Working Paper

GHG MITIGATION IN INDIA:

AN OVERVIEW OF THE CURRENT POLICY LANDSCAPE
NEHA PAHUJA AND NIMISHA PANDEY (TERI), AND KOYEL MANDAL AND CHAYAN BANDYOPADHYAY (IFMR)

EXECUTIVE SUMMARY
Like other countries with emerging economies, India
CONTENTS
faces the dual challenge of reconciling its rapid economic Executive Summary..............................................................1
growth with a pressing need to address climate change. Key Metrics...........................................................................2
In response, it has enhanced its international and domes- I: International Statements of Future GHG Mitigation............3
tic efforts to reduce its greenhouse gas emissions.
II: Relevant Government Institutions and Legal Authorities....5
Internationally, the Indian Government has voluntarily III: Overview of Major Policies..............................................7
agreed to reduce the emissions intensity of its gross IV: GHG Projections............................................................20
domestic product (GDP) by 20–25 percent from 2005 V: Looking Ahead................................................................22
levels by 2020. Indian and international studies1 suggest
Conclusion..........................................................................25
that India is likely to meet—or even exceed—this pledge
based on its existing policy package and macroeconomic Abbreviations and Acronyms...............................................26
trends. Nevertheless, significant uncertainty surrounds Endnotes ............................................................................27
the effective implementation of these policies and changes References......................................................................28
in the GDP composition.
Disclaimer: Working papers contain preliminary
Domestically, the Indian Government launched the research, analysis, findings, and recommendations. They
National Action Plan on Climate Change (NAPCC), which are circulated to stimulate timely discussion and critical
includes eight missions to tackle climate change on a feedback and to influence ongoing debate on emerging
sector-by-sector basis.2 Although India has not appor- issues. Most working papers are eventually published in
tioned the 20–25 percent energy intensity reduction target another form, and their content may be revised.
to specific missions, at least two of these missions (the
Jawaharlal Nehru National Solar Mission and the National Suggested Citation: Pahuja, N., N. Pandey, K. Mandal, and C.
Mission for Enhanced Energy Efficiency) are expected Bandyopadhyay. 2014. “GHG Mitigation in India: An Overview of
to contribute to meeting this goal. This is an advance the Current Policy Landscape.” Working Paper. Washington, DC:
World Resources Institute. Available online at http://www.wri.
over the approach taken in the 11th 5-year plan, in which org/publication/ghg-mitigation-ind-policy.
concern about climate change was expressed in the form
of a limited reference to the objective of improving energy
efficiency by 20 percent by 2016–17. IN PARTNERSHIP WITH

WORKING PAPER | March 2014 | 1

About the Series KEY METRICS
According to India’s second National Communication to
This working paper is part of a series that provides the United Nations Framework Convention on Climate
an overview of the current policy landscape that key Change (UNFCCC) (MoEF, 2012), total GHG emissions in
countries have pursued in the interest of GHG mitigation. 2007 (latest year available) were 1,772 million tonnes of
For each country, the series: CO2-equivalent (MtCO2-eq), including emissions from the
Describes the country’s international mitigation land use, land-use change, and forestry (LULUCF) sector.
pledge (e.g., GHG reduction commitment, Nationally This represents a 44 percent increase over total reported
Appropriate Mitigation Actions), including assumptions emissions in 1994 and a 36 percent increase in total GHG
and conditions associated with the pledge, and in what
emissions since 2000 (Figure 1).
respect – if any – it is codified domestically
Outlines the country’s key government institutions Emissions per capita (including LULUCF) declined
and legal authorities for mitigating climate change slightly between 1994 and 2000, but they have increased
since then, reaching approximately 1.5 metric tons per
Outlines major policy instruments related to GHG
mitigation, current, and under development person in 2007. Between 2000 and 2007 emissions per
capita increased approximately 22 percent, while the
Explains what is known about the country’s total population increased approximately 11 percent. As
GHG trajectory
India’s total gross domestic product (GDP) continues to
Identifies issues to watch in the coming years grow—increasing 140 percent between 1994 and 2007—
GHG emissions intensity (emissions per GDP) has steadily
declined, by nearly 20 percent between 1994 and 2007
(Figure 2), a reversal of an earlier trend.
This working paper summarizes the key national missions
and policies already implemented and in development The absolute amount of energy generated from hydro-
that are likely to reduce greenhouse gas (GHG) emissions power, solar, wind, and other renewable energy sources
in India. Some of the national missions (e.g., the National increased by 30 percent between 1990 and 2010. How-
Solar Mission) are characterized by clear and ambitious ever, according to International Energy Agency (IEA)
targets, detailed policies and measures, and supporting statistics, consumption of fossil fuels has increased
action plans. Others, such as the National Mission on significantly, with coal, oil, and natural gas use rising
Sustainable Habitat, have not yet developed clear action approximately 180, 164, and 400 percent, respectively,
plans for implementation. Even where the government
has formulated policies and measures, a need remains for
adequate financing, coordination between national and
Figure 1 | Total India GHG Emissions
state implementing agencies, and better coordination of
policy initiatives to meet the desired targets and goals. 2500
Total GHG emissions excluding LULUCF
Looking ahead, India will need to prioritize strategies Total GHG emissions including LULUCF
2000
Million tonnes CO2-equivalent

that strengthen implementation of existing policies if it

is to meet its mitigation goals. These strategies include
ensuring adequate financing and institutional capacity, as 1500
well as better vertical coordination of national, state, and
local governments and better horizontal coordination of
concerned line ministries and departments. A systematic 1000
approach for tracking the progress of mitigation actions
could build on the existing system for national communi- 500
cations to the United Nations Framework Convention on
Climate Change (UNFCCC) and the Indian Network for
Climate Change Assessment (INCAA). Such an approach 0
1994 2000 2007
also could help ensure effective and timely feedback for
Year
implementation of mitigation actions.
Sources: MoEF, 2012; and UNFCCC, 2014.

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 GHG Mitigation in India: An Overview of the Current Policy Landscape

during the same time period. As a result, fossil fuels I: INTERNATIONAL STATEMENTS
currently comprise nearly 75 percent of India’s overall
energy fuel mix, with coal representing approximately OF FUTURE GHG MITIGATION
40 percent (Figure 3). International Mitigation Pledge
under the United Nations Framework
Figure 2 | India GHG Emissions per Capita Convention on Climate Change
and GHG Emissions Intensity At the 15th Conference of the Parties (COP) to the
UNFCCC, India announced its intention to reduce the
1.8 1200
emissions intensity of its GDP by 20–25 percent by 2020
compared to 2005 levels.3 India’s submission to the
1.6

Metric tons CO2-eq per million (2005) $intl

1000 UNFCCC emphasized that its proposed domestic mitiga-
1.4 tion actions are voluntary and not legally binding.4
Metric tons CO2-eq per person

1.2 800 Furthermore, India noted in its submission that its

domestic mitigation actions will be implemented in accor-
1
600 dance with national legislations and policies, as well as
0.8 the principles and provisions of the UNFCCC, particularly
0.6 400 Article 4.7.5 India’s pledge has evolved from policies and
0.4
actions reflected in the domestic planning process6 and
GHG Emissions per Capita
200 the National Action Plan on Climate Change (NAPCC),
0.2 GHG Emissions per GDP (PPP) which the national government launched in 2008.
0 0
1994 2000 2007
Year
Conditions, Assumptions, and Uncertainties
Source: Calculated using MoEF, 2012; UNFCCC, 2014; and World Bank, 2014.
Underlying the International Pledge
Note: GHG emissions totals include the land use, land-use change, and forestry In addition to being legally nonbinding, India’s pledge
(LULUCF) sector. excludes methane emissions from the agriculture sector.
The agriculture sector constituted approximately 19 percent

Figure 3 | India Fuel Mix: 1990, 2000, and 2010

0%
0%
0%

26%
33% 34% 35%
1990 2000 2010 42%
44%
0.32 btoe 0.46 btoe 0.69 btoe
1%
8%
19%
5%
1% 25%
1% 3% 23%

Coal Oil Natural Gas Nuclear Renewables Other

Source: IEA, 2012.
Notes: Size of circles indicates total consumption. Btoe = billion tonnes oil equivalent.

WORKING PAPER | March 2014 | 3

of total emissions in 2007, excluding LULUCF, with meth- The Expert Group on Low Carbon Strategies for Inclusive
ane accounting for around 80 percent of emissions from this Growth is charged with drafting a report that sets out a
sector (MoEF, 2012). While there is no explicit mention of roadmap for India’s low-carbon growth. The Expert Group
emission intensity in 2005 (base year) in the official submis- will evaluate low-carbon options through an analysis of
sion, the Interim Report of the Expert Group on Low Car- their costs and benefits, and prepare an action plan for
bon Strategies for Inclusive Growth (Planning Commission, critical low-carbon initiatives, including sector-specific
2011a)7 suggests that the emission intensity was 66.8 grams of initiatives. The action plan will propose a timeline and
CO2-eq per rupee of GDP in 1994, and 56.21 grams of CO2-eq targets that can feed into the planning process. The group
per rupee of GDP in 2007; the estimated emissions excluding will also develop a list of enabling legislation, rules, and
LULUCF and agriculture in 2005 are 1,433 MtCO2-eq (Plan- policies needed to operationalize the low-carbon roadmap.
ning Commission, 2011a). Ultimately, the roadmap will provide a menu of options to
reduce GHG emission intensity in critical sectors such as
In one scenario in its interim report, the Expert Group power, transport, industry, buildings, and forestry.
indicated that a 25 percent reduction in emissions inten-
sity could translate into projected emissions equivalent to Even before the Planning Commission’s Expert Group, the
3,537 MtCO2-eq in 2020 as compared to 1,433 MtCO2-eq National Action Plan on Climate Change, released in 2008,
in 2005, assuming a GDP growth rate of 8 percent per set the stage for India’s domestic response to climate change.
year (Planning Commission, 2011a). This implies an Although the NAPCC is not codified in legislation, it is India’s
absolute increase in emissions of around 147 percent from flagship climate change program and provides a framework
2005 levels (see Table 1). and guiding principles for sectors adopting low-carbon
growth strategies. The action plan established eight national
Domestic Codification of the International Pledge missions slated to run through 2017: the National Solar Mis-
sion, National Water Mission, National Mission on Sustain-
India’s international pledge is a voluntary emissions
ing Himalayan Eco-system, National Mission on Enhanced
intensity reduction target and is not codified as law. Fol-
Energy Efficiency, National Mission on Strategic Knowledge
lowing India’s international submission, however, the
for Climate Change, National Mission for a Green India,
Planning Commission established an expert group to
National Mission for Sustainable Agriculture, and National
develop strategies for a low-carbon economy. The group’s
Mission on Sustainable Habitat.11 The NAPCC highlights
work is informed by both the voluntary emissions inten-
India’s most pressing climate concerns and outlines sev-
sity target and India’s 12th 5-year plan (2012–17), which
eral targets for climate change action that can be achieved
focuses on low-carbon inclusive growth.
through a new approach to development. The NAPCC aims to
address the nexus between GHG reduction goals and devel-
opment, and it suggests strategies to achieve both without
compromises or trade-offs.

Table 1 | Overview of India’s 2020 Emission Intensity Targets

PROJECTED 2020 GHG EMISSIONS VALUE: 3,537 MTCO2-EQ PROJECTED 2020 PER CAPITA EMISSIONS: 2.678

Absolute Change in 2020 from Base Year Absolute Change in 2020 from Base Year, Per Capita Change Percent (%) Change
Excluding LULUCF According to Interim Excluding LULUCF9 Based on World (Absolute per Capita in GHG Intensity of
Report (Absolute CO2 Emission Values in Mt) Development Indicator (WDI) Estimates Value in metric tons CO2) Economy10
(Absolute CO2 Emission Values in Mt)

1990 412.8% (690.6) 237.83% (0.79) -18.45

2000 198.1% (1,186.6) 137.13% (1.13) -25.69

2005 147% (1,433) 150.7% (1,411.13) 115.71% (1.23) -11.15

Note: The comparison is only to provide a directional sense of the emissions scenario. The projected emissions for 2020 are based on estimates from the Interim Report of the Expert Group on
Low Carbon Strategies for Inclusive Growth (Planning Commission, 2011a). However, since the interim report provides figures only for 2005 and 2020 (column 1), the absolute change from
the base year, per capita change, and GHG intensity of economy change are estimated based on world development indicator (WDI) data for 1990, 2000, and 2005 (columns 3–5).

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 GHG Mitigation in India: An Overview of the Current Policy Landscape

The solar mission and the energy efficiency missions, in II: RELEVANT GOVERNMENT
particular, are likely to contribute to achieving the national
goal of 20–25 percent reductions in emissions intensity by INSTITUTIONS AND LEGAL AUTHORITIES
directly reducing GHG emissions, although there is no explicit Legal authority to develop and implement national GHG
mention of the missions in the emissions intensity pledge. A mitigation policies and programs lies predominantly with
range of experts from the Institute for Financial Management the central government, but states also play a significant role.
and Research (IFMR) and the Indian Institute of Technology, General environmental protection legislation provides the
Madras, have evaluated the NAPCC and each of the missions legal framework for regulating GHG emissions from their
(Byravan and Rajan, 2012). The evaluation found that the sources. The key regulations with possible implications for
NAPCC and its missions are critical components of the plan- GHG mitigation include the Indian Forests Act of 1927; the
ning process at the central and state levels. The NAPCC thus Forest (Conservation) Act of 1980; the Air (Prevention and
serves as the guiding document for climate policy in India.12 Control of Pollution) Act of 1981; the Environment (Protec-
tion) Act of 1986; the Motor Vehicles Act of 1988; and energy
Under the 12th 5-year plan, the Planning Commission’s legislation such as the Energy Conservation Act of 2001 and
working group on climate change has articulated a need the Electricity Act of 2003. These laws authorize several cen-
to integrate the objectives of both the NAPCC and the tral and state government agencies to take actions that could
domestic mitigation goal into the development strategy for reduce India’s GHG emissions.
the various economic sectors. The implications for climate
adaptation are that specific policy initiatives should be The Indian Constitution defines the roles of the central
developed across a range of sectors, such as in agriculture, and state governments and divides legislative powers into
water, health, coastal management, forests and other eco- three lists:
systems, energy, including renewable energy, and infra-
structure (Planning Commission, 2011b). T
 he Union List includes items that the federal parlia-
ment has exclusive power to legislate. Ninety-seven
The government of India has estimated that Rs 2.3 trillion items fall under the Union List, including trade rep-
(US$37 billion13) would be needed to fulfill the objec- resentation, United Nations organization, agreements
tives of the eight national missions of NAPCC in the and conventions with foreign countries, atomic power,
12th 5-year plan. mineral and oil resources, and control of industries (e.g.,
railways, aviation, maritime transport, etc.).

Figure 4 | Emissions from Key Sectors and their Corresponding Nodal Ministries/Agencies with Legal Authorities

SECTOR NODAL MINISTRY/AGENCY

3% Electricity Central Electricity Authority (CEA); Central Electricity Regulatory Commission
(CERC) and State Electricity Regulatory Commissions (SERCs)
Agriculture
Other energy Ministry of Power (MoP); Ministry of New and Renewable Energy (MoNRE); Central
industries Electricity Authority (CEA); Central Electricity Regulatory Commission (CERC) and State
Waste
18% Electricity Regulatory Commissions (SERCs); Bureau of Energy Efficiency (BEE)
Electricity
Transport Ministry of Road Transport and Highways (MoRTH); Ministry of Environment &
Forests (MoEF); Central Pollution Control Board (CPCB) and the State Pollution
38% Other Energy
9% 2007 Control Boards (SPCBs)
Iron & steel
Transport Ministry of Iron and Steel; Ministry of Power (MoP); Bureau of Energy Efficiency (BEE)
7% IronCement
& Steel Ministry of Industry; Ministry of Power (MoP); Bureau of Energy Efficiency (BEE)

6% Cement
Other mfg. Ministry of Industry; Ministry of Power (MoP); Bureau of Energy Efficiency (BEE)
7% 12%
industries
Other Industry
Agriculture Ministry of Agriculture
Waste Ministry of Environment & Forests (MoEF); Ministry of Industry; Central Pollution
Source: INCCA, 2010a; and author assessment.
Control Board (CPCB) and the State Pollution Control Boards (SPCBs)

WORKING PAPER | March 2014 | 5

Table 2 |  odal Ministries/Agencies with Legal Authority for Climate Change Mitigation
N
and Their Primary Role in Meeting India’s Climate Goals

NODAL MINISTRY/AGENCY:
KEY ROLE/MANDATE
CENTRAL AND STATE

Ministry of Environment The Ministry of Environment and Forests is the nodal agency for the planning, promotion, coordination, and oversight of
and Forests (MoEF), the implementation of India’s environmental and forestry policies and programs. Its Climate Change Division is the nodal
Government of India (GoI) body for climate change cooperation and global negotiations. The MoEF’s National Clean Development Mechanism Authority
is responsible for evaluating and approving Clean Development Mechanism projects. While the Climate Change Division
is the nodal unit for coordinating the implementation of the NAPCC, the MoEF is the implementing agency of the National
Mission for a Green India.
Ministry of New and The Ministry of New and Renewable Energy is the nodal ministry for all matters relating to new and renewable energy.
Renewable Energy Its role is to facilitate research, design, development, manufacture, and deployment of new and renewable energy systems.
(MoNRE), GoI The MoNRE is the key nodal agency for the implementation of the National Solar Mission, through an autonomous body14
that reports directly to the Prime Minister’s Council on Climate Change. This consists of a mission steering group,
chaired by the MoNRE and composed of representatives from relevant ministries and stakeholders to oversee the overall
implementation of the mission.
Ministry of Power (MoP), The Ministry of Power is responsible for initiating the National Electricity Policy and the National Rural Electrification
GoI Policy. It is the nodal ministry for the implementation of the Energy Efficiency Mission through its subsidiary, the Bureau
of Energy Efficiency (BEE). Various sectors work in close coordination with the BEE to implement the mission targets, and
implementation is monitored by the Prime Minister’s Council on Climate Change on a quarterly basis.
Bureau of Energy The primary objectives of the Bureau of Energy Efficiency are to improve energy efficiency and reduce the energy intensity of
Efficiency (BEE) the Indian economy by developing policies that focus on self-regulation and market principles for all sectors of the economy
(MoP, GoI) (for example, the Perform, Achieve, and Trade [PAT] scheme). The BEE is also “empowered to establish a compliance
mechanism to measure, monitor, and verify energy efficiency in individual sectors.”15
Ministry of The Ministry of Urban Development is the key nodal agency for the implementation of the National Mission
Urban Development for Sustainable Habitat.
(MoUD), GoI
Ministry of Science and The Ministry of Science and Technology is the nodal agency for the implementation of the Mission
Technology (MST), GoI on Sustainable Himalayan Eco-systems.
Ministry of Agriculture The Ministry of Agriculture will play a critical role in the implementation of the Sustainable Agriculture Mission.
(MoA), GoI
Department of Science The Department of Science and Technology coordinates several missions under the National Action Plan on Climate Change.
and Technology (DST),
GoI
Central Pollution Control The Central Pollution Control Board and the state pollution control boards have authority to improve the quality of air and
Board (CPCB) and the to prevent, control, or abate air pollution resulting in dual benefits of both local air pollution abatement and GHG emissions
state pollution control abatement (by means of, for example, the reduced consumption of fossil fuels).
boards (SPCBs)
Central Electricity The Electricity Act of 2003 provides the state electricity regulatory commissions with authority to specify renewable purchase
Regulatory Commission obligations and determine tariffs within the state. The Central Electricity Regulatory Commission is authorized to regulate the
(CERC) and state tariff of generating companies owned or controlled by the central government and to regulate and promote the development
electricity regulatory of a market (including trading) in power.
commissions (SERCs)
Central Electricity The Central Electricity Authority is responsible for the technical coordination and supervision of programs and is entrusted
Authority (CEA)16 with a number of statutory functions, including preparation of a National Electricity Plan in accordance with the National
Electricity Policy once every 5 years.

National Highways The National Highways Authority of India regulates, modernizes, and maintains the highway networks in India.
Authority of India (NHAI)

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 GHG Mitigation in India: An Overview of the Current Policy Landscape

 he Concurrent List includes legislative items that fall

T national policies that rely on state-level implementation
under the purview of both the central and state govern- are also described below. Policies “under development”
ments, where uniformity across states may be desirable include policies that have been enacted, but are still
but is not essential. Examples include energy, forestry, awaiting implementing regulations. An overview of steps
factories, and boilers. Energy policy is on the Concur- required for implementation is included when possible.
rent List, which means that there are both overarching
national policies and independent state-level supporting
Existing Policies
policies and incentives working toward national goals.
Cross-Cutting Economic Incentives
The State List comprises 66 item areas where the state A Tax on Coal to Fund Clean Energy: The Indian
governments have exclusive jurisdiction. This includes Government assesses a cess17 of Rs 50 (US$0.81) per
areas of public health and sanitation, agriculture, land tonne on both domestic and imported coal. This corner-
use, industries, and water. stone regulatory policy acts as a sort of carbon tax. In
April 2011, the Cabinet Committee on Economic Affairs,
A more detailed account of key agencies and their primary which is headed by the prime minister, approved a
responsibilities/mandates is outlined in Table 2. At the National Clean Energy Fund to invest in entrepreneurial
central government level, the Ministry of Environment and ventures and research in clean energy technologies. When
Forests (MoEF) is the nodal agency responsible for coordi- the government introduced the coal cess, the general
nating the implementation of the NAPCC, but implemen- perception was that power-generating companies would
tation of each of the eight missions falls under a number pass the increased cost of generation to the customers.
of agencies (Table 2). The Prime Minister’s Council on Although the fund promotes clean energy technologies,
Climate Change also plays an important role, by guiding the the cess may not significantly reduce consumption, as the
implementation of the missions under the NAPCC. continued dominance of coal in India’s overall installed
capacity suggests. The Union Budget for 2010–11 imposed
Although they are not included in Table 2, the Planning a cess on all the coal mined in the country or imported at
Commission and the Finance Commission are also impor- an effective rate of Rs 50 (US$0.81) a tonne, generating
tant climate policy actors. Both play important roles in Rs 10.66 billion (US$171.9 million). The revised estimate
India’s centralized policymaking: the Planning Commis- of the National Clean Energy Fund corpus from tax reve-
sion is responsible for central long-term planning, and the nues for 2011–12 was Rs 32.49 billion (US$524.0 million),
Finance Commission oversees financial transfer schemes and the budget estimate for 2012–13 was Rs 38.64 billion
involving all levels of government. (US$623.2 million). The Economic Survey for 2011–12
mentions that the government expects to collect Rs 100
billion (US$1.61 billion) from the Clean Energy Fund by
2015 (Mandal, 2012). Rs 2 billion (US$32 million) from
III: OVERVIEW OF MAJOR POLICIES this fund was allotted for the Green India Mission under
the NAPCC (Mukul, 2011). The Union Budget for 2013–14
Introduction and Methods announced that the National Clean Energy Fund would
This paper focuses on some of the key policies, imple- fund the Indian Renewable Energy Development Agency
menting legislation, and mandatory requirements that can (IREDA) to provide low-interest loans to viable renewable
reduce GHG emission intensity in critical sectors of the energy projects (Kumar and Preetha, 2013).
Indian economy (Table 3). It does not consider volun-
tary initiatives such as research and development (R&D) A 2012 report by the Centre for Budget and Governance
programs, and awareness-raising efforts; although these Accountability identified two areas of concern for the
efforts are also important, it is difficult to estimate their National Clean Energy Fund: inconsistencies between
impact on GHG emissions because they are more indirect its stated objectives, operational guidelines, and actual
and intangible. The policies considered here are organized implementation by sponsor ministries and the Intermin-
into “existing” policies and policies “under development.” isterial Group; and shortcomings in operationalization
“Existing” policies include mandatory and non-mandatory under existing guidelines. As of July 2012, an estimated
policies, standards, and measures that have been imple- Rs 82 billion (US$1.3 billion) was collected under the
mented to support the goals of the NAPCC. Existing National Clean Energy Fund, but only about an eighth of

WORKING PAPER | March 2014 | 7

Table 3 | Summary of Existing Policies

SECTOR AND POLICY TYPE POLICIES

CROSS-CUTTING ECONOMIC INCENTIVES

Carbon cap or tax A Tax on Coal to Fund Clean Energy

ENERGY SUPPLY POLICIES

Renewable portfolio standards/obligations Renewable Purchase Obligation (RPO) under the Electricity Act 2003 is mandated at the state level
(discussed below in “National Policies Implemented at the State Level”)
Financial incentives for renewable energy Financial incentives through the Jawaharlal Nehru National Solar Mission (discussed in section on
sources Jawaharlal Nehru National Solar Mission)
Financial incentives by the Ministry of New and Renewable Energy through the Indian Renewable
Energy Development Agency
Other significant energy supply policies 1. National Tariff Policy 200618
2. National Electricity Policy19
3. National Rural Electrification Policy
4. Jawaharlal Nehru National Solar Mission (JNNSM)
ENERGY EFFICIENCY PROGRAMS

Industrial energy efficiency programs 1. National Mission for Enhanced Energy Efficiency (NMEEE)
(a) Market Transformation for Energy Efficiency (MTEE)
(b) Energy Efficiency Financing Platform (EEFP)
(c) Perform, Achieve, and Trade (PAT) Mechanism for Energy Efficiency
2. National Mission on Sustainable Habitat (NMSH)
3. Small and Medium Enterprise (SME) Program
Building codes Energy Conservation Building Code20 (discussed below in “National Policies Implemented at the
State Level”)
Energy efficiency standards and labels Standards and Labeling Program21
Other efficiency programs 1. Bachat Lamp Yojana (India’s first Clean Development Mechanism program of activities; discussed below
in “National Policies Implemented at the State Level”)
2. Municipal Demand-Side Management
3. S
 tate Energy Conservation Fund (discussed below in “National Policies Implemented
at the State Level”)

INDUSTRY

Other significant industry policies Capacity Building for Industrial Pollution Management

TRANSPORT

Other significant transport policies 1. National Policy on Biofuels22

2. Fuel Economy Standards
AGRICULTURE, FORESTRY, AND OTHER LAND USE

Any significant agriculture, forestry, 1. Agricultural Demand-Side Management

and other land use policies 2. National Mission for Sustainable Agriculture
3. National Mission for a Green India
Note: Bold text represents mandatory policies, standards, codes, etc.

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 GHG Mitigation in India: An Overview of the Current Policy Landscape

that amount was disbursed. Reasons for underutiliza- Despite this national-level provision, however, each
tion include, among other things, the sponsor minis- state electricity regulatory commission has the author-
tries’ lack of capacity to develop proposals of sufficient ity to apply its own fixed rate, which results in a range of
quality and size to tap the fund’s full potential, lack of applied feed-in tariffs at the state level. For example, the
clarity in the eligibility criteria, and lack of provision feed-in tariff for biomass cogeneration projects in Gujarat
for public-private partnerships. Severe underutilization is Rs 5.17/kWh (US$0.08/kWh), while Maharashtra has
of the National Clean Energy Fund is only one concern, a feed-in tariff of Rs 4.79/kWh (US$0.08/kWh) (MERC,
however. More worrisome is the way the fund is used 2012). In addition, state wind energy preferential tar-
and administered. Rather than following its mandate of iffs range from Rs 3.51/kWh (US$0.06/kWh) in Tamil
“funding research and innovative projects in clean energy Nadu (for windmills commissioned after 31 July, 2012)
technologies,” it seems that ministries are using the fund to Rs 5.92/kWh (US$0.10/kWh) in Madhya Pradesh
to bridge the gap between budgetary allocations and (Wind Power India, 2013), even though identical tariffs
programmatic requirements (CBGA, 2012). are applied at the national level. This variation in tariff
policies means that some states are more attractive than
Energy Supply Policies others for new renewable energy project investments.
National Tariff Policy: In compliance with section
National Rural Electrification Policy: The National
3 of the Electricity Act 2003,23 the central government
Electricity Policy states that the key development objec-
announced the Tariff Policy in January 2006. In 2011, the
tive of the power sector is to supply electricity to all
government amended the Tariff Policy in line with a State
areas, including rural areas, as mandated in section 6
Electricity Regulatory Commission requirement that a fixed
of the Electricity Act (2003). In 2006, the Ministry of
percentage of energy purchase come from renewable sources
Power announced the National Rural Electrification
under the renewable purchase obligations (RPOs). As part
Policy, which aims to provide access to electricity for all
of the strategy to construct a solar grid under the national
households by 2009, ensure quality and reliable power
solar mission, a specific solar component under the RPOs is
supply at reasonable rates, and ensure a minimum
proposed for power utilities. This solar power purchase obli-
lifeline consumption24 of 1 unit per household per day as
gation for states may start with 0.25 percent in phase 1 (by
a merit good by 2012 (MoP, 2006). As of December 31,
2013) and go up to 3 percent by phase 3 (by 2022). Currently,
2012, nine states and five union territories had 100 per-
every state but Arunachal Pradesh and Sikkim has its own
cent village electrification25 (Central Electricity Author-
annual solar RPO targets. Additionally, several feed-in tariffs
ity, 2013). Decentralized distribution-cum-generation is
target renewable energy generators. Specific feed-in tariffs
one initiative that has been implemented by the Ministry
are discussed in the next section on the National Electricity
of Power under this policy. This initiative is designed to
Policy. The Central Electricity Regulatory Commission is the
provide off-grid solutions for villages and habitations
central authority responsible for determining and monitor-
where grid connectivity is not feasible, and it encour-
ing tariffs, with the state electricity regulatory commissions
ages provision of alternative sources of power, provided
responsible for the same at the state level.
these are more cost-effective than grid-integration. It is
implemented on a build, operate, maintain, and transfer
National Electricity Policy: Administered by the
basis for 5 years, with the central government providing
Ministry of Power (MoP), the National Electricity Policy
a 90 percent capital subsidy for projects. As of Septem-
envisions a progressive increase in the share of electricity
ber 2012, 284 projects based on solar photovoltaic (PV)/
from nonconventional sources and a competitive bidding
biomass/small hydro covering 682 villages/habitations
process for purchase by distribution companies. Consid-
and 73,904 households with a sanctioned cost of Rs 2.83
ering that it will take some time before nonconventional
billion (US$45.6 million) were under implementation
technologies can compete in cost with conventional
(Kumar, 2012). These villages are among the 34,875
sources, the Ministry of Power suggested that the Central
unelectrified villages in India, representing 6 percent of
Electricity Regulatory Commission might determine an
all villages nationwide.
appropriate differential in price to promote these tech-
nologies (MoP, 2005). The Central Electricity Regulatory
As of now, only grid-connected renewable power can be
Commission is currently following this approach, and
traded as renewable energy certificates (RECs) and con-
differential tariffs have been set to promote the use of
tribute to the RPO targets. Because the Ministry of Power
solar, biomass, and wind energy.

WORKING PAPER | March 2014 | 9

initiative focuses on decentralized distribution-cum- Rs 17.91/kWh or US$0.29/kWh for allocation in batch 1).
generation with the primary goal of providing electricity, The winning bids for solar PV under batch 2 of JNNSM
renewable energy projects under this initiative do not phase I varied from Rs 7.49/kWh (US$0.12/kWh) to
qualify for RECs and cannot contribute to RPOs. This and Rs 9.41/kWh (US$0.15/kWh). It is notable that in batch 1,
other associated challenges—including high capital and the range varied from Rs 10.95/kWh (US$0.18/kWh) to
operating costs, lack of consumer awareness of technolo- Rs 12.76/kWh (US$0.21/kWh).
gies, and lack of clarity of whether there is potential for
grid-integration in the future—may discourage implemen- To date, 1,100 MW of the proposed 1,000–2,000 MW
tation at the state level (Kumar, 2012). grid-connected solar target for 2013 has been allocated.
As of August 31, 2012, 1,044 MW of grid-connected solar
Jawaharlal Nehru National Solar Mission power had been installed in the country (MoNRE, 2012).
(JNNSM): The JNNSM is one of the eight missions The sanctioned capacity of off-grid applications is more
under the NAPCC and is dedicated to making India a than 128 MW (the target is 200 MW). From the targeted
global leader in solar energy through policies that aim 7 million square meters of collector area by 2013, more
to rapidly expand solar technologies across the country. than 5.7 million (more than 80 percent) square meters
The Ministry of New and Renewable Energy is the nodal of thermal collectors has been installed since August 31,
agency for implementing the JNNSM. 2012 (MoNRE, 2012).

The JNNSM facilitates a policy framework for deployment In order to provide solar power at affordable prices, the
of an ambitious 20,000 megawatts (MW) of grid- national thermal power corporation Vidyut Vyapar Nigam
connected solar power by 2022 (introduced through a has put in place a scheme to support 1,000 MW of grid-
phased approach) and promotes programs for off-grid connected solar PV through a mechanism that bundles
applications to achieve targets of 1,000 MW by 2017 and solar power with thermal power from the government’s
2,000 MW by 2022. The JNNSM promotes solar power unallocated quota.26
through the use of a solar-specific renewable purchase
obligation, which will make it mandatory for power Financial Incentives Offered by the Ministry of
utilities to supply a specified share of their power from New and Renewable Energy through the Indian
solar power plants. In addition, the JNNSM offers two Renewable Energy Development Agency: The Min-
types of incentives to solar projects: istry of New and Renewable Energy (MoNRE), through
the Indian Renewable Energy Development Agency
Generation-based incentives: The Indian Renewable (IREDA), offers a number of financial incentives in renew-
Energy Development Agency (IREDA) selected 78 proj- able energy sectors, including hydro-, solar, wind, and bio-
ects with a total capacity of about 98 MW for which the energy, as well as energy efficiency and conservation. The
ministry would provide generation-based incentives of schemes are numerous and wide ranging, and a descrip-
Rs 12.41 per kWh (US$0.20 per kWh) to the state utili- tion of each is beyond the scope of this paper. In addi-
ties when they directly purchase solar power from the tion to the feed-in tariffs described earlier, the types of
project developers. schemes offered include small subsidies for small hydro-
power projects of up to 25 MW (e.g., subsidy of Rs 37.5
Capital subsidy: To support deployment of off-grid solar million per MW (US$0.06 million per MW) apart from 45
applications, the government provides a capital subsidy percent of project cost or Rs 22.5 million (US$0.36 mil-
up to 30 percent of the benchmark cost and/or a soft lion), whichever is lower); fiscal tax incentives for biomass
loan at 5 percent interest (EnergyNext, 2012). power generation (e.g., 100 percent depreciation in the
first year claimable for power generation equipment such
To help meet the targets set out in the first phase of the as fluidized bed boilers, back pressure pass out, and high
solar mission (1,000 – 2,000 MW by 2013), 1,000 MW of efficiency boilers); and incentives for the wind energy
grid-connected projects that met minimum size and com- sector (such as exemption/reduction in central sales
missioning date requirements were selected through two tax and general sales tax available on sale of renewable
batches of reverse auctions. For the allocation in batch 2 energy equipment in various states) (IREDA, 2011). The
of phase I, the CERC base price for solar PV projects was Ministry of New and Renewable Energy also has a scheme
Rs 15.39/kWh (US$0.25/kWh) (against a base price of for generation-based incentives for grid-connected wind

10 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

power projects, with IREDA as the nodal agency. Under of these products through market incentives and thus
the scheme, the ministry provides a generation-based making them more affordable. Bachat Lamp Yojana,
incentive of Rs 0.50/kWh (US$0.01/kWh), with a total currently implemented under Market Transformation
cap of Rs 6.2 million/MW (US$0.10 million/MW) spread for Energy Efficiency, has resulted in the distribution
over a minimum of 4 years, translating to an annual cap of over 20 million compact fluorescent lamps (CFLs) to
of Rs 1.55 million/MW (US$0.03 million/MW). The households. To date, 16 states have taken steps toward
scheme ended on March 31, 2012, but the generation- implementing Bachat Lamp Yojana, with Kerala the
based incentive was again approved by the central gov- most successful. Low certified emission reduction
ernment in August 2013. Wind projects registered under (CER) prices and a 20–30 percent increase in CFL
the scheme will get the earlier incentive of Rs 0.50/kWh manufacturing cost over the past 2 years have cre-
(US$0.01/kWh), with an increased cap of Rs 10 million/ ated financing issues for Bachat Lamp Yojana’s project
MW (US$0.16 million/MW) eligible for a period spanning developers (Paliwal, 2013).
from 4 to 10 years. In addition to direct support for renew-
able energy sources, the Ministry of New and Renewable Energy Efficiency Financing Platform: The Energy
Energy also offers financing of new and emerging technol- Efficiency Financing Platform is another complemen-
ogies such as fuel cells and battery-powered vehicles. tary strategy under the National Mission for Enhanced
Energy Efficiency. The initiatives under this platform
Energy Efficiency Programs focus on the creation of mechanisms to help finance
demand-side management programs in all sectors by
National Mission for Enhanced Energy Efficiency:
capturing future energy savings. This includes ensuring
The National Mission for Enhanced Energy Efficiency is
availability of finance at reasonable rates for energy effi-
one of the eight missions under the NAPCC. The Energy
ciency project implementation, expanding the financing
Conservation Act of 2001 provides a legal mandate for the
platform to include public and private sector banks, and
implementation of energy efficiency measures through
accrediting energy service companies (ESCOs) through
the Bureau of Energy Efficiency (BEE) by establishing
rating agencies like CRISIL/ICRA (MoP, 2010). The
state-level designated agencies. A number of schemes and
Ministry of Power created Energy Efficiency Services
programs aim to save fuel in excess of 23 million tons of
Ltd. as a corporate entity to coordinate and lead these
oil equivalent (mtoe), avoid capacity addition of 19,000
market-related activities. In its current capacity, Energy
MW, and mitigate 98 million tons of CO2 emissions per
Efficiency Services Ltd. serves as an ESCO, a consul-
year by 2014–15 (Garnaik, 2011). Market Transformation
tancy organization for CDM and energy efficiency
for Energy Efficiency; Energy Efficiency Financing Plat-
projects, and a capacity-building resource center for
form; and Perform, Achieve, and Trade are key initiatives
utilities and financial institutions (EESL, 2010). As of
under this mission.
May 2013, 128 ESCOs have been accredited by BEE
with validity until September 30, 2013 (BEE, 2013).
Market Transformation for Energy Efficiency: One
The Global Environment Facility and the World Bank,
of the key strategies under the National Mission for
in partnership with the Small Industries Development
Enhanced Energy Efficiency uses international financ-
Bank of India and BEE, have implemented an initia-
ing instruments to finance key energy efficiency proj-
tive on financing energy efficiency in MSME clusters to
ects. The Market Transformation for Energy Efficiency
improve energy efficiency and reduce GHG emissions
initiative envisages aggregating small demand-side
from MSMEs utilizing increased commercial financing
management (DSM) projects under one roof, thereby
for energy efficiency (Garnaik, 2011).
reducing the transaction costs in obtaining Clean Devel-
opment Mechanism funds (MoP, 2010). BEE is consid-
Perform, Achieve, and Trade (PAT) Mechanism for
ering a Clean Development Mechanism programme of
Energy Efficiency: The Energy Conservation Act of
activities in the lighting sector (Bachat Lamp Yojana);
2001 identified 15 large energy-intensive industries
municipal DSM; agricultural DSM; the micro-, small,
for energy efficiency improvements. Sections 14 (e)
and medium enterprise (MSME) sector; the commercial
and 14 (g) of the act empower the central government,
building sector; and distribution transformers. Mar-
on the recommendations of BEE, to prescribe energy
ket Transformation for Energy Efficiency also seeks
consumption norms and standards for energy intensive
to accelerate the shift to energy efficient appliances in
industries. The Energy Conservation Act names these
designated sectors, reducing the manufacturing cost

WORKING PAPER | March 2014 | 11

 energy intensive industries as designated consumers. crucial role in energy use and GHG emissions. This mission
Of the 15 designated consumers, eight (aluminum, therefore prioritizes vehicle energy efficiency, use of mass
textile, cement, chlor-alkali, pulp and paper, fertil- transport, walking and cycling, and transport demand man-
izers, power generation plants, and iron and steel) are agement measures. Specific strategies for the transport sec-
covered under the Perform, Achieve, and Trade (PAT) tor include strengthening the public transportation system
scheme. PAT is a market-based mechanism to reduce in urban areas through a combination of promotional, regu-
the specific energy consumption of these designated latory, and fiscal measures; reducing the fuel consumed per
consumers. The first phase of the scheme began in April passenger traveled using modal shift transfer; integrating
2011 and will end by March 2014. The Energy Conser- the entire intercity road passenger transport network with
vation Act was amended in 2010 to reduce the risk of urban transport systems; introducing fuel efficiency stan-
noncompliance by increasing the penalty. Each desig- dards for new and used vehicles; and facilitating research
nated consumer is given a specific energy consumption and development to develop new products and technologies
target to meet over a period of 3 years. Any additional that can help reduce energy consumption in Indian cities.
savings can be used to earn energy saving certificates In addition to transport sector initiatives, the mission also
(ESCerts), which are tradable with designated consumers focuses on enforcing policies and regulations strictly at the
who are short of targets. Consumers unable to nullify their local level and on defining future growth strategies through
shortfalls will be penalized Rs 1 million (US$0.02 million), urban planning that keeps in mind both poverty reduction
in addition to an amount proportional to the number of and climate mitigation considerations.
units the target is short by.
The National Mission on Sustainable Habitat lacks clear
The first 3 years of the Perform, Achieve, and Trade policies and measures, however, as well as associated
scheme are expected to see savings of 9.78 million implications for GHG reductions. The only concrete lines
tons of oil equivalent (mtoe) and 26.21 Mt of GHG of action are the three initiatives mentioned in the mis-
emissions, resulting in an expected avoided capac- sion document: the Energy Conservation Building Code,
ity addition of 5,623 MW (Garnaik, 2011). There are recycling of material and urban waste management, and
estimates that this scheme, if implemented fully, will improved urban planning and modal shift to public trans-
result in overall energy savings of around 24 mtoe by port. Among these, the Energy Conservation Building Code
2020 (Planning Commission, 2011a). As of September is mandated for commercial27 buildings in eight states by
2012, the total number of designated consumers was BEE (PTI, 2011). It is discussed in more detail in the section
478 (aluminum: 10; cement: 76; chlor-alkali: 22; fertil- “National Policies Implemented at the State Level.”
izer: 29; iron and steel: 28; iron and steel integrated:
27; iron and steel sponge: 25; power plant: 145; pulp Small and Medium Enterprise (SME) Program:
and paper: 31; textile: 85) (BEE, 2012d). This scheme BEE initiated its SME program to accelerate the adoption
applies only to large industries, but gains could of energy efficiency technologies and practices in
be realized by expanding its provisions to smaller 25 clusters28 in the SME sector through knowledge sharing,
industries. States are best positioned to assess the capacity building, and innovative financing mechanisms
barriers—such as huge upfront capital requirement, to gradually eliminate the barriers mentioned above and
limited access to energy efficient technologies, and make these industries capable of achieving time-bound,
the dispersed nature of these industries (Shrivastava reduced energy consumption targets. The micro-, small-,
and Upadhyaya, 2008)—and work toward including and medium- enterprise (MSME) sector contributes to
smaller industries under the PAT scheme. over 45 percent of industrial production and around
40 percent of total exports (BEE, 2012a). The targeted
National Mission on Sustainable Habitat: Approved clusters are spread across 12 states. Several activities were
as one of the eight missions of the NAPCC, the National planned for the SME clusters for the year 2011–12,
Mission on Sustainable Habitat seeks to promote sus- including better adoption of identified measures and
tainable habitats through improved energy efficiency of technologies, the dissemination of cluster-specific results,
buildings, urban planning, management of solid and liquid and an impact assessment of the program (BEE, 2012a).
waste, modal shift toward public transport, and conserva- In partnership with the Ministry of Power, BEE prepares
tion through appropriate changes in the legal and regula- manuals for industry-specific energy conservation mea-
tory framework (MoUD, 2010). The transport sector plays a sures for different clusters. A targeted energy reduction of

12 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

1.75 mtoe (or 5.75 percent) as a result of the SME program with the help of financial institutions (Demand Side Man-
has been set for the 12th 5-year plan period (2012–17) agement, 2012). The projected electricity savings at the
(Working Group on Power, 2012). end of the 12th 5-year plan (2012–17) is estimated at
0.47 BUs (Working Group on Power, 2012).
Standards and Labeling Program: Another key
area for BEE is the Standards and Labeling program. The Industry
program’s key objective is to provide consumers with
Capacity Building for Industrial Pollution Man-
the information needed to make informed choices about
agement: The state pollution control boards implement
the energy and cost saving potential of household appli-
this project, which scales up the cleanup and rehabili-
ances and equipment (BEE, 2012b). The Standards and
tation of polluted sites and facilitates the reduction of
Labeling program is expected to realize energy savings in
environmental and health risks through technical capac-
the medium and long term, while at the same time posi-
ity building. With financial and technical assistance from
tioning domestic industry to compete in markets where
the World Bank, the states of Andhra Pradesh and West
norms for energy efficiency are mandatory. The scheme
Bengal have begun implementing this initiative. The proj-
will involve mandatory labeling of equipment and appli-
ect, which will last 5 years, became effective on October
ances for domestic sectors, hotel equipment, office equip-
13, 2010. Its total cost is US$75.39 million (85 percent as
ment, industrial products, and transport equipment. As of
financial assistance from the World Bank and 15 percent
January 2013, labeling was mandatory for four appliances:
as contribution by the government of India, West Bengal,
frost-free refrigerators, tubular fluorescent light bulbs,
and Andhra Pradesh) (MoEF, 2010c). The project was
air conditioners, and distribution transformers. Labels
envisioned to support the development of a policy, insti-
for direct cool refrigerators, induction motors, pump sets,
tutional, and methodological framework for the estab-
ceiling fans, liquefied petroleum gas, electric geysers, and
lishment of the National Program for Rehabilitation of
color televisions are voluntary. In January 2014, BEE
Polluted Sites. The methodological framework for invento-
tightened the energy norms for air conditioners by one
rying polluted sites is already developed, establishing best
level and those for refrigerators by two levels (Mukherjee,
practice solutions and engaging multiple stakeholders
2014). Between 2007 and 2011, 11,600 million units (MUs)
during the implementation. Additionally, environmental
of electricity were saved and an avoided capacity of 5,115.5
compliance assistance centers, now fully functional, and
MW was achieved as a result of the Standards and Labeling
pollution remediation technologies have been piloted at
program (BEE, 2012c). Likely savings from the program in
select sites. Mechanisms have been established to moni-
the year 2016–17 is estimated at 10.4 billion units (BUs) of
tor water quality and soil characteristics at the pilot sites
electrical energy and 4.3 mtoe of thermal energy (Working
over the long term, and the Ministry of Environment and
Group on Power, 2012). According to the 12th 5-year plan,
Forests has established a network of state pollution con-
overall savings from the Standards and Labeling program
trol boards to disseminate knowledge and provide project-
resulted in an estimated avoided installed capacity of more
based training (MoEF, 2010c; MoEF, 2011).
than 7,500 MW during the 11th 5-year plan period.

Municipal Demand-Side Management: Another BEE

Transport
initiative, this scheme targets replacement of equipment National Policy on Biofuels: Administered by the
in street lighting and other services provided by munici- Ministry of New and Renewable Energy and approved in
pal bodies in response to increasing urbanization. These December 2009, this policy aims to create a central role
services usually consume large amounts of electricity inef- for biofuels in the energy and transportation sectors. An
ficiently. The implementation of these energy efficiency indicative target of 20 percent blending of biofuels, both
measures can reduce the cost of energy in the municipali- for biodiesel and bioethanol, by 2017, has been proposed.
ties’ budget (it currently amounts to approximately 50 In October 2008, a 10 percent blending level of bioethanol
percent of their budget) by up to 25 percent (Demand Side with gasoline became mandatory, so that the indicative
Management, 2012). The government of India, through blending target of 20 percent can be reached (MoNRE,
BEE, has initiated a program to cover 175 municipalities 2009). The government failed to achieve the goal of 20
by conducting investment grade energy audits and prepar- percent diesel blending by 2012, however, because not
ing detailed project reports. Energy service companies enough jatropha seeds were available for biodiesel pro-
(ESCOs) are being encouraged to implement the program duction (Zafar, 2013).

WORKING PAPER | March 2014 | 13

Fuel Economy Standards: Fuel economy standards National Mission for a Green India: The Indian Gov-
and their implementation timeline are set by the Cen- ernment launched the National Mission for a Green India
tral Pollution Control Board. The standards regulate the (one of the eight missions under the NAPCC) to increase
output of air pollutants from internal combustion engine forest/tree cover, improve ecosystem services, increase
equipment, including motor vehicles. The standards were forest-based livelihood income, and enhance CO2 seques-
first introduced in 2000 and became progressively more tration. This mission aims to increase the forest and tree
stringent. The current norms, which took effect in April cover on 5 million hectares of forest and nonforest lands
2010, are Bharat Stage IV in 15 major cities and Bharat and improve quality of forest cover on another 5 million
Stage III29 in the rest of India. India follows European hectares of nonforest and forest lands. The proposed rate
norms for fuel efficiency with a 5-year lag (Chauhan, of planting increased from 1.6 million hectares to 3.3
2013). Moreover, the current standards are voluntary. In million hectares during the 11th 5-year plan. Joint forest
2012, the central government cleared the fuel mileage management committees will participate in the afforesta-
standards and labeling for new cars, requiring automobile tion of 6 million hectares of degraded forest land, with Rs
manufacturers to display certified efficiency labels on each 60 billion (US$968 million) in funding (NAPCC, 2008).
car they sell. Under the new norms (which BEE designed),
fuel efficiency targets for each company will be based on Another objective of the National Mission for a Green
the average weight of its entire fleet. The new standards India is to enhance annual CO2 sequestration by 50 to 60
were announced in late 2013 and companies were pro- million tonnes by the year 2020 (MoEF, 2010b). Among
vided with a 3-year window to improve their technology to northeastern states, Nagaland started implementing the
meet the standards (Bhattacharya, 2013). mission in its two most vulnerable districts in 2011–12
and plans to expand the mission to other districts in
Agriculture, Forestry, and Other Land Use 2012–13. Punjab recently launched its green mission to
double its forest area from 7 percent to 15 percent. Most
Agricultural Demand-Side Management: BEE’s
states run the mission as a bridge plan under the prepara-
Agricultural Demand-Side Management scheme aims to
tory phase, and they are required to present the perspec-
save energy and cost by replacing inefficient pump sets.
tive plan for the present year. Entry-point activities like
Under this program, BEE provides resources to create a
measures to retain improved soil moistures, increasing
set of bankable detailed project reports in the agricultural
green cover by involving local communities directly, and
sector, specifically to replace inefficient irrigation pumps.
channeling available funds with other welfare schemes are
BEE has already initiated the Agricultural Demand-Side
underway. Chhattisgarh, Madhya Pradesh, and Maharash-
Management program for preparation of detailed proj-
tra received the largest fund allocations from the central
ect reports as pilot projects in five states: Maharashtra,
government, at least for the kickoff/preparatory efforts
Gujarat, Haryana, Punjab, and Rajasthan (BEE, 2009a).
(Collaco, 2012).
Countrywide electricity savings (from replacement of 20
million pumps) is estimated at 62.1 BUs annually, which
translates to savings of Rs 180 billion (US$2.90 billion)
National Policies Implemented at the State Level
(BEE, 2009a). Projected savings under the Agricultural Renewable Purchase Obligation (RPO) under
Demand-Side Management program (with targeted the Electricity Act 2003: The Electricity Act 2003
replacement of 0.25 million pump sets) at the end of the supports the market expansion of renewable energy by
12th 5-year plan period (2012–17) is about 0.7 BUs (Work- stipulating that a percentage of the power procured by
ing Group on Power, 2012). distribution utilities be from renewable energy sources.
The renewable purchase obligation (RPO) is mandated
National Mission on Sustainable Agriculture: at the state level with a target of producing 15 percent of
This mission strives to devise strategies to make Indian India’s electricity from renewable sources by 2020. The
agriculture more resilient to climate change, especially RPO, as well as the preferential tariff for procurement of
by improving the productivity of rainfed agriculture. Some such power, has been specified by various state electricity
of the mission interventions have implications for climate regulatory commissions (SERCs). The renewable energy
change mitigation, such as research and development certificate (REC) mechanism, launched in November
on energy efficient irrigation systems and promotion of 2010, is a market-based instrument promoting the twin
energy-conserving equipment at the farm level. goals of harnessing renewable energy sources in areas
with high potential and ensuring compliance with the

14 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

RPO by resource-deficit states. One REC represents a even though they are obligated by law to do so. This has a
tradable commodity of 1 MWh of electricity from eligible direct impact on the price of RECs. The price of RECs fell
renewable energy sources. by 45 percent in October 2012 relative to prices in 2011.
The unsold certificates reduced the incentives for gen-
As of June 2012, 26 SERCs have set the mandatory eration by states with a surplus of renewable energy and
purchase obligation under the Electricity Act 2003 for eventually the investment flow in the clean energy sector
purchase of a fixed percentage of energy generated from of the country (Power Today, 2012). Some states, like Pun-
renewable energy sources (Table 4). In 2012–13, the jab, have secured approval to carry forward their obliga-
RPO percentages varied from 0.5 percent to 10 percent, tions to the following year, while others have appealed to
depending on the local renewable resources and the the courts to decide whether the RPO even applies to them
electricity distributed in that area (Global Wind Energy (Ramesh, 2012). Although there has been no significant
Council et al., 2012). change in the demand, supply, and cleared volumes of the
solar RECs, the November 2013 numbers point toward
Recently, the Delhi Electricity Regulatory Commission an increase in the traded volume of nonsolar RECs dur-
announced RPO regulations for the national capital region. ing the last quarter of the year. This implies increased
Electricity consumption in Delhi is high, and the REC momentum toward compliance with RPO targets by the
market would be strengthened by strong enforcement end of 2013–14. States like Punjab, Uttarakhand, Maha-
there. Like other cap-and-trade mechanisms around the rashtra, and union territories have recently mandated
world, the REC mechanism faces implementation and stricter RPO compliance regimes.
enforcement challenges. Key challenges include:
Energy Conservation Building Code: The Ministry of
Some states have found it difficult to achieve the RPO Power launched the Energy Conservation Building Code in
targets from the onset of the regulation. Between 2007 2007, under the auspices of the Energy Conservation Act
to 2010, states like Bihar, Haryana, Kerala, Madhya (2001). The code sets minimum energy efficiency stan-
Pradesh, Odisha, and Punjab have consistently failed dards for commercial buildings. It applies to buildings or
to achieve the RPO targets (ranging from 30 percent building complexes that have a connected load of 500 KW
for Punjab to 90 percent for Kerala) (Singh, 2010). In or greater, or a contract demand of 600 kilovolt-amps or
contrast, states like Karnataka and Tamil Nadu have greater. As of 2013, the code was mandatory in eight states
surpassed their respective targets for each year. (Table 4). Labeling programs for three categories of build-
ings (day-use office buildings, business process outsourc-
The RPO targets are not economically related to the ing buildings, and shopping malls) have been developed
prescribed level of feed-in tariffs in most states, leading and implemented. As of March 2011, 136 buildings had
to a demand-supply mismatch for electricity generated been found eligible for labels. Moreover, BEE-empaneled
from renewable energy (Singh, 2010). Calculation of ESCOs are engaged in performance-based contracts with
feed-in tariffs currently does not consider the RPO tar- client firms to implement energy efficient retrofit mea-
gets. Hence states with higher RPO targets might have sures in existing buildings to reduce costs and energy
lower feed-in tariffs and vice versa. This discourages the consumption in a technically viable manner. According to
producers, leading to a demand-supply mismatch. The BEE, as of August 2012, Rajasthan and Odisha had issued
Odisha government has asked the central government notifications for Energy Conservation Building Code rules;
for a subsidy to purchase solar power, making it the first Uttar Pradesh, Uttaranchal, Karnataka, and Lakshadweep
state to openly express its inability to purchase renew- had amended the Energy Conservation Building Code
able energy that is generally very expensive. to suit their local and regional climatic conditions; and
Punjab, Gujarat, and Chhattisgarh were in the process of
 ost of the state distribution companies are cash-
M amending the Energy Conservation Building Code. Pro-
strapped. Even in states like Tamil Nadu and Rajasthan, jected energy savings at the end of the 12th 5-year plan
the state distribution companies are debt-ridden and delay (2012–17) are 5.07 BUs (Working Group on Power, 2012).
payments to renewable energy developers (Paliwal, 2012).
State governments are responsible for enforcing the
Enforcement is often inconsistent. None of the state Energy Conservation Building Code, and improved coor-
distribution companies have come forward to buy RECs, dination between the central and state governments is

WORKING PAPER | March 2014 | 15

Table 4 | Implementation Status of Key State-Level Policies

STATES CREATION OF STATE ENERGY CONSERVATION BACHAT LAMP YOJANA ESTABLISHMENT OF STATE-
ENERGY CONSERVATION BUILDING CODE (AT VARIOUS STAGES OF LEVEL RPO TARGETS (UNDER
FUNDS IMPLEMENTATION) ELECTRICITY ACT OF 2003)
Andhra Pradesh Yes Yes Yes Yes
Arunachal Pradesh Yes No No No
Assam Yes No No Yes
Bihar Yes No No Yes
Chhattisgarh Yes No Yes Yes
Delhi30 Yes Yes Yes Yes
Goa Yes No Yes Yes
Gujarat Yes No No Yes
Haryana Yes Yes Yes Yes
Himachal Pradesh Yes No No Yes
Jammu and Kashmir No No No Yes
Jharkhand Yes No No Yes
Karnataka Yes Yes Yes Yes
Kerala Yes No Yes Yes
Madhya Pradesh Yes No Yes Yes
Maharashtra Yes Yes Yes Yes
Manipur No No No Yes
Meghalaya No No No Yes
Mizoram Yes No No Yes
Nagaland Yes No No Yes
Odisha Yes No Yes Yes
Punjab Yes No Yes Yes
Rajasthan Yes No Yes Yes
Sikkim No No No No
Tamil Nadu Yes Yes Yes Yes
Tripura Yes No No Yes
Uttar Pradesh Yes Yes Yes Yes
Uttarakhand Yes No Yes Yes
West Bengal Yes Yes Yes Yes

16 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

needed. State governments may amend the codes pre- of the 12th 5-year plan (2012–17) are 4.4 BUs (Working
pared by the central government, however, to meet their Group on Power, 2012).
local and regional climatic conditions. Proper delegation
of responsibilities to urban local bodies will be the key to State Energy Conservation Fund: Each state is
Energy Conservation Building Code compliance. National- required to establish a state energy conservation fund
and state-level recognition to reward exemplary works will under section 16 of the Energy Conservation Act of
motivate owners, designers, and building developers to 2001. State energy conservation funds aim to promote the
follow the Energy Conservation Building Code’s require- efficient use and conservation of energy within the state.
ments in the projects (Satish Kumar, 2010). State-proposed activities include awareness raising, R&D,
development and execution of energy efficiency demon-
Bachat Lamp Yojana: This BEE-developed scheme stration projects, and energy conservation (UPSDA, 2012).
promotes energy efficient lighting. The Bachat Lamp The Ministry of Power approved a scheme in 2009–10 to
Yojana scheme was registered as a “Small-Scale CDM provide initial contributions to each state energy conserva-
Program of Activities” by the UNFCCC Execution Board tion fund through BEE. The total financial outlay of the
on April 29, 2010. It is estimated that CFLs are up to 80 scheme was Rs 700 million (US$11.3 million) for the last 3
percent more energy efficient and can last 10 times longer years of the 11th 5-year plan (2009–10 to 2011–12) (BEE,
than incandescent bulbs (Ndungu, Nderu, & Ngoo, 2012). 2011b). All but four states have established energy conser-
As part of the Bachat Lamp Yojana scheme, a 60-watt vation funds (Table 4).
incandescent bulb can be replaced with a 11–15-watt CFL
and a 100-watt bulb with a 18–23-watt CFL. A maximum Policies under Development
of four bulbs can be replaced per household. Under each
Super-Efficient Equipment Program: The Super-
CDM program of activities, approximately 600,000 CFLs
Efficient Equipment Program has won preliminary
can be distributed (at four CFLs per household), with
approval from the Indian Government, and implemen-
the limit of 60 GWh or approximately 60,000 tonnes of
tation details are being hammered out (Table 5). BEE
CO2-eq savings yearly. It is estimated that replacing 400
officially launched the program in 2011 (BEE, 2012b). The
million incandescent lamps (ICLs) with CFLs will result
program encourages manufacturing of products that are
in a combined reduction of 20 million tonnes of CO2 from
30–50 percent more efficient than five-star labeled goods,
grid-connected power plants (BEE, 2009b). Sixteen states
considered to be the most energy efficient in the country,
and one union territory (Table 4) have taken steps toward
with an aim to reduce consumption and enable demand-
implementation of the scheme in their respective Distribu-
side management under the Energy Conservation Act. The
tion Company (DISCOM) regions (BEE, 2011a) (different
scheme comes under the purview of the Market Trans-
states are in different stages of implementation—20 CDM
formation for Energy Efficiency initiative of the National
projects have been registered from Kerala alone and seven
Mission on Enhanced Energy Efficiency (NMEEE).
in Karnataka). The projected energy savings at the end

Table 5 | Process for Implementing Super-Efficient Equipment Program

STEP CURRENT STATUS ADDITIONAL OBSERVATIONS

BEE held consultations with major fan manufacturers, R&D bodies, Completed
technology developers, and policy institutions
BEE to create specifications for ceiling fans that consume 30–50% less In progress
energy and deliver same level of air and comfort
Finalization of specification/performance standard, incentive structure, In advanced stage Manufacturers who make and sell super-efficient
and measurement and verification (M&V) strategy appliances identified under the Super-Efficient
Equipment Program with set specifications/standards
will be paid an incentive. Incentives will be paid after
verification of sales following a set M&V protocol.
Program for LED tube lights and LED bulbs To be launched soon

WORKING PAPER | March 2014 | 17

The goal of the Super-Efficient Equipment Program is not D
 eployment in areas not covered by conventional elec-
only to reduce the cost of energy efficient equipment to tricity supply
stimulate accelerated market transformation but also to
provide financial incentives to domestic manufacturers to S
 ubstitution of usage of kerosene and diesel in different
cover the incremental cost of producing super-efficient (SE) sectors—rural, urban, and industrial
fans so that they are able to sell the products at prices com-
parable to normal appliances (Chunekar and Singh, 2013) G
 eneral improvement in quality and affordability of
and sustain the market. Savings of 60 billion kWh and peak renewable energy systems and devices
capacity avoidance of 20,000 MW can be achieved by 2020
under a moderate standards and labels (S&Ls) scenario G
 eneral user perception and satisfaction
if 60 percent of the stock of only four appliances (room
air conditioners, refrigerator, fans, TVs) is super-efficient Technical R&D, substitution of fossil fuel, and increasing
(Prayas Energy Group, 2012). The program design phase the contribution of renewables to India’s electricity mix
for ceiling fans is complete, and the framework for imple- by 10 percent are identified as the ministry’s mission until
mentation has been proposed by BEE. To move forward, 2022. The ministry’s desire to create an industrial manu-
BEE must publicize the program and invite participation, facturing base for renewable technologies is also evident
after which it can collect and review applications from in the plan. Based on the cumulative targets provided
interested manufacturers. Qualifiers will start producing for the entire 6 years, solar PV, solar lighting for remote
super-efficient fans after a sample is successfully tested and village electrification, and microhydel water mill systems
incentives awarded. The Super-Efficient Equipment Pro- appear most promising for off-grid application (MoNRE,
gram will be extended to light-emitting diode (LED) tube 2011). From the total fund allocation requirement of
lights and LED bulbs as well. According to the 12th 5-year approximately Rs 137 billion (US$2.21 billion), 69 percent
plan, this program has the potential to save 6.06 billion is envisaged for off-grid solar PV-based rural electrifica-
units per annum by 2016–17, thereby avoiding an installed tion systems. Solar (both PV and thermal) dominates the
capacity of 1,500 MW during this period. targets for grid-based addition too, with 65 percent of
total funds earmarked for it (MoNRE, 2011). The ministry
Strategic Plan for the New and Renewable Energy considers the deployment of new financial instruments,
Sector: The Ministry of New and Renewable Energy has opening of new market channels, and reduction of renew-
prepared the Strategic Plan for the New and Renewable able system costs to be “high” and “near term” priorities.
Energy Sector for the period 2011–17, covering the last year While promoting small power plants as tail-end genera-
of the 11th 5-year plan and the 5 years of the 12th plan. It tors to the centralized grid and associated RPO possibili-
has also developed aspirational goals until 2022 that articu- ties may encourage physical scale-up, providing platforms
late the strategy to achieve those goals and the correspond- for rural enterprises and new financial instruments may
ing action plan (for specific information by technology, see encourage new business models in the renewable sector.
Table 6). The Strategic Plan is intended to aid the ministry
in its mission to increase the contribution of renewable Reducing Emissions from Deforestation and For-
energy to the country’s total energy mix to 6 percent by est Degradation Plus (REDD+): The Indian Network
2022, with about a 10 percent contribution to total electric- for Climate Change Assessment (INCCA) estimates that by
ity mix, which is in line with the Integrated Energy Policy 2030, 8–56 percent of India’s forests are likely to experi-
Report projections. The following key factors will play an ence a change in vegetation type compared to the 1970s.
important role in policy effectiveness (MoNRE, 2011): There is likely to be an increase in net primary produc-
tivity of 20 to 57 percent (INCCA, 2010b). The Ministry
Achievements of installed capacity of grid-interactive of Environment and Forests has estimated that a REDD+
renewable power and its contribution to electricity mix program for India can incentivize capture of more than
1 billion tons of additional forest carbon (other than that
Achievements with regard to deployment of various off- from the ongoing social forestry and national afforestation
grid/decentralized renewable energy systems vis-à-vis programs) over the next three decades and provide more
the set targets than US$3 billion as carbon service incentives (MoEF, 2011).

18 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

Table 6 | Status of the Strategic Plan for the New and Renewable Energy Sector by Technology as of August 2013

SECTOR ACTION PLAN CURRENT STATUS

Wind power Repower existing wind turbines: pilot scheme. Completed by World Institute of Sustainable Energy (WISE)
Assess resources, consult with technical institutions, equipment In progress
manufacturers, financial institutions, state governments, etc.
Prepare pilot project for offshore wind. In progress; will take 2 years to complete.

Support development of evacuation and transmission infrastructure. In progress

Small hydropower Draft or update state-specific plans for harnessing small-hydropower In progress
potential in consultation with state governments.
Regularly interact with states. In progress; every 6 months
Bioenergy-biogas Follow cluster-saturation approach for installation of the plants and In progress
involve entrepreneurs and renewable energy service companies.
Persuade lagging states to take this up (e.g., Uttar Pradesh, Bihar, Haryana). In progress; regular field visits underway
Energy from Promote establishment of sustainable fuel linkage systems. In progress
agricultural/
crop residues Implement pilot project for pine needles. Completed
Implement R&D project for rice straw boilers. In progress; continued support needed
Declare tariff for small biomass gasification plants. Completed
Biomass gasifiers Focus on areas having surplus biomass wastes. In progress; development of entrepreneurs and training
Develop entrepreneurs, train technicians. will continue for some time.

Encourage ESCOs, cooperatives, NGOs, local bodies, etc., to avail In progress

themselves of the subsidy and balance as bank loan, equity, etc.
Bioenergy Create awareness in target industries through seminars and In progress
in industry workshops.
Urban wastes Sensitize urban local bodies about the advantages, potential, and prospects. In progress
to energy
Solar water Focus attention in cities and hill states. In progress; cities in five states shortlisted for pilot
heating systems
United Nations Development Programme/Global Environment Facility Request for proposal (RFP) issued for mandatory installation
(UNDP/GEF) project underway. Policy guidelines to be issued to states. of solar water heating systems in functional buildings
Solar steam Interact with industries and institutions. In progress
generation/
cooling/cooking Implement pilot projects to improve technology. In progress; four pilot projects proposed
systems
Tail-end solar PV Install approved plants. Completed
power plants
Undertake technological and performance analysis of the plants. Completed
Off-grid solar PV Formulate guidelines for rural lighting; follow up with Reserve Bank of Completed
systems, including India (RBI) for priority lending for the sector.
those for rural
Build capacity of bankers. In progress
lighting
Train solar technicians. In progress
Focus on diesel abatement in industry, telecom towers, etc. In progress
Biomass Promote demonstration projects. Expression of interest issued for demonstration projects
cookstoves
Evolve new business models. Comprehensive study conducted for sustainable models
Review and update test protocols and standards. In progress

WORKING PAPER | March 2014 | 19

Table 6 |  tatus of the Strategic Plan for the New and Renewable Energy Sector by Technology as of August 2013
S
(continued)

SECTOR ACTION PLAN CURRENT STATUS

Green buildings Undertake huge capacity-building exercise. 148 capacity-building programs organized across the country
Develop Centre of Excellence. Central Public Works Department (CPWD) Training
Institute, Ghaziabad, recognized as a Centre of Excellence
for Green Buildings
Solar R&D Implement sanctioned projects. 36 under implementation in 2011
Sanction new projects. In progress
Set up Centres of Excellence. Indian Institute of Technology (IIT)–Jodhpur working as
one of the Centres of Excellence
Source: Author assessment

The Ministry of Environment and Forests has taken discussion is setting up a REDD+ cell in the Ministry of
preliminary steps to develop a national REDD+ pro- Environment and Forests to coordinate REDD+ activities
gram, recognizing that the bulk of India’s biodiversity is at the state level. A comprehensive statewide assessment
in forests and that more than 200 million people depend could be undertaken to determine the capability of vari-
on them for their livelihoods. As a first step, the govern- ous grassroots institutions to implement REDD+, and a
ment established a technical group to develop methodolo- robust benefit-sharing mechanism needs to be worked out
gies and procedures to assess and monitor contribution (Aggarwal, Das, and Paul, 2009). Experts at a national
of REDD+ actions (Table 7). In 2010, the government workshop on the international REDD+ architecture and
approved in principle the creation of the National REDD+ its relevance in India (hosted by TERI on June 14, 2012)
Coordinating Agency. The Ministry of Environment and suggested that a holistic approach be adopted while
Forests continues to conduct stakeholder consultations at formulating REDD+ projects and that the national-level
the national and regional levels to assess India’s prepared- architecture include biodiversity concerns as well as sensi-
ness to implement REDD+, and it has institutionalized tivity to the rights of indigenous peoples.
the National Forest Carbon Accounting Programme. In
October 2012, India hosted the COP-11 on the Convention
on Biological Diversity, where participant countries called
for more synergy between the biodiversity and climate IV: GHG PROJECTIONS
conventions when it comes to REDD+. This has raised This section reviews how existing policies and policies
awareness across the country and initiated national and under development may affect the national GHG emis-
regional consultations to make India REDD+ ready. sions trajectory and presents expected GHG emissions
trajectories for different scenarios.
Despite these efforts, a number of issues should be
resolved to facilitate effective implementation of REDD In September 2009, the Ministry of Environment and
and REDD+ in India. For example, forest carbon rights Forests released a compilation of results from five modeling
could be clarified and incorporated into national and state studies31 that project India’s GHG emissions. These studies
policy. There is also scope to enhance the tenure security were undertaken independently and used different models,
of forest communities by strengthening the Forest Rights techniques, and assumptions. Based on these studies, esti-
Act and better enforcing the implementation of joint forest mates of India’s GHG emissions in 2031 vary from
management between state forest departments and local 4.0 billion tonnes to 7.3 billion tonnes of CO2-eq, with four
communities. In addition, capacity building for grassroots of the five studies estimating that in two decades, India’s
institutions could help ensure effective monitoring and GHG emissions will remain under 6 billion tonnes. The
reporting, and stakeholder participation could contrib- wide variation in estimates result from different assump-
ute to the creation of a comprehensive national strategy tions related to GDP growth rates, penetration of clean
(Aggarwal, Das, and Paul, 2009). One proposal under energy, and energy efficiency improvements. All studies

20 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

Table 7 | Process for Implementing REDD+

STEPS / INITIATIVES TIMELINE / CURRENT STATUS

Submission to UNFCCC on REDD, Sustainable Management of Forest, and Afforestation and Reforestation. Completed in December 2008

MoEF sets up a technical group to develop methodologies and procedures to assess and monitor contribution of Completed in 2010
REDD+ actions.

In principle, approval and establishment of national REDD+ coordinating agency. Completed in 2010

Institutionalization of National Forest Carbon Accounting Programme. Completed in 2010

Hosting the Conference of Parties (COP-11) of the Convention on Biological Diversity in 2012. Completed in October 2012

Report on the study of the impact of climate change on India’s forests assigned to the Indian Network for Climate Released in November 2010
Change Assessment.

MoEF and TERI organized a national-level consultation on preparedness for REDD+ in India. March 2012

MoEF has initiated regional-level consultations on preparedness of REDD+. Ongoing

show evidence of a substantial and continuous decline by 2020, giving a range of emission possibilities, if the
in India’s energy intensity of GDP and CO2 intensity of real GDP grows annually at an average 8 percent and at
GDP, and almost all the studies assume energy efficiency an average 9 percent over the next decade. Although GDP
improvement in line with past trends. Most of the from services grew faster on average than the overall GDP
studies are based on the policy framework that existed in the recent years, manufacturing will be a key contribu-
before the NAPCC; in other words, they do not factor in tor in the overall economy in the coming years (Planning
NAPCC missions.32 Commission, 2011a).

Many of the studies note barriers to and challenges in Two policy scenarios are projected in the low carbon
effective implementation of existing policies. Barriers expert group’s interim report: Determined Effort and
include limited project finance and technology, inade- Aggressive Effort (Figure 5). The Determined Effort sce-
quate local capacity, and uneven policy enforcement, all of nario assumes that policies already in place or planned33
which will affect actual emissions reductions. To achieve are pursued vigorously and implemented effectively up
the desired level of reduction, the government must take to 2020. However, the report also notes that this scenario
immediate steps to remove implementation barriers. will require continuous upgrading of technology as well
as financing from both public and private sources. It also
India already has an established network of experts to assumes that the private sector will sustain its current effi-
prepare the national communications and the Indian ciency enhancing efforts. The Aggressive Effort scenario
Network for Climate Change Assessment (INCCA) to pre- factors the introduction and implementation of new poli-
pare GHG inventories. India does not have a standardized cies, new technology, additional finance, and increased
GHG inventory system, however. The most current projec- efforts by the private sector. The interim report does not
tions of India’s GHG emissions were released by the gov- specify the policies, technology, and finance assumed in
ernment of India’s Planning Commission in the Interim the Aggressive Effort scenario, nor does it provide annual
Report of the Expert Group on Low Carbon Strategies time series data points on the projected GHG emissions.
for Inclusive Growth (Planning Commission, 2011a). This These details will be included, however, in the commit-
report estimates the projected GHG emissions for India tee’s final report, which has not yet been released.

WORKING PAPER | March 2014 | 21

Figure 5 | India’s Projected Total GHG Emissions Both public and private funds are expected to play a role
by 2020 in India’s climate objectives (Economic Survey, 2011;
Mandal et al., 2013). With regard to public financing,
India has generally funded mitigation policies and mea-
4500
sures through general government revenues. These have
4000 been complemented, however, by innovative approaches
to generating climate financing at the domestic level, such
as the National Clean Energy Fund, which derives its
Million tonnes CO2-eq

3500
funding from a cess on coal of Rs 50 (US$0.01) per ton.
3000

2500 Incentives and schemes to increase the level of project

financing will also be key. Examples include the CDM
2000 as well as innovative instruments under the NMEEE to
leverage private capital for investments to drive efficiency.
1500
Climate financing could be accessed from international
1000 sources. Examples include UNDP support to the Minis-
2005 2020 try of Environment and Forests to access environmental
financing by strengthening the Global Environment Facil-
Determined Effort: 8% GDP Growth Aggressive Effort: 8% GDP Growth
ity (GEF) cell in the ministry, and building capacities of
Determined Effort: 9% GDP Growth Aggressive Effort: 9% GDP Growth state governments and agencies to develop CDM projects
(UNDP, 2012). In the future, other mechanisms, such as
Source: Planning Commission, 2011a.
the nationally appropriate mitigation action (NAMA) reg-
Note: Totals include non-agriculture GHG emissions only. The Determined Effort scenario
projects a 23–25 percent reduction in emission intensity from 2005 levels by 2020 istry, could provide opportunities to access international
(Planning Commission, 2011a), which is close to India’s voluntary pledge under the financing. With diverse funding mechanisms available,
Copenhagen Accord. The Aggressive Effort scenario projects an emissions intensity it would therefore be useful to set up proper incentives,
reduction of around 33–35 percent over 2005 levels by 2020. In addition to the projections,
the report emphasizes the need to identify barriers to the adoption of the policy measures, safeguards, and governance structures to ensure effec-
as well as policies and incentives to overcome those barriers. The report also notes that the tive deployment of financing. Concerns have been raised,
cost effectiveness of some measures suggested in the Aggressive Effort scenario may need however, about the extent to which these sources will be
to be reassessed. While some of these measures may not prove to be cost-effective, others
may face institutional barriers, thereby limiting effective implementation.
funded and available,35 as well as whether these funds
could be disbursed in a timely manner.36

Technology
V: LOOKING AHEAD Another challenge to low-carbon growth in India is the
Financing lack of adequate know-how and technology. New low-
carbon, renewable energy sources and technologies will
Effective implementation of the plans and policies dis- be crucial, and they will be mostly led by the private
cussed in this paper requires sufficient financing and sector. The Interim Report of the Expert Group on Low
investments. While a comprehensive assessment of India’s Carbon Strategies for Inclusive Growth (Planning Com-
climate finance needs has yet to be completed, an initial mission, 2011a) clearly identifies the role of technology
estimate suggests that US$84.65 billion over the next in achieving India’s low-carbon targets under both the
decade will be needed to support India’s eight climate Determined Effort and Aggressive Effort scenarios. When
missions (Mandal and Sivapradha, 2012).34 The Interim it comes to demand-side management in domestic and
Report of the Expert Group on Low Carbon Strategies commercial appliances and agriculture, market pen-
for Inclusive Growth (Planning Commission, 2011a) etration and greater adoption of available technologies
suggests that international financing will be required for become more prominent. These can be achieved through
the additional mitigation activities in the Aggressive Effort appropriate pricing policies, labeling and awareness-
scenario, while domestic financing could support the raising strategies, and attractive financing schemes, many
Determined Effort scenario. In either case, India faces a of which are currently underway.
significant finance mobilization challenge.

22 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

In the case of supply-side options and energy efficiency T

 he iron and steel industry, which provides key
in industry, it is equally important to develop new resources to sectors including construction, transporta-
technologies and facilitate their market penetration by tion, and power transmission, has had mixed success in
enabling policies and building institutional capacity. To reducing emissions. Some Indian steel producers have
reduce emission intensity in India’s power sector, for indigenized and improvised on imported technology,
example, 50 percent of coal-based capacity addition in and competition among domestic industries is likely to
the 12th 5-year plan and 100 percent in the 13th 5-year increase the energy efficiency of techniques used during
plan will be accomplished by deploying supercritical tech- the production process (Dutta and Mukherjee, 2010).
nology. Ultrasupercritical power plants operate at even There has been limited policy support for formalization
higher efficiency, and large-scale adoption of this technol- of R&D in this sector, however.
ogy would further reduce the emission intensity of the
power sector. The first ultrasupercritical plant is expected I n the oil and gas sector, capturing fugitive emissions
in 2017 (Economic Survey, 2011). from industrial activities has recently emerged as a sig-
nificant issue (India produced 21.2 MtCO2-eq of methane
Integrated coal gasification combined cycle (IGCC) emissions in 2010, or 1.3 percent of the global total).
is another promising technology. It can attain higher For example, the country’s largest oil and gas producer,
efficiencies and lower GHG emissions and also produce Oil and Natural Gas Corporation Ltd. (ONGC), is work-
synthetic chemical fuels such as diesel and hydrogen. ing to reduce methane emissions through awareness-
Initial estimates under Indian conditions of high-ash raising workshops and capacity-building initiatives.
coal, however, show very high auxiliary power consump- Beginning in 2008, ONGC conducted measurement
tion, making the overall efficiency comparable with that studies across seven company facilities with the greatest
of subcritical units at almost double the cost. While the potential for emissions reductions. The company also
government intends to pursue research in IGCC, mapped fugitive emissions from their facilities and is
commercial deployment of IGCC is unlikely before 2020 looking to develop a fugitive emission inventory (Global
(Planning Commission, 2011a). Methane Initiative, 2011).

In renewable energy, the government is pursuing solar Looking ahead, such industry-led improvements in tech-
power as a critical technology for achieving both long- nology mix and implementation of existing policies such
term energy security and low-carbon growth targets. The as the PAT scheme will likely bring some reduction in
National Solar Mission has given solar power a much- emissions intensity. Nonetheless, technology transfer sup-
needed push by increasing the country’s manufacturing port, R&D to facilitate both technology development and
capacity, viability gap funding, aggressive research and adaptation, new technologies that suit Indian conditions,
development, and large-scale deployment. and timely adoption of suitable technologies will be cru-
cial for achieving the Aggressive Effort targets in industry
Options to reduce emissions in the industry sector, (Planning Commission, 2011a).
especially in cement, iron and steel, and oil and gas, hinge
on the development, adaptation, and adoption of newer Eliminating Barriers to Implementation
technologies. Industry efforts have been important in
Three major issues arise in implementing climate policies:
driving the development of emissions-reductions tech-
nologies. For example:
State Policies and Actions: India’s federal structure
creates space for state-level policies and actions. Under
India’s cement industry, among the largest producers
the NAPCC, for example, national-level policies and
in the world, is also one of the most technologically
measures are in place. It is now up to the states to move
advanced (Riccardi, Oggioni, and Toninelli, 2012). In
those policies forward and translate them into concrete
the past several years, facilities have gradually transi-
actions. State-designated agencies are supposed to
tioned to dry process technology during cement pro-
implement several initiatives under the NMEEE, but
duction to replace the less efficient wet process that
the effectiveness of these agencies is uncertain. State-
dominated the industry during the 1960s (Dutta and
designated agencies must also devolve some initiative
Mukherjee, 2010).
to the municipal and industry levels. For example, the
bylaws regulating buildings must be applied at the

WORKING PAPER | March 2014 | 23

municipal level. Only a few states and municipal bodies, Urbanization
however, have guidelines in place for developing and/or
Cities will be central to India’s economic future. The
implementing building energy efficiency programs and
country’s urban population grew from 290 million in
policies. Similarly, the PAT scheme currently applies
2001 to 340 million in 2008, an increase of 17.24 percent
only to large industries (478 in total) (BEE, 2012d).
over an 8-year period (Nagarajan, 2011). McKinsey
Smaller industries must be brought into the fold, and
Global Institute (2010) predicts that by 2030, the urban
states are best positioned to do that. The limited capac-
population could further soar to 590 million. The mid-
ity of many states often poses a challenge. Furthermore,
term appraisal of the 11th 5-year plan puts the urban
national and state priorities differ, which may impede
share of GDP at 62–63 percent in 2009–10 and projects
adoption of a national policy.
this share to increase to 75 percent by 2030.
At the Conference of State Environment Ministers on
There is very little empirical information on carbon emis-
August 18, 2009, the prime minister of India requested
sions in Indian cities. According to analysis by Sridhar
that all state governments prepare their state action
and Kumar (2013) based on a 2009 study by ICLEI - Local
plans on climate change. These action plans took their
Governments for Sustainability, the average per capita car-
lead from national mission documents when formulat-
bon emissions in metropolitan cities in India is 1.19 tons,
ing the strategies. Several states have developed state
that in nonmetropolitan cities 0.90 tons, and the national
climate action plans focused on approaches that are
average 0.93 tons per capita. Currently, most urban poli-
sectoral but with regional ramifications. Gujarat, Rajas-
cies and initiatives focus on ensuring basic public services
than, and Karnataka also have their own, independent
for all Indian cities and towns. Energy and GHG concerns
state solar power policy. The progress of state-level
are either viewed as “add-ons” to overall strategies driven
schemes will depend on the dynamic nature of state
by service delivery concerns or as a subject for conven-
politics and political entities, which are in constant flux.
tional environmental infrastructure programming as an
important routine task for cities. India needs a fundamen-
Fragmented Authority: Often, the roles and respon-
tal shift to sustainable urban development and energy, and
sibilities of ministries and agencies at the national
GHG considerations should become part of the core city
and state levels are not clearly delineated, leading to
development planning process (IIED, 2010).
a lack of coordination among institutions working
in the same area. The Ministry of New and Renew-
able Energy, for example, is promoting microgrids in New Institutional Structure
remote and rural areas through various schemes and for GHG Inventory System
incentives. These will eventually need to be connected A new institutional structure for GHG inventory and
to the national grid, which will require the Ministry of management would be useful at the national level. This
Power to resolve grid-capacity issues. Prior consulta- will ensure a systematic approach to measure the impact
tion is, therefore, necessary before the launch of such of the mitigation policies and actions. Implementing such
schemes. More importantly, there needs to be an a system will be a challenge, as there is a lack of activity
integrated approach to addressing these sector-spe- data and specific emissions factors. The interim report of
cific issues rather than ad hoc measures based on the the low carbon expert group suggests that these challenges
mandates of the respective ministries. can be overcome by collating activity data from various
ministries, departments, and industries; performing qual-
Central Government-State Government Financial ity assurance and control checks routinely; commission-
Flows: States rely predominantly on central funds for ing surveys to ascertain data gaps; developing emission
climate action. Only recently have states like Maha- factors for key emission sources; identifying uncertainties;
rashtra started using fiscal incentives like a green cess and regularly reviewing the estimates (Planning Commis-
on electricity to raise their own funds. Central funds sion, 2011a). The report further suggests key initiatives
are not always reliable and timely, and this can delay that would require several new institutions:
implementation.

24 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

1. A
 National Greenhouse Gas Inventory Management CONCLUSION
Authority to track the trends of GHG emissions from all
sectors of the economy at national, state, district, and India’s climate mitigation policy landscape is active and
point-source levels. This authority should be housed ambitious. It is essential, however, that these plans be
under INCCA but operationalized under the Ministry operationalized and implemented on the ground. Accord-
of Environment and Forests. ing to the Planning Commission’s working group (for
the 12th 5-year plan) on climate change, the “optimal
2. A National GHG Inventory Management System for way of achieving overall climate change goals would be
archiving, updating, and producing information on to integrate the objectives of the NAPCC and the domes-
activity leading to GHG emissions or removals. The tic mitigation goal in the development strategy of the
system would produce the trends of emissions or respective sectors. In the area of adaptation, this calls for
removals by sector at national, state, district, specific policy initiatives across a wide variety of sec-
and point-source levels. tors, particularly in the areas of agriculture, water, health,
coastal management, forests and other ecosystems, energy
3. D
 esigning mechanisms for voluntary disclosure of including renewable energy, and infrastructure and cli-
GHGs from installations managed by Public Sector mate change assessment.” The government of India has
Undertakings (PSUs)/corporates and from medium- estimated that Rs 2.3 trillion (US$ 37 billion) would be
scale enterprises to track the impact of their energy needed to fulfill the objectives of the eight national mis-
efficiency measures or GHG mitigating measures on sions of NAPCC in the 12th 5-year plan. While it is impor-
their annual GHG emissions. tant to have access to climate financing and technology, a
proactive approach to removing some of the implementa-
Although it remains to be seen how these institutions tion barriers to these plans is necessary. This calls for bet-
will be organized and whether they can effectively imple- ter vertical integration at all governance levels (national,
ment the GHG inventory and management system, some state, and local) and horizontal integration of concerned
initial work is underway. Other parallel initiatives are also line ministries and departments. A systematic approach
underway. For example, in early 2014, WRI India, the for tracking the progress and impact of mitigation actions
Confederation of Indian Industry (CII), and TERI estab- by way of a new institutional structure for a GHG inven-
lished a voluntary industry-based platform with 27 of the tory system at corporate, city, state, and national levels is
country’s largest companies to share best practices on an important way forward to ensure effective and inte-
GHG accounting.37 grated planning and implementation of India’s low-carbon
development plans. The GHG inventory system, for
example, could be designed to track both GHG emissions
and other related key impacts including water, energy,
and air pollution to facilitate an integrated approach.

WORKING PAPER | March 2014 | 25

ABBREVIATIONS AND ACRONYMS
BEE Bureau of Energy Efficiency MoEF Ministry of Environment and Forests
BUs billion units MoNRE Ministry of New and Renewable Energy
CDF Centre for Development Finance MoP Ministry of Power
CDM Clean Development Mechanism MoUD Ministry of Urban Development
CEA Central Electricity Authority MSME micro-, small, and medium enterprise
CER certified emission reduction MST Ministry of Science and Technology
CERC Central Electricity Regulatory Commission MTEE Market Transformation for Energy Efficiency
CFL compact fluorescent lamp mtoe million tons of oil equivalent
CII Confederation of Indian Industry MUs million units
COP Conference of the Parties MW megawatt
CPCB Central Pollution Control Board NAMA nationally appropriate mitigation action
CPWD Central Public Works Department NAPCC National Action Plan on Climate Change
CRISIL Credit Rating Information Services of India Limited NCAER National Council of Applied Economic Research
DC designated consumer NGO nongovernmental organization
DISCOM Distribution Company NHAI National Highways Authority of India
DSM demand-side management NMEEE National Mission for Enhanced Energy Efficiency
DST Department of Science and Technology NMSH National Mission on Sustainable Habitat
EEFP Energy Efficiency Financing Platform ONGC Oil and Natural Gas Corporation
ESCO energy service company PAT Perform, Achieve, and Trade
ESCert energy saving certificate PSU Public Sector Undertaking
FICCI Federation of Indian Chambers of Commerce and Industry PV photovoltaic
GDP gross domestic product R&D research and development
GEF Global Environment Facility RBI Reserve Bank of India
GHG greenhouse gas REC renewable energy certificate
GoI government of India REDD Reducing Emissions from Deforestation
and Forest Degradation
ICL incandescent lamp
RFP request for proposal
IEA International Energy Agency
RPO renewable purchase obligation
IFMR Institute for Financial Management and Research
S&Ls standards and labels
IGCC integrated coal gasification combined cycle
SAPCC state-level action plan on climate change
IIFM Indian Institute of Forest Management
SE super-efficient
IIT Indian Institute of Technology
SERC State Electricity Regulatory Commission
INCCA Indian Network for Climate Change Assessment
SME small and medium enterprise
IRADe Integrated Research and Action for Development
SPCB State Pollution Control Board
IREDA Indian Renewable Energy Development Agency
TERI The Energy and Resources Institute
JNNSM Jawaharlal Nehru National Solar Mission
UNDP United Nations Development Programme
kWh kilowatt-hour
UNFCCC United Nations Framework Convention on Climate Change
LED light-emitting diode
USAID United States Agency for International Development
LULUCF land use, land-use change, and forestry
WDI world development indicator
M&V measurement and verification
WISE World Institute of Sustainable Energy
MoA Ministry of Agriculture
WRI World Resources Institute

26 |

 GHG Mitigation in India: An Overview of the Current Policy Landscape

ENDNOTES
1. Grantham Institute for Climate Change, 2012; Fekete et al., 2013; 13. For all monetary figures, we use an approximate exchange rate of 1 USD
Höhne et al., 2012. equals 62 Indian Rupee, current as of February 28, 2014.
2. The National Action Plan on Climate Change (NAPCC), India’s flagship 14. The solar mission will be implemented by an autonomous solar energy
program related to climate change, outlines a framework and guiding authority or an autonomous and enabled solar mission, embedded within
principles for eight national missions. It lays out low-carbon growth the existing structure of the Ministry of New and Renewable Energy.
strategies for various sectors. The authority/mission secretariat will be responsible for monitoring
3. India Ministry of Environment and Forests, “Press Note,” 30 January technology developments, reviewing and adjusting incentives, manag-
2010, http://moef.nic.in/downloads/public-information/UNFCCC%20 ing funding requirements, and executing pilot projects. The mission will
Submission_press_note.pdf. report to the Prime Minister’s Council on Climate Change on the status
of its program.
4. unfccc.int/files/meetings/cop_15/copenhagen_accord/application/pdf/
indiacphaccord_app2.pdf. 15. Desai et al., n.d., 10.
5. unfccc.int/essential_background/convention/background/items/1362.php. 16. Some state electricity departments are also key players, since they plan their
own electricity supply with a limited reliance on the central allocation.
6. For instance, one of the targets in India’s 11th 5-year plan (2007–12)
was to increase energy efficiency by 20 percent by 2016–17 (Planning 17. The cess is paid in addition to the tax and is normally calculated as a
Commission, 2008). Both the 11th 5-year plan and India’s integrated percentage of the tax.
energy policy document suggested that increased energy efficiency was 18. The mandatory portion of the policy states that the procurement of power
possible with greater effort. by distribution licensees and the procurement of transmission services
7. In order to harmonize the country’s development priorities and its climate must be done through tariff-based competitive bidding, even from
goals, the Expert Group on Low Carbon Strategies for Inclusive Growth government or state-owned entities.
was established. Its members come from industry, think tanks, research 19. The mandatory portion of the policy includes energy accounting and
institutions, civil society, and government. declaration of results.
8. 2020 projection data from Planning Group, 2011a; assumption based 20. The energy conservation building code is currently mandatory for com-
on determined scenario with 8 percent GDP growth rate and per capita mercial buildings in eight states.
change of 2.67. 21. The policy is mandatory for four appliances: frost-free refrigerators, air
9. Baseline estimates include carbon dioxide emissions from burning fossil conditioners, distribution transformers, and fluorescent tube lights.
fuels and cement manufacture. This includes carbon dioxide produced 22. 10 percent blending of bioethanol with gasoline is mandatory.
during consumption of solid, liquid, and gas fuels and gas flaring. WDI
23. Section 3 of the Electricity Act 2003 states that the central government
estimates accessed at http://data.worldbank.org/indicator/EN.ATM.CO2E.
shall, from time to time, prepare and publish the National Electricity
KT/countries. WDI data is used because domestic estimates are only
Policy and Tariff Policy, in consultation with the state governments
available for base year 2005.
and authority for development of the power system based on optimal
10. Calculated on the basis of down-scaled GDP data for IPCC A1 emissions utilization of resources such as coal, natural gas, nuclear substances or
projection scenarios, published by the Center for International Earth Sci- material, as well as hydro and renewable sources of energy.
ence Information Network. For more information, see http://pdf.wri.org/
24. Lifeline consumers are defined as households below the poverty line
working_papers/comparability_of_annex1_emission_reduction_pledg-
consuming 30 units of electricity per month.
es_2010-02-01.pdf.
25. The term electrified village was defined by Ministry of Power O.M. No.
11. The 12th 5-year plan reorganized the NAPCC missions from their
42/1/2001-D(RE), February 5, 2004:
original incarnation from their original incarnation of eight missions
A village would be classified as electrified based on a Certificate issued
to seven missions (the seven missions are the National Solar Mission,
by the Gram Panchayat, certifying that
the National Wind Energy Mission, the Energy Efficiency Mission, the
(a) Basic infrastructure such as Distribution Transformer and Distribu-
Sustainable Habitat Mission, the Sustainable Agriculture Mission, the
tion Lines are provided in the inhabited locality as well as a minimum
Mission on Sustainable Himalayan Eco-systems, and the National Mis-
of one Dalit Basti / hamlet where it exists (For electrification through
sion for a Green India) and identified policy thrust areas. The key areas
Non-Conventional Energy Sources a Distribution transformer may not be
include advanced coal technologies, energy efficiency improvements in
necessary); and
major industries, solid waste management systems in towns and cities,
(b) Electricity is provided to public places like Schools, Panchayat Office,
treatment of all sewage before release into the water bodies, improved
Health Centers, Dispensaries, Community Centers, etc.; and
urban public transport, dedicated freight corridors along major routes,
(c) The number of households electrified are at least 10% of the total
and climate-related research through scientific departments. See http://
number of households in the village.
planningcommission.gov.in/plans/planrel/12thplan/pdf/vol_1.pdf.
26. Unallocated power is the unsold power left with the generating stations
12. Although the NAPCC prioritizes India’s development with climate as a
after all the power purchase agreements are signed.
cobenefit, it does not discuss the level of ambition of the cobenefit or its
relation to the 20 percent energy intensity reduction target. However, the 27. The commercial sector comprises various industrial and institutional
Interim Report of the Expert Group on Low-Carbon Strategies (Planning establishments such as banks, hotels, restaurants, shopping complexes,
Commission, 2011a) does refer to various missions and their goals and offices, and public departments supplying basic utilities.
how recommended actions would help achieve the goals.

WORKING PAPER | March 2014 | 27

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 GHG Mitigation in India: An Overview of the Current Policy Landscape

ACKNOWLEDGMENTS
The authors would like to thank the following people for their peer review Koyel Mandal has always been interested, as a researcher and practitioner,
and insightful feedback: Sujatha Byravan, formerly with IFMR’s Centre for in understanding the interactions between environment and development and
Development Finance; Anuradha R. V. of Clarus Law Associates; Takeshi how they fare in dynamic, decentralized decision-making contexts that are
Kuramochi of IGES; and Vivek Adhia, Pankaj Bhatia, Jared Finnegan, Bharath shaped by policies, market frameworks, and information systems. As senior
Jairaj, Apurba Mitra, and Neelam Singh of the World Resources Institute, as research manager of the IFMR’s Environment and Climate Change program,
well as Siddarthan Balasubramania, formerly with WRI. We would also like to he has worked on projects that evaluate the environment and climate policies
acknowledge Farhaad Khazvini and Sivapradha C. R., formerly with IFMR, for and programs, investments and adoption barriers in renewable energy, and
their research inputs on earlier versions of this paper. the role of technology and innovation in sustainable development. He has
Thank you also to Hyacinth Billings, Alex Martin, Nick Price, Emily Scha- also coordinated outreach activities and conducted policy advocacy in order
backer, and Alston Taggart for their editing and publication design work. At to secure support for conservation and legislative initiatives. He has been part
WRI, Priya Barua, Jenna Blumenthal, Thomas Damassa, and Taryn Fransen of several expert committees and technical groups and has presented at nu-
provided feedback and editing that helped shape this paper. merous conferences. He has also handled communications, media relations,
and government affairs. Prior to joining IFMR, he worked as an economist
with Ocean Conservancy, a policy advocacy group based in the United States.
He has also worked with the Madhya Pradesh State Forest Department to
implement community-based models of forestry and wildlife management.
ABOUT THE AUTHORS He holds an MS in environmental science and policy from the University of
Neha Pahuja is a multidisciplinary researcher working on international Wisconsin–Green Bay, a postgraduate diploma in forest management from the
climate policy and its relevance to domestic policymaking. Her work, which Indian Institute of Forest Management (IIFM), Bhopal, and a B.Sc. in econom-
focuses on equity, mitigation, climate finance, and market-based approaches, ics from St. Xavier’s College, Calcutta.
seeks to bring a developing-country perspective to a range of global gov-
ernance issues. She also studies the implications of the new international
Chayan Bandyopadhyay is a researcher with the Environment and Climate
regime for India, its domestic policies, and its development process. She had
Change program at IFMR’s Centre for Development Finance. His current areas
helped develop many state-level action plans on climate change (SAPCCs)
of work include low-carbon investment mapping, studying the potential of
and capacity-building initiatives at all governance levels. At TERI, she con-
decentralized renewable solutions, and estimating tourists’ willingness to pay
venes the activities of the Center for Global Environment Research. Prior to
in nature parks. His research interests also include sustainable transportation,
this, she worked with Emergent Ventures India Pvt. Ltd. as a carbon advisory
efficient resource consumption, green supply chain, and environmental policy
consultant on projects under the Clean Development Mechanism (CDM) as
analysis. He holds a postgraduate degree in environmental management
well as on renewable energy policy, strategic corporate social responsibility,
from the Indian Institute of Forest Management (IIFM), Bhopal. As part of his
and carbon neutrality. She has a management master’s degree from the Indian
graduate training, he completed three independent research projects related to
Institute of Forest Management, Bhopal.
(1) the feasibility of non-timber forest product supply chain at the state level,
(2) social cost-benefit analysis of the bus rapid transport system in Bhopal,
Nimisha Pandey has 9 years of experience in the sphere of environment and (3) the electricity, water, and food wastage patterns of IIFM students.
management and climate change at both the policy and field levels. Currently
she is an associate fellow at TERI’s Center for Global Environment Research.
She focuses on issues related to mitigation being discussed in international
climate-policy negotiations; international and domestic climate-policy dia-
logue in the context of existing and emerging carbon markets at the interna-
tional and national levels; nationally appropriate mitigation actions (NAMAs);
and opportunities for and barriers to international technology sharing and its
implications for promotion of low-carbon, sustainable development. Prior to
this, she worked with the Federation of Indian Chambers of Commerce and
Industry (FICCI) as assistant director in the Environment and Climate Change
Division. She has a master’s degree in environmental science from Banaras
Hindu University, Varanasi, and a postgraduate diploma in environmental law
from the National Law School of India University, Bangalore.

WORKING PAPER | March 2014 | 31

ABOUT WRI ABOUT TERI
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