rahill the chemical industry and cc-...

The Chemical Industry and Climate Change

A Snapshot from India

B.H. RahillLead Environmental SpecialistSouth Asia Environment

June 14, 2006

Presentation Outline

• The Indian Situation (Part of)• LBNL Benchmarking Study• The Potential for Co-Benefits

Strong Economic PerformanceFigure 1.1: A Decade of India’s Economic Growth in Perspective

Source: World Bank (2006d) Note: Benchmark countries: Average annual growth rates are computed for those countries that had similar level of per capita income to India in 1994. South Asia countries include Bangladesh, Pakistan,Nepal, Sri Lanka, and Bhutan

Benchmark India South Asia0 1 2 3 4 5 6 7 8 9

1994 1996 1998 2000 2002 2004 Year

Growth Trend (Percent)

India

Benchmark

South Asia

Average Growth 1994-2004, (Percent)

Economic Data

India Data Profile 2000 2003 2004

Economy GNI, Atlas method (current US$) 455.6 billion 570.3 billion 673.2 billion GNI per capita, Atlas method (current US$) 450 540 620GDP (current US$) 457.4 billion 600.6 billion 691.2 billion GDP growth (annual %) 3.9 8.6 6.9Inflation, GDP deflator (annual %) 3.8 3.2 5.3Agriculture, value added (% of GDP) 24.6 22.8 21.1Industry, value added (% of GDP) 26.6 26.4 27.1Services, etc., value added (% of GDP) 48.8 50.7 51.7Exports of goods and services (% of GDP) 13.9 14.9 19.1Imports of goods and services (% of GDP) 14.6 16.4 22.5

Major Sources of PollutionTable 1.1: Major Polluting Industries

S. No Industry Key Environmental Aspects 1 Aluminum Disposal of red mud, bauxite tailings and other hazardous waste, dust emissions

and high energy consumption 2 Caustic Water pollution due to disposal of brine mud, mercury and chlorine; Chlorine

emissions 3 Cement Fugitive dust emissions from material handling and air emissions from stack;

energy consumption 4 Copper Sulphur dioxide and dust emissions; Water pollution from electrolytic bath and

other processes; disposal of slag from smelter 5 Distillery Water pollution due to highly organic effluent from Spent wash; soil

contamination 6 Dyes & Dyes

Intermediates Water pollution due to toxic azo-dyes, highly organic colored and phenolic substances;

7 Fertilizer Water pollution due to heavy metal, ammonia and fluoride bearing effluent, ammonia emission, fluoride bearing dust and hazardous material.

8 Iron & Steel Water pollution from cyanide, fluoride and heavy metal bearing effluent, dust emission from sintering, pelletiziation, pig iron plants; slag and dust disposal

Major Sources of Pollution - continued

9 Leather Water pollution, particularly from hexavalent chromium and salt in discharge 10 Pesticide Air pollution due to particulate and volatile organic compounds; effluent

containing pesticides residues 11 Petrochem Water pollution due to phenol and benzene containing effluent; Fugitive

emissions of toxic and carcinogenic and VOCs; hazardous material disposal 12 Pharma Water pollution due to organic residues bearing effluent; VOC and particulate

emissions; hazardous waste containing process sludge and spent catalyst 13 Pulp & Paper Water pollution from high organic and inorganic substance and chlorinated

compounds in black liquor; highly malodorous emissions of reduced sulfur compounds and VOCs

14 Refinery Water pollution from effluent containing organic and inorganic material, oil and solvent; air emission of particulate matters, sulfur dioxide, BTX, VOCs

15 Sugar Water pollution due to high BOD and COD effluent and spillage of molasses; air pollution due to combustions of bagasse, coal etc

16 Thermal Power Plants

Air emission from combustion, coal handling, water pollution due to discharge of boiler blow down, overflow from ash pond; land contamination due fly ash disposal practices

17 Zinc Air pollution due to fugitive zinc dust, water pollution containing residues, disposal of solid and hazardous waste.

Source: CPCB – List of “Red Category” Polluting Industries

Table B.2. India: Contribution to GHG emissions by sector Sector Percent Energy production & transformation 35 Agriculture 28 Industry, including 20 Industrial combustion 12 Other industrial processes 8 Transport 8 Residential sector 5 Land Use, Land use change and Forestry 2 Others (including waste) 1

Source: NATCOM, MoEF, 2004* *India's Initial National Communication (NATCOM) to the UNFCCC was implemented and executed by the Ministry of Environment and Forests, Government of India, funded by the Global Environment Facility under its enabling activities program through the United Nations Development Program, New Delhi. The data has been drawn from a variety of official GOI sources as well as industry association and stakeholder reports.1

The Energy SectorFigure 1.2: Forced Hydro, Nuclear, and Gas Scenario (Fuel mix year wise)

Source: Planning Commission (2005a)

0

200

400

600

800

1000

1200

1400

1600

1800

2000 2006 2011 2016 2021 2026 2031

Year

MT

OE

Crude Oil Natural Gas Coal Hydro Nuclear

Where are the opportunities for mitigation of emissions?

F ig u re 1 .3 . C o n tr ib u tin g F a c to rs to E n e rg y -R ela ted C O 2 R ed u ctio n s (A ltern a tiv e P o licy S cen a rio )

S o urce : IE A 2 0 0 4

Assessing the India Situation

• “Assessment of Energy Use and Energy Savings Potential in Selected Industrial Sectors in India” (Lawrence Berkeley National Laboratory – August 2005)

• Study intended as a ‘benchmarking’exercise for energy efficiency project being prepared

Sectors Covered in LBNL Study

• Cement• Refining• Fertilizer• Textile• Chlor-Alkali

Sectors Covered

Cement – Efficiency Gains

Cement – More Gains

Refining – Significant Growth

Refining – Energy Intensity

Refining - Benchmarking

Fertilizer Production

Fertilizer - Intensity

Fertilizer -

Fertilizer - Comparison

Chlor-Alkali - Technologies

Choice of Technology Matters

‘Big Picture’ Priorities for India1

– The priority near-to-medium term opportunities are seen in:

• T&D loss reduction• Coal power generation R&M• Large hydro power• Industry EE and fuel switch

– Important longer term opportunities, which need to be paid attention today, are;

• Renewable energy • Sustainable transport• Natural gas sector development

1. From Bank paper G+5 Financial Framework for Cleaner Energy and Low Carbon Development

Chemical and Climate• Energy efficiency opportunities abound in the Indian

chemical industry• Most sectors have ‘world class’ and ‘worst class’

performers• Energy policy generally not a big problem as energy

priced competitively for commercial/industrial users• Different types of co-benefits associated with energy

aspects of chemical sector– Energy-production related emissions reduction (local and at

point of production) – electricity and energy efficiency– Energy-consumption related emissions reduction – thermal

efficiency and choice of technology– Technology-based (mercury vs. membrane technology) – can

impact type of fuel used and fuel mix