IDBI, Mitcon ink MoU for carbon credit services

 The two entities would also assist companies in selling the resultant carbon emission reduction (CER) units in the global markets, a release said here.

 IDBI has become the first public sector lender to take up this initiative in assisting domestic companies realise their CER generating potential. Under the arrangement, companies can get single-point assistance pertaining to origination and implementation of CDM projects, as well as advisory services on generation and trading of CERs.

"We want to assist Indian companies, both large and small, who are keen on implementing CDM and selling the resultant CERs generated in the global markets. While sale of CERs gives companies additional revenue, IDBI stands to gain by way of additional fee income," V P Shetty,  chairman of IDBI, said.

IDBI is currently working on some CDM projects in the textiles, steel, power, paper and sugar sectors and seeks to assist SMEs with CDM development.

It intends to pool CERs generated by SMEs and sell them globally in market lots of 50,000-1,00,000 CER units. This is significant as a typical SME in India can generate far lesser CERs annually than the international market lot.

Under the Kyoto Protocol, signed by over 150 countries, including India, the member-nations have to reduce emission of harmful gases that are depleting the ozone layer.