Environmental Issues

Net zero waste from buildings

All upcoming housing societies and commercial complexes in the country will soon have to mandatorily ensure net­ zero waste and have their liquid discharge treated, as part of the Union government’s push for reforming and modernising the sewage disposal system. 

What is the concept of Net Zero Waste?

  • According to ICBC, a Net Zero Waste for Buildings & Built Environment is one which eliminates the diversion of waste being sent to landfills, by a multi-pronged approach - nature-centric design, reducing debris during construction, responsibly handling waste during operation, reusing the waste as much as possible and recycling the remaining waste.
  • A building or a built environment has to demonstrate that the total quantity of waste generated during construction and operation is equal to the quantity of waste reused within the premises and the quantity of waste recycled, so that the net quantity of waste sent to the landfill is ‘Zero’.
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How can we achieve Net Zero?

Step 1. Reducing: Efforts should be made to reduce the waste generation to the maximum extent possible in all the three stages of construction of buildings.

Step 2. Reusing: Various options for reusing the waste as a resource within the building can be explored. Step 3: Recycling: The remaining waste need to be responsibly handled and handed over to authorized recyclers for recycling or disposed in an environment friendly manner

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Key benefits of adopting Net Zero Waste Rating System are as below:

• Increased use of green products & materials, thereby improving resource efficiency and health benefits.

• Reduction in material consumption and thereby reduction in cost of construction.

• Increase in reuse of waste resulting in reduction in procurement of additional materials.

• Reduction in cost associated with waste handling and disposal.

• Opportunity to convert waste to energy or other value-added products.

• Brand image of being environmentally conscious

NAMASTE:

  • National Action for Mechanised Sanitation Ecosystem
  • Namaste is a Central Sector Scheme of the Ministry of Social Justice and Empowerment (MoSJE) as a joint initiative of the MoSJE and the Ministry of Housing and Urban Affairs (MoHUA).
  • NAMASTE envisages safety and dignity of sanitation workers in urban India by creating an enabling ecosystem that recognizes sanitation workers as one of the key contributors in operations and maintenance of sanitation infrastructure thereby providing sustainable livelihood and enhancing their occupational safety through capacity building and improved access to safety gear and machines.
  • Five hundred cities (converging with AMRUT cities) will be taken up under this phase of NAMASTE. For providing a safety net to identified SSWs and their families they will be covered under the Ayushyaman Bharat- Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). The premium for AB-PMJAY for those identified SSWs families who are not covered earlier shall be borne under NAMASTE.

NAMASTE aims to achieve the following outcomes:

  • Zero fatalities in sanitation work in India
  • All sanitation work is performed by skilled workers
  • No sanitation workers come in direct contact with human faecal matter
  • Sanitation workers are collectivized into SHGs and are empowered to run sanitation enterprises
  • All Sewer and Septic tank sanitation workers (SSWs) have access to alternative livelihoods
  • Strengthened supervisory and monitoring systems at national, state and ULB levels to ensure enforcement and monitoring of safe sanitation work
  • Increased awareness amongst sanitation services seekers (individuals and institutions) to seek services from registered and skilled sanitation workers

Note: In case the workers decide to adopt an alternate livelihood of their choice, skilling support will be provided to these workers. The workers may start a new livelihood project as an individual or as a group interested in same option. However it will not be free and rate of interest will be chargeable on self employment projects including sanitation related projects.

Environment, Social and Governance (ESG) Regulations

The Securities and Exchange Board of India (SEBI), responding to the increase in ESG investing and the demand by investors for information on ESG risks, substantially revised the annual Business Responsibility and Sustainability Report (BRSR) required by the 1,000 largest listed companies in India. 

What are E.S.G regulations?

ESG regulation is any set of requirements on an organization to publicly disclose information about their performance in environmental, social, or governance topics.

How ESG differs from CSR?

India has a robust corporate social responsibility (CSR) policy that mandates that corporations engage in initiatives that contribute to the welfare of society. This mandate was codified into law with the passage of the 2014 and 2021 amendments to the Companies Act of 2013. 

The amendments require companies with a net worth of ₹500 crore or a minimum turnover of ₹1,000 crore or a net profit of ₹5 crore in any given financial year spend at least 2% of their net profit over the preceding three years on CSR activities. The list of qualifying CSR activities is intentionally broad, ranging from supporting the protection of historically important sites to promoting safe drinking water.
 
ESG regulations, on the other hand, differ in process and impact. The U.K. Modern Slavery Act, for example, requires companies with business in the U.K. and with annual sales of more than £36 million to publish the efforts they have taken to identify and analyse the risks of human trafficking, child labour and debt bondage in their supply chain.


ESG disclosures are highly relevant for all stakeholders involved in a business process:

  • Business: ESG disclosures allow companies to identify potential transition risks, self-assess its ability to sustain in the future, and undertake necessary steps to adapt to the likely future changes. At the same time, ESG disclosures help companies in identifying certain opportunities for innovation that might yield high results in the future. They also help companies in reassuring their stakeholders about their values and respect towards responsible business.
  • Investors: ESG disclosures are highly consequential for investors to include climate-related considerations in asset valuation and finance allocation processes; determine the environmental and social impact of a company’s business processes; and assess how climate change could affect a company’s financial stability in the future.
  • Consumers: ESG disclosures aid consumers in identifying responsible businesses.

Evolution of ESG Disclosures in India:

  • The Companies Act, 2013 introduced one of the first ESG disclosure requirements for companies. Section 134(m) mandates companies to include a report by their Board of Directors on conservation of energy, along with annual financial statement. 
  • This requirement is further detailed under Rule 8(3)(A) of the Companies (Accounts) Rules, 2014, which mandates the board to provide information regarding conservation of energy.
  • In 2017, SEBI issued a circular on ‘Disclosure Requirements for Issuance and Listing of Green Debt Securities’, to introduce the regulatory framework for issuance of green debt securities in India and enhance investor confidence. These additional disclosure requirements have been prescribed in order to attract the finance reserved for ESG-compliant projects, such as renewable and sustainable energy, clean transportation, sustainable water management, climate change adaption, energy efficiency, sustainable waste management, sustainable land use, and biodiversity conservation.
  • Indian Banks’ Association (IBA) has also released the National Voluntary Guidelines for Responsible Financing, laying down broad and general principles towards ‘integrating ESG risk management into Financial Institution’s (FIs) business strategy, decision-making process and operations.’ 
  • In May 2021, SEBI introduced a new framework; Business Responsibility and Sustainability Report (BRSR): It is aligned with nine principles of National Guidelines for Responsible Business Conduct (“NGBRC”) and it will be mandatory for the top 1,000 listed companies to annually disclose ESG-related information from financial year 2022-23.

Way forward

In the end, it can be said that India is gradually moving towards developing regulations around ESG. With the introduction of the BRSR framework, SEBI has joined the group of countries and international organization to have released comprehensive sustainability reporting frameworks.

Though the reporting mandate is presently restricted to the top 1,000 listed companies by market capitalization, the experience with BRR only indicates that a wider range of companies would soon be covered under the BRSR framework.

Renewable Energy in India

As the world’s fastest-growing major economy with rising energy needs, India will account for approximately 25 per cent of the global energy demand growth between 2020-2040, as per BP energy outlook and IEA estimates.

Ensuring energy access, availability and affordability for large population is imperative.

Energy Sector

Energy Sector

The energy sector is fundamental to growth and development. Availability of electricity, petrol, diesel and gas at competitive prices is essential for the efficient functioning of energy user sectors, which include households, transportation, industry, agriculture and the government and comprise nearly the entire economy.

Objectives

  • The government’s on-going energy sector policies aim “to provide access to affordable, reliable, sustainable and modern energy”.
  • Reduce imports of oil and gas by 10 per cent by 2022-23.
  • Continue to reduce emission intensity of GDP in a manner that will help India achieve the intended nationally determined contribution (INDC) target of 2030.

The energy sector in India faces a number of challenges, including:

  1. Subsidies and Taxes: A variety of subsidies and taxes distort the energy market and promote the use of inefficient over efficient fuels. They also make Indian exports and domestic production uncompetitive as energy taxes are not under GST and hence, no input credit is given.
  2. Limited domestic energy resources: India is heavily reliant on imports to meet its energy needs. The country has limited domestic reserves of coal, oil, and natural gas, which makes it vulnerable to price fluctuations and supply disruptions.

 For Example, Coal:

  • Demand-supply mismatch in coal leading to imports (25% of domestic requirements).
  • Most of the thermal power plants are operating below their capacity- Plant Load Factor (PLF) is hardly around 56% in 2019-20.
  • Delays in Land acquisition for new mines exploration.
  • outdated technology in mining.

3. Power Generation, Transmission and Distribution

  • Old inefficient plants continue to operate whereas more efficient plants are underutilized.
  • Although legally independent, Regulatory Commissions are unable to fully regulate discoms and fix rational tariffs.
  • State power utilities are not able to invest in system improvements due to their poor financial health.
  • High aggregate technical and commercial (AT&C) losses
  • Unmetered power supply to agriculture provides no incentive to farmers to use electricity efficiently
  • High industrial/commercial tariff and the cross- subsidy regime have affected the competitiveness of the industrial and commercial sectors.

4. Financing constraints: The energy sector in India requires significant investments to modernize its infrastructure and develop new sources of energy. However, financing constraints and a lack of private sector participation have hindered the growth of the sector.

5. Renewable Energy: High energy costs result in reneging on old power purchase agreements (PPAs) and erode their sanctity. This leads to uncertainty regarding power off take and consequently endangers further investments.

6. Policy and regulatory issues: India's energy sector is heavily regulated, and policies and regulations can often be complex and inconsistent. This has led to a lack of clarity and transparency in the sector, which can deter investment and hinder growth.

India has taken several steps to address the challenges faced by the energy sector and promote sustainable energy development.

Steps for sustainable energy development

  1. Renewable energy targets: By 2030, India wants to have 450 GW of renewable energy capacity, including 5 GW of small hydropower, 10 GW of bioenergy, 280 GW of solar, and 140 GW of wind. With 38% of India's total installed capacity being made up of renewable energy as of 2021, the nation has already made significant strides towards achieving this goal.
  2. Energy efficiency initiatives: India has implemented several energy efficiency initiatives, including the National Programme for LED-based Home and Street Lighting, the Perform, Achieve and Trade scheme for energy-intensive industries. These initiatives have helped to reduce energy consumption and greenhouse gas emissions.
  3. Coal sector reforms: India has implemented several reforms in the coal sector, including the commercialization of coal mining, the introduction of revenue sharing and production-linked incentives, and the liberalization of the coal sector to allow for greater private sector participation. These reforms are aimed at increasing coal production and reducing India's dependence on imports.
  4. Rural electrification: India has made significant progress in rural electrification, with the Deen Dayal Upadhyaya Gram Jyoti Yojana and the Saubhagya scheme aimed at providing electricity connections to all households in rural areas.
  5. International cooperation: India has engaged in international cooperation to promote sustainable energy development, including through initiatives such as the International Solar Alliance, the International Energy Agency's Clean Energy Transitions Programme, and the US-India Strategic Energy Partnership. These steps have helped India to make significant progress in addressing the challenges faced by the energy sector and promote sustainable energy development.

However, there is still much work to be done to become a $ 26 trillion economy by 2047, ensuring energy security and achieving energy independence.