It's the earth's latest currency, and
represents the auspicious intersection of climate
change science and business imperative. Carbon as
currency will have a peculiar presence. There will
be neither carbon coins nor carbon bills, nor guarded
bank vaults of carbon, nor armored cars to transport
carbon safe from theft, nor enforcers out to crack
carbon counterfeiting rings.
The Kyoto Protocol of the United Nations Framework
Convention on Climate Change (UNFCCC) has opened up
the market for trading of emissions of Green House
Gasses (GHGs). The recent Conference of Parties (CoP)
meet has generated tremendous interest in opportunities
emerging out of the Clean Development Mechanism (CDM).
With ratification of the Kyoto Protocol by India ,
the CDM Executive Board has operationalised most of
the methodologies critical to the development of CDM
projects. This has accelerated development of the
market for the CDM projects. The Kyoto Protocol has
three flexibility mechanisms, namely Clean Development
Mechanism (CDM), Joint Implementation (JI) and International
Emission Tradition (IET) through which one can commercially
transact the potential abatement of GHG emissions
of a project. Estimates of this potential put the
market size at about 1.5 billion tons of CO 2 equivalent.
There are varying estimates of the of the CDM potential
projects in India , the total value of emission reductions
is in the range of 150-200 million tons of CO 2 equivalent.
Considering that the cost effectiveness of emission
reductions generated is a key variable, the leading
sectors that have the potential for CDM projects include
Energy Efficiency & Conservation, Renewable Energy.
India has a major role to play in the Kyoto process,
offering opportunities in GHG emission reductions.
Opportunities in the renewable energy and performance
enhancing energy efficient retrofits are huge. Mainstream
power generation and industries located in un-organized
sector also offer rich opportunities. CDM can leverage
the transfer of technology and financial resources
to the renewable energy sector helping projects improve
their viability and faster financial closure
The cogen facility of the company is under one of
the approved methodology of UNFCC for reducing greenhouse
gases from the climate.
The company will be selling carbon
credits inder Kyoto protocol signed by most the nations
of the world.
