Carbon credits offer us a Rs 28,000-cr opportunity
Leslie D'Monte / New Delhi Dec 11, 2009, 00:44 IST
The Indian government has approved more than 1,400 projects as part of the Clean Development Mechanism (CDM) that could attract around $6 billion(Rs 28,000 crore) into the country by 2012 through sale of Certified Emission Reduction (CER) certificates, according to Environment and Forests minister Jairam Ramesh.
The National CDM Authority (NCDMA) in India has accorded Host Country Approval to 1,455 projects. These projects have seen an investment of more than $33.7 billion(Rs 1.6 lakh crore). If all these projects get registered at the CDM executive board, it will earn developers over 600 million CERs by 2012. At a conservative price of $10 per CER, the figure works out to a little over $6 billion.
“This is the potential foreign direct investment (FDI) that India stands to earn from carbon credits. In fact, 10 per cent of India’s annual greenhouse gas (GHG) emissions can be neutralised because of this,” Ramesh told Business Standard, adding: “India may be the second-largest country in terms of the number of CDM projects (after China) but is the best in terms of implementing them.”
Carbon-efficient projects in India, China, and other developing nations, however, are facing uncertainty over the new compliance rules post 2012 since the Copenhagen Agreement is expected to establish a new sectoral carbon market-crediting mechanism with focus on the Clean Development Mechanism (CDM) in less developed countries (LDCs).
In fact, despite the promise that carbon credits hold, the number of Indian carbon offset projects proposals submitted every day to India’s national authority — that is, CDM India — has reduced approximately by 30 per cent, according to Mayank Batra, Research Analyst (Environment and Building Technologies), South Asia & Middle East, Frost & Sullivan.
Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of GHGs. One Carbon Credit is equal to a tonne of carbon. Carbon trading is an application of an emissions trading approach. There are two broad methods of earning carbon credits. Carbon Offset Credits, which consist of clean forms of energy production, wind, solar, hydro and biofuels. And Carbon Reduction Credits which comprise the collection and storage of carbon from the atmosphere through biosequestration (reforestation, forestation), ocean and soil collection and storage efforts.
“Project-financing activity has also declined, as people are looking at Copenhagen for future developments and buyers are not willing to enter into deals that have post-2012 delivery,” says Batra.
Asia is the leading supplier of CERs in the global carbon market, holding approximately 77 per cent of the share. Over 3,714 projects are developed under CDM all over Asia. Most of these are the future-installed power projects, which will have a capacity of around 58 Gw in hydro, wind, biomass, geothermal, biogas, landfill gas, solar, tidal, energy efficiency-based own generation, and coal bed/coal mine methane sectors.
India, on its part, has generated around 30 million carbon credits, and approximately 140 million are in pipeline. Around 225 Indian projects in the fields of biomass, cogeneration, hydropower, and wind power with a potential of 225 million CERs have been registered. Carbon offsets from solid waste projects, too, will see a rise. At present, the Indian solid waste management market is witnessing tremendous growth. Currently it is valued at around $155.56 million (Rs 728 crore) and is expected to grow at a rate of around 20 to 25 per cent in the next three to five years.
sir/madam, I have more than 100 acres of land and a garden which has more than 700 trees. how can i get carbon credit from it and from where I get the proper knowledge of carbon credit in india
sir,
i am planning to do a project of designing solar photo voltaic in my college .can you please help me in getting carbon credit by showing the proper channel for getting it and also different technical details
I am having 60 acres of land in my village.
I am thinking to make vine yard over there.
Please advise me that how i can get benefit from carbon credit.
We are interested to known about carbon credits.we are manuacturing and
project consulting of bio-gas plant,solar equipments,wind mill so many
in renewable energy.
i am having 10 acres of land and intrested develop it can i know what types of trees to grow which is use full for our environment and also to earn profits from the same
Just another tool by US to park their printed extra dollars. I am not sure when these emerging economic guys will realise this game played by US since many decades. Paying a fine or paying for low carbon credits do not solve the environmental problem.
sir, i want to know about the carbon credits. As we are making the briquettes(biomass fuel)made from the agricultural waste.Its eco friendly and do not create pollution.
Posted by: JP
June 06 , 2010, 15:25 IST
Hi Manisha, I got you in searching of carbon credits. Can you pls. help me to know more about biomass fuel.my mail id-jpray2005@yahoo.com.
J.P.Ray
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