Climate Change & its Financial Implications
India is a vast country covering 3.28 million sq km, occupying nearly 2.4% of the
world's geographical area. The country is endowed with varied soils, climate, biodiversity
and ecological regimes.
India is a party to the United Nations Framework Convention on Climate Change (UNFCCC)
and the Government of India attaches great importance to climate change issues and is,
therefore, seriously concerned with the possible impacts of climate change, such as: water
stress and reduction in the availability of freshwater; threat to agriculture and food
security, since agriculture is largely monsoon dependent; threats to biodiversity with
adverse implications for forest-dependent communities; adverse impact on natural
ecosystems; adverse impact of sea-level rise on coastal agriculture and settlements;
impact on human health due to the increase in vector and water-borne diseases; increased
energy requirements and impact on climate-sensitive industry and infrastructure.
ITC Strategy and Action Plans
ITC has adopted a very proactive approach and has constituted a Carbon Committee which,
among others, consists of two Executive Vice-Presidents, one each from the Finance and
Environment, Health & Safety departments. The Carbon Committee proactively
participates in global forums; studies emerging trends to identify various risks/ threats
and opportunities from climate change; formulates strategy and supports businesses in
evaluation and mitigation measures. The Carbon Committee is also reviewing the India -
specific climate change impacts to implement various adoption measures relevant to ITC
businesses.
The Company is seriously tackling Green House Gas emissions and related energy use
issues. Not only has the Company achieved significant reduction in specific energy
consumption, it uses significantly large amounts of environmentally neutral bio-fuels and
has already created nearly 41,000 hectares of plantations - thereby sequestering more CO2
than its operations emit. This makes the Company 'Carbon Positive'. With ITC committed to
reducing specific energy consumption further and expand its plantation activities to
100,000 hectares in the next few years, the extent of CO2 sequestration will be
even more noteworthy.
India, as a Non-Annexure I country, does not have any GHG emission reduction targets in
the first commitment period up to 2012. However, being part of the United Nations
Framework Convention on Climate Change (UNFCCC), India is committed to improving its
sustainability index and participating in the use of the Clean Development Mechanisms
(CDM) under the Kyoto Protocols.
ITC's businesses/ units are, therefore, actively engaged in reducing Green House Gases
emission and a number of CDM projects are in various stages of development. Seven projects
have already been sent for registration with the CDM Executive Board. The sale of
Certified Emission Reductions obtained from these CDM projects will provide financial
incentive and motivation to enlarge ITC's contribution to this important global concern. |
