Climate change insurance, carbon taxation suggested

July 18th, 2008 - 8:34 pm ICT by IANS  

Kolkata, July 18 (IANS) With industrial activities leading to continuous increase in the greenhouse gas (GHG) emission level and subsequent climate change, the government needs to introduce a long-term National Carbon Budgeting for each industrial sector, a survey report of an industry lobby here Friday said. The report, released by the Indian Chamber of Commerce (ICC), recommended introduction of a National Climate Change Insurance Fund and creating a vehicle emission standard.

The ICC conducted the survey on “Business Risks and Opportunities of Climate Change” over a period of six months collating data from 49 industries in the eastern region and 160 businesses in West Bengal.

“The objective of the industrial survey was to find out how many industrialists in this region are aware of the phenomenon of climate change and how it will affect their operations and financial performance in future,” ICC general secretary Rajeev Singh said.

Around 84 percent of the business houses responded to the survey, and 69 percent were found to have a dedicated environment cell.

“There are some recommendations mentioned in the report that a National Climate Change Insurance Fund should also be introduced in the country. The government also needs to introduce a vehicle emission standard, carbon taxation and low carbon-fuel standard to mitigate fuel emission intensity,” he said.

Singh said the power sector is one of the major contributors to GHG emissions in eastern India, while the transport sector contributed about 14 percent of total emissions.

“About 21 percent of total GHG emissions come from the power sector. So, it needs to be addressed immediately and we must encourage energy efficient devices and create awareness among all the players in the power industry.”

The report will be sent to the state government, as well as the industry, coal and power ministries next week.

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