Project up for carbon credits in Himachal flouts forest laws

The order was passed by Additional Chief Secretary (Environment ) J P Negi after a high-power inquiry ordered by Chief Minister Virbhadra Singh confirmed that the company had illegally felled trees and was causing harm to the Himalayan ecology.

The company was also fined Rs 5.95 crore by the Forest Department for felling or damaging trees by the hundreds, illegally dumping waste, diverting the forest road without necessary approvals from the Ministry of Environment and Forests, and for causing other damage to the forest.

Forest Department records show that the company has allegedly felled 840 trees till now and extracted stones from an area of 6,000 cubic meters. It is believed to have dumped waste in a 41,000 sq m area and usurped nearly five hectares of forest land for project-related activities without obtaining necessary clearances. Allain Duhangan is also accused of cutting fuelwood and pitching tents on forest land for its labour.

But the most surprising thing in the whole controversy is that for the same project, Allain Duhangan applied for carbon credits from the United Nations Framework Convention on Climate Change through the National Clean Development Authority.

In its presentation at a Shimla workshop on climate change, the company claimed it would earn approximately 50 lakh CERs (Certified Emission Reductions) over a 10-year period between 2007 and 2017. At the current rate, this means Allain Duhangan can earn nearly 5 crore euros (Rs 250 crore) by selling these carbon credits in the international market to developed countries.

CEO of Allain Duhangan Awadh Bihari Giri denies having misled the NCDA in getting itself registered for carbon credits. “We have been given carbon credits purely on the basis of our own standing. The project has some distinctive features and is being executed as par international standards. It will be commissioned in record time, despite challenges, and will reduce greenhouse gas emissions after it goes into power generation mode.” He also talks about sustainable development and the enormous benefits to locals.

However, Additional Chief Secretary Negi admits that all this looks like a distinct possibility now. “We really wonder how much damage the company has caused to the environment and ecology. If they don’t restore the damages and agree to strictly follow the environment norms, the project will be in trouble,” adds Negi.

While hydel-power projects are considered a clean mode of electricity generation, various studies have proved that they do carry their own environmental and social impacts.

The Government recently abandoned nine such projects on the fear that they would play havoc with local hill ecology and environment.

Himachal rich ground for carbon credits

Under the Kyoto protocol, industrialised countries can earn carbon credits by backing projects in developing countries like India, China and Brazil which offer opportunities for reducing greenhouses gases. Himachal Pradesh provides a rich mining ground as its total hydel power potential is estimated at 21,000 MW, of which only 3,600 MW has been harnessed so far. Carbon credits are trading in the international market at 10 to 12 Euros currently. According to guidelines framed by the National Clean Development Authority, a project promoter has to meet the parameters of emissions and sustainable development apart from social well-being, economic well-being, environmental well-being and technological well-being to apply for carbon credits.