Speaking at CII's annual session in a discussion on `Carbon Exchange', BSES chairman and managing director RV Shahi underscored that incentives have to be provided to IPPs to adhere to strict emission norms.

Shahi said that 60 to 70 per cent of environmental pollution in the country was attributable to thermal power plants. And over the next 10-year period, the issue of environmental degradation has to be addressed head on, he added. The coal consumption by thermal plants will move up to 500 million tonnes by then from the current level of 220 million tonnes.

Shahi suggested a possible incentive package in the form of providing environmental clearance for the entire project even when the entire project is not in a position to adhere to emissionnorms in full measure. He said this mechanism could be used for power projects using any fuel.

Additional secretary in the ministry of environment and forests K Paul Roy said that before the clean development mechanism (CDM) norms are recommended in India, the supportive structure needs to be in place. Issues relating to technology, processes and the regulatory mechanism will have to be sorted out, he reiterated.

The debate on enforcing pollution standards across the world centres around the issue of whether it should be the developed world or the developing world which should tighten its belt the extra notch. The developing world is of the view that as the developed world is responsible for 80 per cent of emissions globally, it cannot take away its environmental space as it needs to grow so much more.

According to J Palmisano, energy conservation head with Enron International, the issue of how much the developing world yields and how much developed nations should give must be settled on a mutual giveand take process. As there is a heterogeneity in control costs, a complex matrix involving a win-win formula has be worked out, Palmisano said. Another issue is the question of capital. For developing countries to take the long-term view that they must invest in energy conserving/saving technology is not always easy when they are concerned about profitability. Here the question emerges as to what extent the West, which is so much more responsible for the environmental mess, should get proactive in halting pollution by coming forward to provide capital to the developing world to control pollution.