Legend has it that in 333 BC, Alexander (the Great), while holidaying in Gordian, chanced upon an intricate knot made of cornel bark. The knot supposedly held together an ox-cart to a pole. It was prophesied by an Oracle that the one who was able to disentangle the knot, would lord over Asia. After trying to sort out the ends, Alexander, in despair (though many claim it to be deftness), sliced the knot into half with his sword, producing the required ends and, in a way, finding the solution.

In a similar fashion, there is a complex puzzle that needs to be solved by mankind today. A knot that has got more complicated over the last century, especially in the past few decades. Unlike the one in Gordian, this knot is infinitely more complex and the stakes are much higher. Honestly, the survival of the human species is, to some extent, dependent on unravelling this knotthe Carbon Knot.

Carbon the Demon
Over the past few centuries, after the advent of the industrial revolution, we have been using nature with impunity and scant regard for ecological balance. In the quest for power and energy, companies have bored ocean floors or dug deep into mountains to find fossil fuels that drive almost everythingfrom a turbine wheel at an electricity plant to the wheel of our cars. But even as we use it, this fossil fuel (usually petrol and charcoal) releases CO2 (carbon dioxide) into the atmosphere, leading to what we know as the greenhouse effect. The process has increased by a great extent due to the economic boom and the addition of millions of cars on the road year after year.

According to the Intergovernmental Panel on Climate Change (IPCC) estimates, global greenhouse gas emissions rose by 70% between 1970 and 2004 and would rise by another 25-90% above the 2000 levels by 2030 without new restraints.

The IPCC report further states that world temperatures are likely to rise between 1.1-6.4Celsius by 2100, triggering more frequent floods, droughts, melting of icecaps, and threatening species extinction. Indeed, it is by far the largest problem that has been faced by the humans, and everyone needs to pitch in for the battle of survival, right from the government to the private sector to the individual. Even the non-polluting (direct emissions) IT sector needs to gear up and take a lead in unravelling the carbon knot, and set an example for the rest to follow. Not to mention a large amount of money can be generated by simply being green and clean.

And Came Carbon Trading
Labeled as clean development mechanism (CDM), and known more popularly as carbon trading, it has completely changed the way companies look at environment-friendly practices. There is little altruism, and more economic gains, that could be made out of CDM.

According to the Kyoto Protocol of 1997, all countries are required to reduce their greenhouse gas emissions by 5% (from 1990 levels) by 2012, else pay a price for it. A company that follows goof practices and savs on carbon emissions can change them into certified emission reductions (CERs) and sell them to companies in the developed world that are unable to achieve their emission cuts. This works wonders for Indian companies, and over the past few years, many have traded CERs worth in millions.

Companies like Gujarat Ambuja Cement, Jindal Vijayanagar Steel, Indian Rayon & Industries, Triveni Engineering, Balrampur Chini Mills, SRF, Gujarat Fluorochemicals, Birla Corporation, DCM Shriram, Oswal Woolen Mills, Tata Steel, Usha Martin, JK Cement, Birla Cement, Kalpataru Power Transmission, and others have already started projects under the CDM guidelines.

According to estimates, Indian companies that have hopped on the CDM bandwagon, from steel and sugar firms to utilities, could generate 500-600 mn CERs or nearly a quarter of a global traded total of 2.5 bn units by 2012. According to UNFCCC, the market for carbon trading has been estimated to be around $60 bn last year and is projected to grow in the coming days. India has become a power to reckon with in the CDM market. Till now, only energy-intensive industries have been making the most of CDM, but even IT companies stand to gain from the situation.

IT Goes Clean
While IT services companies may not contribute to climate change as much as, say, a coal mine, every single business should be concerned about climate change. Consumers increasingly demand climate-friendly products and services, and while businesses working against climate change will reap the early mover benefits, those who dont act will eventually lose market share. Not only from a marketing perspective, but also from the perspective of energy consumption, IT companies should be concerned about climate change as much as any other business, says Berenike Hartmann, marketing manager, Carbon Reduction Institute (CRI). In fact, Australia-based CRI has certified several IT companies as carbon neutral, for instance, Technically Yours (www.technically.com.au), Unlock Technology (www.unlocktechnology.com.au), and Vigilant Solutions (www.vgs.com.au).

According to David Cook, chief executive, the Natural Step International, companies need to first thoroughly assess their energy usage and then look at ways to cut them. So long we have been focussed on finding cleaner and better ways of generating power, but what we need to pay urgent attention to is using much lesser power than we currently do. Businesses need to examine everything they do. IT companies across the globe have been taking a lead in terms of energy efficiency and showing the path to rest of the world, he adds.

Internationally, IT companies have come out in a big way in reducing power usage. Recently, Google set up a huge solar power installation to power its infrastructure and reduce greenhouse gas (GHG) emissions. Other tech giants like Intel, AMD, Yahoo, Dell, Sun, HP, and Microsoft have joined hands in the Climate Savers Computing Initiative.

Meanwhile, there is some rumbling in India as well. Based on the Greenhouse Gas (GHG) Protocol, the World Resources Institute (WRI) and the Confederation of Indian Industries (CII) Green Business Centre have come up with a national voluntary greenhouse gas program for India.

The first step for IT companies is to measure carbon footprint and then find ways to reduce it. IT companies use electricity extensively for servers and big data centers, so they could look at ways in which they could reduce the usage of power by various means like investing in renewable energy (like solar energy) or buying products that are more energy efficient. They can also look at the Greenhouse Gas (GHG) Protocol, specific tools have been provided for the IT sector, for instance, on ways of cutting emissions from the use of electricity and business travel, says Pankaj Bhatia, business/climate change associate, WRI.

Bhatia further argues the need for Indian companies to pay more attention to climate change. Infosys is a global brand, and if Google and Microsoft have their climate change roadmap, why dont Infosys and other leading brands from India have one? IT giants from India should also come out with announcements to show they are working on green gas inventory and have a roadmap in place, he states.

According to the Organization for Economic Co-operation and Development (OECD) Environment and Science, Technology and Industry directorates, there are many ways that an IT services can go green. Implement life-cycle audits of their production processes to identify areas where energy efficiency can be improved, including production of equipment used, the use of the equipment and final disposal of equipment. More generally, they should also be involved in improving the energy efficiency of the business environment in which they work in India and abroad, and efforts to use energy sources with long-term sustainability, says an official from OECD.

Raking in the Moolah
Not only from the perspective of climate consciousness, good climate practices can result in big money as well. Recently, Chennai's Olympia Technology Park was one of the first commercial buildings in India to go in for carbon trading. IT companies have the potential for generating CERs as energy is consumed in the services provided by them. Any savings in the energy is obviously expected to lead to savings in GHG emissions into the atmosphere, which can otherwise be converted into CERs, if this can be documented and submitted as a project to the CDM Board. The CDM Board looks into the merits of the project and its additionality before approving the same for potential CER generation after its implementation, says Joseph Massey, DMD, MCX (read the complete interview for more details).

Companies like TCS, Wipro, and Infosys which employ thousands of employees could possibly show major reduction in carbon emissions by means of tele-working. If they are able to make a significant portion of their workforce, work from home, thereby reducing travel to and from office, and calculate the amount of energy saved, it could also qualify for CDM, agrees Vivek Kumar, associate fellow, TERI (Tata Energy Research Institute). It could be possible if they have done a thorough evaluation of their footprint and are able to prove that a significant amount of energy is saved. They could then be eligible for CER, he adds.

If Indian service giants were to invest in such an initiative and if it got approved, returns would be higher than the cost of the employees working from home. But sadly, Indian companies seem to be a bit tardy when it comes to climate change. Of the three, it was only Wipro that eagerly shared its plan and roadmap for the future, whereas global companies like Sun, IBM, and HP are carrying on green initiatives even in India.

Economics apart, is it possible for us to forget our cultural and national differences, and unite to combat the effects of climate change? Do we have it in us to be able to do so? No other option, says Allan Miller, principal project officer and climate change expert, International Finance Corporation (IFC), adding, Everyday, I dangle between hope and despair. There are times when I look at the numerous reports on glacial and Arctic ice melting; I feel that we have very little time on our hands. And then I look at the presidential candidates of the most polluting nations talking about climate change; I feel we might just be able to scrape through. I remember the last time we had come together successfully to plug the ozone hole. Likewise, the only way to solve the climate change crisis is globally, none else.

Two thousand and three hundred years ago, Alexander was able to solve the Gordian puzzle single-handedly, but it will take all of us to unravel the Carbon Knot that we ourselves have fashioned out of ignorance and indiscretion. Lets hope that we are able to unravel this knot as early as possible.

Shashwat DC
shashwatc@cybermedia.co.in

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