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EMERGING DIMENSIONS
         OF
   INTERNATIONAL
      BUSINESS
         MADE BY:
        AKSHI GUPTA
    GURSIMARPREET SINGH
      MAITRI RASTOGI
       NEHA SHARMA
Environmental protection
 movement
The environmental movement (a term that sometimes includes
The conservation and green movements) is a diverse
scientific, social, And political movement. in general
terms, environmentalists advocate The sustainable management of
resources, and the protection (and Restoration, when necessary) of
the natural environment through Changes in public policy and
individual behavior
COUNTINUED……
. In its recognition of humanity as a participant in
 ecosystems, the movement is centered
 around ecology, health, and human rights. Though the
 movement is represented by a range of
 organizations, because of the inclusion of
 environmentalism in the classroom curriculum, the
 environmental movement has a younger demographic
 than is common in other social movements (see green
 seniors).
Environmentalism
• Environmentalism as a movement covers broad areas of
  institutional oppression. Examples of these oppressions
  are: consumption of ecosystems and natural resources
  into waste, dumping waste into disadvantaged
  communities, air pollution, water pollution, weak
  infrastructure, exposure of organic life to toxins, mono
  culture, anti-polythene drive (jhola movement) and
  various other focuses. Because of these divisions, the
  environmental movement can be categorized into these
  primary focuses: Environmental Science, Environmental
  Activism, Environmental Advocacy, and Environmental
  Justice.
Preservation and conservation
Environmental preservation in the United States
 and other parts of the world, including Australia, is
 viewed as the setting aside of natural resources to
 prevent damage caused by contact with humans or by
 certain human activities, such as
 logging, mining, hunting, and fishing, often to replace
 them with new human activities such as tourism and
 recreation. Regulations and laws may be enacted for
 the preservation of natural resources.
International Conventions
• A convention is a set of agreed, stipulated or generally
  accepted standards, norms, social norms or criteria, often
  taking the form of a custom.

• Certain types of rules or customs may become law and
  regulatory legislation may be introduced to formalize or
  enforce the convention . In a social context, a convention
  may retain the character of an "unwritten" law of custom
Examples…
Vienna Convention on the Law of Treaties
CITES-Convention on International Trade in
 Endangered Species
Convention on combating desertification
The Basel convention of e-waste
Convention on Biological Diversity (CBD)
Important IMO Conventions
 International Convention for the Safety of Life at Sea
  (SOLAS), 1974, as amended
 International Convention for the Prevention of Pollution
  from Ships, 1973, as modified by the Protocol of 1978
  relating thereto and by the Protocol of 1997(MARPOL)
 International Convention on Standards of
  Training, Certification and Watch keeping for Seafarers
  ( STCW ) as amended, including the 1995 and 2010 Manila
  Amendments
TREATY
 A treaty is an express agreement under international
  law entered into by actors in international
  law, namely sovereign states and international
  organizations.
 A treaty may also be know as
  an (international)agreement, protocol, covenant, conve
  ntion or exchange of letters, among other terms.
  Regardless of terminology, all of these forms of
  agreements are, under international law, equally
  considered treaties and the rules are the same.
INTERNATIONAL LAW OF
             TREATY
 Article 38 of the Statute of the International Court of
  Justice, considered by some as the "Bible of the Poor" of those who
  seek quick answers despite of the complexity of international
  relations, constitutes nevertheless a good starting point for the
  understanding of the sources of international law. According to this
  article, international law finds its origin in the following three sources:

 International conventions of general or particular nature;

 International custom, as evidence of a general practice
  accepted as law;
 The general principles of law recognized by civilized nations.
 As in the case of bilateral treaties, the very general term
  "Agreement" is also frequently used for multilateral conventions. It
  has been used in the following examples:

 The European Agreement on continued Payment of
  Scholarships for Students Studying Abroad of 1969,

 The Agreement Governing the Activities of States on the Moon and
  Other Celestial Bodies (1979) or

 The North American Free Trade Agreement (1992).
 In most cases, multilateral treaties are called "Conventions". This
  is the most general designation which is also used by Article 38
  of the Statute of the International Court of Justice. They are often
  concluded under the auspices of an international organization
  such as:
 The Convention for the Protection of Human Rights and
 Fundamental Freedoms of 1950 (so-called
    European Human Rights Convention concluded under the
  auspices of the Council of Europe),
 The United Nations Convention on the Law of the Sea (1982)
YEAR   TREATY                      DESCRIPTION
2005   Energy community treaty     Establishes the energy community
2006   St Andews agreement         Resolves outstanding grievances in
                                   the Northern Ireland peace process,
                                   enabling devolved power-sharing
                                   government to resume.
2007   ASEAN Charter               New constitution making the Association of
                                   Southeast Asian Nations a legal entity.
2008                               Treaty establishing the Union of South
       Constitutive Treaty
                                   American Nations.
2009
                                   Extradition Treaty between the Government
                                   of the United Kingdom of Great Britain and
       Extradition treaty
                                   Northern Ireland and the Government of
                                   the Republic of the Philippines.

2010                               Treaty signed 15 September
                                   in Murmansk between the Government of
       Barents Sea border treaty
                                   the Russian Federation and the Government
                                   of the Kingdom of Norway.
What is carbon trading
 Carbon emissions trading is a form of emissions trading that
 specifically targets carbon dioxide and it currently constitutes the
 bulk of emissions trading.
  This form of permit trading is a common method countries utilize
 in order to meet their obligations specified by the Kyoto Protocol;
 namely the reduction of carbon emissions in an attempt to
 reduce (mitigate) future climate change.
 international agreements are not enough. Interlinked national and
 regional tools are also needed to reduce carbon emissions
Participation of countries in kyoto protocol:
•Green indicates those countries who have signed and ratified.
•Grey indicates those who have not yet decided.
•Red indicates those who have no intention to ratify it.
Kyoto Protocol
 The protocol was initially adopted on 11 December 1997 in
  Kyoto, Japan and entered into force on 16 February.

 A protocol to the United nations framework convention on climate
  change (UNFCCC) aimed at fighting global warming.

 UNFCCC is an international environmental treaty with the goal of
  achieving “stabilization of greenhouse gas concentrations” in the
  atmosphere.

 As on August 2011,191 countries have signed and ratified the
  protocol.
Continued……
Under the protocol 37 countries ( called „Annex I
countries”) commit themselves to reduction of four
greenhouse gases (carbon dioxide, methane, nitrous
oxide, sulphur hexafluoride) and two groups of gases (hydro
fluorocarbons, per fluorocarbons).

US is the only nation which has not ratified it as they believe
that 5% reduction will “wreck the American economy”.
The target agreed upon was an average reduction of 5.2%
from 1990 levels by the year 2012.
Kyoto Protocol provides „Cap and Trade‟ system.
Overall impacts of Carbon Trading:
 By reducing carbon emissions, greenhouse gases in the
  atmosphere will be reduced slowing heat entrapment.

 Companies that emit excess carbon dioxide will be
  penalized and forced into taking more care.

 Wide ranging and comprehensive carbon trading
  will result in overall reduction in greenhouse gases and
  hence a reduction in global warming.
 Carbon credits are measured in tones of carbon dioxide.
                     1 credit = 1tonne of CO2
Carbon credit
• The companies in the developed world are required to
  meet certain carbon emission target set by their respective
  government. However if these companies are not able to
  meet their emission targets, they have an alternative of
  purchasing these carbon credits from the market i.e. from
  someone who is successful in meeting these targets and
  who has a surplus of these credits. This process is known
  as carbon trading.
 Carbon trading is also very advantageous for the
  companies of the developing world as it provides
  monetary gains in exchange of carbon credits which help
  these companies to purchase or change their technology.
  This change in technology eventually helps the
  companies to reduce carbon emission.
Need for Carbon Trading and Clean
     Development Mechanism
  India is the 2nd largest seller of Carbon credits in
   the world (6% share) While China tops the chart
   73% share.
  The need for carbon trading was felt when it was
   realized that the industries have been the biggest
   polluter of green house gases which has resulted in
   global warming.
 A lot of effort was put in by the NGOs and other institutions to
  bring the attention of the world towards the problem of global
  warming. But this issue was not taken very seriously so in order to
  get the attention of the world towards these problems was by
  attaching some financial incentive to it. As a result the concept of
  Carbon trading was introduced.
           Clean Development Mechanism (CDM), defined
           in Article 12 of the Protocol, allows a country with an
           emission-reduction or emission-limitation commitment
           under the Kyoto Protocol (Annex B Party) to implement
           an emission-reduction project in developing countries.
Also, India has huge number of carbon credits sellers but under
the present Indian law, the buyers based in European market
are not permitted to enter the market. To increase the market
for carbon trading Forward Contracts (Regulation)
Amendment Bill has been introduced in the Parliament.
• India is expected to capture between 20 and
  30 per cent of the CDM market, bringing in up
  to $300 million in revenue.
• The Ministry of Environment and Forests deals
  with the climate change and CDM issues in
  India.
• from January 2004 to June 2005, 80 projects
  were approved by the National CDM Authority
Examples of Carbon trading in India
 Jindal Vijaynagar Steel
 Powerguda in Andhra Pradesh
 Handia Forest in Madhya Pradesh
FACTS
 India is the 2nd largest seller of Carbon credits in the
  world (6% share) While China tops the chart with 73%
  share.
 Carbon is also now being traded on India‟s Multi
  Commodity Exchange.
 The National Commodity and Derivative Exchange by a
  notification and with due approval from Forward Market
  Commission (FMC) launched Carbon Credit future
  contact whose aim was to provide transparency to
  markets and help the producers to earn remuneration out
  of the environment projects.
 Carbon credit in India is traded on NCDEX only as a
  future contract.
Importance of Technology in
International Business
Why technology in international
         business???
   There are many things to consider when
    approaching information technology from an
    international business perspective.
   A study at the Massachusetts Institute of
    Technology suggests three ways a business worker
    can view this technology:
   as he makes the decision of whether to enter an
    industry,
   he considers how to improve his business,
   he considers how to get ahead of the competition.
 The Internet is the most important as information is stored
  and shared globally.
 Smartphones like the BlackBerry and iPhone, as well as tablet
  computers and laptops, keep workers connected in any
  location, making their jobs more flexible and giving them
  access to information instantly.
 Software and applications like Skype, give businesses a
  faster, easier way to connect with others and organize their
  information.
 The most important modes of technology in
  international business include electronic
  communication such as emails, texts, faxes and virtual
  conferences.
 Tracking methods for shipping and purchasing is
  another huge technological innovation, as it allows
  businesses to verify the delivery of goods and the
  quantity of inventory purchased.
 Electronic spreadsheets and databases are other
  inventions that allow international companies to
  manage and store their information with greater ease.
Consideration: Communication
The ease of communication allows companies to outsource their
 operations with greater assurance:
Video monitoring of factory and working
 conditions, inexpensive conference calls to consultants
 working in different countries, emailed reports to foreign
 vendors, and cheap long-distance phone calls are just a few of
 the ways technology has facilitated international business trade
 and operations.
Consideration:Logistics
International companies often have
 vendors, factories, customers and consultants in
 different parts of the globe. Keeping track of how a
 product is developed, manufactured, shipped and
 purchased can involve hundreds of steps in several
 countries. Technological innovations streamline the
 supply chain.
Benefits OF Technology
 Technology allows companies to produce products for
  less money. The cost of shipping goods can account for
  25 percent of production costs; thus, the reduction in the
  cost of shipping significantly decreases the cost of
  producing goods.
 Companies have a wider selection of vendors from
  which to choose which lowers the cost as well.
  Ex, technological innovations enable a clothing company
  to choose from textile plants in Vietnam, Singapore and
  several other locations.
 The increased selection lowers the cost and makes
  selection easy as these foreign companies bid against the
  others for contracts.
• Nepal is set to fetch income worth Rs.43.4 million
  (US$967,000) from two biogas projects, which have been
  approved by the executive board of Clean Development
  Mechanism (CDM) under the Kyoto convention on
  Climate change.
• The CDM allows developed countries to meet part of
  their emission-reduction requirements by investing in
  emission reduction in developing countries, where the
  economic costs of doing so are lower.
• Nepal has signed onto "a carbon emissions reduction"
  agreement with the World Bank whereby it will trade
  surplus carbon for biogas plants.
• The Nepal Biogas Project (NBP) thus becomes the
  first project for carbon trading under the Clean
  Development Mechanism of the Kyoto Protocol on
  climate change.
• NBP can now sell to developed countries the
  volume equivalent of carbon emissions it contains
  and prevents from being released into the
  environment.
• Nepal will receive yearly Rs.40.34 million
  ($568,000) from selling carbon.
• The Alternative Energy Promotion Center
  (AEPC), under which NBP is running, submitted
  two proposals for saving carbon from 9,708 and
  9,688 biogas plants, respectively, last year.
• The revenue received from carbon selling would be
  invested to install 25,000 plants annually and such
  trading will further lift the standards of living among
  rural people.
• Ken Ohasi, the residential representative of the World
  Bank, said the organization has been giving high priority
  to alternative energy projects, including biogas, since
  they are helpful to improve
  economic, social, health, and agricultural development
  of rural people.
• Previously, the World Bank agreed to purchase one
  million tons of green house gas reductions under the
  Community Development Carbon Fund.
• It is also the first large-scale carbon purchase made by
  the World Bank.
• So far, Nepal has installed 150,000 biogas plants, while
  experts say up to 1.9 million would viable in the country.
• Biogas has been used for lighting and cooking food.
  Biogas can be produced by the organic material of
  animals or human beings where it is mixed with water
  and becomes carbon dioxide through bacteria.
• Nepal has continued to promote alternative energy
  projects, such as solar home systems, wind
  energy, micro-hydro, biomass, and biogas projects.
  (World Bank agreement first carbon trading deal under
  Kyoto protocol, Nepal signs carbon trading deal. Ohmy
  news, International global watch, 2006)
Carbon trading (1)

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Carbon trading (1)

  • 1. EMERGING DIMENSIONS OF INTERNATIONAL BUSINESS MADE BY: AKSHI GUPTA GURSIMARPREET SINGH MAITRI RASTOGI NEHA SHARMA
  • 2. Environmental protection movement The environmental movement (a term that sometimes includes The conservation and green movements) is a diverse scientific, social, And political movement. in general terms, environmentalists advocate The sustainable management of resources, and the protection (and Restoration, when necessary) of the natural environment through Changes in public policy and individual behavior
  • 3. COUNTINUED…… . In its recognition of humanity as a participant in ecosystems, the movement is centered around ecology, health, and human rights. Though the movement is represented by a range of organizations, because of the inclusion of environmentalism in the classroom curriculum, the environmental movement has a younger demographic than is common in other social movements (see green seniors).
  • 4. Environmentalism • Environmentalism as a movement covers broad areas of institutional oppression. Examples of these oppressions are: consumption of ecosystems and natural resources into waste, dumping waste into disadvantaged communities, air pollution, water pollution, weak infrastructure, exposure of organic life to toxins, mono culture, anti-polythene drive (jhola movement) and various other focuses. Because of these divisions, the environmental movement can be categorized into these primary focuses: Environmental Science, Environmental Activism, Environmental Advocacy, and Environmental Justice.
  • 5. Preservation and conservation Environmental preservation in the United States and other parts of the world, including Australia, is viewed as the setting aside of natural resources to prevent damage caused by contact with humans or by certain human activities, such as logging, mining, hunting, and fishing, often to replace them with new human activities such as tourism and recreation. Regulations and laws may be enacted for the preservation of natural resources.
  • 6. International Conventions • A convention is a set of agreed, stipulated or generally accepted standards, norms, social norms or criteria, often taking the form of a custom. • Certain types of rules or customs may become law and regulatory legislation may be introduced to formalize or enforce the convention . In a social context, a convention may retain the character of an "unwritten" law of custom
  • 7. Examples… Vienna Convention on the Law of Treaties CITES-Convention on International Trade in Endangered Species Convention on combating desertification The Basel convention of e-waste Convention on Biological Diversity (CBD)
  • 8. Important IMO Conventions  International Convention for the Safety of Life at Sea (SOLAS), 1974, as amended  International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto and by the Protocol of 1997(MARPOL)  International Convention on Standards of Training, Certification and Watch keeping for Seafarers ( STCW ) as amended, including the 1995 and 2010 Manila Amendments
  • 9. TREATY  A treaty is an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations.  A treaty may also be know as an (international)agreement, protocol, covenant, conve ntion or exchange of letters, among other terms. Regardless of terminology, all of these forms of agreements are, under international law, equally considered treaties and the rules are the same.
  • 10. INTERNATIONAL LAW OF TREATY  Article 38 of the Statute of the International Court of Justice, considered by some as the "Bible of the Poor" of those who seek quick answers despite of the complexity of international relations, constitutes nevertheless a good starting point for the understanding of the sources of international law. According to this article, international law finds its origin in the following three sources:  International conventions of general or particular nature;  International custom, as evidence of a general practice accepted as law;  The general principles of law recognized by civilized nations.
  • 11.  As in the case of bilateral treaties, the very general term "Agreement" is also frequently used for multilateral conventions. It has been used in the following examples:  The European Agreement on continued Payment of Scholarships for Students Studying Abroad of 1969,  The Agreement Governing the Activities of States on the Moon and Other Celestial Bodies (1979) or  The North American Free Trade Agreement (1992).
  • 12.  In most cases, multilateral treaties are called "Conventions". This is the most general designation which is also used by Article 38 of the Statute of the International Court of Justice. They are often concluded under the auspices of an international organization such as:  The Convention for the Protection of Human Rights and  Fundamental Freedoms of 1950 (so-called European Human Rights Convention concluded under the auspices of the Council of Europe),  The United Nations Convention on the Law of the Sea (1982)
  • 13. YEAR TREATY DESCRIPTION 2005 Energy community treaty Establishes the energy community 2006 St Andews agreement Resolves outstanding grievances in the Northern Ireland peace process, enabling devolved power-sharing government to resume. 2007 ASEAN Charter New constitution making the Association of Southeast Asian Nations a legal entity. 2008 Treaty establishing the Union of South Constitutive Treaty American Nations. 2009 Extradition Treaty between the Government of the United Kingdom of Great Britain and Extradition treaty Northern Ireland and the Government of the Republic of the Philippines. 2010 Treaty signed 15 September in Murmansk between the Government of Barents Sea border treaty the Russian Federation and the Government of the Kingdom of Norway.
  • 14. What is carbon trading Carbon emissions trading is a form of emissions trading that specifically targets carbon dioxide and it currently constitutes the bulk of emissions trading.  This form of permit trading is a common method countries utilize in order to meet their obligations specified by the Kyoto Protocol; namely the reduction of carbon emissions in an attempt to reduce (mitigate) future climate change. international agreements are not enough. Interlinked national and regional tools are also needed to reduce carbon emissions
  • 15. Participation of countries in kyoto protocol: •Green indicates those countries who have signed and ratified. •Grey indicates those who have not yet decided. •Red indicates those who have no intention to ratify it.
  • 16. Kyoto Protocol  The protocol was initially adopted on 11 December 1997 in Kyoto, Japan and entered into force on 16 February.  A protocol to the United nations framework convention on climate change (UNFCCC) aimed at fighting global warming.  UNFCCC is an international environmental treaty with the goal of achieving “stabilization of greenhouse gas concentrations” in the atmosphere.  As on August 2011,191 countries have signed and ratified the protocol.
  • 17. Continued…… Under the protocol 37 countries ( called „Annex I countries”) commit themselves to reduction of four greenhouse gases (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and two groups of gases (hydro fluorocarbons, per fluorocarbons). US is the only nation which has not ratified it as they believe that 5% reduction will “wreck the American economy”. The target agreed upon was an average reduction of 5.2% from 1990 levels by the year 2012. Kyoto Protocol provides „Cap and Trade‟ system.
  • 18. Overall impacts of Carbon Trading:  By reducing carbon emissions, greenhouse gases in the atmosphere will be reduced slowing heat entrapment.  Companies that emit excess carbon dioxide will be penalized and forced into taking more care.  Wide ranging and comprehensive carbon trading will result in overall reduction in greenhouse gases and hence a reduction in global warming.  Carbon credits are measured in tones of carbon dioxide.  1 credit = 1tonne of CO2
  • 19. Carbon credit • The companies in the developed world are required to meet certain carbon emission target set by their respective government. However if these companies are not able to meet their emission targets, they have an alternative of purchasing these carbon credits from the market i.e. from someone who is successful in meeting these targets and who has a surplus of these credits. This process is known as carbon trading.
  • 20.  Carbon trading is also very advantageous for the companies of the developing world as it provides monetary gains in exchange of carbon credits which help these companies to purchase or change their technology. This change in technology eventually helps the companies to reduce carbon emission.
  • 21. Need for Carbon Trading and Clean Development Mechanism  India is the 2nd largest seller of Carbon credits in the world (6% share) While China tops the chart 73% share.  The need for carbon trading was felt when it was realized that the industries have been the biggest polluter of green house gases which has resulted in global warming.
  • 22.  A lot of effort was put in by the NGOs and other institutions to bring the attention of the world towards the problem of global warming. But this issue was not taken very seriously so in order to get the attention of the world towards these problems was by attaching some financial incentive to it. As a result the concept of Carbon trading was introduced. Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries.
  • 23. Also, India has huge number of carbon credits sellers but under the present Indian law, the buyers based in European market are not permitted to enter the market. To increase the market for carbon trading Forward Contracts (Regulation) Amendment Bill has been introduced in the Parliament.
  • 24. • India is expected to capture between 20 and 30 per cent of the CDM market, bringing in up to $300 million in revenue. • The Ministry of Environment and Forests deals with the climate change and CDM issues in India. • from January 2004 to June 2005, 80 projects were approved by the National CDM Authority
  • 25. Examples of Carbon trading in India  Jindal Vijaynagar Steel  Powerguda in Andhra Pradesh  Handia Forest in Madhya Pradesh
  • 26. FACTS  India is the 2nd largest seller of Carbon credits in the world (6% share) While China tops the chart with 73% share.  Carbon is also now being traded on India‟s Multi Commodity Exchange.  The National Commodity and Derivative Exchange by a notification and with due approval from Forward Market Commission (FMC) launched Carbon Credit future contact whose aim was to provide transparency to markets and help the producers to earn remuneration out of the environment projects.  Carbon credit in India is traded on NCDEX only as a future contract.
  • 27. Importance of Technology in International Business
  • 28. Why technology in international business??? There are many things to consider when approaching information technology from an international business perspective. A study at the Massachusetts Institute of Technology suggests three ways a business worker can view this technology: as he makes the decision of whether to enter an industry, he considers how to improve his business, he considers how to get ahead of the competition.
  • 29.  The Internet is the most important as information is stored and shared globally.  Smartphones like the BlackBerry and iPhone, as well as tablet computers and laptops, keep workers connected in any location, making their jobs more flexible and giving them access to information instantly.  Software and applications like Skype, give businesses a faster, easier way to connect with others and organize their information.
  • 30.  The most important modes of technology in international business include electronic communication such as emails, texts, faxes and virtual conferences.  Tracking methods for shipping and purchasing is another huge technological innovation, as it allows businesses to verify the delivery of goods and the quantity of inventory purchased.  Electronic spreadsheets and databases are other inventions that allow international companies to manage and store their information with greater ease.
  • 31. Consideration: Communication The ease of communication allows companies to outsource their operations with greater assurance: Video monitoring of factory and working conditions, inexpensive conference calls to consultants working in different countries, emailed reports to foreign vendors, and cheap long-distance phone calls are just a few of the ways technology has facilitated international business trade and operations.
  • 32. Consideration:Logistics International companies often have vendors, factories, customers and consultants in different parts of the globe. Keeping track of how a product is developed, manufactured, shipped and purchased can involve hundreds of steps in several countries. Technological innovations streamline the supply chain.
  • 33. Benefits OF Technology  Technology allows companies to produce products for less money. The cost of shipping goods can account for 25 percent of production costs; thus, the reduction in the cost of shipping significantly decreases the cost of producing goods.  Companies have a wider selection of vendors from which to choose which lowers the cost as well. Ex, technological innovations enable a clothing company to choose from textile plants in Vietnam, Singapore and several other locations.  The increased selection lowers the cost and makes selection easy as these foreign companies bid against the others for contracts.
  • 34. • Nepal is set to fetch income worth Rs.43.4 million (US$967,000) from two biogas projects, which have been approved by the executive board of Clean Development Mechanism (CDM) under the Kyoto convention on Climate change. • The CDM allows developed countries to meet part of their emission-reduction requirements by investing in emission reduction in developing countries, where the economic costs of doing so are lower. • Nepal has signed onto "a carbon emissions reduction" agreement with the World Bank whereby it will trade surplus carbon for biogas plants.
  • 35. • The Nepal Biogas Project (NBP) thus becomes the first project for carbon trading under the Clean Development Mechanism of the Kyoto Protocol on climate change. • NBP can now sell to developed countries the volume equivalent of carbon emissions it contains and prevents from being released into the environment. • Nepal will receive yearly Rs.40.34 million ($568,000) from selling carbon. • The Alternative Energy Promotion Center (AEPC), under which NBP is running, submitted two proposals for saving carbon from 9,708 and 9,688 biogas plants, respectively, last year.
  • 36. • The revenue received from carbon selling would be invested to install 25,000 plants annually and such trading will further lift the standards of living among rural people. • Ken Ohasi, the residential representative of the World Bank, said the organization has been giving high priority to alternative energy projects, including biogas, since they are helpful to improve economic, social, health, and agricultural development of rural people. • Previously, the World Bank agreed to purchase one million tons of green house gas reductions under the Community Development Carbon Fund. • It is also the first large-scale carbon purchase made by the World Bank.
  • 37. • So far, Nepal has installed 150,000 biogas plants, while experts say up to 1.9 million would viable in the country. • Biogas has been used for lighting and cooking food. Biogas can be produced by the organic material of animals or human beings where it is mixed with water and becomes carbon dioxide through bacteria. • Nepal has continued to promote alternative energy projects, such as solar home systems, wind energy, micro-hydro, biomass, and biogas projects. (World Bank agreement first carbon trading deal under Kyoto protocol, Nepal signs carbon trading deal. Ohmy news, International global watch, 2006)