Can We Rise to the EU Challenge ?
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
Energy Efficiency [ BEE ]
Ø Just as was done in respect of ICE vehicles ( BS IV > BS VI
compliance ), all electric Appliance Manufacturers must be
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
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 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 METERS , starting April 2022
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………………………………………………………
# 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
Govt may consider options of a EV 2-Wheeler Owner en-cashing his Carbon Credits or trading it on
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 ),both, the driver and the passenger
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 car specifications / assumed average monthly usage etc , figure out and fix
* " Carbon Credits " for each model of electric car manufactured
* Based on Carbon Credits earned, calculate Direct Transfer of
Benefit ( DTB ) to electric car manufacturers based on
monthly dispatches of each model and then transfer these
amounts from EVFF , as incentives to manufacturers
==============================
[ 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 CARBON CREDIT TRADING EXCHANGE
The number of Carbon Credit will depend upon Age/type of OLD car and those of REPLACEMENT car
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