) generated by joint implementation on project. A certified emission reduction (CER) generated from clean development mechanism project activity. 21

Clean Development Mechanism The CDM defined in Protocol allows a Annex B Party to implement an emission reduction project in developing countries Such Projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO 2 which can be counted towards meeting targets. The mechanism stimulates sustainable development and emission reductions. The mechanism is overseen by CDM Executive Board. 22

Joint Implementation JI defined in the Protocol allows a Annex B Party to earn Emission Reduction Unit (ERU) from an emission reduction in sources or emission removal by sinks projects in another Annex B Party, each equivalent to one tonne of CO 2 which can be counted towards meeting its targets. The host Party benefits from foreign investment and technology transfer. 23

Commitment of all Parties To develop, periodically update, publish make available to the COP, national inventories of anthropogenic emissions by sources and removals by sinks of all greenhouse gases using comparable methodologies agreed upon by the COP. To formulate, implement, publish and regularly update national and where appropriate regional programmes containing measures to mitigate climate change by addressing anthropogenic emissions by sources and removals by sinks of all GHG and measures to facilitate adequate adaptation to climate change. 24

Commitment of all Parties To promote and cooperate in the development , application and diffusion including transfer of technologies, practices and processes that control, reduce or prevent anthropogenic emissions of GHG in all sectors including energy, transport, industry, agriculture, forestry and waste management sectors. To promote sustainable management, promote and cooperate in the conservation and enhancement of sinks and reservoirs of GHG including biomass, forests and oceans as well as terrestrial, coastal and marine ecosystems. 25

Commitment of all Parties To cooperate in preparing for adaptation to climate change To develop and elaborate appropriate and integrated plans for coastal zone management, water resources and agriculture To take climate change considerations into account in their social, economical and environmental policies and actions such as impact assessments to minimize adverse effects on economy, public health and the environment 26

Commitment of all Parties To promote scientific research, education, training, public awareness related to climate change, causes, effects, magnitude and timing and the economic and social consequences of various response strategies. To communicate to the COP information related to implementation. 27

Auditing Environmental Accords The mere existence of environmental accords does not guarantee a higher degree of environmental protection. Despite their importance very little is known about national implementation and compliance with accords. The Global Environmental Outlook, 2000 published by the United Nations Environmental Programme, states that assessment of implementation, compliance and effectiveness of environmental accords is complicated and plagued with gaps in data, conceptual difficulties and methodological problems. 28

SAIs Role in Auditing Environmental Accords This deficiency makes the basic question of availability and adequacy of data and information about compliance and effectiveness of environmental policy relevant: are the government and parliament well informed on the state of execution of policies related to environmental accords? SAIs could play an important role concerning national implementation , compliance and effectiveness of accords. 29

Environment Audit may be conducted within the broad framework of Regularity (financial and compliance) and Performance Audit. New Zealand had done performance audit (2000) of Accord-The United Nations Framework Convention on Climate Change (UNFCCC). 30

Relevant Acts and Regulatory Agencies In India, the legislative enactment of Air (prevention and control of pollution) Act, 1981 has the objective of preventing and controlling the air pollution as the top priority by means of command control method. Air pollution prevention is implemented through statutory control and administrative regulation by Regulatory bodies such as Central Pollution Control Board and State Pollution Control Boards under the Ministry of environment and Forests. 31

Relevant Acts and Regulatory Agencies The Energy Conservation Act, 2001 provides for efficient use of energy and its conservation and also led to establishment of Bureau of Energy Efficiency. The Electricity Act, 2003 requires State Electricity Regulatory Commissions to specify a percentage of electricity to be procured from renewable sources by electricity distribution companies. Electricity Regulatory Commissions have also linked tariffs to efficiency enhancement, providing incentive for renovation and modernization. 32

Line of reasoning Available Information on an accord Signs of (Non) compliance with an accord Environmental risks underlying an accord Obligation to comply with an accord Period of implementation of an accord Strictness of an accord Important coming events 33

Applying Line of Reasoning Inadequacy of basic information about an accord, and the use and reliability of that information, could be a strong argument for auditing by the SAI (at national level). Actual signs of non-compliance or inadequate implementation might be a reason for SAIs to direct attention towards the accord. The most important criterion for SAIs choosing an accord to audit is the urgency of environmental issues. Auditing an environmental accord with high environmental risks might need priority. 34

Applying Line of Reasoning An environmental accord is best suited for auditing by SAIs when respective states have ratified it and are therefore obliged to comply with it. The commitments itself would become the criteria. Accords can only be audited when respective governments have had the opportunity to implement them at the national level and to develop policies to comply with the accords. When an accord imposes clear and stringent obligations on states, which can easily be recognized as matters of compliance, SAIs can obtain clear audit standards from the accord itself. COP – 14 meet to be held in Poland during 35 December 2008.

National Initiatives Enabling Access to Clean Energy Enhancing sustainable development and mitigating climate change Accelerated introduction of clean energy technologies through CDM Adaptation to climate impacts Mainstreaming climate change in sustainable development 36

Patterns of Energy Consumption Policies driven by imperatives of sustainable development have as a co-benefit led to decline in the intensity of energy use and CO 2 emissions as well. Per capita energy consumption in India is less than 500 kgoe compared to global average of nearly 1800 kgoe India’s per capita CO 2 emissions are approx one tonne per annum as compared to world average of 4 tonnes per annum Since 2004, the Indian economy has grown at a rate of 9% per year, supported by an energy growth rate of less than 4% per year 37

38

Policies to promote Energy efficiency and Renewable Energy (i) Electricity from renewable sources (ii) Enhancing efficiency of power plants (iii) Introduction of labeling Programme for appliances (iv) Energy conservation building code (v) Energy Audits of large industrial consumers 39

Electricity from renewable sources The Electricity Act, 2003 requires State Electricity Regulatory Commissions to specify a percentage of electricity to be procure from renewable sources by electricity distribution companies Notified preferential prices for electricity from renewable source India has over 7000 MW of wind energy capacity (Fourth largest in the world) National Hydro energy policy has accelerated the hydropower in India. 40

Enhancing efficiency of power plants Electricity Regulatory Commissions have also linked tariffs to efficiency enhancement, providing incentive for renovation and modernization New Plants were encouraged to adopt more efficient and clean technologies for power generation. 41

Introduction of labeling Programme for appliances An energy labeling programme for appliances was launched in 2006. The labels provide information about energy consumption of an appliance enabling consumers to make informed decisions. 42

Energy Conservation Building Code An Energy Conservation Building Code (ECBC) was launched in May 2007 which address the design of new, large commercial buildings to optimize the building’s energy demand Compliance to ECBC has also been incorporated in Environment impact assessment requirements for large buildings Nearly 100 buildings are already following this Code. 43

Energy Audits of large industrial consumers Conduct of Energy Audits of large energy consuming units in industrial sectors was made mandatory in March 2007. These units are required to employ certified energy managers and report energy consumption and energy conservation data annually. 44

45

Clean Energy Technologies Over 700 CDM projects have been approved by the National Designated Authority, and about 300 of these are registered by the CDM executive Board. The registered projects have already resulted in over 27 million tonnes of certified CO 2 emissions reductions and directed investment in renewable energy and new energy projects. 46

Adaptation to climate impacts India is especially vulnerable to the adverse impacts of climate and over 2% GDP is currently spent on measures to adapt to these impacts through adaptation programmes Crop improvement Drought proofing Health Risk financing Disaster management Livelihood preservation 47

Mainstreaming climate change in sustainable development Government initiatives represent a broad spectrum of efforts to integrate climate change concerns in sustainable development for the diffusion of renewable energy and energy-efficient technologies, joint forest management, water resources management, agricultural extension services and environment education. Climate concerns in the development processes are mainstreamed through high- level multi stakeholder committee viz National Committee to Assess the Impacts of Climate change and Prime Minister’s Council on climate change 48

Specialized Institutions Integration is institutionalized through specialized institutions with specific mandates to promote clean energy/climate friendly technologies Ministry of New& Renewable Energy Bureau of energy Efficiency Technology Information Forecasting & Assessment Council 49

RIGHT TO CLEAN AIR 50

THANK YOU 51