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Bisleri proposes water credit system for beverage industry
Mumbai: Packaged water maker Bisleri is looking to introduce water credits similar to carbon credits, with the aim of making beverage makers more responsible for their water use.
The company partnered with the TERI School of Advanced Studies to conduct a study that would set a benchmark for the beverage industry’s commitment to water conservation.
The study assumes importance given that several major beverage manufacturers have been criticized for extracting water from water-scarce areas. Several companies now report initiatives to replenish the water used during their manufacturing process.
Green credit for water conservation
Bisleri said he will share his findings with the central government to facilitate discussions and develop a framework, advancing the concept of water credits for the beverage industry.
“The water sector can generate green credits through water conservation, water collection and efficient water use, including the treatment and reuse of wastewater,” the company said. This will be similar to how companies buy credits to offset their emissions.
“This report is about proposing a model to the government – they can use it and elaborate on it. Therefore, we are requesting the government to establish a platform as soon as possible, similar to carbon credits, using this as a model,” Angelo George, CEO of Bisleri International said in an interview.
Water saving requires localized approaches
The study aimed to review national and international practices and policies on water trading, water credits and fiscal instruments and develop a methodological framework for estimating the water footprint of a production unit. The study also tested and estimated the water footprint of two Bisleri production units on two different plots of land.
Unlike carbon emissions, saving water requires a localized approach, taking into account variables such as precipitation and consumption at the river basin level, he said.
Problem of water scarcity
In India, 11 of the 15 major river basins will experience water pressure by 2025, with an annual per capita water availability of less than 1,700 cubic meters, according to data from the Council on Energy, Environment and Water, a New Delhi-based think tank. .
Bisleri’s move also comes after the government notified a Green Credit Program (GCP) in October 2023. The CPG is a market-based mechanism designed to incentivize voluntary environmental actions across sectors, by various stakeholders such as individuals, communities, private sector industries, and businesses. In its initial phase, the CPG will focus on two main activities, namely water conservation and afforestation. However, there is still no official platform that allows the trading of green credits in India.
Beverage industry professionals said that although the idea is new, it may face challenges in implementation. “This is a responsible way for the industry to be more water efficient, although several large companies are already replenishing the water they use,” said a senior beverage industry executive, speaking on condition of anonymity.
Furthermore, groundwater use in India is already governed by several national and state rules that restrict the amount of water that companies can extract for industrial and commercial use.
For example, bottled water companies must obtain the necessary No Objection Certificates (NOC) for groundwater extraction and then take steps for groundwater replenishment. Bottled water units are also penalized for exceeding the minimum groundwater abstraction quantum. Groundwater abstraction rates for packaged drinking water units vary across safe, semi-critical and critical rating units as per the rules laid down by the Central Groundwater Authority. However, companies also use other sources, such as surface or municipal water, whose rates are different.
Others said the move is broadly aligned to step up sustainable and eco-friendly practices followed by companies.
“If companies are able to follow efficient water use practices and earn credits, their processes will be considered more environmentally friendly, because they will reduce their water footprint. Furthermore, internationally, your product will be more accepted, because you are contributing to environmental conservation. Third, is that it also reduces regulatory and reputational risk for organizations, said Nitin Bassi, senior program lead for the sustainable water team at the Council on Energy, Environment and Water (CEEW).
However, Bassi warns that creating a benchmark water footprint for the industry can have its challenges, given the scale and scope of a given water unit. Smaller water units may be at a disadvantage when it comes to assessing their water footprint, as their technology may not be up to par with that implemented by larger companies. “Furthermore, when undertaking such projects, long-term validation of claims becomes a challenge,” he said.
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