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COP 21 - a glitch before the next !

COP 21

It was a year bow, but COP21 was an expectation for all. The outcome of Paris came out to be a mixed reaction. The delegates from different nations and climate experts have brainstormed over different aspects of carbon market while INDC targets received from countries remained the key orientation.This COP has shown a positive way forward for a global mechanism to combat with climate mechanism. In Paris, Parties expressed high ambitions for climate action, action that is adequate to the threat we face from our own carbon pollution.

However, the discussion was mainly oriented for the post 2020 period. Therefore, different dimension in a market based mechanism is not foreseen immediately. The uncertainty in carbon price prevails, while positive way forward is being apprehended by means of a new international mechanism.

Now if we see the ongoing forum talks at COP22....things are again non decisive and keeping an extended timeline of 2018. So wait prevails !

Importance of Sustainability

Sustainability has become the one of the important business tools for all companies,industries even for individuals. Sustainability is generally a broader term, it relates to technical, financial, social, cultural, moral and even ethical attributes of business practices, but not limited to. Any product or service needs its self sustainability, otherwise any business will land up in a short term venture. While creating a product or service, it is important to see what all parameters may effect its sustainability. For example; any product manufactured in a plant needs energy for the plant operation. So it is important to understand if the source of energy used is sustainable or is it a depleting resource. If so, this energy is a threat to the business. Here comes the sustainability, wherein shifting to or creating an energy mix could be a sustainable solution for the business. Similarly, it is very much important for every business to be sustainable in terms of its environment concerns including emission, water, waste etc. Thus, mitigation and proofing of such risks is important which directly drives the sustainability of a business.

Carbon Credits -- a generic idea !

In the contexts of carbon credit producer, developing countries like India…..there are currently two types of credits available – Certified Emission Reduction(CER) and Verified emission reduction (VER).

These CERs are the credits generated from Clean Development Mechanism (CDM) of Kyoto Protocol. They are compliance credits, can be procured by Annex 1 countries to fulfil their emission targets under Kyoto Protocol. Whereas, VERs are the similar credits, but generated from projects under voluntary GHG mechanisms such as Voluntary Carbon Standard (VCS). Such credits have equivalent weightage similar to CERs, however they are not regulated under CDM board; hence they are consumed as Offsets to neutralize emission footrpints.