kyoto protocol & statute regarding environmental protection in india legal environment of...
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KYOTO PROTOCOL & STATUTE REGARDING ENVIRONMENTAL PROTECTION IN INDIALegal Environment Of Business
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Team Members
A G Jain Anita Prajapati Master Govind Pooja Chauhan Tanisha Singh Vikas Jindal
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Content
Global Warming & its Implication Kyoto Protocol Carbon Credit Global Trading System Indian perspective
Indian StatutePre Tragedy Rule of Strict And Absolute Liability Environmental protection Act
Bibliography
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Global Implication
The number of hurricanes has almost doubled in the last 30 years.
Malaria has spread to higher altitudes in places like the Colombian Andes, 7,000 feet above sea level.
The flow of ice from glaciers in Greenland has more than doubled over the past decade.
At least 279 species of plants and animals are already responding to global warming, moving closer to the poles.
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Deaths from global warming will double in just 25 years—to 300,000 people a year.
Global sea levels could rise by more than 20 feet with the loss of shelf ice in Greenland and Antarctica, devastating coastal areas worldwide.
Heat waves will be more frequent and more intense.
Droughts and wildfires will occur more often. The Arctic Ocean could be ice free in summer by
2050. More than a million species worldwide could be
driven to extinction by 2050.
Global Implication Contd..
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Main Reason
for
These Disasters
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Climate Change
Rapid Industrial Growth
Increased energy consumption
Increased CO2 and other GHG emissions
Global Warming due to increased concentration of GHG
Increased Sea Level
Changes in windand precipitation
Changes in Cropyields
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Kyoto Protocol
An amendment to the international treaty on climate change, assigning mandatory targets for the reduction of greenhouse gas emissions to signatory nations
Only Parties to the Convention that have also become Parties to the Protocol will be bound by the Protocol’s commitments. (by ratifying, accepting, approving, or acceding to it)
183 countries and one regional economic integration organization (the EEC) have ratified the Protocol to date.
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Time-Line
May 1992: UN FCCC* establishes framework for containing global warming
Dec 1997: Following intense negotiations in Kyoto (Japan), a protocol is agreed upon by over 100 countries
Feb 2005: 141 countries, including EU, Japan, Canada, and Russia sign the Kyoto Protocol and it gets ratified w.e.f. 16-Feb-05– The US remains a key non-signatory
The Kyoto Protocol sets legally binding targets for reducing green house gases (GHGs)– Developed countries have a target to reduce GHG emissions by 5.2%
below 1990 levels, by year 2012
– EU members committed to reduce their average emissions by 8 %
– India, China, and Brazil are classified as emerging countries and hence exempted from this protocol
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Green House Gases
Green house gases (GHGs) are gases that result in global warming Degree of warming caused by a specific GHG depends upon its CO2
equivalence (CO2e) 6 GHGs are regulated under the Kyoto Protocol
– Carbon dioxide (CO2)– Methane (CH4)– Nitrous oxide (N2O)– Hydrofluorocarbons (HFCs)– Perfulourocarbons (PFCs)– Sulphur Hexafluoride (SF6)
There are at least 25 other gases, including chloroform, CO, and water vapour that influence climate-change Above-mentioned six are key ones, that can be controlled by human
intervention with relative ease
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Global warming potential
Global warming potential (GWP) for the 6 GHGs are summarised below:
GHG : Global Warming Potential Hydrofluorcarbons (HFCs) : 140 – 11,700 Perfluorcarbons (PFCs) : 6500 – 9,200 Methane : 21 Nitrous oxide : 310 Sulphur hexafluoride : 23,900 Carbon dioxide : 1
GWP is the global warming impact that a GHG would have over a 100-year timeframe– By definition, CO2 is used as the reference benchmark, with GWP
of 1
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CARBON CREDIT
Carbon credits are certificates issued to countries that reduce their GHG emissionsOne credit = 1 tonne of CO2 (or CO2 equivalent)
reduced Surplus credits result when a country overshoots
its reduction target– These can be traded, with countries facing a shortfall in target able to buy and meet their targets– Carbon credit trading encourages emission reduction, provides financial incentives to those who do
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Kyoto Protocol Mechanism
The Protocol allows developed countries to reach their targets in different ways through “Flexibility Mechanism”
Joint Implementation (JI) Clean Development Mechanism (CDM) Emission Trading (ET)
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UNFCCC KP
PROJECT BASED
ALLOWANCE BASED
IET (Between Developed Countries)
JI (Between Developed Countries)
CDM (Developed & Developing Countries)
Assigned amountunits (AAU)
Emission ReductionUnits (ERU)
Carbon ReductionUnits (CER)
K P Mechanism Contd..
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1.International Emission Trading Emissions trading (ET) is a mechanism that enables
countries with legally binding emission targets to buy and sell emissions allowances among themselves
Each country has a certain number of emission allowances (amount of carbon dioxide it can emit) in line with its Kyoto reduction targets
The IET allows industrialized countries to trade their surplus credits on the international carbon credit market
K P Mechanism Contd..
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2. Clean Development Mechanism
Developed Countries
Developing Countries
Carbon Credits
Technology Transfer & project
Financing
CDM
K P Mechanism Contd..
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CDM Cont..
The purpose of CDM is reduce to emissions and also contribute to sustainable development in developing countries
The CDM is administered by the CDM Executive Board (CDM Board) which reports and is accountable to the Conference of Parties (COP).
A Carbon emission reduction (CER) is given by the CDM Executive Board
One CER is equivalent to one tonne of carbon dioxide reduced
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CER – Source of Generation
Industries like Agriculture Energy (renewable & non-renewable
sources) Manufacturing Metal production Mining and mineral production Chemicals Afforestation & reforestation
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3. Joint Implementation
Projects between industrialized nations to earn emission offsets
It is done because of geographical or cost implications
Emission reduction units (ERUs) created through joint implementation is treated in the same way as those from emissions trading
K P Mechanism Contd..
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GLOBAL TRADING SYSTEM
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European Union Emission Trading Scheme
The European Union Emission Trading Scheme (EU ETS) is the largest multinational, greenhouse emissions scheme in the world. It commenced trading in 2005
Under Kyoto EU committed to reduce 8% 1990 levels of emissions in 2008 to 2012
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EU ETS Cont..
The Kyoto protocol sets targets to countries The States list down the amount and method
of allocating allowances to facilities under NAP The total allowances granted = Kyoto target Determinants of demand Volumes are tracked by National registries Registries keep track of the allowance
ownership transfers
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Indian Scenario
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How Carbon Credit works?
An Example: British Petroleum in UK emitting more
than the accepted norms of UNFCCC Tie up with Subsidiary in India or China
Under CDM The credits arising out of the use of the
new technology are sold to counterparts in Europe
Thus a carbon credit market is created
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Carbon trading in India
Bilateral trade No fixed norms of emission reduction by
government. Potential Participants Registry
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Carbon Trading in India cont..
Multi Commodity Exchange of India Ltd. ( MCX) entered into a strategic alliance with CCX in September 2005 to initiate carbon trading in India.
Offers Mini version of ECX CFI & CCFE SFI The tie-up would provide immense scope and
opportunity for domestic suppliers to realize better prices for their carbon credits
India being a major supplier of carbon credits, the tie-up between the two exchanges is expected to ensure better price discovery of carbon credits
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India’s potential
India – Non Annexure I country, has a large scope in emissions trading
India and china together contribute to $5 billion of the global carbon trade estimated at $30billion
It is one of the leading generators of CERs through CDM Analysts forecast that its trading in carbon credits would
touch US$ 100 billion by 2010 Currently, the total registered CDM projects are more
than 300, almost 1/3rd of the total CDM projects registered with the UNFCCC
The total issued CERs with India as a host country till now stand at around 34 million, again around 1/3rd of the total CERs issued by the UNFCCC
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Benefits of Carbon Trading
Sellers and intermediaries can hedge against price risk
There is no counterparty risk as the Exchange guarantees the trade
The price discovery on the Exchange platform ensures a fair price for both the buyer and the seller
Players are brought to a single platform, thus eliminating the laborious process of identifying either buyers or sellers with enough credibility
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Provisions in Indian Statute Regarding protection of Environment
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Bhopal Gas Tragedy
In city ‘Heart Of India’ named Bhopal UCIL.. Exposing 520,000 people to toxic gases.. Over 22,000 people died..
Due to:The use of hazardous chemicals (MIC) instead of less dangerous ones
Storing these chemicals in large tanks instead of several smaller ones
Possible corroding material in pipelines Poor maintenance after the plant ceased production in the early
1980s Failure of several safety systems (due to poor maintenance and
regulations) Leads to:
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Pre Tragedy Indian Statute
The Water (Prevention and control of Pollution) Act, 1974
The Air (Prevention and control of Pollution) Act, 1981
Forest Conservation Act, 1980 The Wild Life Protection Act, 1972
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Rule Of Strict liability
Formulated by House of Lords in 1868 Continues to be in Force in India under
Article, 372 of Indian Constitution Available under Law Of Torts Rylands vs. Fletcher Case
Construction of Reservoir through independent Contractor
Old Disused Shaft were neglected on the site Resulting in flooding the adjacent coal mine
with water
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The Rule: “If a person brings on his land anything
which is likely to do Mischief if it escapes, He will be Prima Facie answerable for the damage cause by its escape even though he was not negligent”.
Rule to be Applicable Dangerous things Escape Non Natural use of land
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Exception to Strict Liability: Plaintiff’s Own Default Act Of God Consent of the Plaintiff Act of third Party Statutory Authority
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Post Tragedy : Rule of Absolute Liability
Due to failure of Rule of Strict Liability for its exception
M. C. Mehta vs Union of India case. By Supreme Court in 1987 The Rule:
“When an enterprise is engaged in a hazardous or inherently dangerous industry which posses a potential threat to the health and safety of people, it owes an absolute and non-delegable Duty to ensure that no harm results to anyone from such activity”.
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Environmental Law & Consitution Of India
Specific Provision for Environmental protection Article 19(1)(g)3
Article 214
Article 475
Article 48A6
Article 51A(g)7
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THE ENVIRONMENT (PROTECTION) ACT, 1986
Scope and Scheme of the Act Come into force on 19 Nov 1986 Extends to whole of India Fixes responsibility on person’s carrying on
Industrial operations or Handling Hazardous substances
To comply with certain Safety norms for prevention, control and abatement of Environmental pollution.
Granted power to Central Govt. for environmental protection
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Bibliography
http://www.bbcnews.com http://www.ssrn.com http://www.karvy.com http://www.headwaycapitaladvisor.com http://www.baker&mckenzie.com http://www.ccnnews.com Economic Labour & Industrial law by ICSI Economic law by V.S.Datey
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Queries
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Thank you
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