1 Environmental Ethics

❑ Subject - Engineering Ethics

2 What Is Green Washing?
❑ Chapter - CONTEMPORARY ISSUES

3 The 5 Principles of Green Economy

❑ Topic- ENVIRONMENTAL ETHICS

Lecture No.- 13 By- Ashutosh Sir

Environmental Ethics Engineers as experimenters have certain duties towards environmental ethics, namely:
• Environmental ethics is the study of (a) moral issues concerning the environment, 1. Environmental impact assessment: One major but sure and unintended effect of
and (b) moral perspectives, beliefs, or attitudes concerning those issues. technology is wastage and the resulting pollution of land, water, air and even space.
Engineers in the past are known for their negligence of environment, in their activities. Study how the industry and technology affects the environment.
It has become important now that engineers design eco-friendly tools, machines, 2. Establish standards: Study and to fix the tolerable and actual pollution levels.
sustainable products, processes, and projects. These are essential now to (a) ensure 3. Counter measures: Study what the protective or eliminating measures are available
protection (safety) of environment (b) prevent the degradation of environment, and (c) for immediate implementation
slow down the exploitation of the natural resources, so that the future generation can 4. Environmental awareness: Study on how to educate the people on environmental
survive. practices, issues, and possible remedies.
What Is Greenwashing? The 5 Principles of Green Economy
Greenwashing is the process of conveying a false impression or providing misleading 1. The Wellbeing Principle
information about how a company's products are more environmentally sound. A green economy enables all people to create and enjoy prosperity.
Greenwashing is considered an unsubstantiated claim to deceive consumers into • The green economy is people-centred. Its purpose is to create genuine, shared
believing that a company's products are environmentally friendly. prosperity.
For example, companies involved in greenwashing behavior might make claims that • It focuses on growing wealth that will support wellbeing. This wealth is not merely
their products are from recycled materials or have energy-saving benefits. Although financial, but includes the full range of human, social, physical and natural capitals.
some of the environmental claims might be partly true, companies engaged in • It prioritizes investment and access to the sustainable natural systems, infrastructure,
greenwashing typically exaggerate their claims or the benefits in an attempt to mislead knowledge and education needed for all people to prosper.
consumers. • It offers opportunities for green and decent livelihoods, enterprises and jobs.
• It is built on collective action for public goods, yet is based on individual choices

2. The Justice Principle • It is based on solidarity and social justice, strengthening trust and social ties, and
The green economy promotes equity within and between generations. supporting human rights, the rights of workers, indigenous peoples and minorities,
• The green economy is inclusive and non-discriminatory. It shares decision-making, and the right to sustainable development.
benefits and costs fairly; avoids elite capture; and especially supports women's • It promotes empowerment of MSMEs, social enterprises, and sustainable livelihoods.
empowerment. • It seeks a fast and fair transition and covers its costs - leaving no-one behind, enabling
• It promotes the equitable distribution of opportunity and outcome, reducing vulnerable groups to be agents of transition, and innovating in social protection and
disparities between people, while also giving sufficient space for wildlife and reskilling.
wilderness.
• It takes a long-term perspective on the economy, creating wealth and resilience that
serve the interests of future citizens, while also acting urgently to tackle today's multi-
dimensional poverty and injustice.
3. The Planetary Boundaries Principle 4. The Efficiency and Sufficiency Principle
The green economy safeguards, restores and invests in nature. The green economy is geared to support sustainable consumption and production.
• An inclusive green economy recognizes and nurtures nature's diverse values – • An inclusive green economy is low-carbon, resource-conserving, diverse and circular.
functional values of providing goods and services that underpin the economy, It embraces new models of economic development that address the challenge of
nature's cultural values that underpin societies, and nature's ecological values that creating prosperity within planetary boundaries.
underpin all of life itself. • It recognises there must be a significant global shift to limit consumption of natural
• It acknowledges the limited substitutability of natural capital with other capitals, resources to physically sustainable levels if we are to remain within planetary
employing the precautionary principle to avoid loss of critical natural capital and boundaries.
breaching ecological limits. • It recognizes a 'social floor' of basic goods and services consumption that is essential
• It invests in protecting, growing and restoring biodiversity, soil, water, air, and natural to meet people's wellbeing and dignity, as well as unacceptable 'peaks' of
systems. consumption.
• It is innovative in managing natural systems, informed by their properties such as • It aligns prices, subsidies and incentives with true costs to society, through
circularity, and aligning with local community livelihoods based on biodiversity and mechanisms where the 'polluter pays' and/or where benefits accrue to those who
natural systems. deliver inclusive green outcomes.

5. The Good Governance Principle • It promotes devolved decision-making for local economies and management of
The green economy is guided by integrated, accountable and resilient institutions. natural systems while maintaining strong common, centralized standards,
• An inclusive green economy is evidence-based - its norms and institutions are procedures, and compliance systems.
interdisciplinary, deploying both sound science and economics along with local • It builds a financial system with the purpose of delivering wellbeing and
knowledge for adaptive strategy. sustainability, set up in ways that safely serve the interests of society.
• It is supported by institutions that are integrated, collaborative and coherent -
horizontally across sectors and vertically across governance levels - and with
adequate capacity to meet their respective roles in effective, efficient and accountable
ways
• It requires public participation, prior informed consent, transparency, social dialogue,
democratic accountability, and freedom from vested interests in all institutions -
public, private and civil society - so that enlightened leadership is complemented by
societal demand.
 ❑ Subject - Engineering Ethics
❑ Chapter - CONTEMPORARY ISSUES

❑ Topic- PUBLIC PRIVATE PARTNERSHIP

Lecture No.- 14 By- Ashutosh Sir

Introduction
Public-private partnerships involve collaboration between a government agency and a
private-sector company that can be used to finance, build, and operate projects, such as
public transportation networks, parks, and convention centers. Financing a project
1 Introduction through a public-private partnership can allow a project to be completed sooner or
make it a possibility in the first place.
2 Public-Private Partnership Model

3 Models of Public Private Partnership (PPP)

4 Problems with PPP Projects

Vijay Kelkar Committee Report on Revisiting

5 and Revitalising PPP Model
Public-Private Partnership Model: PPP is an arrangement between government and • Private entity is chosen on the basis of open competitive bidding and receives
private sector for the provision of public assets and/or public services. Public-private performance linked payments.
partnerships allow large-scale government projects, such as roads, bridges, or hospitals, • PPP route can be alternative in developing countries where governments face various
to be completed with private funding. constraints on borrowing money for important projects.
• In this type of partnership, investments are undertaken by the private sector entity, • It can also give required expertise in planning or executing large projects.
for a specified period of time.
• These partnerships work well when private sector technology and innovation
combine with public sector incentives to complete work on time and within budget.
• As PPP involves full retention of responsibility by the government for providing the
services, it doesn’t amount to privatization.
• There is a well defined allocation of risk between the private sector and the public
entity.

Models of Public Private Partnership (PPP) • BOO: In this model ownership of the newly built facility will rest with the private
• Commonly adopted model of PPPs include Build-Operate-Transfer (BOT) ,Build-Own- party.
Operate (BOO), Build-Operate-Lease-Transfer (BOLT), Design-Build-Operate-Transfer • On mutually agreed terms and conditions public sector partner agrees to ‘purchase’
(DBFOT), Lease-Develop-Operate (LDO), Operate-Maintain-Transfer (OMT), etc. the goods and services produced by the project.
• These models are different on level of investment, ownership control, risk sharing, • BOOT: In this variant of BOT, after the negotiated period of time, project is ransferred
technical collaboration, duration, financing etc. to the government or to the private operator.
• BOT: It is conventional PPP model in which private partner is responsible to design, • BOOT model is used for the development of highways and ports.
build, operate (during the contracted period) and transfer back the facility to the public • BOLT: In this approach, the government gives a concession to a private entity to build
sector.
a facility (and possibly design it as well), own the facility, lease the facility to the
• Private sector partner has to bring the finance for the project and take the responsibility
public sector and then at the end of the lease period transfer the ownership of the
to construct and maintain it.
facility to the government.
• Public sector will allow private sector partner to collect revenue from the users. The
national highway projects contracted out by NHAI under PPP mode is a major example
for the BOT model.
• DBFO: In this model, entire responsibility for the design, construction, finance, and Problems with PPP Projects
operation of the project for the period of concession lies with the private party. • PPP projects have been stuck in issues such as disputes in existing contracts, non-
• LDO: In this type of investment model either the government or the public sector availability of capital and regulatory hurdles related to the acquisition of land.
entity retains ownership of the newly created infrastructure facility and receives • Indian government has a poor record in regulating PPPs in practice.
payments in terms of a lease agreement with the private promoter. • Metro projects become sites of crony capitalism and a means for accumulating land
• It is mostly followed in the development of airport facilities. by private companies.
• Across the world PPPs are facing problems, performance of PPPs has been very mixed
according to study conducted by various research bodies.
• It is also argued that PPP is mere a ‘’language game” by governments who find it
difficult to push privatization, or when politically it is difficult to contracting out.

• Loans for infrastructure projects are believed to comprise a large share of the non- Vijay Kelkar Committee Report on Revisiting and Revitalising PPP Model
performing asset portfolio of public sector banks in India. • Finance Minister in the Union Budget 2015-16 announced that the PPP mode of
• In many sectors, PPP projects have turned into conduits of crony capitalism. infrastructure development has to be revisited and revitalised.
• Many PPP projects in infrastructure sector are run by “politically connected firms” • In pursuance of this announcement, a Committee on Revisiting & Revitalising the PPP
which have used political connections to win contracts. model of Infrastructure Development was set-up which was chaired by Dr. Vijay
• PPP firms use every opportunity for renegotiating contracts by citing reasons like Kelkar.
lower revenue or rise in costs which becomes a norm in India. • Key recommendations of the committee:
• Frequent renegotiations also resulted into drain of larger share of public resources. • Contracts need to focus more on service delivery instead of fiscal benefits.
• These firms create a moral hazard by their opportunistic behavior. • Better identification and allocation of risks between stakeholders
• Prudent utilization of viability gap funds where user charges cannot guarantee a
robust revenue stream.
• Improved fiscal reporting practices and careful monitoring of performance. • An Infrastructure PPP Adjudication Tribunal (“IPAT”) chaired by a Judicial Member
• Given the urgency of India’s demographic transition, and the experience India has (former Judge SC/Chief Justice HC) with a Technical and/or a Financial member,
already gathered in managing PPPs, the government must move the PPP model to the where benches will be constituted by the Chairperson as per needs of the matter in
next level of maturity and sophistication. question.
• Cost effectiveness of managing the risk needs to be evaluated. • Projects that have not achieved a prescribed percentage of progress on the ground
should be scrapped. Re-bid them once issues have been resolved or complete them
through public funds and if viable, bid out for Operations and Maintenance.
• Sector specific institutional frameworks may be developed to address issues for PPP
infrastructure projects.
• Umbrella guidelines may be developed for stressed projects that provide an
overall framework for development and functioning of the sector specific
frameworks.

• Unsolicited Proposals ("Swiss Challenge") to be discouraged to avoid information • An institutionalized mechanism like the National Facilitation Committee (NFC) to
asymmetries and lack of transparency. ensure time bound resolution of issues.
• Amend the Prevention of Corruption Act, 1988 to distinguish between genuine • Ensure adoption of principles of good governance by the Special Purpose Vehicle
errors in decision-making and acts of corruption. (SPV).
• Set up an institution for invigorating private investments in infrastructure, providing • Discourage government participation in SPVs that implement PPP projects unless
guidance for a national PPP policy and developments in PPP. strategically essential.
• Ministry of Finance to allow banks and financial institutions to issue Zero Coupon Bonds
which will also help to achieve soft landing for user charges in infrastructure sector.
• Encourage use of PPPs in sectors like Railways, Urban, etc. Railways to have an
independent tariff regulator.
• Set up an institute of excellence in PPP to inter alia guide the sector, provide policy
input, timely advice and undertake sustainable capacity building.
• Ensure integrated development of infrastructure with roadmaps for delivery of projects.