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Module: 5
Environmental
Regulations
The Environment Protection Act, 1986 (EPA) is a comprehensive legislation
enacted by the Government of India to protect and improve the environment.
It was passed in response to the Bhopal Gas Tragedy (1984) and came into
force on 19 November 1986.
This law can impose restrictions on the location of industries. The law gives
the government the power of entry for examination, testing of equipment and
other purposes and power to analyse the sample of air, water, soil or any other
substance from any place.
Environment Protection Act, 1986
Environment can be defined as a sum total of all the living
and non-living elements and their effects that influence
human life. While all living or biotic elements are animals,
plants, forests, fisheries, and birds, non-living or non biotic
elements include water, land, sunlight, rocks, and air.
Salient features of EPA
 Wide Scope and Coverage – The Act covers all environmental aspects, air,
water, land, and living organisms, making it a broad and comprehensive law.
 Power of the Central Government – The Act grants extensive powers to
the Central Government to take necessary measures for environmental
protection, including setting standards, regulating hazardous substances, and
restricting industrial activities.
 No Requirement of Proof of Harm – Under this Act, action can be taken
without proving actual damage to the environment, making it a proactive
law.
 Penalties for Non-Compliance – The Act imposes strict penalties for
violations, including fines and imprisonment, for environmental crimes.
 Regulation of Hazardous Substances – It provides guidelines for handling, storing, and
disposing of hazardous chemicals and materials to prevent pollution and accidents.
 Environmental Impact Assessment (EIA) – It promotes EIA to assess the
environmental impact of industrial and developmental projects before granting approvals.
 Public Participation and Awareness – Encourages public involvement in environmental
decision-making, promoting awareness and responsibility among citizens.
 Emergency Response Provisions – The Act allows for quick response to environmental
emergencies, such as oil spills, chemical leaks, or industrial disasters.
 Empowerment of Authorities – The government can appoint officers and agencies to
monitor environmental compliance and take necessary actions against violators.
 Legal Protection for Environmental Activists – It provides legal backing for
environmental activists and organizations working towards conservation efforts.
Examples
 The Act regulates industries that discharge pollutants into rivers, ensuring
water bodies remain uncontaminated.
 The government can set emission standards for industries or ban harmful
substances like plastic in certain regions.
 The closure of highly polluting industries near the Taj Mahal to
prevent air pollution from damaging the monument.
Scope and Applicability
Scope and Applicability
 It extends to the whole of India.
 Covers air, water, land, and all interrelationships among them.
Objective of Environmental Protection Act 1986
• Protection of the Environment – To prevent pollution and safeguard the natural
environment, including air, water, and land.
• Prevention and Control of Hazards – To regulate activities that pose a threat to
the environment and human health.
• Implementation of International Agreements – To enforce decisions made in
international environmental conferences and agreements (such as the Stockholm
Conference, 1972).
• Sustainable Development – To balance economic growth with environmental
protection, ensuring resources are used efficiently.
• Governmental Powers for Environmental Regulation – To authorize the central
government to take measures such as setting environmental quality standards,
regulating hazardous substances, and controlling industrial pollution.
• Public Awareness and Participation – To educate citizens on environmental issues
and encourage their participation in conservation efforts.
Aims of the EPA
 Implementing the decisions made at the United Nations Conference on Human
Environment (1972)..
 Creation of a government authority to regulate industry that can issue direct orders
including closure orders.
 Coordinating activities of different agencies that are operating under the existing
laws.
 Enacting regular laws for the protection of the environment.
 Imposing punishments and penalties on those who endanger the environment, safety
and health. For each failure or contravention, the punishment includes a prison term
of up to five years or a fine of up to Rs. 1 lakh, or both. This can also be extended for
up to seven years in cases.
 Engaging in the sustainable development of the environment.
 Attaining protection of the right to life under Article 21 of the Constitution.
Powers of the Central Government
The Act empowers the Central Government to:
• Set environmental quality standards.
• Regulate industries and hazardous substances.
• Conduct inspections and investigations.
• Restrict or prohibit certain processes or industries.
Penalties and Offenses
• Violating the Act can lead to imprisonment of up to 5 years or a
fine of up to 1 lakh
₹ .
• In case of continued violation, a fine of 5,000 per day
₹ may be
imposed.
• If non-compliance continues for over a year, imprisonment may
extend to 7 years.
Importance of the Act
 Strengthens Environmental Governance: Provides a
framework for environmental protection.
 Promotes Sustainable Development: Ensures industrial growth
without harming nature.
 Encourages Corporate Responsibility: Industries must follow
environmental norms.
 Empowers Public Participation: Allows citizens to report
environmental violations.
Recent Amendments and Updates
In recent years, the EPA has undergone amendments to address emerging environmental
challenges:
• EIA Notification, 2006: Introduced categorization of industries based on pollution
levels.
• EIA Draft 2020: Proposed changes to ease environmental clearances, but faced
criticism for diluting environmental safeguards.
• The Jan Vishwas (Amendment of Provisions) Act, 2023: This amendment aimed to
decriminalize certain minor offenses under the EPA, promoting ease of compliance and
reducing the burden on businesses.
• Environment (Protection) Amendment Rules, 2023: These rules revised emission
standards for particulate matter from industrial boilers, setting specific standards based
on fuel types to encourage the adoption of cleaner technologies and reduce air pollution.
 Power of the Central Government (Section 3)
 The Central Government has the authority to take necessary measures to protect and improve the environment.
 Example: The government can regulate emissions, hazardous waste management, and industrial activities.
 2. Prevention and Control of Environmental Pollution (Section 5)
 The government can issue directions to industries and organizations to prevent, control, and reduce pollution.
 Example: Ordering a factory to install pollution control equipment or shutting down a plant that violates
environmental norms.
 3. Restrictions on Hazardous Substances (Section 6)
 Rules are established for the handling, storage, and disposal of hazardous substances.
 Example: Restrictions on the production and sale of pesticides like DDT due to their harmful effects on human
health and wildlife.
Provisions of the Act
The six laws related to environmental protection and wildlife are:
 The Environment (Protection) Act, 1986;
 The Forest (Conservation) Act, 1980;
 The Wildlife Protection Act, 1972;
 Water (Prevention and Control of Pollution) Act, 1974;
 Air (Prevention and Control of Pollution) Act, 1981 and
 The Indian Forest Act, 1927.
These Laws safeguards the nature and the ecosystems for the betterment of human beings.
The biggest environmental problem in India
Air Pollution: One of the most pressing environmental issues
in India is air pollution. According to the 2021 World Air
Quality Report, India is home to 63 of the 100 most polluted
cities, with New Delhi named the capital with the worst air
quality in the world
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Steps taken by the Indian government to
prevent environmental pollution
Protection of Environment
 Special Purpose Vehicle (SPV) for Afforestation.
 Fly Ash Utilization Action Plan.
 Initiatives for improving the environmental performance of
coal based stations.
 Clean Development Mechanism (CDM)
 ISO 14001
 The Supreme Court-appointed Central Empowered Committee
(CEC) has recommended the formation of a Special Purpose
Vehicle (SPV) to implement the Environment Conservation
Plan (ECP) in the three mining districts of Bellary, Chitradurga
and Tumkur.
 Following the directive issued by the Supreme Court, the CEC
recommended the setting up of a SPV. The term of the project is
30 years and the total cost envisaged is Rs. 30,000 crore.
Legislative Measures
a. Environmental Laws & Regulations
1. Environment Protection Act, 1986 – Provides a legal framework for environmental
protection.
2. Air (Prevention and Control of Pollution) Act, 1981 – Regulates air pollution by
controlling emissions from industries and vehicles.
3. Water (Prevention and Control of Pollution) Act, 1974 – Regulates water pollution and
ensures clean water sources.
4. Noise Pollution (Regulation and Control) Rules, 2000 – Sets noise limits for industries,
vehicles, and public places.
5. E-Waste Management Rules, 2016 – Regulates electronic waste disposal and recycling.
6. Plastic Waste Management Rules, 2016 (Amended in 2021) – Phases out single-use
plastics and promotes recycling.
National Action Plans
 National Green Tribunal (NGT) (2010) – A specialized
court for handling environmental cases.
 National Clean Air Programme (NCAP) (2019) – Aims to
reduce air pollution by 20-30% by 2024 in 122 cities.
 National Biodiversity Action Plan (NBAP) – Focuses on
conserving biodiversity and ecosystems.
Bans & Restrictions
 Ban on Single-Use Plastic (2022) – Phases out plastic items like
straws, plates, and cutlery.
 Odd-Even Scheme (Delhi) – Restricts vehicles on roads based on
odd/even-numbered plates to reduce pollution.
 Construction and Demolition Waste Management Rules (2016) –
Regulates waste from construction activities.
 Ash utilization is an industry in itself and fly ash based industry
needs to be developed at the thermal power plants in the immediate
vicinity and the ash dump areas. It will provide employment
opportunities to many in the nearby villages.
 It is used in Portland cement concrete to improve the concrete
performance. When fly ash particles combines with water and free lime
present in the cement matrix, produce additional cementitious materials
(pozzolanic activity of fly ash) which results in denser and higher
strength concrete.
Global Warming
Global warming refers to the long-term
rise in Earth's average surface
temperature due to human activities,
particularly the emission of greenhouse
gases (GHGs) like carbon dioxide
(CO ), methane (CH ), and nitrous
₂ ₄
oxide (N O).
₂
 Causes of Global Warming:
1. Burning of Fossil Fuels
2. Deforestation
3. Industrial Activities
4. Agriculture & Livestock
Farming
5. Waste Management
 Effects of Global Warming
1. Rising Temperatures
2. Melting Ice Caps & Rising Sea Levels
3. Extreme Weather Events
4. Threats to Biodiversity
5. Food and Water Shortages
6. Health Risks
 Solutions to Global Warming
1. Use of Renewable Energy
2. Energy Efficiency
3. Afforestation & Reforestation
4. Sustainable Transportation
5. Reduce, Reuse, Recycle
6. Government Policies & Global Agreements
7. Carbon Capture & Storage (CCS)
8. Public Awareness & Education
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Sustainable development is a development approach that meets
the needs of the present without compromising the ability of
future generations to meet their own needs. It aims to balance
economic growth, social inclusion, and environmental
protection to ensure long-term sustainability
Sustainable Development
 Sustainable Development Goals (SDGs):
 The United Nations (UN) Sustainable
Development Goals (SDGs) include 17 global
goals, such as:
 No Poverty
 Zero Hunger
 Quality Education
 Clean Water and Sanitation
 Affordable and Clean Energy
 Climate Action
 Responsible Consumption and Production
 Importance of Sustainable Development:
 Environmental Conservation: Prevents
deforestation, pollution, and loss of
biodiversity.
 Economic Stability: Encourages green jobs
and sustainable business models.
 Social Well-being: Improves quality of life
through better healthcare, education, and
equality.
 Climate Change Mitigation: Reduces
greenhouse gas emissions and promotes
resilience to climate impacts.
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Carbon Credit Accounting
 Definition
 Carbon Credit Accounting refers to the process of measuring, recording, and managing carbon
credits, which are tradable certificates representing the right to emit one metric ton of CO or
₂
equivalent greenhouse gases (GHGs).
 It plays a crucial role in environmental sustainability and compliance with international climate
policies.
 Carbon credit accounting refers to the process of tracking, managing, and reporting carbon credits
earned or purchased by an organization or country. It involves measuring greenhouse gas (GHG)
emissions, implementing strategies to reduce emissions, and ensuring compliance with regulatory
frameworks or voluntary carbon markets.
 A carbon credit represents one metric ton of CO (or equivalent greenhouse gas) removed, avoided,
₂
or reduced from the atmosphere. These credits can be traded in markets to offset emissions.
Carbon credit accounting includes:
1. Emission Measurement: Quantifying the carbon footprint of an
organization.
2. Reduction Strategies: Implementing renewable energy, afforestation, and
efficiency measures.
3. Certification & Validation: Getting credits certified through global or
national standards (e.g., UNFCCC, Gold Standard, VCS).
4. Trading & Reporting: Selling or purchasing credits in compliance or
voluntary markets.
Importance
 Helps organizations and countries track their carbon
footprint.
 Encourages businesses to reduce emissions through
market-based incentives.
 Supports global efforts in achieving carbon neutrality and
meeting climate commitments like the Paris Agreement.
How to Get Carbon Credit in India?
 In India, carbon credits can be obtained through compliance markets (under Kyoto
Protocol, Paris Agreement) or voluntary markets.
 Steps to Obtain Carbon Credit:
1. Identify a Carbon Reduction Project
a. Renewable energy projects (solar, wind, hydro)
b. Energy efficiency initiatives
c. Waste management & methane capture
d. Reforestation and afforestation
e. Sustainable agriculture
2. Quantify Emission Reductions
a. Conduct a carbon footprint assessment.
b. Use methodologies from CDM (Clean Development Mechanism), Verified Carbon Standard (VCS),
or Gold Standard.
3. Register the Project with a Certifying Body
a. Register with Indian Carbon Market (ICM), UNFCCC CDM, Gold Standard, or VCS.
b. Submit documents and proof of emission reductions.
4. Validation & Verification
c. Third-party verification agencies like Bureau Veritas, SGS, or TUV
NORD validate emissions savings.
d. Issuance of Carbon Credits
e. Upon successful verification, credits are issued and can be traded.
5. Sell or Trade Carbon Credits
f. Sell in Indian Carbon Market (ICM), voluntary carbon markets, or international
exchanges.
Indian Carbon Credit Market & Regulations
a. Indian Carbon Market (ICM): India launched its compliance carbon credit market in
2023.
b. Perform, Achieve & Trade (PAT) Scheme: Managed by Bureau of Energy Efficiency
(BEE) for energy-intensive industries.
c. Renewable Energy Certificates (REC): Tradable units for renewable power generation.
 Key Players in Carbon Credit Trading in India
a. National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) (upcoming
carbon markets).
b. Private Voluntary Market Platforms (e.g., Climate Impact X, South Pole).
c. International Buyers (EU-ETS, voluntary buyers).
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  • 2. The Environment Protection Act, 1986 (EPA) is a comprehensive legislation enacted by the Government of India to protect and improve the environment. It was passed in response to the Bhopal Gas Tragedy (1984) and came into force on 19 November 1986. This law can impose restrictions on the location of industries. The law gives the government the power of entry for examination, testing of equipment and other purposes and power to analyse the sample of air, water, soil or any other substance from any place. Environment Protection Act, 1986
  • 3. Environment can be defined as a sum total of all the living and non-living elements and their effects that influence human life. While all living or biotic elements are animals, plants, forests, fisheries, and birds, non-living or non biotic elements include water, land, sunlight, rocks, and air.
  • 4. Salient features of EPA  Wide Scope and Coverage – The Act covers all environmental aspects, air, water, land, and living organisms, making it a broad and comprehensive law.  Power of the Central Government – The Act grants extensive powers to the Central Government to take necessary measures for environmental protection, including setting standards, regulating hazardous substances, and restricting industrial activities.  No Requirement of Proof of Harm – Under this Act, action can be taken without proving actual damage to the environment, making it a proactive law.  Penalties for Non-Compliance – The Act imposes strict penalties for violations, including fines and imprisonment, for environmental crimes.
  • 5.  Regulation of Hazardous Substances – It provides guidelines for handling, storing, and disposing of hazardous chemicals and materials to prevent pollution and accidents.  Environmental Impact Assessment (EIA) – It promotes EIA to assess the environmental impact of industrial and developmental projects before granting approvals.  Public Participation and Awareness – Encourages public involvement in environmental decision-making, promoting awareness and responsibility among citizens.  Emergency Response Provisions – The Act allows for quick response to environmental emergencies, such as oil spills, chemical leaks, or industrial disasters.  Empowerment of Authorities – The government can appoint officers and agencies to monitor environmental compliance and take necessary actions against violators.  Legal Protection for Environmental Activists – It provides legal backing for environmental activists and organizations working towards conservation efforts.
  • 6. Examples  The Act regulates industries that discharge pollutants into rivers, ensuring water bodies remain uncontaminated.  The government can set emission standards for industries or ban harmful substances like plastic in certain regions.  The closure of highly polluting industries near the Taj Mahal to prevent air pollution from damaging the monument.
  • 7. Scope and Applicability Scope and Applicability  It extends to the whole of India.  Covers air, water, land, and all interrelationships among them.
  • 8. Objective of Environmental Protection Act 1986 • Protection of the Environment – To prevent pollution and safeguard the natural environment, including air, water, and land. • Prevention and Control of Hazards – To regulate activities that pose a threat to the environment and human health. • Implementation of International Agreements – To enforce decisions made in international environmental conferences and agreements (such as the Stockholm Conference, 1972). • Sustainable Development – To balance economic growth with environmental protection, ensuring resources are used efficiently. • Governmental Powers for Environmental Regulation – To authorize the central government to take measures such as setting environmental quality standards, regulating hazardous substances, and controlling industrial pollution. • Public Awareness and Participation – To educate citizens on environmental issues and encourage their participation in conservation efforts.
  • 9. Aims of the EPA  Implementing the decisions made at the United Nations Conference on Human Environment (1972)..  Creation of a government authority to regulate industry that can issue direct orders including closure orders.  Coordinating activities of different agencies that are operating under the existing laws.  Enacting regular laws for the protection of the environment.  Imposing punishments and penalties on those who endanger the environment, safety and health. For each failure or contravention, the punishment includes a prison term of up to five years or a fine of up to Rs. 1 lakh, or both. This can also be extended for up to seven years in cases.  Engaging in the sustainable development of the environment.  Attaining protection of the right to life under Article 21 of the Constitution.
  • 10. Powers of the Central Government The Act empowers the Central Government to: • Set environmental quality standards. • Regulate industries and hazardous substances. • Conduct inspections and investigations. • Restrict or prohibit certain processes or industries.
  • 11. Penalties and Offenses • Violating the Act can lead to imprisonment of up to 5 years or a fine of up to 1 lakh ₹ . • In case of continued violation, a fine of 5,000 per day ₹ may be imposed. • If non-compliance continues for over a year, imprisonment may extend to 7 years.
  • 12. Importance of the Act  Strengthens Environmental Governance: Provides a framework for environmental protection.  Promotes Sustainable Development: Ensures industrial growth without harming nature.  Encourages Corporate Responsibility: Industries must follow environmental norms.  Empowers Public Participation: Allows citizens to report environmental violations.
  • 13. Recent Amendments and Updates In recent years, the EPA has undergone amendments to address emerging environmental challenges: • EIA Notification, 2006: Introduced categorization of industries based on pollution levels. • EIA Draft 2020: Proposed changes to ease environmental clearances, but faced criticism for diluting environmental safeguards. • The Jan Vishwas (Amendment of Provisions) Act, 2023: This amendment aimed to decriminalize certain minor offenses under the EPA, promoting ease of compliance and reducing the burden on businesses. • Environment (Protection) Amendment Rules, 2023: These rules revised emission standards for particulate matter from industrial boilers, setting specific standards based on fuel types to encourage the adoption of cleaner technologies and reduce air pollution.
  • 14.  Power of the Central Government (Section 3)  The Central Government has the authority to take necessary measures to protect and improve the environment.  Example: The government can regulate emissions, hazardous waste management, and industrial activities.  2. Prevention and Control of Environmental Pollution (Section 5)  The government can issue directions to industries and organizations to prevent, control, and reduce pollution.  Example: Ordering a factory to install pollution control equipment or shutting down a plant that violates environmental norms.  3. Restrictions on Hazardous Substances (Section 6)  Rules are established for the handling, storage, and disposal of hazardous substances.  Example: Restrictions on the production and sale of pesticides like DDT due to their harmful effects on human health and wildlife. Provisions of the Act
  • 15. The six laws related to environmental protection and wildlife are:  The Environment (Protection) Act, 1986;  The Forest (Conservation) Act, 1980;  The Wildlife Protection Act, 1972;  Water (Prevention and Control of Pollution) Act, 1974;  Air (Prevention and Control of Pollution) Act, 1981 and  The Indian Forest Act, 1927. These Laws safeguards the nature and the ecosystems for the betterment of human beings.
  • 16. The biggest environmental problem in India Air Pollution: One of the most pressing environmental issues in India is air pollution. According to the 2021 World Air Quality Report, India is home to 63 of the 100 most polluted cities, with New Delhi named the capital with the worst air quality in the world
  • 18. Steps taken by the Indian government to prevent environmental pollution Protection of Environment  Special Purpose Vehicle (SPV) for Afforestation.  Fly Ash Utilization Action Plan.  Initiatives for improving the environmental performance of coal based stations.  Clean Development Mechanism (CDM)  ISO 14001
  • 19.  The Supreme Court-appointed Central Empowered Committee (CEC) has recommended the formation of a Special Purpose Vehicle (SPV) to implement the Environment Conservation Plan (ECP) in the three mining districts of Bellary, Chitradurga and Tumkur.  Following the directive issued by the Supreme Court, the CEC recommended the setting up of a SPV. The term of the project is 30 years and the total cost envisaged is Rs. 30,000 crore.
  • 20. Legislative Measures a. Environmental Laws & Regulations 1. Environment Protection Act, 1986 – Provides a legal framework for environmental protection. 2. Air (Prevention and Control of Pollution) Act, 1981 – Regulates air pollution by controlling emissions from industries and vehicles. 3. Water (Prevention and Control of Pollution) Act, 1974 – Regulates water pollution and ensures clean water sources. 4. Noise Pollution (Regulation and Control) Rules, 2000 – Sets noise limits for industries, vehicles, and public places. 5. E-Waste Management Rules, 2016 – Regulates electronic waste disposal and recycling. 6. Plastic Waste Management Rules, 2016 (Amended in 2021) – Phases out single-use plastics and promotes recycling.
  • 21. National Action Plans  National Green Tribunal (NGT) (2010) – A specialized court for handling environmental cases.  National Clean Air Programme (NCAP) (2019) – Aims to reduce air pollution by 20-30% by 2024 in 122 cities.  National Biodiversity Action Plan (NBAP) – Focuses on conserving biodiversity and ecosystems.
  • 22. Bans & Restrictions  Ban on Single-Use Plastic (2022) – Phases out plastic items like straws, plates, and cutlery.  Odd-Even Scheme (Delhi) – Restricts vehicles on roads based on odd/even-numbered plates to reduce pollution.  Construction and Demolition Waste Management Rules (2016) – Regulates waste from construction activities.
  • 23.  Ash utilization is an industry in itself and fly ash based industry needs to be developed at the thermal power plants in the immediate vicinity and the ash dump areas. It will provide employment opportunities to many in the nearby villages.  It is used in Portland cement concrete to improve the concrete performance. When fly ash particles combines with water and free lime present in the cement matrix, produce additional cementitious materials (pozzolanic activity of fly ash) which results in denser and higher strength concrete.
  • 24. Global Warming Global warming refers to the long-term rise in Earth's average surface temperature due to human activities, particularly the emission of greenhouse gases (GHGs) like carbon dioxide (CO ), methane (CH ), and nitrous ₂ ₄ oxide (N O). ₂  Causes of Global Warming: 1. Burning of Fossil Fuels 2. Deforestation 3. Industrial Activities 4. Agriculture & Livestock Farming 5. Waste Management
  • 25.  Effects of Global Warming 1. Rising Temperatures 2. Melting Ice Caps & Rising Sea Levels 3. Extreme Weather Events 4. Threats to Biodiversity 5. Food and Water Shortages 6. Health Risks  Solutions to Global Warming 1. Use of Renewable Energy 2. Energy Efficiency 3. Afforestation & Reforestation 4. Sustainable Transportation 5. Reduce, Reuse, Recycle 6. Government Policies & Global Agreements 7. Carbon Capture & Storage (CCS) 8. Public Awareness & Education
  • 27. Sustainable development is a development approach that meets the needs of the present without compromising the ability of future generations to meet their own needs. It aims to balance economic growth, social inclusion, and environmental protection to ensure long-term sustainability Sustainable Development
  • 28.  Sustainable Development Goals (SDGs):  The United Nations (UN) Sustainable Development Goals (SDGs) include 17 global goals, such as:  No Poverty  Zero Hunger  Quality Education  Clean Water and Sanitation  Affordable and Clean Energy  Climate Action  Responsible Consumption and Production  Importance of Sustainable Development:  Environmental Conservation: Prevents deforestation, pollution, and loss of biodiversity.  Economic Stability: Encourages green jobs and sustainable business models.  Social Well-being: Improves quality of life through better healthcare, education, and equality.  Climate Change Mitigation: Reduces greenhouse gas emissions and promotes resilience to climate impacts.
  • 30. Carbon Credit Accounting  Definition  Carbon Credit Accounting refers to the process of measuring, recording, and managing carbon credits, which are tradable certificates representing the right to emit one metric ton of CO or ₂ equivalent greenhouse gases (GHGs).  It plays a crucial role in environmental sustainability and compliance with international climate policies.  Carbon credit accounting refers to the process of tracking, managing, and reporting carbon credits earned or purchased by an organization or country. It involves measuring greenhouse gas (GHG) emissions, implementing strategies to reduce emissions, and ensuring compliance with regulatory frameworks or voluntary carbon markets.  A carbon credit represents one metric ton of CO (or equivalent greenhouse gas) removed, avoided, ₂ or reduced from the atmosphere. These credits can be traded in markets to offset emissions.
  • 31. Carbon credit accounting includes: 1. Emission Measurement: Quantifying the carbon footprint of an organization. 2. Reduction Strategies: Implementing renewable energy, afforestation, and efficiency measures. 3. Certification & Validation: Getting credits certified through global or national standards (e.g., UNFCCC, Gold Standard, VCS). 4. Trading & Reporting: Selling or purchasing credits in compliance or voluntary markets.
  • 32. Importance  Helps organizations and countries track their carbon footprint.  Encourages businesses to reduce emissions through market-based incentives.  Supports global efforts in achieving carbon neutrality and meeting climate commitments like the Paris Agreement.
  • 33. How to Get Carbon Credit in India?  In India, carbon credits can be obtained through compliance markets (under Kyoto Protocol, Paris Agreement) or voluntary markets.  Steps to Obtain Carbon Credit: 1. Identify a Carbon Reduction Project a. Renewable energy projects (solar, wind, hydro) b. Energy efficiency initiatives c. Waste management & methane capture d. Reforestation and afforestation e. Sustainable agriculture 2. Quantify Emission Reductions a. Conduct a carbon footprint assessment. b. Use methodologies from CDM (Clean Development Mechanism), Verified Carbon Standard (VCS), or Gold Standard.
  • 34. 3. Register the Project with a Certifying Body a. Register with Indian Carbon Market (ICM), UNFCCC CDM, Gold Standard, or VCS. b. Submit documents and proof of emission reductions. 4. Validation & Verification c. Third-party verification agencies like Bureau Veritas, SGS, or TUV NORD validate emissions savings. d. Issuance of Carbon Credits e. Upon successful verification, credits are issued and can be traded. 5. Sell or Trade Carbon Credits f. Sell in Indian Carbon Market (ICM), voluntary carbon markets, or international exchanges.
  • 35. Indian Carbon Credit Market & Regulations a. Indian Carbon Market (ICM): India launched its compliance carbon credit market in 2023. b. Perform, Achieve & Trade (PAT) Scheme: Managed by Bureau of Energy Efficiency (BEE) for energy-intensive industries. c. Renewable Energy Certificates (REC): Tradable units for renewable power generation.  Key Players in Carbon Credit Trading in India a. National Stock Exchange (NSE) & Bombay Stock Exchange (BSE) (upcoming carbon markets). b. Private Voluntary Market Platforms (e.g., Climate Impact X, South Pole). c. International Buyers (EU-ETS, voluntary buyers).