In conversation with Mr. N Muthusezhiyan, Deputy Executive Director, Confederation of Indian Industry, CII – Sohrabji Godrej Green Business Center, Hyderabad, about Decarbonization efforts.
How energy efficiency can contribute decarbonization efforts?
Eventually, every industry will move to Net-Zero, in alignment with the country’s climate goals. However, the energy sector is responsible for approximately 75% of GHG emissions and addressing this is a huge challenge as our energy consumption is expected to double by 2040. Therefore, a transformation of the existing energy system pays a vital role in achieving the above goal. Reducing the energy demand by improvising the energy efficiency of present facilities, reducing the consumption of fossil fuels like coal and natural gas, and promoting the use of renewable energy sources are some ways to begin with.
CII with the support Danfoss Industries released the report on “Decarbonization of Industrial Sector”. This report examines how the Indian industrial ecosystem currently operates concerning carbon emissions and offers key insights on how to reduce them, paying special attention to key industries such as Indian steel, paper, cement, textile, and chemicals. With deep decarbonization approach, energy efficiency initiatives alone can reduce more than 30% of emissions from industry, which is a significant one.
How value chain decarbonization is important in overall net zero journey?
Decarbonization is a significant advancement towards the goal of being “carbon neutral” and solving the world’s climate change crisis. Every sector can do much more to reduce the emission intensity of their own supply chains. In fact, most organizations will have to develop new business models and innovate with existing ones that contribute to achieving a low-carbon economy.
Value chain decarbonization offers immense opportunities for companies to achieve their net zero carbon commitments. It is a critical component in succeeding the overall goal because it involves reducing the carbon emissions across the entire life cycle of a product or service, giving us the broader view. CII, in its work with the industries, identified a glaring gap in the progress of industries in their direct and indirect emissions inventorization. However, to achieve climate change commitments, the fundamental is to address value chain emissions.
What are the challenges in inventorizing Scope-3 emission?
Many challenges are emerging as more businesses switch from only assessing scope 1 and scope 2 emissions to scope 3 emissions. Complex value chains whose activities take place outside the company’s direct control, absence of awareness or data from vendors and suppliers, company’s disability or lack of resources or expertise to collect and analyse the data, engagement with stakeholders and most importantly the cost required for the above mentioned are few of the many issues faced.
However, addressing scope 3 emissions requires a comprehensive approach that involves collaboration with stake holders, implementation of sustainable practices in value chain and the use of technology and innovation by prioritising the highest impact areas and referring to multiple research articles and LCA software with inbuilt databases.
How is carbon market evolving in India?
As part of the Paris agreement, countries need to develop carbon trading mechanism through bilateral or cooperative approaches and international market mechanisms. Government of India has been already working on developing Carbon trading scheme.
Recently, Bureau of Energy Efficiency, Ministry of Power has come .up with the draft Carbon Credit Trading Scheme which would recommend procedures for institutionalizing the Indian carbon market, hence playing an important role in reducing the carbon footprint and achieving Net-zero by 2070. As per BEE, the carbon trading framework is getting ready, and the framework may be released this year with voluntary carbon trading market.
Mr. N Muthusezhiyan
Deputy Executive Director
Confederation of Indian Industry, CII – Sohrabji Godrej Green Business Centre, Hyderabad
Muthu is an Energy & Environmental Sustainability expert, at the CII – Godrej GBC. He is involved in promoting the concept of Green Companies through GreenCo Rating System of CII.
He has work experience spanning over 27 Years in the areas of Energy & Environment.
He is an Engineer by profession & Post Graduate in Energy Management.
As part of the CII – Godrej GBC’s project team, executed several national & international projects on energy efficiency, climate change, waste management, material conservation & Recycling, Extended Producer Responsibility, Green Packaging, Green Supply Chain and Life Cycle Assessment. He was part of the project in developing LCI data sets for India supported by ecoinvent, Europe.
He is a Chevening Fellow from the University of Birmingham on “Economics of Energy”.About InfEneTy
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