NCDEX in talks with banks to fund CER sales

In an attempt to revive carbon futures on National Commodity and Derivatives Exchange (NCDEX), the exchange has approached some banks to provide instant funds to certified emission reduction sellers on the exchange, a senior exchange official said.

“We are in talks with some banks that can provide immediate finance to projects selling their CERs on the platform,” Unupom Kausik, chief business officer of the exchange said.

The December CER contract launched by the exchange in April evoked good response and was the top traded emission contract in the world in the initial months.

However, volume in the contract started dwindling from mid-July and in the last three sessions only six lots (of 500 CERs) were traded on NCDEX.

 

According to Kausik, companies that have received carbon credits from their green projects need immediate cash for viability funding to these projects. However, +near-month contract that will expire only in December is still four months away before sale value can be realised.