With the finite availability of fossil fuels and demand increasing rapidly
especially with fast developing countries, it is expected that irreversible
shortages, particularly of crude oil, are expected to occur before the middle
of the 21st century. In addition, there is increasing concern about global
warming, which has been primarily attributed to increasing use of fossil fuels.
In view of this, Renewable Energy including wind energy, solar energy, biofuels,
etc. has entered a new era of accelerating growth. EU has set a target of
doubling the share of RE by the year 2010. Although, the world RE energy contribution
is expected to be only 5% by 2010, it has been projected that global solar
electricity out put will be 276 TWH in 2020 and 9,113 TWH in 2040. The RE
industry has grown from a investment of $8 billion in 1997 to $54billion in
2006. Surging investment in biofuels, Wind and Solar Energy is being driven
by a variety of factors, including the development of more efficient conversion
technologies, the introduction of strong new government policies, its ease
of use in existing vehicles and, primarily, the rising price of fossil fuels.
Today along with energy security, the concern over global warming has found
a major insight. The international community had visualized the future and
got together in the early 90’s and formed the United Nations Framework
Convention on Climate Change (UNFCC) which came into force on March, 1994.
It was formed to generate a global consensus for taking action to prevent
a catastrophic future of rising sea levels, severe weather changes, etc. Under
these basic thoughts, Kyoto Protocol was introduced in 1997. Today the Protocol
has been ratified by 192 countries with the only major exceptions of USA.
Under the protocol, Developed Countries have to reduce GHG emissions by 5.2%
below 1990 levels during the first commitment period till 2008-12. The Kyoto
Protocol came into force from 2005.
CDM or Clean Development Mechanism is a tool allowing industrialised countries
with a greenhouse gas reduction commitment (called Annex 1 countries) to invest
in projects that reduce emissions in developing countries as an alternative
to more expensive emission reductions in their own countries. For example
- if a efficient project reduces the CO2 emissions by (say) 200 tons a year
in contrast with any similar baseline scenario than this credit of reducing
CO2 to enter the atmosphere can be sold for around 12-14 Euros in the international
market. The most important factor of a carbon project is that it
Article contributed by Mr.Randeep Bora,
Research Associate, CAER
