Starting Oct. 2023 , EU
will impose stiff “ Carbon Tax “ on imports ( into EU ) from India, on Steel , Iron Ore pellets, Aluminium, Cement , Urea
etc., during whose production , a lot of Green House Gases ( GHG ) get released
This will force Indian Manufacturers to change over
to production processes which generate less GHG – such as , use of Solar Power and
Green Hydrogen
Easier said than done
This change over could well take years – and cost
billions of dollars of capital cost . There is no escape
But, simultaneously, we could – and should – carry
out “ reforms “ which help us earn Carbon Credits to offset EU imposed Carbon
Tax
The following initiatives can earn us TRILLIONS of DOLLARS of Carbon Credits
ANNUALLY, and
are at different stages of implementation. We need to accelerate these :
Ø
Renewable
Power generation ( 500 GW by 2030 ) including use of Printed Solar film
Ø
Grid-size
Storage Battery Capacities
Ø
Interlinking
of our Grid with those of Saudi Arabia – Quatar – UAE
Ø Creation of Solar Farms on “ Co-operative Ownership “ basis ( produce anywhere /
consume
anywhere )
Ø
Generation
of Green Hydrogen
Ø
Advanced
Battery Technologies ( eg. Na-ion / Alu – Air / Iron-air etc )
Ø
Solar
Cookers to replace LPG Cylinders in 200 million homes
Ø Scrapping of old ( make it mandatory for 15 + years old ) Petrol / Diesel Vehicles –
30 Million
by 2030 ?
Ø At all ports, set-up ALANG type , vehicle scrapping yards for old cars imported from
all over the World
( We could target to scrap 25 million old imported cars in these yards, by 2030 –
and use recycled steel )
Ø
Accelerate
introduction of Electric Vehicles by implementing :
Transport : an
Integrated Logistic Plan ? ………………. 20 Nov 2018
Ø By enabling 300 million households to become “ Carbon Credit Generating Factories /
24x7 “ as follows :
Carbon Finance through Carbon Credits………….
{ 12 Mar 2021 }
Extract :
Here is a partial list of domestic appliances which consume electricity ( apart
from LED bulbs ) :
TV sets – Refrigerators – Air Conditioners – Fans – Deep Freezers – Ovens –
Electric Stoves – Mixers – Computers – Cloths Washing Machines – Dish
Washers – Radios –
Tablets – Robotic Floor Sweepers – Massagers – etc
Ø By 2030, all of these must be made “ Energy Efficient Appliances “ , certified
by Bureau of
Ø Just as was done in respect of ICE vehicles ( BS IV >
BS VI
compliance ), all electric Appliance
mandated to switch over to manufacture of only BEE certified
appliances in 4 phases ( April 2022 – 24 –
26- 28 )
Ø Each such appliance MUST be pre-installed / integrated
with SENSORS which will
continuously monitor its,
# State
of Usage ( ON or OFF )
# Rate
of Consumption of electricity ( Units )
These INTERNET-CONNECTED appliances will continuously relay / transmit
these data to the SMART ELECTRIC METER installed
in each home
In turn, each SMART METER will relay / transmit to concerned DISCOM ( and
to any other specified govt agency servers ), such usage / consumption
data, through Internet ( IoT / Internet of Everything ).
These
data-transfer will be separate for EACH INDIVIDUAL APPLIANCE
This will enable DISCOM / concerned Agencies, to know / monitor, IN-
EFFICIENT appliances, operating above the CERTIFIED THRESHOLD for
each type of appliance
Appliances operating “ above “ the threshold, will be assigned / allotted “
CARBON DEBITS “ , whereas those operating “ below “ the threshold, will be
assigned “ CARBON CREDITS “
If the NET of these two is POSITIVE ( + ), that home will be incentivized by
a lower tariff –
and vice-versa
This model ( of INCENTIVIZATION ) must be further strengthened by
measuring the amount of ROOF TOP Solar Power , flowing into the SMART
METER , with appropriate linkages
to CARBON CREDIT
This linkage will motivate a large number of households to install ROOF TOP
solar panels
This scheme will enable us to take the ,
CARBON MARKET / CARBON CREDIT / CARBON FINANCE
concept, right inside our 290 MILLION households !
Ø All manufacturers of House-hold Electric Meters must be
told to
manufacture only SMART ELECTRIC
Ø All DISCOMS to replace existing meters in each and every
home,
with a SMART METER, by April 2024
This is only a CONCEPTUAL FRAMEWORK whose
details are not difficult to work out
With regards,
Hemen Parekh
www.hemenparekh.ai / 10
May 2023
EXPERT OPINION ABOUT MY SUGGESTION :
I asked ChatGPT :
Of late , there is a huge debate going on about > Global
Warming > Climate Change > Carbon Emission > Renewable Energy > Use
of power efficient devices > Earning and Trading of Carbon Credits >
Phasing out high power consuming appliances etc .
In this context , I want you to EVAUATE my following proposal .
In a TABULATED FORMAT , list the parameters of the entire debate
and against each parameter, mention which specific part of my proposal applies
/ Carbon
Finance through Carbon Credits
Please add one column and in that column , against each
parameter, comment about the feasibility of my proposal
ChatGPT
replied :
Sure, I can add a feasibility column
to the table. Here's the updated table:
|
Parameters |
Specific Part of Proposal |
Feasibility |
|
Global
Warming |
- |
N/A |
|
Climate
Change |
- |
N/A |
|
Carbon
Emission |
Use
of power efficient devices, Carbon Finance through Carbon Credits |
Feasible |
|
Renewable
Energy |
Linkage
of Rooftop Solar Power to Carbon Credit |
Feasible |
|
Use
of power efficient devices |
Manufacture
of only BEE certified appliances with sensors, Assigning Carbon
Credits/Debits based on usage |
Feasible |
|
Earning
and Trading of Carbon Credits |
Carbon
Finance through Carbon Credits |
Feasible |
|
Phasing
out high power consuming appliances |
Manufacture
of only BEE certified appliances with sensors, Assigning Carbon
Credits/Debits based on usage |
Feasible |
Overall, your proposal seems feasible.
It involves using existing technologies such
as IoT and sensors to monitor and incentivize households to use energy-efficient appliances and
generate renewable energy.
The carbon finance through carbon
credits and the linkage of rooftop solar power to carbon credits are also feasible ideas
that have been implemented in various parts of the world.
However, the success of the proposal
will also depend on the willingness of households to adopt energy-efficient
appliances and generate rooftop solar power, as well as the regulatory and
policy environment to support such initiatives.
Related Readings :
EU carbon tax to test India’s mettle
……………….. Busi Line /
04 May 2023
Highlights :
Figures
– Statistics mentioned in this article :
( A ) Estimated Carbon Tax that EU may impose on
imports from India :
# Steel ( made from Blast Furnace ) …………………….
39.6 %
# Steel ( made from Electric Arc Furnace
)…………….. 19.8 %
# Steel ( made using Green Hydrogen ) ………………… 0 %
# Iron Ore pellets …………………………………………………… 52.7 %
# Aluminium…………………………………………………………… 20.3 %
# Cement ………………………………………………………………. 90 %
# Urea ……………………………………………………………………. 21.9 %
( B ) India’s Exports of these products ( CY 2022 ) ;
#
Globally ……………………………………………………………. $
31.4 Billion
# To EU ( @ 26.2 % ) ……………………………………………$ 8.2
Billion
( C ) Indian Exports ( covered under CBAM ) going to
EU :
# Iron
and Steel exports………………………………………. 31.4 %
# Steel Products ……………………………………………………. 20 %
# Iron Ore and Pellets………………………………………………. 19.9
%
# Aluminium …………………………………………………………… 27.7 %
Author’s other observations :
# CBT will depend on the carbon price paid in
the home country and the production process used
# Even though a product from India may be
cheaper than an American product, tax plus product price will make Indian
products more expensive
# The EU buys half of its $ 60 Billion in steel
from 5 countries – China, Russian Federation , Turkey, India and South Korea
# EU will phase out free carbon permits from
the Steel Sector just as the new tax comes into force. Many steel units may
shut down and imports may rise
# Many EU businesses may start importing
finished products like machinery instead of importing steel and making
machinery . Indian metal and engineering firms can leverage this shift
# Green hydrogen is produced from renewable
energy sources. Using Green Hydrogen in Steel plants can significantly reduce
the carbon emissions of steel-making, as it eliminates the use of Coal and Coke
# The CBT will start from October 1 this year
when firms will have to start sharing AUTHENTIC
EMISSION DATA . There is no time
to waste
CBAM:
India wants EU to recognise its carbon credit certification system when
ready / Busi Line
/ 08 May 2023
Extract :
India hopes to convince the EU to give recognition
to its carbon credit
certification system, once it is given a final shape by the Ministry of
Power, to reduce burden of additional tariffs on carbon intensive products that
the bloc plans to impose under its Carbon Border Adjustment
Mechanism (CBAM) from January 2026,
sources have said.
“ The Bureau of Energy Efficiency ( BEE )
, under the Power Ministry is already working on the Energy Conservation (
Amendment ) Bill 2022, passed by Parliament, and will put in place , a Carbon
Trading System
There will be a Carbon Auditor who will give certification.
So, we are talking to the EU for recognition of our Certificates when the CBAM
kicks in “
“ Since India will now have its own Carbon Trading
mechanism, the EU needs to recognize the Carbon Certificates that
will be issued in India and see how they can be used to set off CBAM payments
once the mechanism is fully implemented “
In the draft, Carbon Credit Trading Scheme, floated by
the Power Ministry last month seeking comments from stakeholders, the Ministry
proposed to set up an Indian
Carbon Market Governing Board
The Board will recommend procedures for
institutionalizing the Indian Carbon Market, setting rules and regulations for
the functions of the market, recommend methodologies to be used under the
voluntary mechanism, and propose designated agency for
the issuance
of a Carbon Credit Certificate, among other functions
India
seeks exemptions for MSMEs from EU's carbon tax: Sources
The EU is introducing the
Carbon Border Adjustment Mechanism (CBAM) from October 1 this year. CBAM would
translate into a 20-35 per cent tax on select imports into the EU starting
January 1, 2026. From October, domestic companies from seven carbon-intensive
sectors—including steel, cement, fertiliser, aluminium, and hydrocarbon
products—would have to seek compliance certificates from the EU authorities to
comply with the CBAM norms.
India
asks EU to recognize its Carbon Credit Trading Scheme ………………
Eco Times / 10 May 2023
Extract
:
The Government issues Carbon Credit Certificates –
each representing reduction
or removal
of ONE TONNE of carbon dioxide equivalent – to registered entities, based
on their initiatives
to
reduce carbon footprint .
CCTS aims to set up a framework for Indian Carbon
Market. The Scheme is yet to be given a final shape
India
seeks exemptions for MSMEs from EU's carbon tax: Sources / Eco
Times / 09 May 2023
National
Carbon Market : Suggested Action Plan…………………………. 28 Jan 2022
Vehicle Charger cum Carbon Creditor ?
……………[ 28 May 2021 ]
Extract :
While continuing
with FAME II, I strongly urge the Govt to consider giving CARBON CREDITS to EV
2-
Wheelers, which
use the above-mentioned CHARGING
DEVICE
a CARBON CREDIT EXCHANGE .
This will prove to be a powerful INCENTIVE for adoption of EV 2 Wheelers
============================================
[ C ] Making Yourself Obsolete ?
………………………………[ 14 Feb 2016 ]
Extract :
For taxis / rickshaws running on Hybrid fuel
( producing less Co2 )
or Electric Vehicles ( zero emission ),
will get " Carbon
Credits "
- which will also get displayed on the DigiMet as also
on the FareCalc
Mobile App on the smart phone of the passenger
( @ 20 % of the fare payable ? )
These amounts
will get transferred to their respective Jan Dhan Bank Accounts ( thru DTB ) , every quarter
=============================================
[ D ] PIYUSH PLAN ? ………………………………………………[ 27
Mar 2016 ]
Extract :
*
Based on Carbon Credits earned, calculate Direct Transfer of
Benefit ( DTB ) to electric car
monthly dispatches of each model and then transfer these
amounts from EVFF ,
===================================================
[ E ] Vehicle Scrapping Policy ……………………………….[ 03 Feb 2021 ]
Extract :
If govt does not have money for
paying INCENTIVE, will it consider motivating old-car owners by crediting into
their JAN DHAN Accounts certain number of CARBON CREDITS ( like crypto-currency ? ) and
launch ,
VEHICLE
The number
of Carbon Credit will depend upon Age/type of OLD car and
those of REPLACEMENT car
Google points the
Way ……………….[ 01 Apr 2021 ]
Treading ( gently ) on Solar Power Trading ……………[
18 Oct 2021 ]
Market-based Model for Renewable Energy………………[
09 June 2021 ]