Tag: environmentprotection

INTRODUCTION

The Energy Conservation (Amendment) Bill, 2022 was passed on the 3^rd of August’22. The passage of the Energy Conservation (Amendment) Bill, 2022 by the Lok Sabha is a significant step toward reaching India’s climate targets. The bill is projected to contribute significantly to India’s NDCs, which are the country’s pledges to support environmental measures as per the Paris Agreement. The bill aims to mandate the use of non-fossil sources of energy and feedstock, such as green hydrogen, green ammonia, biomass, and ethanol; create Carbon Markets; bring large residential buildings under the Energy Conservation regime; expand the range of the Energy Conservation Building Code; modify penalty provisions; increase members on the Bureau of Energy Efficiency’s governing council, and empower State Electricity Regulatory Commissions. In its proposal, the Union government stated that a legal system for an energy market was required to accomplish the goal of incentivizing emission reduction activities, resulting in higher private sector investments in renewable energy. The objectives of the bill include:

1. Lower India’s reliance on fossil fuels in order to reduce the country’s carbon footprint.
2. To expand India’s carbon market and promote the use of clean technology.
3. To satisfy its Nationally Determined Contribution (NDCs), as outlined in the Paris Climate Agreement, by 2030.

The reasons for passing the bill are as follows:

1. In fulfillment of its NDCs as per the Paris Climate Agreement, India has pledged to decrease its economy’s carbon intensity by 33-35% by 2030 compared to 2005 levels.
2. India has also pledged to generate more than 40% of its power from non-fossil fuel sources by 2030.
3. India has promised to develop an additional carbon drain for 3 billion tons of Carbon dioxide by expanding its plant and forest cover in order to lower its Carbon footprints to 550 metric tons by 2030.
4. To meet the COP26 summit’s put in commitments in 2021.
5. To boost non-fossil generating capacity to 500 GW by 2030.
6. Using renewable energy sources to meet 50% of India’s power requirement.
7. To reduce the Indian economy’s carbon intensity by 45%.
8. From 2021 to 2030, India’s total anticipated carbon emissions should be reduced by one billion tonnes.
9. To reach a net zero (carbon emissions) target by 2070.

AMENDMENTS TO THE BILL

The amendments brought about the aim to increase the amount of renewable energy while also penalizing industrial offenders for carbon emissions. The bill’s provisions will aid in increasing renewable energy usage and will have an economic impact. Using the legislation to set strong industrial targets and standards in the future could help India achieve its developmental, energy, and climatic goals. Following is the list of amendments that the law brought about:

1. To oblige by the use of non-fossil fuel sources of energy: The Act gives the central government the authority to set energy usage requirements. The Bill also stipulates that the government can mandate designated users to fulfil a certain percentage of their energy usage from non-fossil sources. Such users in particular include industries (chemical, mining, petrochemicals, coal, etc.), commercial buildings, and the transport sector. Any violation of the order so passed shall attract a penalty up to rupees ten lakhs.
2. Carbon Trading:  The bill gives the federal government the authority to design a carbon credit trading program. A program that denotes a tradable permit to emit a certain amount of carbon dioxide. Carbon credit certificates may be issued by the central government or even any authorized agency to entities that have registered for and are following the scheme. The entities will be able to buy and sell the certificate.
3. Energy conservation for buildings: The code specifies energy usage norms in terms of surface. The Bill amends this to include an ‘energy conservation and environmentally friendly building code.’ This new code will establish standards for energy savings and conservation, the use of renewable power, and some other criteria for green buildings.
4. Composition of the governing council of BEE: The Bureau is governed by a governing council of 20 to 26 members. These include secretaries from six departments, representatives from regulatory bodies such as the Central Electricity Authority and the Bureau of Indian Standards, and a maximum of four members representing industry and consumers. Instead, the Bill specifies that the number of lawmakers will range from 31 to 37. It raises the total number of secretaries to twelve. It also allows for up to seven representatives from industries and consumers.
5. SERC’s powers are regulated: The Act authorizes State Electricity Regulatory Commissions (SERCs) to adjudicate fines under the Act. The Bill also states that SERCs may issue regulations to carry out their duties.
6. Vehicle and vessel energy consumption standards: The Act allows for the specification of energy consumption standards for equipment and appliances that consume, create, transfer, or supply energy. Vehicle makers that violate fuel consumption standards may face a fine equivalent to Rs. 50,000 for every unit sold.
7. Applicability to residential structures: According to the Amendment, the energy saving code pertains to commercial buildings that are erected after the code’s notice, and have a basic connected load of 100 kilowatts (kW) or contractual load of 120-kilovolt amperes (kVA).

ANALYSIS

The first amendment protections would have the greatest impact on India’s industrial sector. The government’s decision to finally implement non-fossil energy targets in sector is a good one. However, it is not a new phenomenon, as several major industries have previously made significant investments in converting to renewable energy. Some of the biggest issues include the periodicity of renewables (particularly solar and wind), which means that the peak time of generation may not coincide with the peak time of demand in industries. This leads to a second issue of not possessing enough affordable storage technology to balance demand and supply for all sorts of industries, particularly those that operate continuously. The changes call for the use of renewable fuels such as green hydrogen and green ammonia. So, the targets for the use of these gases in various areas may be established. However, before setting targets for such fuels in businesses, the government must allow certain profitable study and development and experiments on the ground. This will provide an accurate view of the technical and financial viability. The legislation aims to accelerate the green transformation by allowing the government jurisdiction over energy consumption. Article 6 of the Paris Deal, a legally enforceable global climate change agreement, also establishes a solid foundation for the implementation of international carbon markets to decrease global greenhouse gas emissions whilst guaranteeing transparency and accountability. The Bill expands the range of energy conservation standards for buildings while narrowing the scope of energy efficiency standards for devices and appliances. It creates a framework inside which energy savings can be transferred between enterprises that are fuel efficient versus those whose energy usage exceeds the government’s maximum.

CONCLUSION

Union Power Minister K Singh introduced the bill in the lower chamber of Parliament. While seeking House support, Power Minister referred to the Energy Conservation Amendment Bill as “the legislation for the future.” The bill’s suggested revisions are said to increase India’s commitment to climate change. The primary goal of the Energy Conservation (Amendment) Bill 2022 is to lessen the country’s reliance on fossil fuel generation. The secondary goal is to build India’s carbon market in order to facilitate trading and encourage the use of sustainable technology and energy efficiency improvements. To escape an environmental disaster, governments around the world are increasing their commitments to climate action.

This article is written by Shraddha Vemula, a second-year B.B.A. LLB student at Symbiosis Law School, Hyderabad.

INTRODUCTION

The terms ‘environmental, social, and governance’ are referred to as ESG. Sustainability is viewed holistically by ESG, who believe that it encompasses more than just environmental concerns. The ideal way to define ESG is as a framework for stakeholders to understand how an organization is handling opportunities and risks connected to environmental, social, and governance criteria. Although the word ‘ESG’ is frequently used in relation to investing, other parties including the investment community, clients, partners, and staff are considered stakeholders. They’re all becoming more and more curious about how sustainably an organization operates.

PRINCIPAL POINTS

• ESG is a framework that aids stakeholders in understanding how a company handles opportunities and risks related to sustainability issues.
• ESG has developed from earlier movements that prioritized corporate generosity, pollution reduction, and issues of health and safety.
• ESG has altered many capital allocation and investment decisions.

ESG

1. Environmental: The environmental impact(s) and risk management procedures of an organization are referred to as environmental criteria. These include the firm’s overall resilience to physical climate threats, stewardship over natural resources, and direct and indirect greenhouse gas emissions (like climate change, flooding, and fires).
2. Social: The connections an organization has with its stakeholders are referred to as the social pillar. An organization’s impact on the communities in which it operates and on supply chain partners, particularly those in developing economies where environmental and labour standards may be less stringent, are other examples of factors that a firm may be measured against. These factors include metrics for human capital management (such as fair wages and employee engagement metrics).
3. Governance: Governance describes the direction and management of a business. ESG analysts will work to gain a deeper understanding of how shareholder rights are perceived, how incentives for leadership are related to stakeholder expectations, and what kinds of internal controls are in place to encourage leadership accountability and transparency.

SOCIAL ASPECT OF ESG

The social benefits of ESG go beyond providing access to goods and services for various social groups. It also extends beyond offering work to everyone, regardless of gender, colour, religion, or other characteristics. Despite their importance, these things do not entirely define what it means to be socially responsible.

However, the social impact extends beyond the immediate environment. Additionally, it covers how the organization treats and cares for its personnel. this covers things like paid maternity leave, paid sick leave, paid time off, and pay parity, among other things. All of these factors have an impact on the workers, their families, and their social interactions.

WHY IS ESG IMPORTANT IN TODAY’S WORLD?

We can all agree that having an ESG policy at a company is a good thing. However, it’s crucial to keep in mind that while these developments are positive, they aren’t yet complete and shouldn’t be fully anticipated from such a young movement. While we should support these initiatives, we shouldn’t expect them to be miracles; rather, they should be the beginning of miracles. These initiatives indicate strides in the right direction. People today are becoming more conscious of how their activities impact everyone and everything in their environment. It’s time to take matters into our own hands and take action if we want a different future for everyone—including ourselves, our children, the earth, and all living things.

ESG’s IMPORTANCE IN THE BUSINESS?

There are several reasons which show that ESG is important to a business. It is an important factor in company performance and is the best indicator of environmental, social, and governance success.

• It might enhance a business’s standing and image, which might draw in new investors.
• By introducing new legislation, governments all across the world have the power to influence the triple bottom line.
• By requiring innovation from businesses, it creates a variety of fresh options.
• It benefits the environment, which benefits your grandchildren and the future generations of your family.

WHAT ARE ESG FUNDS?

ESG funds are essentially funds where money is invested in the bonds and stocks of businesses that do well on metrics including the environment, the social sector, and corporate governance. It made investments in businesses that use environmentally friendly practices. Here, the company’s sustainability is evaluated in light of ESG considerations. It will only cover sovereign bonds from nations with high sustainability ratings when it comes to bonds.

IMPORTANCE OF THE FUNDS

• First of all, if a company is sustainable, it demonstrates a greater level of social and financial responsibility. It is crucial because only investor pressure will force firms to act responsibly toward the community.
• This demonstrates how important ESG funds are to the community. As the government focuses more on renewable energy and environmental challenges, it is significant from the investor’s perspective. Additionally, it is anticipated that in the future, companies with significant environmental pollution levels will be subject to the tax.
• More ecologically conscious, healthful, and natural products are becoming more popular among consumers, who are also changing their lifestyles. Companies must make decisions accordingly as a result of the government’s stricter governance regulations.

TOP ESG FUNDS IN INDIA

1. SBI Magnum Equity ESG Fund – This is the ESG segment’s oldest available fund. This fund has been around for at least 8 years. It debuted on January 1st, 2013. Its fund expense ratio is 1.29%, which is greater than that of other funds in this category. This fund has given an annual return of 15.84% since it was founded.
2. ICICI Prudential ESG Fund- This fund was officially launched on January 22, 2020. It has been around for almost 1 year and 8 months. On average, it has given a return of about 39.35%. It has generated a return of about 60.52% over the past year. Avenue Supermarts Ltd., Wipro Ltd., Bajaj Finance Ltd., Tata Consultancy Services Ltd., and Nestle Ltd. have received the majority of their investments. The expense ratio for this product is 0.48%, which is lower than what other thematic ESG funds charge.
3. Quantum India ESG Equity Fund- It is a medium-sized fund with 1920 crores of rupees in assets under management. On September 21st of last year, the fund was established. The expense ratio it charges, 0.6%, is comparable to that of other ESG thematic funds in this market. Compared to its competitors in this market, this fund has a lower exposure to the financial and technological sectors, investing its money in industries including FMCG, chemicals, healthcare, and financials. Regarding the returns, since its debut, it has been able to produce returns of 42.59% annually. The portfolio allocation for this fund is split 95.9% into equities, 0.02% into debt, and 4.08% into other alternatives.

WHAT IMPACT DOES ESG HAVE ON THE ECONOMY?

ESG is resulting in a more sustainable society and an improved environment. It is helping to lower carbon emissions across major economies, reduce deforestation and water waste through better irrigation practices, improve energy efficiency within companies, and create a circular economy. Through its influence on companies, ESG is increasing corporate transparency and accountability. It is empowering consumers to make more sustainable decisions about the products they buy and the companies they support.

WHY FIRMS IN INDIA SHOULD FOCUS ON ESG?

India is seeing an increased focus on ESG. According to a recent report by IT industry group Nasscom and Boston Consulting Group, global companies’ growing efforts in enhancing their environmental, social, and governance goals (ESG) will boost revenue for Indian technology and services companies. Furthermore, several outside factors contributed to the adoption of ESG initiatives by digital companies. Several sizable multinational corporations are requiring that vendors adopt specific ESG objectives to compete for their business. Investment in ESG is a business necessity for organizations. Start-ups are being pushed to focus more on incorporating these into their overall strategy by investors’ requests for them to establish an ESG strategy.

While the larger businesses already had well-defined objectives and an ESG roadmap in place, it would work with the smaller businesses to integrate these into their strategic priorities, begin the process of internal adoption, and develop customer-facing solutions. It was crucial to comprehend the techniques that, given the company’s size and business aims, would apply to it.

Indian enterprises are being forced to reconsider their strategy as a result of the uncertain state of the Indian economic environment and the amplified effects of many environmental and societal disruptions. ESG is developing as a concept to produce long-term value for all stakeholders. The COVID-19 pandemic has highlighted the value of ESG as a fundamental strategy for long-term corporate resilience. Businesses are considering moving beyond non-financial reporting and beginning to report using an integrated profit and loss approach, which aims to correlate or monetize the favourable and unfavourable effects of business operations and products through a variety of capitals, thereby assisting in the creation of long-term value.

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REFERENCES

1. What is ESG and why is it important, available at https://www.esgthereport.com/what-is-esg-and-why-is-it-impor

This article is written by Aditi Jangid, a 1^st year law student pursuing her bachelor’s degree from Delhi Metropolitan Education (Affiliated to GGSIPU).

INTRODUCTION

In a world where all the countries are running towards development, a lot of industries are being established and excessive utilization of natural resources is taking place. Today, nature’s resources are facing extinction and the whole world is planning to save the resources for the coming generations and future use. In this process, there are chances that the development of the countries may decelerate. For the development and protection of natural resources to go hand in hand, sustainable development has been introduced. The most popular definition of sustainable development is described as development that satisfies current demands without jeopardizing the capacity of future generations to satisfy their own needs. There are two major ideas in it:

• the idea of needs, especially the basic requirements of the world impoverished, to which top emphasis should be given; and
• the notion that the environment’s capacity to fulfil existing and future demands is constrained by the level of technology and social structure.

The Brundtland Report, also known as Our Common Future, was issued in 1987 by the World Commission on Environment and Development and is where the phrase first appeared. Sustainability recognizes a comprehensive viewpoint that links a community’s economy, ecology, and society. This admits that an economy exists within a society and that society exists within the ecosystem of the world. The angle highlights how closely connected we are to nature.

VARIOUS PRINCIPLES OF SUSTAINABLE DEVELOPMENT

1.  Inter-Generational Equity: The principle talks about the right of every generation to get benefits from natural resources. Principle 3 of the Rio declaration states regarding the right to development which meets the needs of the present and the upcoming generations. The main aim behind this principle is to make sure that the present generation should not excessively use non-renewable resources which would deprive the benefit of the next generation.

• The Principle of Precaution: This is often regarded as the most fundamental concept of ‘Sustainable Development.’ Principle 15 of the Rio Declaration is about the protection of the environment. The states are expected to use their capabilities through the precautionary method to protect the nation. Cost-effective methods must be used to develop the states and protect the environment from serious threats and irreversible harms.

•  Principle of Polluter Pays: The Rio Declaration in the principle 16 states that the national authorities try to vitalize internalization of the costs of the environment and the economic mechanisms must be used with proper care in the interest of the public without disturbing the international

SUSTAINABLE DEVELOPMENT AND INDIA

India has switched to sustainable development as it has been considered that nature’s protection plays a crucial part in the development of the nation. With the alarming decrease in the number of non-renewable resources that paves a path to the development of the country, India decided to use renewable natural resources and stop the excessive usage or destruction of the resources and protect nature. When United Nations considered sustainable development to be a healthy method, many countries along with India adopted it. The constitution earlier hasn’t declared any provisions to protect the environment but later Article 21¹ of the Constitution interpreted that the Right to life also implied “the right to live in a healthy environment” explicitly. Various laws implemented by the Indian legal system to protect nature and pave the way for sustainable development are:

• The National Green Tribunal Act 2010;
• The Forest (Conservation) Act of 1980
• The Air (Prevention and Control of Pollution) Act, 1981;
• The Water (Prevention and Control of Pollution) Act, 1974;
• The Environment Protection Act, 1986, etc.

THE ROLE OF THE INDIAN JUDICIARY

Being a developing nation, India had rapid industrialization and economic growth in recent years. However, it harmed the environment in the country. The Supreme Court of India had a vital role in defining the term Sustainable development. This battle for environmental protection was headed by Justice Kuldip Singh also known as the Green Judge. Most Environment-related cases are approached in front of the Higher courts of India through PILs (Public Interest Litigation) under Article 32 or 226.

Vellore Citizen Welfare Forum vs. Union of India² was the first case in which the Supreme Court used the idea of “Sustainable Development.” In this instance, a disagreement emerged over certain tanneries in Tamil Nadu. These tanneries were releasing effluents into the Palar River, which served as the state’s primary supply of drinking water. The Supreme Court stated that the court had no problem in declaring the principles, of precautionary and polluter pays as a part of the Indian Environmental law. Restructuring or reviving the harmed environment is the process of Sustainable Development. The polluter is liable and must pay the costs for the victims who’ve been affected and also have to pay for the environmental destruction.

This case has been a landmark judgement which has been given by the Supreme Court. The Idea of Sustainable Development has been made clear by it. This has benefitted a lot to the society. It has been made clear that the polluter has the liability to pay for the damage that he has caused to the environment since the pollution of the environment is considered to have disturbed the aim of sustainable development by polluting its surroundings. Following that, the Apex Court clarified and applied the idea of Sustainable Development in several rulings. In Narmada Bachao Andolan vs. Union of India³, the Hon’ble Supreme Court of India said “Sustainable Development indicates what sort or degree of development may take place, which can be supported by nature with or without mitigation.”

The Supreme Court used the precautionary principle in M.C Mehta v. Union of India⁴. In this case, the precautionary principle was applied. A PIL was filed stating that the use of coal/coke has caused a lot of environmental havoc and also regarding the increasing pollution around Taj Mahal, i.e., Acid rains have increased a lot and caused a change in colour of the monument’s marble. It can be inferred from the Supreme Court’s judgement that due to the rapid industrialisation in that area, there have been acidic emissions present in the atmosphere. The issue was taken seriously as this would impact both biotic and abiotic ecosystems. It was also stated by the court that any industry which can’t use natural gas instead of coal or coke can relocate to any other industrial area away from the Taj Trapezium Zone.

NATIONAL GREEN TRIBUNAL

India has actively taken part in the UN 2030 Agenda which focuses on the improvement of the environment and tackling climate change through the sustainable development method as it is the most viable method to better the environment without interrupting or stopping the process of development rather, bringing in the healthy way of development. The UN 2030 Agenda has established around 1200 environmental courts and tribunals to promote sustainable development through the judiciary for a better society. The National Green Tribunal was established by the National Green Tribunal Act, 2010. This statute controls the handling of civil lawsuits involving nature preservation and environmental protection. Legal rights relating to the environment are mentioned.

It has been said in the case of Sterlite Industries (India) Pvt. Ltd. vs. Tamil Nadu Pollution Control Board & Ors⁵ by the NGT while ruling in favour of the firm. It was stated by the court that the regulations regarding the environment need to be enforced strictly however, no action shall be taken just on mere suspicion. The precautionary principle must be applied when reliable scientific evidence reveals that there is a likely signal of some environmental harm or health danger without implementing suitable preventative actions.

SUSTAINABLE DEVELOPMENT GOALS (SDGS)

In the year 2015, the Members of the UN along with India adopted the Sustainable development goals which consist of 17 objectives and 169 targets to fulfil for the eradication of poverty and pollution. Economic growth, Environmental safeguards and Inclusion in society are the objectives of sustainable development goals. The sustainable development goals are inclusive of many factors that affect society in a better manner than the millennial development goals. In T. DamodharRao v. S.O. Municipal Corporation, Hyderabad⁶, “the court stated that, according to Articles 48-A and 51A(g), it is clear that environmental protection is not only the responsibility of every citizen but also of the State and all other state organs, including courts.”

FULFILMENT OF SUSTAINABLE DEVELOPMENT GOALS BY INDIA

India is said to have fallen 3 spots in 2022 and is currently in 120^th position as per the Centre of Science and Environment’s State of India’s Environment Report, 2022. India has attained a score of 66 out of 100. One of the main reasons for the demotion of rank is the Covid-19 pandemic outbreak, the poor in India have become poorer. However, the Sustainable development goals have improved a lot in society. Along with an aim to eradicate poverty which has happened to be effective, according to the survey of the Times of India, it has been observed that the forest area in India has increased and ranks 3^rd globally in an average annual net gain in forest area between 2010 to 2020. It has also been observed from the survey that there has been a rapid increase in economic growth along with conservation, ecological security & environmental sustainability. The state governments also play a major role in sustainable development. India also has the SDG India Index to monitor sustainable development within the premises of India.

CONCLUSION

As important as the improvement of the industries and development of the nations, it is more important to conserve nature and its resources, especially those which are non-renewable. There is a saying by Mahatma Gandhi, “Earth provides enough to satisfy every man’s needs, but not every man’s greed.” The only way that all the countries can develop is by protecting the environment through Sustainable development. India being a developing nation, has a huge necessity for development while approaching the required goals through sustainable development methods. However, through the incentives taken by the Indian Government, the process of development and conservation of nature is going hand in hand, in a peaceful manner.

There are many laws introduced in India. However, through the supervision of the situations, there are amendments made to the laws. The Plastic Waste Management Amendment Rules, 2021, which aim to phase out single-use plastic by 2022, were announced in August 2021. The extended producer responsibility for plastic packaging regulation draft has been made public. On July 1^st 2022, the Indian government banned single-use plastic to reduce pollution. This is a huge step toward the reduction of land and water pollution. India also plans to meet its goal of the UN Agenda to reduce emissions in India by 2030. The method of Sustainable development paves the path for future generations to utilize the resources to develop their society in the coming time

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CITATIONS

¹ The Constitution of India 1950, art. 21.

² Vellore Citizen Welfare Forum vs. Union of India, 1996 5 SCR 241.

³ Narmada Bachao Andolan vs. Union of India, 10 SCC 664.

⁴ M.C Mehta v. Union of India, AIR 1988 SC 1037.

⁵ Sterlite Industries (India) Pvt. Ltd. vs. Tamil Nadu Pollution Control Board and others, 2019 SCC OnLine SC 221.

⁶ T. DamodharRao v. S.O. Municipal Corporation, Hyderabad, AIR 1987 AP 171.

This article is written by K. Mihira Chakravarthy, currently enrolled in 1^st year, B.A. L.L.B. at Damodaram Sanjivayya National Law University (DSNLU).