JAMMU KASHMIR EMERGING ON GLOBAL CARBON MARKET MAP

ARTICLE: J&K ON CARBON MARKET MAP
PUBLISHED IN : EPILOGUE MAGAZINE


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J&K on Global Carbon Market Map

BY Dr Shahid Iqbal Choudhary, IFS

The word “Carbon” attracts varying reactions from developed and developing worlds as regards its effects on the environment especially global warming. There had been a much larger debate on the evidence behind global warming and the developed countries, major contributors of Greenhouse Gases, had refused to join the multilateral cooperations in the field of mitigating global warming by way of cutting emissions as it would mean a loss in economy for them. Two major developments in the present decade wrote a glorious chapter in the history of environmental activism and a great step towards recognizing and sharing a mutual responsibility for a safe environment across the globe. Firstly Russia ratified the Kyoto protocol in 2004-05 a decade after it came into being, and hence the Kyoto Protocol took effect from 2005 when the basic requirement of participation of member states totaling a global share of 51% GHG emissions ratifying the protocol was met. The Kyoto protocol aiming at phased reduction of GHGs was delayed by a decade due to USAs non-committal attitude about the protocol and with USA being largest emitter of GHGs (more than 20% of world) the minimum requirement for Kyoto implementation was missing which was narrowly fulfilled by Russia’s ratification after a decade. Second major development was the Intergovernmental Panel on Climate Change (IPCC) report about global warming which proved beyond any doubt that the GHG emission was the major cause of global warming hence fixing the responsibility of major emitters that is developed countries. The Noble Peace prize for IPCC further strengthened the cause and all these developments became the reasons of USA softening the stand at the Bali Conference organized under the aegis of United Nations Framework Convention on Climate Change (UNFCCC) at Nusa Dua, Bali. This was the backgrounds which lead to a resurgent Global Carbon Market by means of Clean Development Mechanism (CDM). The Polluter Pays Principle (PPP) came a blessing in disguise for the developing countries which contribute very less to the global warming given their low level of industrialization or otherwise. The methodology of Carbon Trading is today known to everybody and member states are competing in carving out larger benefits, on either side, that is ,both developed and developing countries. Carbon Sequestration has come to be an accepted methodology which, for a lay man, would mean “the more you reduce carbon emission or increase storage the more you ear”.

The carbon trading market has expanded across the globe, be it saving energy, using alternative fuel combinations or afforestation/reforestation and the like. Initially India selected four states as priority states for taking up the Clean Development Mechanism activities. This list included the state of Jammu and Kashmir and later a couple of other states was also included. Jammu and Kashmir put its first step towards exploring the CDM benefits with a high-level one-day workshop titled “ Setting up of Research Priorities & Piloting Activities for Carbon Sequestration in Jammu and Kashmir”, March last year. The workshop was attended by state ministers, bureaucrats, scientists, scholars and officers from various technical departments apart for a galaxy of senior officers having experience in CDM and scientists drawn from across the country. this marked the beginning of the CDM in state. Based on the recommendations of the workshop a Core group of officers of forest department was decided to be set up headed by the Conservator of Forests, Research Circle J&K. Further it was decided to establish Carbon Cell under the J&K State Forest Research Institute was proposed to be established in the state which is underway at SFRI’S Jammu campus. The carbon cell once functional will serve as nodal centre for CDM in J&K state and also a resource pool for anybody in the state wishing to learn about the Clean Development Mechanism or entering the carbon market with proposing such projects especially Afforestation and Reforestation Projects for larger chunks of land in the state. The state of the art Carbon Cell will have a round the clock internet facility, library and high speed data transmission soon. The officials manning the Carbon Cell will be from the core group and special invitees or associates of the SFRI as and when called to share the technical expertise.
The officers from the Forest Department and other allied departments under the Ministry of Forests, Ecology and Environment as well as other line departments and stake holders across the state will be trained at the Carbon Cell aiming at high level capacity building and knowledge dissemination as far as carbon sequestration and global warming issues are concerned.

In almost an year since the first workshop organized in Jammu the State Forest Research Institute organized a score of meetings and interactions of core group apart from prioritizing a roadmap for CDM in Jammu and Kashmir. The institute has also entered into collaboration with Baba Ghulam Shah Badshah University and Sri Mata Vaishno Devi University in various CDM methodologies and joint projects. The Rajouri campus of BGSBU recently been taken up as green campus by SFRI for plantation across hundreds of kanals of land which will help in carbon sequestration apart from rehabilitating the hilly campus area. Apart from that many workshops were also organized for stakeholders across the state. Recently the a team of GTZ (German Technical Cooperation) interacted with state forest officers at SFRI on 16th-17th February 2009 to discuss project formulation and feasibility of the areas to be taken up wherein they also visited the forest areas along with Core Group and other forest officers. The high-level meeting on 5th-6th March 2009 will be counted as major step forward when officials from Ministry of Environment & Forests, Government of India and their counterparts from State Government put the record straight about emergence of Jammu and Kashmir state on the Carbon Market Map by means of carbon sequestration. Meanwhile the SFRI has under consideration two research studies respectively on Methane Production Estimate of Jammu and Kashmir with strategies to reduce it through livestock up gradation and second on Biogas Potential Village Mapping of Rajouri District which will serve as baseline for taking up CDM projects and also serve as livelihood strength for the rural poor.

But a question in mind would be – whether it is feasible to venture into the Carbon Market in the times of recession across the globe? Before narrating a straight answer we need to weigh the various dimensions of global carbon market and associated issues. There is no doubt that in the recession hit global economy afforestation and reforestation projects under CDM will not be much beneficial for those eying at earning carbon credits in the global carbon market. Reason being that a certifier emission reduction (CER) at present fetches roughly US $ 2-3, which is less attractive given the long gestation of forest crops and only 1 % of CERs attributed to forestry projects across the globe. Other methods of CDM, like shifting to alternative fuels, saving energy by shift towards energy conservation etc would be easier and quicker as compared to forestry projects. But at the same time the importance of forestry projects under CDM can hardly be undermined given their unique benefits as the trees serve as carbon sequestration machines and also provide livelihood options apart from a dual cleaning process of the environment. The Carbon Market could be compared to the Futures and Options in the stock markets where the persons holding the shares or bonds can sell them when the prices are high in the market, in short the Bear and Bull mechanism. Likewise the price of one CER will not be static for all the times to come but fluctuate hopefully towards a higher end in the times to come once the economies are back on the track. At present the environment crusade seems to have taken a back stage with shattering economies worldwide but it cannot be ignored in toto instead we can call it a stage in the developmental cycle. So, by the time the crops mature the CERs are expected to be attractive in the global market so it is advisable to go for short gestation forestry projects of 20-30 years which will give annual returns over a longer period of time thus outweighing the present down trend in carbon market owing to a host of factors.

It is a fact that today only one forestry project stands sanctioned under the CDM across the globe that too from China. But the picture is not dismal for India with 31 projects registered and at various stages in the approval pipeline under CDM mechanism. So with other states having submitted a reasonably good score of forestry CDM projects J&K cannot be a mute spectator as it is not time to discuss whether or not to go for CDM projects the carbon market has become an established fact and we too need to be competitive enough to ensure smooth sailing in the emerging carbon trading thus harnessing a host of benefits for the people. It is fact that India signed the Kyoto Protocol in 1997 and ratified it in 2002. And today under the clean development mechanism India has emerged as a leader in terms of country approved CDM projects across the globe. The Designated National Authority (DNA) under CDM established in 2003 at Delhi has been successful competition in the country as regards submission of forestry CDM projects, which is evident from a greater number projects submitted for approval by private sector across the country. Today India has become a leading destination among non-Annex-I countries with regards to CDM implementation. But the majority of registered project in India are renewable energy project focusing on hydropower, and wind energy, so there is a need for putting greater thrust on the forestry CDM projects as well which also fulfills the resource need of the country and J&K can prove as preferred destination for such projects. Jammu and Kashmir, as per the estimates of GTZ, has an expansion potential on 12.5% of its geographical area thus figuring among top potential states thus the benefits from CDM projects in the state can be analyzed to be of a greater extent.

It is rightly said that the journey of thousand miles must begin with the first step and that first step has been taken by the J&K state in the global carbon market. Now the outcome will depend on as to how the stakeholders across the state come forward to avail the opportunity and work ahead in letter and spirit to showcase the state on Global Carbon Market Map. The State Forest Research Institute has taken a lead to emerge as a nodal centre in the beginning and it does not end here because there has to be a continuing process coming true to emerging expectations whether in the field of technology or livelihood demands. Newer CDM projects can offer a greater number of self-employment to the rural youth which is the need of the hour. Also it will generate a sense of technical competition at one hand and growing a culture of green entrepreneurship on the other. The State Forest Department has a lot of avenues which can be explored under the Clean Development Mechanism, not only under Afforestation and Reforestation category but also those like Biofuel crops cultivation, alternative energy techniques like harnessing wind and solar energy for community benefits, and so on. What all will be needed in the times to come, for making CDM a success and make Jammu and Kashmir glow on the global Carbon Market Map, will be a highest degree of professionalism, innovativeness and collaboration between different organizations, departments and stakeholders across the state. The CDM should not merely end up as a glorified environmental slogan but should proceed in such a way to produce visible deliverables for the stakeholders and the community in larger perspective. Small innovations does matter, to cite an example, like the Uttarakhand State Forest Department took up water harvesting initiative in its establishments across the state which proved to be greater success generating community interest as well, the West Bengal State Forest Corporation took up eco-tourism in a different way – trekking in the areas being worked for wood harvesting and construction of mud houses and tents which helped them to deliver their duty well apart from generating huge resources especially from visiting foreign tourists who loved the moments in mud house in wilderness for anything between Rs 10000 to Rs 20000 per night. The government had a vision and this showcased a real eco-tourism apart from generating huge resources which were utilized in strengthening the department and created additional infrastructure for tourism. In Jammu and Kashmir there is no dearth of resources, efficient manpower and highly qualified professionals and experienced administrators but what we need is a vision and collaboration between different organizations and departments because these are not the initiatives which could be carried out in isolation as the works are overlapping so are the resources.

Similarly the Carbon initiative in the state needs to be taken on a multi-sectoral approach to achieve success for state as a whole. The centers of excellence should emerge as knowledge centers to disseminate the latest advances in technology, methodologies as well avenues and opportunities. Moreover training the manpower needs to be an ongoing phenomenon as skill up gradation has to be a part of the overall endeavor to achieve success in this field because every now and then newel technologies and methods are coming into field or market and the stakeholders must be abreast with the latest developments. The coming two years will be crucial for the state to emerge prominently on the Carbon Market Map and for that the government has to go for a holistic and muti-pronged approach to woo the private sector on one hand and extract efficiency from various departments / organizations on the other. At present there may be reservations about or opposition against the perspectives of CDM in state but to come to a conclusion the concerned corners have to come across the table to discuss pros and cons, opportunities and threats, strengths and weaknesses of the methodology and then put a common front based on a kind of common minimum program for CDM in Jammu and Kashmir state. When Slumdog Millionaire can bag record eight Oscars making India proud there is no doubt that Jammu and Kashmir can also emerge as a leader in CDM in India, as India is emerging globally.