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Finatics Lecture Series - Harnessing Markets for Climate Change Mitigation

Speaker : Manu Maudgal, Indo German Energy Programme, Bureau of Energy Efficiency, NewDelhi

Climate change is a burning topic, which deserves the attention of both activists and Governments together. Governments nowadays understand the challenges of climate change and they are ready to include it in their growth plans. The speaker, who holds a key position in German Society for International Cooperation (GIC), has experience in multiple roles and gave the audience an introduction to the current scenario of the crisis in the world, energy crisis, water shortage and global warming; all three occurring at the same time.

He explained the need for becoming a ‘low carbon economy’ and how it can be achieved by in three steps; neutralizing things which can be neutralized, reducing those which can be reduced and finally replacing them with which we can’t do the above two. He also raised the concern, “Is producing more and consuming more” a real growth or is it just an increase in national GDP. IPCC’s prescription of restricting the increase in global temperature to 2°C by 2050 and what all is being done were also brought about in the talk.

The speaker then showed the available options to deal with the above concern by scaling up National programmes, Sectoral mechanisms and by initiating more and more Clean Development Mechanisms (CDM). Reduction in the Transaction costs by using publically accessible credible databases and internationally accepted simple monitoring and verification methodologies is also a way we can think upon. He said that this is a global concern and its high time when each and every sector of the economy should come forward and work in tandem.

In response to this concern, what exactly is already being done by the government? To answer this, he started with the Eight National Programmes as the national plan for climate change and then explained the two government schemes the REC mechanism and the PAT scheme in detail. Renewable Energy Certificate (REC) also known as a green tag is a tradeable non-tangible energy commodity which certifies that 1 megawatt-hour of electricity is generated by renewable sources. He also explicated how these REC’s can bring about more competition in the renewable energy sector and at the same time make individual states overcome geographical barriers in harnessing renewable energy. Perform Achieve and Trade (PAT) scheme is about enhancing cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that can be traded. This particular scheme covers eight industrial sectors like iron & steel, railways, thermal power plants etc.
The lecture was very impressive for all the audience and throughout his speech the speaker emphasized on need to shift from “Consumption Driven Growth to Sustainable Growth”. The faculty present also added vibrancy to the lecture by raising pertinent questions which helped the audience grasp the nuances of the talk.

Contributed by:
Vishal Vivek Jacob
PR & Media Cell
MBA 1st Year, IIT Kanpur

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