Valuation of Energy Costs in the Indian Context - TERI CBS

Valuation of Energy Costs in the Indian Context

Valuation of Energy Costs in the Indian Context
  • Valuation of Energy Costs in the Indian Context
  • Global Climate Finance Action Summit
  • Carbon Pricing: Driving Ambition and Action

The TERI Council for Business Sustainability undertook a study on 'Valuation of Energy Costs in the Indian Context' along with the Carbon Pricing Leadership Coalition (CPLC) and World Bank, with the objective to gauge corporate sector's preparedness in undertaking internal carbon pricing. The three phase project included extensive corporate consultations and deliberations, with 100+ business leaders on internal carbon pricing, its challenges, opportunities and possible methods of introducing carbon pricing among Indian businesses. These companies represented cement, oil and gas, chemical, automobile, textile, construction, IT, banking, power, manufacturing and mining sectors. A questionnaire was circulated among the industries (with a combined market cap of over $100 Billion) and it was interesting to find that about 17% were already pricing carbon internally and another 40% were planning to do so in the next 1-2 years.


A status report (outline paper) detailing about this enormous opportunity in India was tabled at the first edition of the World Sustainable Development Summit, in New Delhi, on Oct 5, 2016. The deliberations happened during a focused group meeting followed by plenary session on the business day of the summit, focusing on peer learning and experience sharing among the corporate sector on carbon pricing. The momentum on internal carbon pricing is rising among Indian Inc. as they see it as a good tool to make their investments future proof; yet there is a need for hand-holding for improved technical understanding in arriving at the 'right price' of carbon emissions and adoption of the carbon pricing process.

Valuation of Energy Costs in the Indian Context
Webinar 1: Carbon Pricing Landscape Triggering Business Actions
Date: 9 August 2016
Webinar 2: Evolution of Carbon Markets and Policy in India
Date: 29 August 2016
Webinar 3: CPCL: Global Overview of Momentum to Price Carbon
Date: 15 September 2016

Global Climate Finance Action Summit

Carbon Pricing, NDCs and Post-Paris Agreement - November 12, 2016


Session Description

As they move to implement their commitments for the Paris Agreement, a growing number of countries and companies are asking how to get started with, and then scale up carbon pricing. Several initiatives, knowledge products, and other resources are available to help make the case for carbon pricing, and assess, design, prepare and implement related economic instruments. Such resources can help countries and companies build capacity, convene stakeholders, share experiences and lessons learned, and understand how to connect carbon markets. This interactive session will feature leading government, private sector and civil society partners; they will share their views on and experiences in building and connecting carbon markets, and leveraging financing to reduce GHG emissions at scale.


Key topics for discussion:

  • Way forward for NDC's and carbon pricing instruments (including ETS, carbon taxation, crediting, and other approaches such as RE/EE trading, EE incentives, FFS removal, and others)
  • Carbon asset risk, stranded assets, and climate-efficient business models and investment; the cost of capital for carbon-intensive projects in a post-Paris agreement.


Speakers:

  • Dr. Annapurna Vancheswaran, Senior Director, Sustainable Development Outreach Division, TERI
  • Mr. Marcelo Mena, Vice-Minister, Ministry of Environment, Government of Chile
  • Mr. Philipp Ischer, Advisor Economic Affairs, Education and Research, Government of Switzerland
  • Mr. Luiz Eduardo Osorio, Vice President Legal and Institutional Relations, CPFL (Brazil)
  • Mr. Mulugeta Ayalew, Adviser, Ministry of Environment, Government of Ethiopia


Moderator: John Roome, Senior Director, Climate Change, World Bank Group


Quotes from Dr. Annapurna Vancheswaran:

  • 17% of the Indian businesses surveyed as a part of TERI CBS study titled as 'Valuation of Energy Costs in the Indian Context', are already pricing carbon internally and another 40% were planning to do so in the next 1-2 years.
  • The awareness among the private sector regarding carbon pricing is still low and usage of carbon pricing is at a nascent stage for most corporate enterprises. This can be pushed through peer learning, both inter sector and intra sector.
  • The momentum on internal carbon pricing is rising among Indian Inc. as they see it as a good tool to make their investments future proof;
  • There is a need for hand-holding for improved technical understanding in arriving at the 'right price' of carbon emissions and adoption of the carbon pricing process.
  • Mahindra & Mahindra recently announced a carbon price of US$ 10/tCO2e at TERI's flagship event - World Sustainable Development Summit 2016

Carbon Pricing: Driving Ambition and Action

Achieving Global Goals, Raising Collective Ambition - November 15, 2016


The Carbon Pricing Leadership Coalition (CPLC) was launched at COP21 by over 20 governments and over 90 businesses and other organizations with the shared vision to work collaboratively among government, business and civil society to accelerate the global uptake of successful carbon pricing systems. At its Inaugural CPLC Assembly in Washington in April 2016, leaders confirmed a new set of global targets to drive ambition: doubling the coverage of carbon pricing instruments to cover 25% of global emissions by 2020, and a further doubling in the next decade.


This high-level event will take stock of progress toward this global goal, showcase leadership and action, and bring new voices and ambition to address climate change.


I. Welcome and Introductory Remarks

  • Welcome, scene-setting: John Roome, Senior Director, Climate Change, World Bank Group
  • Special keynote remarks: Michelle Bachelet, President of Chile
  • Chair: CPLC High Level Assembly Co-Chair Segolene Royal, French Minister of the Environment, Energy and Marine Affairs and COP21 President

II. Carbon Pricing Leadership: Achieving Global Goals, Raising Collective Ambition

Interventions from leaders with new offers to take carbon pricing action; speakers include Ministers and executives that are leading the agenda. Speakers will take stock of global action and address how we are collectively achieving greater ambition to put a price on carbon via Expanding coverage to new countries and regions that do not currently price carbon; Deepening coverage in those areas with a price; and Converging carbon pricing systems to gain efficiencies and synergies.


Featured speakers include:

  • Nicholas Stern, Chair, Grantham Research Institute for Climate Change and the Environment
  • Minister of Environment Sharon Dijksma, the Netherlands
  • Vladislav Soloviev, CEO, RUSAL
  • Minister of Environment Remi Allah-Kouadio, Cote d'Ivoire
  • Minister of Environment, Catherine McKenna, Canada
  • Ajay Mathur, Director General, TERI
  • Minister of Environment Rafael Pacchiano, Mexico
  • Secretary Matt Rodriguez, California Environmental Protection Agency
  • Zoe Knight, Managing Director, HSBC
  • Dirk Forrister, President, International Emissions Trading Association

Quotes from Dr Mathur:

  • Political ownership is important to enable change, especially together with a narrative that makes sense to energy consumers.
  • 2/3rd of the building in 2030 are yet to be build; this provide an opportunity for new policies to be design for achieving greater energy efficiency
  • Success stories on energy efficiencies globally can be adopted, modified as per the Indian context
  • PAT has been success because it seriously looked at Indian industry operating conditions before setting up the energy reduction targets; India has best energy efficient industrial plants in the world
  • The success factor of LED program is that scale of procurement have been used to drive pricing
  • At WSDS Teri's event last month Mahindra announced a carbon price, we look at it as a positive step in influencing large scale acceptance of Carbon Pricing.

Quotes from M.K. Singhi, Dalmia Cement:

  • Visualised an internal carbon price of US$ 11 per tonne co2 using shadow price method and investing this money in RE projects.
  • Signatories to global RE 100 initiative and taken a target of 100% RE by 2030

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TERI Council for Business Sustainability (TERI CBS) was formerly known as TERI Business Council for Sustainable Development (TERI BCSD)
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