Media rap to hit carbon credits

could harm the existence of the clean development mechanism (CDM) scheme of the Kyoto Protocol, especially as countries are gearing up to frame a successor to the protocol that expires in 2012, an industry official said.
 
A report in The Financial Times daily, published from London, had recently said some companies were earning big profits from carbon trading by spending very less. In some cases, these companies register projects for which clean-ups would have been made anyway.
 
"A public backlash against the CDM could jeopardise its very existence at a time when the future of climate policy looks increasingly bright as shown by the G-8 summit," said Pamposh Bhat, director, climate change, GTZ CDM-India, reacting to the criticisms.
 
GTZ CDM-India is a bilateral programme of Germany and India, implemented through the Bureau of Energy Efficiency of India and German Technical Corp.
 
The agency has tied up with Central Electricity Authority, National CDM Authority, Union and state governments, and public and private companies to develop a carbon market in India. Developed countries are bound by the Kyoto Protocol to cut greenhouse gas emissions between 2008 and 2012 by at least 5 per cent of the 1990 level.
 
One way to cut emission is buying certified emission reductions, CERs or carbon credits, which are generated by clean development mechanism projects that reduce greenhouse gas emissions.
 
However, industry experts justify the lapses in the market saying that since the carbon market is in a nascent stage, such incidences are bound to happen as more companies try to cash in on the potential.
 
"The Executive Board's (UN) rejection recently of cement blending projects because of not fulfilling the additionality criteria is a step in the right direction," said Bhat, highlighting that the UN has recognised the need to tighten the norms for registration of projects.
 
Additionality means a carbon dioxide reduction project would not have occurred had it not been concerned about greenhouse gas emissions, for mitigation of which it uses specific technology. It also means that the project is not into business as other projects in general.
 
Efforts are on by various countries to develop the carbon market further.
 
"The G-8 summit declaration calls for an improved and strengthened CDM and the future of the climate policy looks increasingly bright," said Bhat.
 
According to Bhat, Indian carbon market is one of the biggest globally and the Designated National Authority has approved over 630 projects, which have potential to generate approximately 400 million carbon credits till 2012.
 
"Total potential in terms of revenue expected is around Euro 3 billion (Rs 17,200 crore) till 2012, assuming one credit at Euro 10 (Rs 574)," she said.
 
Till date, over 200 projects from India have registered with the UN carbon market regulator and majority of them are small-scale and renewable energy projects.
 
"The bigger volume projects sectors such as MSW (municipal solid waste), waste water, SF6 (sulphur hexafluoride), and PFC (perfluoro carbon) destruction, are yet to be tapped," she said.
 
Also, with exchanges such as MCX planning to start carbon credit trading in India, Bhat feels there is vast scope for the carbon credit market.
 
"In principle, with MCX's background and track record in commodities trading, it is very much feasible for them to trade carbon credits and this will open a carbon trading market in India," she said.
 
In India, commodity exchanges at present cannot trade in indices, but only in goods that can be actually delivered, and direct foreign participation in buying or selling of commodities is not permitted under the Forward Contracts (Regulation) Act.
 
Hence, to develop a carbon market in India soon, the act needs to be amended in the monsoon session of Parliament starting in August.
 
A carbon credit generated by an Indian project is seen fetching around Euro 13-16 (Rs 716-881) or 65-70 per cent of European Union allowance price for 2008 delivery of credits issued by the UN body, said Bhat.

 
 

image
Business Standard
177 22
Business Standard

Media rap to hit carbon credits

Newswire18  |  Mumbai 



could harm the existence of the clean development mechanism (CDM) scheme of the Kyoto Protocol, especially as countries are gearing up to frame a successor to the protocol that expires in 2012, an industry official said.
 
A report in The Financial Times daily, published from London, had recently said some companies were earning big profits from carbon trading by spending very less. In some cases, these companies register projects for which clean-ups would have been made anyway.
 
"A public backlash against the CDM could jeopardise its very existence at a time when the future of climate policy looks increasingly bright as shown by the G-8 summit," said Pamposh Bhat, director, climate change, GTZ CDM-India, reacting to the criticisms.
 
GTZ CDM-India is a bilateral programme of Germany and India, implemented through the Bureau of Energy Efficiency of India and German Technical Corp.
 
The agency has tied up with Central Electricity Authority, National CDM Authority, Union and state governments, and public and private companies to develop a carbon market in India. Developed countries are bound by the Kyoto Protocol to cut greenhouse gas emissions between 2008 and 2012 by at least 5 per cent of the 1990 level.
 
One way to cut emission is buying certified emission reductions, CERs or carbon credits, which are generated by clean development mechanism projects that reduce greenhouse gas emissions.
 
However, industry experts justify the lapses in the market saying that since the carbon market is in a nascent stage, such incidences are bound to happen as more companies try to cash in on the potential.
 
"The Executive Board's (UN) rejection recently of cement blending projects because of not fulfilling the additionality criteria is a step in the right direction," said Bhat, highlighting that the UN has recognised the need to tighten the norms for registration of projects.
 
Additionality means a carbon dioxide reduction project would not have occurred had it not been concerned about greenhouse gas emissions, for mitigation of which it uses specific technology. It also means that the project is not into business as other projects in general.
 
Efforts are on by various countries to develop the carbon market further.
 
"The G-8 summit declaration calls for an improved and strengthened CDM and the future of the climate policy looks increasingly bright," said Bhat.
 
According to Bhat, Indian carbon market is one of the biggest globally and the Designated National Authority has approved over 630 projects, which have potential to generate approximately 400 million carbon credits till 2012.
 
"Total potential in terms of revenue expected is around Euro 3 billion (Rs 17,200 crore) till 2012, assuming one credit at Euro 10 (Rs 574)," she said.
 
Till date, over 200 projects from India have registered with the UN carbon market regulator and majority of them are small-scale and renewable energy projects.
 
"The bigger volume projects sectors such as MSW (municipal solid waste), waste water, SF6 (sulphur hexafluoride), and PFC (perfluoro carbon) destruction, are yet to be tapped," she said.
 
Also, with exchanges such as MCX planning to start carbon credit trading in India, Bhat feels there is vast scope for the carbon credit market.
 
"In principle, with MCX's background and track record in commodities trading, it is very much feasible for them to trade carbon credits and this will open a carbon trading market in India," she said.
 
In India, commodity exchanges at present cannot trade in indices, but only in goods that can be actually delivered, and direct foreign participation in buying or selling of commodities is not permitted under the Forward Contracts (Regulation) Act.
 
Hence, to develop a carbon market in India soon, the act needs to be amended in the monsoon session of Parliament starting in August.
 
A carbon credit generated by an Indian project is seen fetching around Euro 13-16 (Rs 716-881) or 65-70 per cent of European Union allowance price for 2008 delivery of credits issued by the UN body, said Bhat.

 
 

RECOMMENDED FOR YOU

Media rap to hit carbon credits

Media criticisms on the authenticity of projects registered with the UN carbon market regulator could harm the existence of the clean development mechanism (CDM) scheme of the Kyoto Protocol,
could harm the existence of the clean development mechanism (CDM) scheme of the Kyoto Protocol, especially as countries are gearing up to frame a successor to the protocol that expires in 2012, an industry official said.
 
A report in The Financial Times daily, published from London, had recently said some companies were earning big profits from carbon trading by spending very less. In some cases, these companies register projects for which clean-ups would have been made anyway.
 
"A public backlash against the CDM could jeopardise its very existence at a time when the future of climate policy looks increasingly bright as shown by the G-8 summit," said Pamposh Bhat, director, climate change, GTZ CDM-India, reacting to the criticisms.
 
GTZ CDM-India is a bilateral programme of Germany and India, implemented through the Bureau of Energy Efficiency of India and German Technical Corp.
 
The agency has tied up with Central Electricity Authority, National CDM Authority, Union and state governments, and public and private companies to develop a carbon market in India. Developed countries are bound by the Kyoto Protocol to cut greenhouse gas emissions between 2008 and 2012 by at least 5 per cent of the 1990 level.
 
One way to cut emission is buying certified emission reductions, CERs or carbon credits, which are generated by clean development mechanism projects that reduce greenhouse gas emissions.
 
However, industry experts justify the lapses in the market saying that since the carbon market is in a nascent stage, such incidences are bound to happen as more companies try to cash in on the potential.
 
"The Executive Board's (UN) rejection recently of cement blending projects because of not fulfilling the additionality criteria is a step in the right direction," said Bhat, highlighting that the UN has recognised the need to tighten the norms for registration of projects.
 
Additionality means a carbon dioxide reduction project would not have occurred had it not been concerned about greenhouse gas emissions, for mitigation of which it uses specific technology. It also means that the project is not into business as other projects in general.
 
Efforts are on by various countries to develop the carbon market further.
 
"The G-8 summit declaration calls for an improved and strengthened CDM and the future of the climate policy looks increasingly bright," said Bhat.
 
According to Bhat, Indian carbon market is one of the biggest globally and the Designated National Authority has approved over 630 projects, which have potential to generate approximately 400 million carbon credits till 2012.
 
"Total potential in terms of revenue expected is around Euro 3 billion (Rs 17,200 crore) till 2012, assuming one credit at Euro 10 (Rs 574)," she said.
 
Till date, over 200 projects from India have registered with the UN carbon market regulator and majority of them are small-scale and renewable energy projects.
 
"The bigger volume projects sectors such as MSW (municipal solid waste), waste water, SF6 (sulphur hexafluoride), and PFC (perfluoro carbon) destruction, are yet to be tapped," she said.
 
Also, with exchanges such as MCX planning to start carbon credit trading in India, Bhat feels there is vast scope for the carbon credit market.
 
"In principle, with MCX's background and track record in commodities trading, it is very much feasible for them to trade carbon credits and this will open a carbon trading market in India," she said.
 
In India, commodity exchanges at present cannot trade in indices, but only in goods that can be actually delivered, and direct foreign participation in buying or selling of commodities is not permitted under the Forward Contracts (Regulation) Act.
 
Hence, to develop a carbon market in India soon, the act needs to be amended in the monsoon session of Parliament starting in August.
 
A carbon credit generated by an Indian project is seen fetching around Euro 13-16 (Rs 716-881) or 65-70 per cent of European Union allowance price for 2008 delivery of credits issued by the UN body, said Bhat.

 
 
image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

  • Indian stocks end two-day advance as Infosys drops Indian stocks end two-day advance as Infosys drops
  • A sample of sugar crystals are seen on the desk of a trader at a wholesale market in Kolkata Sugar mills post stellar profit growth in April-June

STOCK WATCH

Company Price() Chg(%)
GVK Power Infra. 6.66 8.12
Trident 49.80 7.21
Orient Cement 184.90 6.88
Syngene Intl. 460.75 5.99
Inox Leisure 275.30 5.76
> More on BSE Gainers
Company Price() Chg(%)
GVK Power Infra. 6.65 8.13
Puravankar.Proj. 50.00 7.64
Trident 49.90 7.43
Orient Cement 184.75 6.79
Inox Leisure 276.75 6.40
> More on NSE Gainers
Company Price() Chg(%)
Welspun India 54.40 -8.26
Astrazeneca Phar 1078.10 -5.47
Torrent Pharma. 1612.00 -5.25
Manappuram Fin. 81.45 -4.74
Sequent Scien. 139.25 -4.00
> More on BSE Gainers
Company Price() Chg(%)
Welspun India 54.05 -9.16
Torrent Pharma. 1612.20 -5.22
Manappuram Fin. 81.30 -5.13
Astrazeneca Phar 1080.25 -5.11
KPIT Tech. 129.60 -4.32
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard