| DEG, the German developmental bank owned by KFW, would help the Indian small and medium size companies in carbon trading.
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| The bank would open a special consultancy cell for carbon trading in the country which would help the SME's to get approval from United Nations Framework Convention on Climate Change (UNFCC) for carbon trading.
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| This initiative could well be the first of its kind by any developmental financial institution in the country.
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| DEG was now a member of a consortium of 14 global DFI's which has a combined carbon fund of over 10 billion Euro.
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| The chairman of the board of management of DEG, Winfried Polte, said it would soon start the carbon trading consultancy here in India.
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| "We have divided the territory and DEG would look after India," he said.
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| He was in Kolkata on Monday in an one day visit to meet Srei Infrastructure Finance.
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| Srei was DEG's first investment in India.
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| According to Polte, KFW, the owner of DEG has a carbon fund of around 100 million Euro.
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| Describing carbon trading as one of the biggest businesses of the future, Polte said that non conventional energy sector like mini hydel, solar, biomas and wind power has great potential in carbon trading.
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| "With the July 2007 dateline for carbon trading approaching, carbon units will become more and more expensive, so SMEs in India should tap this opportunity at earliest. We could help them in selecting the right methodology for UNFCC approval," he said.
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| DEG had set a target for additional exposure of 50 million Euro in India in the current financial year.
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| The total exposure of the DFI in India was around 250 million Euro.
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| According to Polte, the main thrust of DEG in India would be on the non-conventional energy sector like mini-hydel, solar, wind and biomass projects.
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| "We have to go for non conventional energy sources as the sources of conventional energy is limited," he said.
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| Besides energy, DEG would also invest in other areas of infrastructure and step up its funding in India as the quality of its portfolio was improving. |
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