By Shubhangi Verma*
| SL.NO. | Extract from Consultation Paper | Issues (with page/para nos. if applicable | Proposals/Suggestions | Rationale |
| 1. | Scope for Blue Bonds in India | 9 (pg. 7) | ||
| 2. | Oceanic Resource Mining | 9.1 (pg. 7) | All of the minerals listed here, including Nickel, Cobalt, and Manganese, find a wide array of uses, from consumer products to defense hardware. In 2002, India and ISA inked a contract for prospective mining. The fact that we haven’t been successful in developing an environment friendly technology that would aid us in extracting these resources in a commercial and viable fashion creates a big stand still in front of us. The present technologies aren’t sufficient to avoid undesirable and harmful effects on the water column (stated by National Institute of Oceanography). Also as per the MoES the current extraction method is uneconomical too. Therefore before financing in this field is pondered upon it would be more beneficial if we make attempts towards bettering the present technologies. The finances and investments can be instead channelized towards scientific and technological research in the domain and also towards the analyses of potential impact assessment. Even Foreign investments can be attracted via FDI for R&D. All this needs to be done keeping in mind the environmental impact of the activity. In the current scenario there are lower and minimal possibilities of investors agreeing to invest in such uneconomical projects which don’t have any green solution. | The whole nation’s nickel need is satisfied by imports, based on the Indian Bureau of Mines’ (IBM) 2016 Minerals Yearbook on Nickel. Consecutively IBM also mentions seafloor nodules as a prospective resource for these minerals. Despite this being an economically efficient sector, the environmental consequences of this exploration and extraction are still not fully understood. They exist as polymetallic nodules on the seafloor at a depth of about 5 kilometers. Till date, the successful testing of deep sea mining has been possible till a depth of only 500 meters(by National Institution of Ocean Technology under the Polymetallic Nodule Programme). The entire purpose of Blue Bonds will fail if we fail to preserve the valuable ecosystem in our oceans. The Census of Diversity of Abyssal Marine Life (CeDAMar) has found out that of out of every two samples taken from deep sea, one of them is unique in terms of flora, fauna and ecological composition. So therefore the argument that mining is usually done in a small portion which will probably not be enough to destroy the water column in that area is flawed. We don’t afford to destroy the things that we are yet to understand and discover completely. |
| 3. | Sustainable Fishing | 9.2 (pg. 8) | Investors should have assurance that incorporating social and environmental viability into aquaculture will produce a significant value for money, as well as confidence about the unique difficulties and points of interest in wild-caught fishing industry. As per the Rockefeller Foundation 40 percent of fisheries are thought to be overfished or have failed, compared to just 8.5% of worldwide yields in sustainable fisheries. These species may be preserved with the help of impact market investors. In Tamil Nadu, where shoreline fishery villages experienced substantial damages in the massive tsunami of 2004, 200 artificial reefs have been placed for the re-establishment of fish ecosystems in 12 designated places. According to an early assessment and local fishermen, the reefs have enhanced the fisheries viability for specific fish species including perch and carangids. The small-scale hook and line fishermen, who have claimed a nearly 50% rise in revenues linked to reef fishery and a massive decrease in vessel energy use, are the immediate recipients. Investment can be drifted towards such projects which amalgamate innovation along with sustainability for increased profits and preservation. To encourage a shift in behavior toward sustainable techniques, financing must be directed at fishing operations. Despite this demand, there aren’t many forums or finance tools available to direct funding into fisheries. Another thing that needs to be kept in mind is that environments in the ocean are far more dynamic than those on land. As a result, in order to successfully bring about changes over time in fisheries, management systems and investment strategies must be adaptable. | The small scale fishermen in India are the largest stakeholders in this case. The reason being their traditional approach with the use of older techniques which cause more harm than good. Investment at this level is also very low. Major investments are directed towards larger firms which already are better equipped as compared to the small scale fishermen both in terms of economic viability and sustainability. There is a rising need to use private capital since government funds are becoming scarcer as we have numerous problems to solve at once. |
| 4. | National Offshore Wind Energy Project | 9.3 (pg 8) | This is a potential investment area as far as Blue Bonds are concerned. India has a 7600 km long coastline which comes to our benefit. Up to 2040, Nation’s energy consumption is expected to increase by 3% annually, and sustainable power alternatives would be necessary to satisfy this demand. Offshore wind energy will aid in achieving this goal, despite the fact that its contributions may be minimal. According to an evaluation by the National Organization of Wind Energy (NIWE), a R&D institute of the Indian government, 36 GW of wind energy offshore capability lies in India off the coastline of Gujarat and roughly 35 GW is available off the shore of Tamil Nadu. Offshore renewable technology is more costlier than onshore wind and solar technology, despite the fact that it may help India create greener technology. According to early assessments conducted by the 17th Standing Committee on Energy of the Lok Sabha, the expenditure of an offshore wind generator per megawatt would be two to three times more than that of an inland wind generator. Additionally, according to the GWEC assessment, there is no plan for “development and delivery of offshore wind grid Facilities,” that would transport the output from the offshore plant to its intended location. | Since green electricity sources are intermittent, offshore wind projects are also crucial for diversifying energy assets and reducing a region’s dependence on a single fuel source. Despite being greener than a coal-fueled generating station, an offshore wind turbine facility could still have a detrimental impact on the environment. For instance, the Gujarat Ecology Commission’s 2011 ecological overview of the Gulf of Khambhat describes it as “an ecologically fragile coastal area,” one of Gujarat’s key ecological ecosystem. An Environment Impact Assessment (EIA) study of the facility’s influence on “marine life, fishery, etc. US Department of Energy found out that offshore wind plants can have some serious environmental implications too like possibility of reducing, fragmenting, or degrading habitat for animals, fish, and plants. Additionally, flying animals like birds and bats may be harmed by turbine blades in motion. |
| 5. | Coral Degradation | 9.4 (pg 8) | In a Seychelles based massive and spectacular regeneration operation, which began in 2010, has efficiently relocated 24,000 of the 40,000 corals that were nurtured in submarine nurseries onto reefs, covering an area the equivalent of a football field. The research made use of the coral horticulture approach, which involves removing healthy coral pieces, growing them in safe conservatories, and then transferring them onto damaged reef to aid in its restoration. The team developed a Coral Reef Conservation Toolkit for use by other initiatives based on what it learned. On the same lines Mexico also began a pilot project targeting the Yucatan Peninsula’s Secore Coral. Similar initiative can be used in India which has coral reefs spread in patches all along the coastline at various locations. This can serve as tourism hotspot and generate revenue and can also be a ecological asset for the nation. There are high chances of investment in such projects as it’s unique in its own self and can give good benefits both monetary and under CSR. Previously companies have invested and have got great results. They have been able to bring about a change in the oceans. | Worldwide, corals require every bit of assistance, including capital available from business organizations for conservation initiatives. Pur Coral is a venture to protect and restore aquatic habitats in Pejarakan, Bali. It was developed in collaboration with Pur Project by the French dermo-cosmetics company EAU THERMALE AVNE. The use of cyanide and dynamite for fishery, which is now prohibited, had mostly decimated the corals. Avène has been involved in an eco-friendly campaign called “Skin Protect Ocean Respect” for a number of years to increase public understanding of the implications of sunblocks on the environment, notably on the sea species and reefs. Avène has also been a pioneer in restructuring its sunscreen product line to have less of an environmental effect while yet providing the body with the best UVB-UVA protection possible. |
| 6. | MARPOL | 9.5 (pg 8) | As per a notification released by Ministry of Ports, Shipping and Waterways, a lot of steps had been taken by Directorate General of Shipping to deal with the pollution of seas from ship generated pollution sources. Private entities can fund these processes through the method of Public Private Partnership. Greener ships can help reduce pollution at sea. Companies and organizations can invest in such initiatives which can help reduce pollution and fuel consumption at sea. Additionally Battery boats can be manufactured and used for shorter distances usually coast to coast ones wherein the passenger capacity is lesser. Also initiatives can be taken wherein solid waste management facility can be built at the ports. These facilities can be managed, constructed and run by the funds from blue bonds. Under this the categorization circular economy | Other pollution reduction methods may be implemented to boost fuel economy, allowing ships to consume lower fuel and emit fewer pollutants. For instance, the US Navy’s Green Fleet replaced its outdated lighting with energy-efficient LEDs. As part of their thermostat management programme, they have also replaced any broken parts in their water cooling systems and examined thermostats to make sure everything is functioning properly. Some ships have taken things a step beyond and added stern flaps, which alter the flow of water under the ship’s hull in order to lessen drag and boost fuel efficiency. Kongsberg Gruppen ASA is supplying rechargeable ship engines and constructing a simple electric cargo vessel in Norway, where the administration wants two-thirds of all boats transporting people and automobiles along the Atlantic coast to be electrified by 2030.” |
| 7. | Geoengineering Techniques | 9.6 (pg 8) | The term “geoengineering” refers to a broad range of planned, large-scale operations that have been proposed to either reduce or even halt the impacts of global warming. For ocean fertilization to be effective, a relatively low amount of iron must be used to produce significant changes in algal efficiency. The resultant algal bloom must then sink to the seafloor and become incarcerated in sediment, removing carbon from the atmosphere and removing it from the earth’s carbon cycle. According to numerical simulations, the extent of this adsorption might be significant. A study by Buesseler and Boyd shows that despite producing blooms that spanned tens of thousands of kilometres of surface of the ocean, field testing and analysis of iron-enrichment trials in the southern oceans reveal that area requirements are considerably greater than indicated in concept and that far lesser carbon reaches the seabed than predicted. Ocean fertilization does not appear to be a feasible or efficient solution, aside from the possibly significant biological consequences on the ocean. Concepts for geoengineering have come under harsh criticism at both the moral and practical level. By modifying other aspects of the earth’s climate, geoengineering tries to mitigate the impacts of green house gases generally to stop increasing warming. The outcomes of climate change, particularly those on water body equation, may not all be offset by warming, and it might have unforeseen consequences. Another issue that is contended is that suggestions may provide rich nations with a justification to maintain CO2 emissions and eschew taking part in strong global endeavors to mitigate climate change, according to the humanitarian criticism of the technology. Geoengineering proposals have the potential to divert attention away from viable methods since none of them has yet proven to have any quantifiable influence on climate change. Therefore because of being in the naïve stage there is high chance of lower investments in this domain. We need to build up on the concept with clarity before we open doors for investors in this sector. It would be better if the funds are instead used towards R&D in these fields. Also the aftermaths of high scale carbon sinking to the ocean floor and its impacts on the the ecology of the ocean is yet to be known. | |
| 8. | Blue Flag Beach | 9.7 (pg 8) | Blue Flag promotes open access to beachfront, commercial activities, and facilities, which helps economic growth and fights unemployment by boosting tourism. The programme is a three-year experiment conducted in collaboration with the National Department of Tourism by WESSA, the Blue Flag National Operator in South Africa. Only residents of the nearby, underprivileged communities who have experienced prior adversity are eligible to apply for these opportunities. The common critique of the Blue Flag Program is that it seems to prioritize services to tourists above interests in preserving environmental features or the needs and wishes of the local people. This needs to be kept in mind that the development of economy, localities and environment has to go on simultaneously. Prioritizing one over another won’t solve the matter. | Similarly in Greece, Non State Market Driven Governance System program, the authority is shared between the private enterprise and the government. Therefore it was seen that the private mariners are more interested in gaining blue flag certificates and developing them because tourism and related economy is promoted and sustainable practices are also promoted from there end. This contributes in ending poverty and hunger too and the factor of Corporate Social Responsibility enters here too. |
| 9. | Whether introducing coloured bonds (blue bonds for blue economy, yellow bonds for solar power) will help increase channels for funding to green projects? | 9.8 (b) (pg 8) | A subtype of green bonds called “blue bonds” is used to fund initiatives connected to marine protection. It also involves encouraging marine resources by guaranteeing clean, resilient, and environmentally friendly development. Of all the ESG bonds, blue securities are perhaps the most advanced. Businesses and governments are taking on a variety of debts in order to support ever-more-targeted strategies for combating climate impact in response to the record-high awareness of sustainable funding. While green bonds, which guarantee that their revenues would be used to finance wind farms or yellow bonds which claim to finance solar parks, are the dominant species, some of these designations have so far remained rather specialized. A benefit of the wider choice is the rising group of specialty funds with professional requirements, but it also increases the need for due diligence in an investment system that already lacks clarity due to inconsistent standards. Green bonds are well-liked in the power, transportation, and construction industries, and they are becoming more well-liked in industries like ICT and estate development. The marine, land, and waste sectors are becoming more and more enamored with blue bonds. Blue bonds can help projects that directly affect the ocean, oceans, and freshwater. Regulatory authorities can be made and installed which can have a significant impact on financial business and financial development. By establishing rules, encouraging investment instruments, enabling an adequate quantity of capital, and maintaining the highest degree of transparency and monitoring, they may ensure financial advisory markets operate successfully and effectively. Stakeholder engagement will increase as a consequence, and more investments and higher returns will follow. Regulators may take the lead in green bonds by giving lenders and borrowers the confidence to move forward with projects. If done consistently across all colour bonds, this could then guarantee that money is channeled in the right way and used for the right purposes and domains. The binding agreement must define how the revenues will be utilized on green initiatives in order for it to be considered a green bond and get the benefits there from. Significant environmental dividends should be provided by these green initiatives, which the issuer will evaluate and, when practical, document. If the securities are refinanced, the issuer must outline the schemes and short follow – up periods that will be used, as well as the proportion of money that will be used. | |
| 10. | Please offer comments on whether any additional policies/ schemes, if any? | 9.8 (c) (pg 8) | Manufacture of Ocean Friendly and Water Friendly Projects can also be covered under the ambit of Blue Bonds. Investments made along the production process, including the manufacturing, handling, and marketing of items that don’t pollute the marine bodies. The goal must be to reduce Nitrogen and Phosphorus loads in marine water. These projects may include production of enzyme based shampoos, detergents, bars which are free from phosphates. Also micro bead toothpaste in non plastic tubes can also be put in this category. These are just few basic products but the list is non exhaustive looking at the wide array of products that develop in the cosmetic industry daily in and out. Also for packaging purposes alternatives to plastics can be looked for. Constructions that stop chemical products, herbicides and pesticides, and mercury from leaking into regions near rivers or surface waters basins can be explored and developed upon. Mechanisms for reusing and transporting plastics, packages made of ecological and bioplastics in place of plastic, and the repurposing or recycling of plastic products in locations near water basins. Substitution of ecological and compostable fertilizers and additives in locations near water basins for artificial fertilizers that are phosphate- or nitrogen-based, or a significant reduction in the price per unit of products Utilization of plastics that have been reprocessed or used before in industrial processes in the nearby water basins. Solutions for urban sewage disposal that stop plastics, chemicals, or other contaminants from leaking into water basins. Sustainable ports, their management development and related logistical sector. |
Shubhangi Verma is a 4th-year member of the Kautilya Society at Dr. Ram Manohar Lohiya National Law University, Lucknow.
Kautilya Society, RMLNLU 
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