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Mawana Sugars to sell three lakh carbon credits to ADB

Press Trust of India  |  New Delhi 

Mawana Sugars has entered into an agreement with multilateral lending agency Asian Development Bank for selling three lakh CERs or carbon credits worth $6.24 million by 2012, a top company official said today.

Certified Emission Reductions (CERs) or carbon credits are permits to emit a tonne of carbon dioxide, awarded to enterprises that have shifted to cleaner technologies and have reduced their green house gases below their emission quota.

Uttar Pradesh-based Mawana Sugars has earned carbon credits by reducing its greenhouse gas emissions by generating power from bagasse. It is off-loading excess carbon credits to ADB.

"We have signed a forward deal with Asian Development Bank (ADB) for selling 3,00,000 CERs at $20.82 each," Mawana Sugars Managing Director Sunil Kakria told PTI.

The company has agreed to supply CERs for four years till 2012. So far, we have delivered 7,000 CERs out of 1.68 lakh CERs registered with the United Nations Framework Convention on Climate Change, he said, adding that the remaining CERs will be supplied in phases.

The company will be eligible for further credits as and when it expands, he added.

Going forward, Kakria said, "the company plans to trade CERs both in the domestic and international exchanges."

First Published: Tue, December 15 2009. 14:42 IST